Helios Towers PLC · LSE:HTWS
Helios Towers — Investor Presentation (April 2019)
29 slides from Helios Towers's investor presentation, Apr 8, 2019
Slide 1: Company Presentation
COMPANY PRESENTATION 8TH APRIL 2019 Website: www.heliostowers.com LinkedIn: www.linkedin.com/company/helios-towers
Slide 2: Disclaimer
Helios Towers | Private & Confidential Disclaimer No investment advice Third party sources cause actual results to differ materially from those This Presentation does not constitute or form part Certain statistical and other information about the in any Forward Looking Statements could include of, a
Slide 3: Company Overview
Company Overview DALY SA LY SA DALY A DALY VA LIVWV \A_LZ Li \A_ DAL VA LAY NAA LIV \A_ LA Y CD AALCY VANE AV AV AV VAN DALY \A_ LY Y VD AAZY L DALY VSO LILY Sy LAA LALLY SO AALVY LEAL SY LLY SB AALYY BH AALYVY XK WL DALY »
Slide 4: A Leading Sub-Saharan Independent TowerCo
1 Company Overview Helios Towers | Private & Confidential A Leading Sub-Saharan Independent TowerCo Revenue 5 countries 6,745 total sites $359m Q4 2018 LQA(3) 13,549 tenants 22% CAGR FY 2015 – Q4 2018 2.01x tenancy ratio (annualised) Adj. EBITDA Tanzania Sites Market Share(1) $186m Q4 2018 LQA(3) 3,
Slide 5: 16 Consecutive Quarters of Adj. EBITDA Growth
1 Company Overview Helios Towers | Private & Confidential 16 Consecutive Quarters of Adj. EBITDA(1) Growth Group Annualised Adj. EBITDA ($m) Margin 25% 27% 28% 28% 35% 35% 39% 38% 40% 40% 42% 46% 47% 49% 51% 52% CAGR FY 2015 – Q4 2018 LQA 51% Margin has more than doubled >2x through top-line growth
Slide 6: The Helios Towers Story
1 Company Overview Helios Towers | Private & Confidential The Helios Towers Story Consistent year-on-year growth in sites, and near doubling of tenancy ratios Business Excellence Tenancy Ratio 1.20x 1.22x 1.42x 1.57x 1.61x 1.85x 1.93x 1.99x 2.01x 6,745 6,477 6,519 239 126 161 Existing Sites (net of
Slide 7: Why HT has Entered South Africa
1 Company Overview Helios Towers | Private & Confidential Why HT has Entered South Africa A high-growth market for HT – with attractive and diversifying dynamics Attractive Growth Indicators Favourable Structural Dynamics 57 million population, forecast to 1 c.29,000 towers in SA with only 1 increas
Slide 8: How HT has Entered South Africa
1 Company Overview Helios Towers | Private & Confidential How HT has Entered South Africa Creation of infrastructure platform to drive growth in South Africa 1 Helios Towers South Africa (“HTSA”) created through Partnership with Vulatel • Partnership with Vulatel announced January 2019 with HTSA maj
Slide 9: Encouraging Recent Market Developments
1 Company Overview Helios Towers | Private & Confidential Encouraging Recent Market Developments Positive Political, Economic Africa Widely Identified as a and Industry Dynamics Key Continent for Business Opportunities Tigo Orange Vodacom Airtel Vodacom Airtel Halotel Africell Customers post +9% sub
Slide 10: Strategy
Strategy LILY SA LY D_ LAA VA LYWXY VY LALLY SA_& XK IVAN LIV \A_ LA Y CD AALCY VANE AV AV AV VAN Se WAN AVAVA x OLX OK
Slide 11: HT Growth Strategy
2 Strategy Helios Towers | Private & Confidential HT Growth Strategy Strong platform for growth in new and existing markets Existing Markets New Markets Adjacent New Technologies Tanzania, DRC, Congo B and Ghana • c.229k towers in Africa(3) Small Cells 178 146 32 10 • c.61k towers owned by 19 106 31
Slide 12: Operational Strategy
2 Strategy Helios Towers | Private & Confidential Operational Strategy Delivered significant achievements, with opportunities for further improvement Building a Business Excellence Culture Driving Efficiency Improvements Customer Service Excellence Focus By the end Efficiency Improvements since 2015
Slide 13: Markets
Markets DALY SA LY SA DALY A DALY VA LIVWV \A_LZ Li \A_ DAL VA LAY NAA LIV \A_ LA Y CD AALCY VANE AV AV AV VAN DALY \A_ LY Y VD AAZY L DALY VSO LILY Sy LAA LALLY SO AALVY LEAL SY LLY SB AALYY BH AALYVY XK WL DALY »
Slide 14: Why Africa?
