Cellnex Telecom S.a. · BME:CLNX
Cellnex Telecom — Cellnex Telecom Sa Ord — Q1 2024 Earnings Presentation
30 slides from Cellnex Telecom's earnings presentation, Apr 25, 2024
Slide 1: 2024 Results Presentation January – March 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 – March 2024 25th April 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 +10.7% new organic PoPs vs. Q1 2023 (+6.6% equivalent) Revenues ex-pass throughs €946Mn, +6.6% vs. Q1 2023 (organic revenues growth +7.5%) EBITDAaL €535Mn, +9.1% vs. Q1 2023, showing a disciplined approach to Opex and lease management Soli
Slide 4: Business Performance
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Slide 5: Q1 2024 Key Highlights
Q1 2024 Key Highlights 1 2 3 4 5 6 New Sites New Co-locations Organic Growth Efficiencies EBITDAaL Growth FCF 1,384 3,390 €66Mn €59Mn +9.1% €103Mn Remarkable growth Solid performance +7.5% organic Cumulative savings Strong control on Backed by in France, Italy and in Italy and revenues growth since
Slide 6: Q1 2024 Performance – Key financial metrics
Q1 2024 Performance Key financial metrics Revenues Adjusted EBITDA (excluding pass-through) 946 +7.5% Organic 887 778 +8.9% Organic +c.7% 730 +c.7% 82% (1) 82% (1) €Mn €Mn Q1 2023 Q1 2024 Q1 2023 Q1 2024 EBITDAaL RLFCF 535 +11.1% Organic 490 +c.9% +c.14% 384 336 55% (1) 57% (1) 38% (1) 41% (1) €Mn €
Slide 7: Q1 2024 Performance – Key operational metrics
Q1 2024 Performance Key operational metrics New Total PoPs (including BTS) +10.7% New co-locations +7.5% YoY YoY 6,589 +6.6% Eq +3.2% Eq 5,205 4,097 4,951 4,136 4,844 3,024 3,390 1,655 713 Q1 2023 Q2 2023 Q3 2023 Q4 2023 Q1 2024 Q1 2023 Q2 2023 Q3 2023 Q4 2023 Q1 2024 PoPs from co-location and BTS i
Slide 8: Organic revenue growth
Q1 2024 Performance Organic revenue growth Organic revenue growth +7.5% 28 953 -7 946 17 21 887 €Mn Revenues (1) Escalators & CPI Co-location BTS Organic Change of Revenues (1) Q1 2023 Revenues perimeter & others Q1 2024 (1) Excluding pass-through 8
Slide 9: Organic revenue growth – Business lines
Q1 2024 Performance Organic revenue growth – Business lines +6.6% Organic Towers 21 789 -13 +c.5% 10 776 18 738 ARPT (1) €24.9k end Q1 23 €27.1k end Q1 24 €Mn Revenues Escalators & CPI Co-location BTS Organic Change of Revenues Q1 2023 Revenues perimeter & others Q1 2024 Fiber, Connectivity & Housin
Slide 10: 2021–2027 efficiencies plan – Optimization of ground leases on track
Q1 2024 Performance 2021–2027 efficiencies plan – Optimization of ground leases on track Payment of leases Cumulative efficiencies/synergies CMD 110,119 sites beginning of period + 2,128 net site additions during the period + lease efficiencies 239 243 2021-2025 (c.€90-100Mn) c.150-160 c.90-100 €Mn
Slide 11: Free Cash Flow
Q1 2024 Performance Free Cash Flow €Mn Jan-Mar Jan-Mar Jan-Mar Jan-Mar 2023 2024 2023 2024 Towers 738 776 Recurring Levered FCF 336 384 Fiber, Connectivity & Housing Services 38 47 Expansion Capex -109 -92 DAS, Small Cells and RAN 49 59 Tower Expansion Capex -68 -58 Broadcast 63 64 Other Business Ex
Slide 12: Debt Maturities Profile
Q1 2024 Performance Debt Maturities Profile 3,851 4,000 150 700 ✓ Liquidity of c.€3.7Bn: c.€0.5Bn cash (2) and 3,000 c.€3.2Bn undrawn credit lines 2,014 2,194 850 ✓ Fixed rate debt c.75% 2,091 1,652 1,895 280 1,561 2,000 500 ✓ Gross debt (3) c.€18Bn (bonds and other 582 102 154 61 315 instruments) 8
Slide 13: Annex
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Slide 14: Balance Sheet
Balance Sheet €Mn Dec Jan-Mar 2023 2024 Non Current Assets 40,623 41,090 Goodwill 6,653 6,655 Fixed Assets 29,714 29,627 Right of Use 3,101 3,619 a Financial Investments & Other Fin. Assets 1,155 1,188 Current Assets 2,480 1,644 Inventories 6 7 Prudent PPA (1) process leads to maximization of the al
Slide 15: Income Statement
