Crown Castle Inc. · NYSE:CCI

Crown Castle — Proxy Contest (March 2024)

42 slides from Crown Castle's proxy contest presentation, Mar 7, 2024

  1. Slide 1: Project Boots Opportunity Overview

    ©2024 | Strictly Confidential - Do Not Transfer or Reproduce PRELIMINARY | SUBJECT TO FURTHER REVIEW AND EVALUATION These materials may not be used or relied upon for any purpose other than as specifically contemplated by a written agreement. Project Boots OPPORTUNITY OVERVIEW

  2. Slide 2: Disclaimer

    ©2024 | Strictly Confidential - Do Not Transfer or Reproduce PROJECT BOOTS 2 Disclaimer This communication is being furnished to you by Boots Capital Management, LLC (together with its affiliates, “Boots”) on a confidential basis and may not be reproduced or used for any other purpose. Your acceptan

  3. Slide 3: Important Information

    ©2024 | Strictly Confidential - Do Not Transfer or Reproduce PROJECT BOOTS 3 Important Information CERTAIN INFORMATION CONCERNING THE PARTICIPANTS Boots Capital Management, LLC (“Boots Capital”) and the other Participants (as defined below) intend to file a preliminary proxy statement and accompanyi

  4. Slide 4: Overview

    ©2023 | Strictly Confidential ©2024| Strictly Confidential | Strictly Confidential - Do Not Transfer or Reproduce 4 Overview PROJECT BOOTS

  5. Slide 5: Ted Miller, Chuck Green, Tripp Rice

    ©2024 | Strictly Confidential - Do Not Transfer or Reproduce PROJECT BOOTS 5 Ted Miller President, 4M Investments Chuck Green Founding Partner, Greenseas DWC LLC Tripp Rice Partner, 4M Investments • Founder, previous Chairman and CEO of Crown Castle International Corp. • Former Airgas/Air Products D

  6. Slide 6: Project Boots: Moving with Experience, Urgency and Focus to Reboot CCI

    ©2024 | Strictly Confidential - Do Not Transfer or Reproduce PROJECT BOOTS Project Boots: Moving with Experience, Urgency and Focus to Reboot CCI For the Long-Term 6 Fiber Sale Unlocks Significant Value – CCI Rerates to 25x+ 6-Month Head Start On Fiber Sale – Close In 2024 2024 Fiber Sale – $1 Billi

  7. Slide 7: Overview: Background, Fiber Plan, Towerco Plan

    ©2024 | Strictly Confidential - Do Not Transfer or Reproduce PROJECT BOOTS Overview Background Fiber Plan Towerco Plan • Work began in August • Initiative born out of frustration with Company performance • Seasoned team of industry executives and advisors • Detailed plan to sell fiber & transition t

  8. Slide 8: Boots Team: 6-Month Body of Work to Improve CCI

    ©2024 | Strictly Confidential - Do Not Transfer or Reproduce PROJECT BOOTS Boots Team: 6-Month Body of Work to Improve CCI 1. Fiber Qualitative Analysis 2. Fiber Carve-out Model 3. Fiber Enterprise Business Opportunity Analysis 4. Fiber Small Cell Business Opportunity Analysis 5. Fiber Sale Structur

  9. Slide 9: Close the Value Gap

    ©2024 | Strictly Confidential - Do Not Transfer or Reproduce PROJECT BOOTS 9 Close the Value Gap | | | | Vertical lines represent various fiber acquisitions.

