Cellnex Telecom S.a. · BME:CLNX
Cellnex Telecom — Cellnex Telecom Sa Ord — 9M 2024 Earnings Presentation
28 slides from Cellnex Telecom's earnings presentation, Nov 11, 2024
Slide 1: 2024 Results Presentation January – September 2024
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 2024 Results Presentation January – September 2024 11th November 1
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 1 Solid performance of key metrics in the period, leading to EBITDAaL margin improvement +9.5% new organic PoPs vs. 9M 2023 (+6.3% equivalent) Total revenues ex-pass throughs €2,903Mn (+7.0% vs. 9M 2023). Organic revenues growth +7.4% (1) EB
Slide 4: Prioritizing FCF generation, deleveraging and acceleration of shareholder returns
An unconditional commitment to our Next Chapter objectives 2 Prioritizing FCF generation, deleveraging and acceleration of shareholder returns Ireland process on track, with antitrust review ongoing and closing expected by Q1 2025 Austria process on track, with all approvals obtained and closing by
Slide 5: Focus on value co-creation opportunities with clients and operational excellence
An unconditional commitment to our Next Chapter objectives 3 Focus on crystallizing value co-creation opportunities with clients and operational excellence Existing contractual relationship with MasOrange under advanced negotiation (non-binding arrangements already in place) in the context of their
Slide 6: Business Performance
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Slide 7: 9M 2024 Key Highlights
9M 2024 Key Highlights 1 2 3 4 5 6 New Sites (1) New Co-locations Organic Revenues Efficiencies Organic EBITDAaL FCF Growth Growth 3,348 5,687 €200Mn €70Mn +9.8% €326Mn Remarkable Solid performance +7.4% organic Cumulative savings Strong control on Backed by strong progress in France in Portugal, Fr
Slide 8: 9M 2024 Performance: Key financial metrics
9M 2024 Performance Key financial metrics Revenues Adjusted EBITDA (excluding pass-through) +7.4% Organic 2,713 2,903 2,386 +8.8% Organic 2,248 +c.6% +c.7% 83% (1) 82% (1) €Mn €Mn 9M 2023 9M 2024 9M 2023 9M 2024 EBITDAaL RLFCF 1,582 1,723 +9.8% Organic +c.9% 1,171 1,256 +c.7% 58% (1) 59% (1) 43% (1)
Slide 9: 9M 2024 Performance: Key operational metrics
9M 2024 Performance Key operational metrics New total PoPs (including BTS) +9.5% New co-locations +6.4% YoY YoY Eq PoP +6.3% Eq Eq PoP +2.9% Eq 6,589 4,844 4,951 3,390 2,306 2,048 1,655 1,278 1,019 3,003 3,026 713 2,002 1,576 1,524 1,365 1,572 974 582 547 Q3 2023 Q4 2023 Q1 2024 Q2 2024 Q3 2024 Q3 2
Slide 10: Organic revenue growth
9M 2024 Performance Organic revenue growth Organic revenue growth +7.4% 99 2,913 -10 2,903 42 59 2,713 €Mn Revenues (1) Escalators & CPI Co-location BTS Organic Change of Revenues 9M 2023 Revenues perimeter & others 9M 2024 (1) Excluding pass-through 10
Slide 11: Organic revenue growth – Business lines
9M 2024 Performance Organic revenue growth – Business lines +c.7.2% Organic Towers 75 2,399 -23 +c.6.2% 34 2,376 52 2,238 ARPT (2) €26.7k end 9M 2023 €27.7k end 9M 2024 €Mn Revenues (1) Escalators & CPI Co-location BTS Organic Change of Revenues 9M 2023 Revenues perimeter & others 9M 2024 Fiber, Con
Slide 12: Efficiencies plan
9M 2024 Performance Efficiencies plan Headcount (End of period) Cumulative efficiencies/synergies on leases CMD 2,877 3,018 2,866 2021-2025 (c.€90-100Mn) 2,735 c.150-160 2,008 c.90-100 €Mn c.75 70 54 34 15 2020 2021 2022 2023 9M 2024 2021 2022 2023 9M 2024 2024E 2025E 2027E Cumulative 12
Slide 13: Free Cash Flow
9M 2024 Performance Free Cash Flow €Mn Jan-Sep Jan-Sep Jan-Sep Jan-Sep 2023 2024 2023 2024 Towers 2,238 2,376 Recurring Levered FCF 1,171 1,256 Fiber, Connectivity & Housing Services 121 146 Expansion Capex -304 -313 DAS, Small Cells and RAN 165 186 Tower Expansion Capex -219 -203 Broadcast 188 194
Slide 14: Debt maturities profile
9M 2024 Performance Debt maturities profile 3,895 4,000 150 700 3,000 2,591 Liquidity c.€4Bn: c.€0.7Bn cash (2) and 850 280 c.€3.3Bn undrawn credit lines 2,206 61 2,088 2,000 1,739 500 1,885 Fixed rate debt c.80% 646 750 159 315 196 1,000 1,056 80 70 1,250 Gross debt (3) c.€18.2Bn bonds and ot