3 Markets Helios Towers | Private & Confidential Why Africa? Sustainable long-term growth World Population Growth(1) Top 10 fastest growing economies in 2018(2) (Billion People) (GDP) Ghana 8.3% Ethiopia 8.2% 2100 Population India 7.3% 4.5 Billion Cote d'Ivoire 7.2% Djibouti 7.0% Cambodia 6.9% Bhuta
Slide 15: Helios Towers' Structural Growth Opportunity
3 Markets Helios Towers | Private & Confidential Helios Towers’ Structural Growth Opportunity Our markets are expected to grow significantly in the coming years Positive Macro Drivers 38m 8% 27m 67% 5.1% + + + + (1) (1) (1) (1) (2) new people in HT increase in penetration increase in people living b
Slide 16: Structurally Attractive Markets With Superior Growth
3 Markets Helios Towers | Private & Confidential Structurally Attractive Markets With Superior Growth Macro 238m addressable population in HT’s markets Young Population with c.70% under 30(2) Population (m)(1) +3% Population 2024E CAGR +2% CAGR 1,241 +0% 33% 276 CAGR 1,064 65% 238 782 0-30yrs SA 58
Slide 17: Structurally Attractive Markets With Superior Growth: Telecoms
3 Markets Helios Towers | Private & Confidential Structurally Attractive Markets With Superior Growth Telecoms Underpenetrated mobile markets(1) Mobile broadband penetration is low(2) 85% 73% 67% 53% 48% 49% 47% 49% 40% 37% 33% 29% 27% 26% 15% 17% Congo B Africa G7 DRC Ghana Tanzania Nigeria Markets
Slide 18: Mobile Operators Poised for African Data Boom
3 Markets Helios Towers | Private & Confidential Mobile Operators Poised for African Data Boom 4G Licence Awarded Tanzania DRC 2015 2018 +535 Amendment c.11x Increase in mobile data Ghana 2016 Colocations added traffic in SSA since 2015(2) (2017 – 2023E) Congo B 2016 South Africa 2012 c.6-8x Increas
Slide 19: Robust Business Model
Robust Business Model LILY SA LY D_ LAA \A —— VZ LIV \A_ LA Y CD AALCY VANE AV AV AV VAN Se WANE AVAV A LALY OL VA AY VA ———
Slide 20: Founded on Strong Contracts and Sustainable Pricing
4 Robust Business Model Helios Towers | Private & Confidential Founded on Strong Contracts and Sustainable Pricing Building Customer Relationships Strong Long-Term Contracts Sustainable Long-Term Pricing Strategy Higher Sustainability Lower Sustainability Long Tenure Lease Rate Minimal cancellatio
Slide 21: Historical Capex Investment Drives Future Cash Flow Expansion
4 Robust Business Model Helios Towers | Private & Confidential Historical Capex Investment Drives Future Cash Flow Expansion Low Non-Discretionary Capex Expected Going Forward Strong Unlevered Recurring Cash Flow(3) Capex(1) ($m) ($m) Non-discretionary 158 capex(2) level of 281 $20-25m p.a. 123 171
Slide 22: Wrap-up
Wrap-up DALY SA LY SA DALY A DALY VA LIVWV \A_LZ Li \A_ DAL VA LAY NAA LIV \A_ LA Y CD AALCY VANE AV AV AV VAN DALY \A_ LY Y VD AAZY L DALY VSO LILY Sy LAA LALLY SO AALVY LEAL SY LLY SB AALYY BH AALYVY XK WL DALY »
Slide 23: Wrap-up: Delivering growth and quality for our stakeholders
5 Wrap-up Helios Towers | Private & Confidential Wrap-up Delivering growth and quality for our stakeholders 1 Sole Independent TowerCo in 2 Exposure to Large 3 High Telecoms 3 out of 5 markets High Growth Markets Infrastructure Growth HT market share (excl. South Africa) Population Growth 2018-202
Slide 24: Appendix
Appendix DALY SA LY SA DALY A DALY VA LIVWV \A_LZ Li \A_ DAL VA LAY NAA LIV \A_ LA Y CD AALCY VANE AV AV AV VAN DALY \A_ LY Y VD AAZY L DALY VSO LILY Sy LAA LALLY SO AALVY LEAL SY LLY SB AALYY BH AALYVY XK WL DALY »
Slide 25: Leading Values, Ethics and HSE
6 Appendix Helios Towers | Private & Confidential Leading Values, Ethics and HSE Values Ethics Group program for training and reinforcing our value; “Do The Right Thing” Training and code of conduct extends to suppliers Global Whistleblower Hotline in place Health & Safety Environment Comprehens
Slide 26: Straight-Forward Revenue Model
6 Appendix Helios Towers | Private & Confidential Straight-Forward Revenue Model 1 2 3 4 Colocation: Multiple Amendment: Equipment Acquire and Build Towers Tower with 1 tenant Tenancies Addition • Grow tower portfolio • MNOs place own • Adding new tenant to • Existing customer through acquisitions a
Slide 27: Strong Executive Team
6 Appendix Helios Towers | Private & Confidential Strong Executive Team • Strong management team with extensive experience came Philippe Loridon Léon-Paul O. Jeffrey Colin Gaston Roy Cursley together in 2015 CEO HT Tanzania Manya Schumacher Director of Director of Delivery • Joined 2012 CEO HT DRC C
Slide 28: Minimal EBITDA Sensitivity to Fuel and FX Fluctuations
6 Appendix Helios Towers | Private & Confidential Minimal EBITDA Sensitivity to Fuel and FX Fluctuations Strong Contractual FX and Inflation Protection Impact on Adj. EBITDA Revenue Mix Fx Power Price Movement EBITDA Impact TZS 77% USD 23% Elec 14% +10% Fuel FX Tanzania Fuel CPI 55% TZS GHS EUR 32%
Slide 29: Summary of Financial Debt
6 Appendix Helios Towers | Private & Confidential Summary of Financial Debt Debt KPIs Gross and Net Leverage ($m) FY 17 Q4 17 FY 18 Q4 18 -0.9x / -0.6x Cash & cash equivalents 120 120 89 89 4.9x Bond 600 600 600 600 4.1x 4.4x 4.2x 4.0x Term Loan - - 25 25 3.6x 3.7x 3.5x Lease Obligations + Other (1)