  10. Slide 10: Market Remains Skeptical

    ©2024 | Strictly Confidential - Do Not Transfer or Reproduce PROJECT BOOTS Market Remains Skeptical 10

  11. Slide 11: Ted Miller: Benefits of Executive Chairman Role

    ©2024 | Strictly Confidential - Do Not Transfer or Reproduce PROJECT BOOTS Ted Miller: Benefits of Executive Chairman Role 11 Key Term Benefits Executive Chairman Ted Miller • As Executive Chairman, Ted is the bridge between Board’s vision and Management’s execution of that vision. He will work as a

  12. Slide 12: Boots & CCI: Aligning Our Work and Interests

    ©2024 | Strictly Confidential - Do Not Transfer or Reproduce PROJECT BOOTS Boots & CCI: Aligning Our Work and Interests 12 Topic Expectation/Considerations Board of Directors • Ted Miller – Executive Chairman • Chuck Green – Director • Tripp Rice – Director • David Wheeler – Director Advisors/Work P

  13. Slide 13: Two Paths Forward: Working Together vs Not Working Together

    ©2024 | Strictly Confidential - Do Not Transfer or Reproduce PROJECT BOOTS Two Paths Forward: Working Together vs Not Working Together Plan A – CCI w/ Benefit of Boots Plan B – CCI w/o Benefit of Boots • CCI adopts Boots work done to date into its committee structure/process (Accelerate timeline by

  14. Slide 14: Fiber Plan: Sell Fiber/Small Cells

    ©2023 | Strictly Confidential ©2024| Strictly Confidential | Strictly Confidential - Do Not Transfer or Reproduce 14 Fiber Plan: Sell Fiber/Small Cells PROJECT BOOTS

  15. Slide 15: Crown Castle + Project Boots: Moving in the Same Direction

    ©2024 | Strictly Confidential - Do Not Transfer or Reproduce PROJECT BOOTS Crown Castle + Project Boots: Moving in the Same Direction 15 December Matured potential fiber buyers/financing sources in their diligence. Multiple attempts to contact Board between the 15th-21st. Met with Chairman/Interim C

  16. Slide 16: Fiber Plan: Carve-Out Fiber/Sale

    ©2024 | Strictly Confidential - Do Not Transfer or Reproduce PROJECT BOOTS Fiber Plan: Carve-Out Fiber/Sale 16 Key Term Expectation/Considerations Fiber Valuation Range • $12-15bn based on work completed with buyers • Modeling work assumes $12.5bn sale price CCI Retained Ownership • 25% rollover equ

  17. Slide 17: Fiber Plan: Use of Proceeds

    ©2024 | Strictly Confidential - Do Not Transfer or Reproduce PROJECT BOOTS Fiber Plan: Use of Proceeds 17 Sources Uses Sale Proceeds (net) $11,161 Floating Rate Debt Paydown $2,707 Rollover Fiberco Equity $1,300 Fixed-Rate Debt Paydown/Buyout $3,779 Share Buyback $1,873 ATT/TMO Early Buyout $2,802 F

  18. Slide 18: Debt Portfolio Alternatives

    ©2024 | Strictly Confidential - Do Not Transfer or Reproduce PROJECT BOOTS Debt Portfolio Alternatives 500 2,650 4,957 2,600 1,900 750 2,850 750 750 3,750 1,750 1,000 1,000 2,000 3,000 4,000 5,000 6,000 2025 2026 2027 2028 2029 2030 2031 2033 2034 2041 and beyond Face Value of Debt ($mm) Current and

  19. Slide 19: Fiber Sale Significantly Improves Towerco Fundamentals

    ©2024 | Strictly Confidential - Do Not Transfer or Reproduce PROJECT BOOTS Fiber Sale Significantly Improves Towerco Fundamentals 19 $1,65 5 $285 82.8% Total Capex $1,43 0 $2,15 4 50.7 % AFFO after Discretionary Capex $3.30 $5.13 55.6 % AFFO after Discretionary Capex per Share ($,1304) $215 116.5% A

  20. Slide 20: Fiber Plan: Qualitative Due Diligence Completed

    ©2024 | Strictly Confidential - Do Not Transfer or Reproduce PROJECT BOOTS Fiber Plan: Qualitative Due Diligence Completed • Evaluation of fiber assets known today. Comparison to industry peers in quality, scope, and size • Review of fiber operations - sales, delivery, ongoing operations, support. D