Slide 15: Cellnex expects limited impact from MNO consolidation processes in Europe
Cellnex expects limited impact from MNO consolidation processes in Europe MNO Consolidation Pharos agreement – upon completion of the merge between MNO Consolidation MNO Consolidation / RAN Sharing Vodafone and 3UK a new contract will commence securing Existing contractual relationship with MasOrang
Slide 16: Cellnex has successfully managed recent MNO consolidation processes in Europe
Cellnex has successfully managed recent MNO consolidation processes in Europe… MNOs What happened? Country How was the impact managed? Merger approved with remedies The merger between Wind and 3 Italia occurred in creating a new entrant – Iliad, resulting 2016 after regulatory approval, combining Wi
Slide 17: Closing remarks
Closing remarks €Mn 2023 2024E Revenues 3,659 3,850 – 3,950 (ex pass-through) Solid performance of key metrics in the period Adjusted 3,008 3,150 – 3,250 EBITDA +9.5% new organic PoPs (+6.3% equivalent) Total revenues ex-pass throughs +7.0% EBITDAaL 2,157 Organic revenues growth +7.4% EBITDAaL +8.9%
Slide 18: Annex
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Slide 19: Balance Sheet
Balance Sheet €Mn Dec Sep Dec Sep 2023 2024 2023 2024 Non Current Assets 40,623 40,160 Shareholders’ Equity 15,147 15,240 Property, plant and equipment 11,667 12,063 Non Current Liabilities 25,687 25,222 Intangible assets 24,700 23,171 Bank borrowings and bond issues 17,806 17,477 Right-of-use asset
Slide 20: Income Statement
Income Statement €Mn Jan-Sep Jan-Sep 2023 2024 Revenues 3,008 3,202 Operating Expenses -759 -816 Non-recurring expenses and non-cash items -58 -45 Depreciation & amortization -1,953 -1,950 Impairment losses on assets 0 -402 a Results from disposals of fixed assets 54 134 Operating Profit 292 123 The
Slide 21: Financial outlook
Financial outlook €Mn 2023 2024E1 2025E1 2027E1 CAGR (23-27E) Revenues (ex pass-through) 3,659 3,850 – 3,950 4,100 – 4,200 4,500 – 4,700 +6% Adjusted EBITDA 3,008 3,150 – 3,250 3,400 – 3,500 3,800 – 4,000 +7% EBITDAaL 2,157 2,850 – 3,050 +8% RLFCF 1,545 1,650 – 1,750 2,000 – 2,050 2,100 – 2,300 +9%
Slide 22: ESG – Highlights
ESG – Highlights ESG Master Plan 2021-2025 follow-up Roadmap for integration of CSRD/ESRS requirements into the ESG strategy Environmental Power Purchase Agreement (PPA) signed in order to ensure for 10 years that the electricity used by Cellnex comes from renewable sources with guarantees of orig
Slide 23: ESG – Sustainability Ratings
ESG – Sustainability Ratings We remain in a leading position, with a significant improvement in Sustainalytics and Ecovadis As of October 2024 S&P Global MSCI FTSE4Good Corporate Sustainability Assessment (CSA) ESG Rating Max: 5 Max: 100 Min: 0 Max: AAA Min: 0 100 Min: CCC 81 81 AAA 5.00 4.4 4.2 4.4
Slide 24: Definitions
Definitions Please see our most recent Integrated Annual Report for a comprehensive explanation of APMs Term Definition Adjusted EBITDA Adjusted EBITDA relates to the “Operating profit” before “Depreciation, amortization and results from disposals of fixed assets” and after adding back certain non-r
Slide 25: Definitions
Definitions Please see our most recent Integrated Annual Report for a comprehensive explanation of APMs Term Definition EBITDAaL Margin EBITDAaL Margin corresponds to EBITDAaL, divided by "Services (Gross) excluding Utility Fee". Thus, it excludes elements passed through to customers from both expen
Slide 26: Definitions
Definitions Please see our most recent Integrated Annual Report for a comprehensive explanation of APMs Term Definition Net Financial Debt The Net Financial Debt corresponds to “Gross Financial Debt” less “Cash and cash equivalents” and "Other financial assets". Together with Gross Financial Debt, t
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: 9M 2024 Results
9M 2024 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 28
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