Q1 2021 Results 20 May 2021 Helios Towers team today
Tom Greenwood Kash Pandya Manjit Dhillon Chief Operating Chief Executive Chief Financial Officer Officer Officer
Helios Towers plc 2 Agenda
1 Highlights – Kash Pandya, CEO
2 Strategic Updates – Tom Greenwood, COO
3 Financial Results – Manjit Dhillon, CFO
4 Q&A
Helios Towers plc 3 Highlights A transformational period for the Group Announced six transactions in six new markets over the last 12 months, which together with c.1k committed BTS, brings HT site count close to c.15k sites
Markets Sites
11 c.15k 12k+ 8+
5 c.7k
Q3 19 2025 Q1 21 Q3 19 2025 Q1 21 (at IPO) Target PF (at IPO) Target PF
New Markets Senegal Madagascar Malawi Chad Gabon Oman
Executive Consideration 194 52 56 N.D.(1) N.D.(1) 575 HQ Dubai (US$m)
EV (US$m)(2) 210 60 64 N.D.(1) N.D.(1) 615
Y1 EBITDA (US$m)(3) 19 5 8 7 7 40
HT existing markets Acquired Towers 1,207 494 735 539 459 2,890
HT announced new markets Committed BTS 400 135 60 60 60 300
Signing Date Aug-20 Mar-21 Mar-21 Mar-21 Mar-21 May-21
Closed Expected closing(4) Q4 2021 Q4 2021 Q1 2022 Q1 2022 H2 2021 (May-21)
(1) The agreements signed for Chad and Gabon on 23/03/2021are exclusive memorandum of understanding arrangements. The consideration for these transactions is anticipated to be disclosed upon signing of the acquisition agreements in each market. 5 (2) Includes Company estimates of capitalised ground leases and transaction costs. (3) Adjusted EBITDA figures are Group estimates, reflecting expected performance of the acquired assets in the first full year of ownership, with further growth expected through committed BTS and colocation lease-up. (4) Expected closing is based on the Group’s current best estimates. All acquisition closings are subject to the completion of all customary and relevant conditions. Q1 2021: Financial highlights
SOLID YEAR-ON-YEAR +2% revenue growth from $101.8m in Q1 20 to $103.6m in Q1 21. REVENUE GROWTH
+3% Adj. EBITDA from $54.0m in Q1 20 to $55.8m in Q1 21, with margin of 54%. YEAR-ON-YEAR -7% QoQ decline from Q4 20 reflects a catch-up payment for amendment ADJ. EBITDA GROWTH revenues in DRC in the prior quarter, with underlying growth continuing as expected.
DRIVING CASH FLOW Portfolio free cash flow of $37.0m(1) decreasing -19% from record performance of $45.9m in Q1 20, due to timing of tax payments and non-discretionary GENERATION capex being front-loaded in Q1 21.
GUIDANCE 2021 guidance unchanged for the existing five markets, with further growth UNCHANGED anticipated through announced acquisitions.
STRENGTHENED c.$400m capital raised YTD, reflecting $250m convertible bond and €120m BALANCE SHEET (c.$145m) local facilities(2) in Senegal, further reducing our cost of debt.
(1) Portfolio free cash flow is defined as Adj. EBITDA less payment of lease liabilities, tax paid and maintenance and corporate capital additions. (2) €120m reflects term loan facilities of €105m and €15m RCF. US dollar amount reflects Apr-21 USD/EUR closing Fx rate of 1.21. Helios Towers plc 6 Q1 2021: Steady tenancy growth with moderate quarter-on-quarter Adj. EBITDA decline
Tenancies Adj. EBITDA(1) Portfolio free cash flow(2) • Illustrates the core driver of business • Highlights growth and operational • Measures the unlevered free cash flow growth performance of our business generation of the existing site portfolio
2.13x 2.14x Decrease driven by timing of 1.99x 2.01x 2.09x non-discretionary capex and 227 223 tax payments 15,656 15,732 205 169 174 178 55% 54% 53% c.$15m 14,591 (timing 133 Impact) 146 50% 148 13,549 97 12,987 42%
(3) (3) 2017 2018 2019 2020 Q1 2021 2017 2018 2019 2020 2021 LQA 2017 2018 2019 2020 2021 LQA
• Tenancies increased by 76 QoQ to 15,732 tenancies, reflecting typical seasonality. • LQA Adj. EBITDA of $223m, decreasing by 7% QoQ from $240m in Q4 20, principally driven by lower DRC revenues following catch-up amendment revenues in Q4 20, with underlying growth continuing as expected. • Decline in portfolio free cash flow driven by timing of tax payments and non-discretionary capex, which are expected to normalise through the year.