  21. Slide 21: Fiber & Towerco Due Diligence Items

    ©2024 | Strictly Confidential - Do Not Transfer or Reproduce PROJECT BOOTS Fiber & Towerco Due Diligence Items 21 Commercial and Operational Tax Corporate Finance • Market size and growth (incl. small cell and enterprise revenue forecasts) • Fair-share potential and enterprise penetration (incl. ful

  22. Slide 22: Fiber Plan: Sale Timeline

    ©2024 | Strictly Confidential - Do Not Transfer or Reproduce PROJECT BOOTS Fiber Plan: Sale Timeline 22 Crown Separation Deal Validation Typical Market Timeline … Separation TowerCo FiberCo TowerCo Perimeter TSA/rTSA Financials Etc.. • Outside-in deal models (complete) • Outside-in validation (compl

  23. Slide 23: Towerco Plan: Operational Excellence

    ©2023 | Strictly Confidential ©2024 | Strictly Confidential | Strictly Confidential - Do Not Transfer or Reproduce 23 Towerco Plan: Operational Excellence PROJECT BOOTS

  24. Slide 24: Towerco Plan: Back to Ops Basics

    ©2024 | Strictly Confidential - Do Not Transfer or Reproduce PROJECT BOOTS Towerco Plan: Back to Ops Basics Optimize Headcount Restore Culture KPI Methodology Carrier Relationships • Currently 18 towers/EE • AMT Operates US with 23 towers/EE • AMT Operates globally with 38 towers/EE • In 2013, CCI O

  25. Slide 25: Towerco Plan: Back to Ops Basics (M&A, Technology)

    ©2024 | Strictly Confidential - Do Not Transfer or Reproduce PROJECT BOOTS Towerco Plan: Back to Ops Basics M&A Ground Interests PA Corporate Campus Technology Initiatives • CCI positioned to successfully compete with AMT and SBA on opportunistic M&A • Fiber constrained M&A • CCI will benefit from M

  26. Slide 26: The New CCI Tower of Value

    ©2024 | Strictly Confidential - Do Not Transfer or Reproduce PROJECT BOOTS The New CCI Tower of Value 26 Financial Results Carrier / Customer Results Process & Technology Results People Results Strategic Partnership Increase Enterprise Value – Stock Price Reduce Costs Optimize Capex Reduce Portfolio

  27. Slide 27: Digital Impact to Tower Lifecycle Management

    ©2024 | Strictly Confidential - Do Not Transfer or Reproduce PROJECT BOOTS Digital Impact to Tower Lifecycle Management Digital Twin Site Visit Upgrade Request General Arrangement Drawings Upgrade Approvals Site Climb Down Structural Analysis Detailed Design Pack Fabrication Drawings Site Handover C

  28. Slide 28: Valuation Implications

    ©2023 | Strictly Confidential ©2024 | Strictly Confidential | Strictly Confidential - Do Not Transfer or Reproduce 28 Valuation Implications PROJECT BOOTS

  29. Slide 29: Key Model Assumptions: 2025-2028

    ©2024 | Strictly Confidential - Do Not Transfer or Reproduce PROJECT BOOTS Key Model Assumptions: 2025-2028 29 Variable Assumption Considerations Revenue CAGR 4.5% • In line with analysts’ outlooks, inclusive of discontinuation of installation services EBITDA Margin 69% • Peer benchmarking identifie

  30. Slide 30: EBITDA Bridge 2024-2026: Headcount Reduction to AMT US

    ©2024 | Strictly Confidential - Do Not Transfer or Reproduce PROJECT BOOTS EBITDA Bridge 2024-2026: Headcount Reduction to AMT US 30

  31. Slide 31: Implied US EBITDA Multiple Calculations

    ©2024 | Strictly Confidential - Do Not Transfer or Reproduce PROJECT BOOTS Implied US EBITDA Multiple Calculations 31 AMT: Calculated Segment Level 2024E Adj. EBITDA Geography % Adj. EBITDA (a) 2024E Adj. EBITDA Multiple (b) EV (c) GPCs considered in multiple (d) Data Centers 6.0% 431 21.6x 9,336 Eq