Income Statement €Mn Jan-Mar Jan-Mar 2023 2024 Revenues 985 1,037 Operating Expenses -255 -259 Non-recurring expenses and non-cash items -12 -12 Depreciation & amortization -637 -587 Operating Profit 81 179 Net financial profit -205 -234 Profit of Companies Accounted for Using the Equity Method 0 -1
Slide 16: Frequently Asked Questions
Frequently Asked Questions a
Slide 17: Our value creation roadmap Next Chapter
Our value creation roadmap 3. Disciplined approach to capital allocation 2024+ Articulate investments by 2. Shareholder value Golden Rules Leverage target of 5.0-6.0x Net – Return > WACC + Risk Next Chapter Debt / EBITDA by 2025-2026 premium (country, business, Available >€10Bn cumulative cash safet
Slide 18: 5G coverage and data traffic to underpin our organic growth prospects
5G coverage and data traffic to underpin our organic growth prospects Room for growth from 5G coverage More data traffic will lead to long-term growth 5G coverage per country (2023, % population covered) Data traffic per user (GB) Throughput increase 100 requires more telecom AR/ infrastructure 90 V
Slide 19: Focus on growth and efficiency, adapted to market specificities and opportunities
Focus on growth and efficiency, adapted to market specificities and opportunities Growth Efficiency Macro Tower growth operations Deliver BTS programs Operations with space efficiently for macro tower growth and BTS Explore programs Lease cost optimization accretive adjacencies to Tower rationalizat
Slide 20: A restless focus on lease management
A restless focus on lease management Lease cost optimization c.8% savings vs. inertial cost base Lease cash-out bridge Accelerate lease cost optimization c.-8% Enhance our lease efficiency program to increase savings rate c.+19% LandCo creation Launch a vehicle for land acquisition acceleration Site
Slide 21: Significant cash generation potential boosted by re-leveraging capacity
Significant cash generation potential boosted by re-leveraging capacity Cash generation, organic growth and re-leveraging potential to boost shareholder remuneration and industrial opportunities Free Cash Flow Evolution (€Mn) and re-leverage 1,100-1,300 350-450 250-350 2024E 2025E 2027E 2027E onward
Slide 22: Disciplined capital allocation framework to maximize value creation and shareholder return
Disciplined capital allocation framework to maximize value creation and shareholder return Cumulative cash until 20301 c.€3Bn >€10Bn Minimum dividend Triggered by value accretion AGM approval in Share buyback Tax efficient2 place for up to 10% “Per share metrics” enhancing3 Disciplined approach base
Slide 23: 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 24: ESG – Key initiatives
ESG – Key initiatives Roadmap for integration of ESRS requirements in the group’s ESG strategy and Action Plan Done In process CSRD/ESRS gap analysis Double Materiality Analysis Value Chain Strategic Plan ESG reporting & monitoring system Analyse mandatory requirements and To identify the informatio
Slide 25: ESG – Sustainability ratings
ESG – Sustainability ratings Data as of March 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 4.3 4.3 AA 73 3.6 3.8 80 66 AA 4.00 60 A A 53 57 60 A BBB 3.00 BBB +20% 40 BB BB 2.00 +52,8
Slide 26: 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 and amortization” and after adding back certain non-recurring expenses (such as COVID-19 dona
Slide 27: 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 ""Revenues ex pass-through"". Thus, it excludes elements passed through to customers from both expenses and reve
Slide 28: 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 29: 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 30: Q1 2024 Results
Q1 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 30
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