(1) Management defines Adjusted EBITDA as loss before tax for the period, adjusted for finance costs, gain or losses on financial instruments, interest receivable, loss on disposal of property, plant and equipment, amortisation of intangible assets, depreciation and impairment of property, plant and equipment, depreciation of right-of-use assets, deal costs for aborted acquisitions, deal costs not capitalised, share-based payments and long-term incentive, plan charges, and other adjusting items. Adjusting items are material items that are considered one-off by management by virtue of their size and/or incidence. (2) Portfolio free cash flow is defined as Adj. EBITDA less payment of lease liabilities, tax paid and maintenance and corporate capital additions. (3) LQA is calculated as the most recently reported fiscal quarter (Q1 21) multiplied by four. Helios Towers plc 7 FY 2021: Sustainable Business Strategy update
Sustainable Business Report
• Published inaugural Sustainable Business Report in March 2021 • Highlights progress against our integrated Q1 strategy that supports advancing the UN 2021 SDGs(1) • Aligned to GRI(2) and SASB(3) reporting frameworks. Detailed disclosures for each included in the appendix
CDP and carbon emissions target
• Developing our carbon emissions target, which will be published in H2 2021 • It will consider the challenge of balancing 2021 essential telecoms growth and YTG development in the Africa & Middle-East region with emissions reductions • We will also be submitting relevant information to CDP in July 2021
(1) United Nations Sustainable Development Goals. (2) Global Reporting Initiative. (3) Sustainability Accounting Standards Board. Helios Towers plc 8 Q1 2021: Recent developments
Executing inorganic growth
Operational excellence Closing of Free Senegal Airtel acquisition Omantel tower in our markets tower portfolio acquisition agreements Portfolio acquisition
Delivered our 4th consecutive On 18 May closed the Signed agreements with Airtel On 11 May entered into quarter of 99.99% power acquisition of c.1,200 sites Africa on 23 March agreement to acquire 2,890 uptime. from Free Senegal, entering representing 2,227 sites across sites from Omantel for $575m. into our sixth market. four attractive new markets In January and February 2021, (Madagascar, Malawi, Chad, Supports entry into one of the achieved less than one Anticipate approximately Gabon), with further site fastest growing markets in the minute downtime per tower $215m of capital expenditure growth expected through 315 Middle-East region. per week, the best power in 2021, reflecting acquisition committed BTS. uptime in company history. consideration of c.$190m and Will enter into a service $25m of growth, upgrade and Upon closing, Helios Towers agreement with Omantel for non-discretionary capex. will become the most an initial period of 15 years, diversified TowerCo in Africa. with further growth expected through 300 committed BTS and colocation lease-up.
Helios Towers plc 9 Strategic Highlights Omantel transaction overview
Signed agreement to acquire passive infrastructure assets, representing 2,890 sites, from Omantel for an upfront cash consideration of $575m. Represents an enterprise value of TRANSACTION $615m including the Group’s estimate of transaction costs and capitalised ground leases of $40m. DETAILS 300 build-to-suit sites have also been committed over the next seven years with a planned investment of $35m growth capex.
2,890 sites expected on closing with a tenancy ratio of 1.2x and 300 build-to-suit sites SITES AND committed to be rolled out over the subsequent seven years, with a master service TENANCIES agreement of 15 years entered into with Omantel representing $0.8bn contracted revenue.
Acquired assets are expected to generate revenues of $59m and Adjusted EBITDA of FINANCIALS $40m in the first full year upon closing, with further growth expected through committed BTS and colocation lease-up(1).
Following capital raising activities in 2020 and year-to-date 2021, the Group has FINANCING sufficient cash and available facilities to finance the transaction.
Transaction is anticipated to close in H2 2021 subject to customary completion conditions and HT shareholder approval. Received irrevocable undertakings to vote in favour of the CLOSING acquisition at a General Meeting(2) from certain shareholders representing over 50% shares.