  32. Slide 32: Fundamental Value Heatmap

    ©2024 | Strictly Confidential - Do Not Transfer or Reproduce PROJECT BOOTS Fundamental Value Heatmap 32 2025-2028 CAGR / Average Towerco AMT SBAC Towerco AMT SBAC US Tower Metrics US Revenue Per Tower 2 1 3 122,582 129,844 111,001 US Revenue Growth Per Tower 1 2 3 4.5% 2.6% 2.4% US EBITDA Per Tower

  33. Slide 33: Share Price Bridge: 25x 2025

    ©2024 | Strictly Confidential - Do Not Transfer or Reproduce PROJECT BOOTS Share Px Bridge: 25x 2025 - Headcount Reduction to AMT US 33

  34. Slide 34: Share Price Sensitivity Tables

    ©2024 | Strictly Confidential - Do Not Transfer or Reproduce PROJECT BOOTS Share Price Sensitivity Tables 34 EBITDA Multiple Sensitivity 2025-2026 EBITDA % Price Change EBITDA Multiple 2025 2026 2025 2026 23.0x $136.14 $143.34 22.7% 29.1% 24.0x $143.76 $151.25 29.5% 36.3% 25.0x $151.36 $159.15 36.4%

  35. Slide 35: Towerco Plan: AFFO After Discretionary Capex

    ©2024 | Strictly Confidential - Do Not Transfer or Reproduce PROJECT BOOTS Towerco Plan: AFFO After Discretionary Capex 35 Interest savings impact to AFFO of $330mm more than bridges the $200mm top line impact of 2025 Sprint Churn

  36. Slide 36: Towerco Plan: Fiber Sale Price Sensitivity

    ©2024 | Strictly Confidential - Do Not Transfer or Reproduce PROJECT BOOTS Towerco Plan: Fiber Sale Price Sensitivity Stock Price Calculation ($) as of December 2024 Assumed Tower Multiple (of 2025E Tower EBITDA) 18.0 x 19.0 x 20.0x 21.0 x 22.0 x 23.0 x 24.0 x 25.0 x 26.0 x 27.0 x 28.0 x Fiber at Ca

  37. Slide 37: Conclusion

    ©2023 | Strictly Confidential ©2024 | Strictly Confidential | Strictly Confidential - Do Not Transfer or Reproduce 37 Conclusion PROJECT BOOTS

  38. Slide 38: Two Paths Forward: Working Together vs Not Working Together

    ©2024 | Strictly Confidential - Do Not Transfer or Reproduce PROJECT BOOTS Two Paths Forward: Working Together vs Not Working Together Plan A – CCI w/ Benefit of Boots Plan B – CCI w/o Benefit of Boots • CCI adopts Boots work done to date into its committee structure/process (Accelerate timeline by

  39. Slide 39: Q & A

    ©2023 | Strictly Confidential ©2024 | Strictly Confidential | Strictly Confidential - Do Not Transfer or Reproduce 39 Q & A PROJECT BOOTS

  40. Slide 40: Let's Work Together to Formalize and Accelerate Next Steps

    ©2023 | Strictly Confidential ©2024 | Strictly Confidential | Strictly Confidential - Do Not Transfer or Reproduce 40 Let’s Work Together to Formalize and Accelerate Next Steps PROJECT BOOTS

  41. Slide 41: Appendix

    ©2023 | Strictly Confidential ©2024| Strictly Confidential | Strictly Confidential - Do Not Transfer or Reproduce 41 Appendix PROJECT BOOTS

  42. Slide 42: Towers per Employee

    ©2024 | Strictly Confidential - Do Not Transfer or Reproduce PROJECT BOOTS Towers per Employee 42 18 23 29 38 0 5 10 15 20 25 30 35 40 CCI - Current AMT - US CCI - 2013 AMT - Global

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