Ihs Holding Limited · NYSE:IHS
Ihs — Q1 2024 Earnings Presentation
31 slides from Ihs's earnings presentation, May 14, 2024
Slide 1: Towers of strength - May 14, 2024
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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 Darwish Steve Howden Colby Synesael Chairman & CEO Executive Vice President & CFO Executive Vice President of Communications 3
Slide 4: IHS Track Record
IHS TRACK RECORD One of the world’s largest independent and multinational owners, operators, and developers of shared communications infrastructure Revenue Adjusted EBITDA (4) (5) $M $M • Capitalize on significant growth opportunities in +14.6% existing markets Revenue CAGR 2019-2023 • Optimize util
Slide 5: 1Q24 Performance
1Q24 PERFORMANCE Revenue Adjusted EBITDA (2) & ALFCF (3) (4) $M $M • In 1Q24, constructed 216 towers, (30.7%) (44.8%) added 270 tenants, and added 1Q24 Revenue 1Q24 Adjusted EBITDA 523 lease amendments Growth Y/Y Growth Y/Y +35.5% (72.2%) • 1Q24 revenue of $418M decreased (30.7%) (organic 1Q24 Organ
Slide 6: IHS Global Tower Portfolio
IHS GLOBAL TOWER PORTFOLIO In 1Q24, we built +216 towers including +158 in Brazil 40,278 3rd Largest Towers on 3 Continents (1) Independent Multinational TowerCo Globally By Tower Count (1) Egypt(2) - 222,643 Africa and the Middle East Kuwait 1,672 Nigeria 16,409 112,247 Cameroon 2,388 Rwanda 1,443
Slide 7: Highlights
HIGHLIGHTS Strategic Review Governance Progress Commercial Update • The review remains ongoing as we continue to look at all value-creation • In Jan. 2024, reached a settlement agreement with Wendel reflecting a • Signed an extended contract with Airtel Nigeria with a commitment to options commitmen
Slide 8: Our Approach to Sustainability
OUR APPROACH TO SUSTAINABILITY Sustainability Initiatives in 1Q24 Our Strategy Four-pillar Sustainability Strategy • Ethics and governance • Environment and climate change Ethics and Environment and Education and Our people and • Education and economic growth governance climate change economic growt
Slide 9: Consolidated Results Snapshot
CONSOLIDATED RESULTS SNAPSHOT 1Q23 1Q24 Y/Y Towers (#) 39,104 40,278 3.0% Tenants (#) 58,146 59,997 3.2% Colocation Rate 1.49x 1.49x (0.00x) Lease Amendments (#) 33,038 37,126 12.4% In US$M, unless stated Revenue 603 418 (30.7%) Adjusted EBITDA 336(1) 185 (44.8%) Adjusted EBITDA margin 55.7% 44.3% (
Slide 10: 1Q24 Consolidated Revenue Walk
1Q24 CONSOLIDATED REVENUE WALK 1Q24 Revenue $M Total Growth Total Growth ($185M) or (30.7%) Organic Growth +$214M or +35.5% (30.7%) ($185M) Organic Growth (64) +35.5% +$214M 603 Organic Growth by segment 418 +45.9% Nigeria +15.1% SSA (0.4%) Latam +6.0% MENA 5.9% 30.8% 0.8% 1.5% 1.9% 3.1% 2.1% (10.7%
Slide 11: Consolidated Revenue and Adjusted EBITDA
CONSOLIDATED REVENUE AND ADJUSTED EBITDA Revenue $M 603 46 10 546 510 1Q24 Revenue 48 10 Growth Rate Y/Y 122 467 11 54 418 52 10 (30.7%) (1) 123 48 124 48 11 133 131 ($185M) 425 377 365 321 271 228 • 1Q24 revenue decreased (30.7%) Y/Y, of which organic 1Q23 2Q23 3Q23 4Q23 1Q24 +35.5%, inorganic +0.1
Slide 12: Adjusted Levered Free Cash Flow and Capex
ADJUSTED LEVERED FREE CASH FLOW AND CAPEX Adjusted Levered Free Cash Flow (1) $M 1Q24 Adjusted Levered (2) 155 43(2) Free Cash Flow 118 $43M 86 74 43 • 1Q24 ALFCF decreased (72.2%) Y/Y (3) (3) 1Q23 2Q23 3Q23 4Q23 1Q24 • 1Q24 Capex decreased (65.2%) ALFCF Cash Conversion Rate +46.2% +26.0% +36.0% +43
Slide 13: 1Q24 Segment Performance Highlights
1Q24 SEGMENT PERFORMANCE HIGHLIGHTS Revenue and segment Adjusted EBITDA in $M 1Q23 1Q24 Y/Y Towers 16,372 16,409 0.2% Nigeria Tenants 25,650 26,129 1.9% Lease Amendments 31,460 34,375 9.3% Revenue 425 228 (46.4%) Segment Adjusted EBITDA 272 103 (62.2%) Segment Adjusted EBITDA Margin % 64.0% 45.2% (1
Slide 14: Towers and Tenants
TOWERS AND TENANTS Towers (in ‘000s) Towers Built 39.3 39.7 40.1 40.3 438 39.1 1.5 1.5 1.7 1.7 1.7 415 12 18 7.3 7.4 7.7 8.0 8.1 278 13.9 13.9 14.0 14.1 14.1 10 321 294 216 198 4 7 29 175 50 161 16.4 16.4 16.4 16.4 16.4 51 112 48 77 45 54 39 26 12 1Q23 2Q23 3Q23 4Q23 1Q24 1Q23 2Q23 3Q23 4Q23 1Q24 Ni
Slide 15: Debt Profile
DEBT PROFILE Consolidated Net Leverage Ratio Debt and Net Leverage Debt Maturity Profile (2) as of March 31, 2024 $M 3.8x $M As of Dec. 31, 2023 As of Mar. 31, 2024 8.000% Senior Notes due 2027 940 940 1,100 • Continue to target net leverage 5.625% Senior Notes due 2026 500 500 ratio of 3-4x 6.250%
Slide 16: 2024 Guidance
2024 GUIDANCE Reiterating 2024 Guidance Key Points Metrics Range Revenue Guidance • Implies organic growth of ~49% Revenue $1,700M - $1,730M (at the mid-point) • Excludes power pass-through revenue in South Africa 2Q24- 4Q24 Adjusted EBITDA(1) $935M - $955M • Included $6M of power pass- through reve
Slide 17: FX Overview
FX OVERVIEW Revenue by Reporting Currency (1) Revenue by Linked Contract Split 1Q24 1Q24 55% 15% (2) 11% 9% 36% 13% (2) NGN EUR BRL ZAR USD EUR 4% 3% 3% 42% 9% ZMW RWF KWD Local Currency Power (3) Assumed in 2024 Guidance FX Rates Interest Rates (4) 1,610 5.00 0.90 23.70 1,375 0.30 4,150 3.75 19.00
Slide 18: Appendix
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Slide 19: FX Resets Impact on Our Business
FX RESETS IMPACT ON OUR BUSINESS FX Resets and CPI Escalators offer effective revenue protection against the impact of currency devaluation USD FX Reset Frequency (1) 2023 CPI By Market (2) How FX resets work • A relevant portion of contracts is tied to a “hard currency” including USD and Euro • We
Slide 20: Oil Impact on Our Business
OIL IMPACT ON OUR BUSINESS Power Solutions as at Dec 31, 2023 (1) Diesel $M Oil Impact • For the last several years, IHS has added hybrid (solar/battery) powered solutions. As part of 911 our Carbon Reduction Roadmap, we expect to 819 813 continue to upgrade a portion 792 of towers in our portfolio,
Slide 21: Finance Costs Breakdown
FINANCE COSTS BREAKDOWN 1Q24 Adjusted EBITDA to Loss for the period $M 1Q24 Definitions Loss (1,557) Adjustments 0 • Net foreign exchange loss arising from Income tax expense (2) financing – unrealized Finance costs 1,563 Finance costs 1Q24 • Gains/losses on the revaluation of unsettled Finance inco
Slide 22: 1Q24 Revenue Overview
1Q24 REVENUE OVERVIEW Our key customers consist of the largest MNOs in the markets where we operate 1Q24 Revenue by Key Customer 1Q24 Revenue by segment 60% MTN 16% Airtel 7% TIM 6% Orange 55% Nigeria 3% Zain 31% SSA 2% Claro 2% Vivo 11% Latam 1% 9Mobile 3% MENA 1% Telkom <1% Tigo <1% Oi (Fixed) Cus
Slide 23: IHS Market Data
IHS MARKET DATA We are the leader in market share in 7 of the markets where we operate Country Towers (1) Towerco Market Position Towerco Market Share (2) Core Tenants (3) # out of # Major MNOs (4) Nigeria 16,409 1st 64% 3 out of 4 South Africa 5,691 1st 50% 2 out of 4 CIV 2,690 1st 100% 3 out of 3
Slide 24: IHS Markets Overview
IHS MARKETS OVERVIEW Attractive markets well suited for organic growth Population (million people) Data Usage Per SIM (GB/Month) CAGR 2023 – 2028E CAGR 2023 – 2028E 1.4% 2.3% 17.3% 22.1% 845 254 12.8 7.8 788 226 5.8 2.9 2023 2028E 2023 2028E 2023 2028E 2023 2028E All IHS Markets(1) Nigeria All IHS M
Slide 25: Adjusted EBITDA Reconciliation
ADJUSTED EBITDA RECONCILIATION Reconciliation from profit/(loss) for the period to Adjusted EBITDA 3-month period ended LTM as of LTM as of LTM as of ($000s) Mar 31, 2023(1) June 30, 2023(2) Sep 30, 2023(2) Dec 31, 2023 Mar 31, 2024 Mar 31, 2023(1) Dec 31, 2023 Mar 31, 2024 (Loss)/income 7,775 (1,27
Slide 26: Adjusted EBITDA Reconciliation
ADJUSTED EBITDA RECONCILIATION Reconciliation from profit/(loss) for the period to Adjusted EBITDA 2019 2020 2021 2022(1) 2023(1) ($000s) (Loss)/income (423,492) (322,682) (26,121) (468,966) (1,988,178) Divided by total revenue 1,231,056 1,403,149 1,579,730 1,961,299 2,125,539 (Loss)/income margin (
Slide 27: Adjusted Levered Free Cash Flow Reconciliation
ADJUSTED LEVERED FREE CASH FLOW RECONCILIATION Reconciliation of Cash From Operations for the period Adjusted Levered Free Cash Flow 3-month period ended ($000s) Mar 31, 2023 June 30, 2023(1) Sep 30, 2023(1) Dec 31, 2023 Mar 31, 2024 Cash from operations 251,859 259,098 229,912 162,054 92,984 Net mo
Slide 28: Currency Overview
CURRENCY OVERVIEW Average Period End Spot Currency FY22 1Q23 2Q23 3Q23 4Q23 1Q24 FY22 1Q23 2Q23 3Q23 4Q23 1Q24 Nigeria (Naira) - USD:NGN NAFEX 428 461 508 768 815 1,316 462 461 753 776 912 1,394 European Union (Euro) - USD:EUR 0.95 0.93 0.92 0.92 0.93 0.92 0.94 0.92 0.92 0.95 0.91 0.93 Zambia (Kwatc
Slide 29: Glossary of Terms
GLOSSARY OF TERMS Adjusted EBITDA (including by segment): (Loss)/income for the period, before income tax expense/(benefit), finance costs and income, depreciation and amortization, impairment of withholding tax receivables, business combination transaction costs, impairment of property, plant and e
Slide 30: Glossary of Terms
GLOSSARY OF TERMS LTM Pro Forma Adjusted EBITDA: Adjusted EBITDA for the applicable four consecutive fiscal quarters as further adjusted to give pro forma effect (as determined in good faith by management and may, with respect to acquisitions, include anticipated cost synergies and expense and cost
Slide 31: IHS Towers Investor Relations
IHS Towers Investor Relations investorrelations@ihstowers.com