(1) Revenues and adjusted EBITDA are Group estimates and reflect expected performance of the acquired assets in the first full year of ownership. These figures should not be treated as a profit forecast nor are they audited. (2) Further detail on the acquisition and procedure for voting at the General Meeting, scheduled for 4 June 2021, can be found at: www.heliostowers.com/investors/omantel-tower-portfolio-acquisition/. Helios Towers plc 11 Oman aligns to our target market criteria
Helios Towers Acquisition Criteria Omantel Tower Portfolio Acquisition
Emerging market ✓ 3% GDP CAGR forecast (2020 – 2026)
Population of >10m - Population of 5m with 2% annual growth forecast to 2026
3 Operators: Omantel and Ooredoo, with Vodafone partner 3+ Operators ✓ Oman Future Telecommunications receiving licence in Jan-21
Possibility to achieve #1 or #2 A leading independent towerco in Oman with 2,890 sites #1 market share ✓
Omani Rial is pegged to the USD, with low inflation (ranging Stable and / or pegged currencies $ ✓ from 0.1% to 1.6% between 2015 - 2019)
+3,000 Points of Service forecast over the next six years Power and tower infrastructure gap ✓ (+7% CAGR), one of the fastest growing areas in the Middle- East
High subscriber growth and low mobile Mobile penetration low at 66% (G7: 86%) and 4G subscriptions penetration ✓ expected to grow 6% annually (2020 – 2025)
Enhances Group’s returns ✓ Accretive to Group returns
Sources: IMF, Fitch Database, GSMA Intelligence, Hardiman Report (March 2021).
Helios Towers plc 12 Successfully executing growth strategy
Pro forma characteristics HT presence
Q1 2021 PF Q1 2021 Acquisitions(1)
Executive HQ Dubai Markets 5 11
13,682 / Senegal Oman Chad Sites 7,358 14,697 (incl. committed BTS) Ghana
LQA revenues 414 c.600 DRC ($m) Congo B Gabon
LQA Adj. EBITDA 223 c.309 ($m) Tanzania
Adj. EBITDA % Malawi $/€ 65% 73% hard-currency Madagascar Contracted $2.8bn $5.4bn revenues HT existing markets
Average HT announced new markets South Africa remaining 7yrs 9yrs contract life
(1) Reflects acquisition of Free Senegal's tower portfolio, closed on 18 May 2021, and acquisition of Omantel's tower portfolio and signed agreements with Airtel Africa Group Companies (“Airtel”) across Malawi, Madagascar, Chad and Gabon, which are subject to completion. Helios Towers plc 13 Platform for successful integration Well positioned for successful acquisition integration through regional CEO structure, dedicated launch teams and standardised 100-day plan
Dedicated new market teams Acquisition integration timeline
New In-country Group support MNO staff Q3 20 Q4 20 Q1 21 Q2 21 Q3 21 Q4 21 Q1 22 Markets launch team launch team transfer
Senegal
Oman
Madagascar Legend c.10 – 40 staff Closing conditions per country completion/ Malawi launch team set-up
Acquisition closed Chad Expected closing
Business as usual Gabon operations
20 person dedicated country Transferred staff Standardised 100-day plan used for each market entry; launch team upon closings tried and tested process used for 6 new market entries
Three regional CEOs, providing leadership and accountable Days 0-20 21-40 41-60 61-80 81-100 for integration and ongoing management of new markets Equipment procurement, maintenance contractor on-boarding, Ops./Projects regional office set-up, NOC set-up
HR Recruitment, transferred staff on-boarding, office set-up
Legal/Regulatory Customary closing condition sign-offs and regulatory approval
Phillippe Loridon Marlene Kiniffo-Zounon Sainesh Vallabh Commercial Customer liaison, colocation contract set-up CEO Middle-East & CEO Central CEO Southern East Africa Africa Africa & Ghana Finance/Tax/ IT System set-up, tax registrations, bank accounts, processes rollout
Helios Towers plc 14 Expansion driving further diversification
Sites Revenues ($m)(1) LQA Adjusted EBITDA ($m)(1,2)
13,682 day 1 / 7,358 414 c.600 223 c.309 14,697 incl. committed BTS
+39% +100% 1,015 +45% 59 40 2,890 27 89 2 19 2 38 12 12 2,227 27 5 27 5 27 27 42 42 242 1,207 242 427 427 99 99 981 981 171 171 1,895 1,895
3,813 3,813 168 168 108 108
(1) Q1 21 Q1 21 PF Q1 21 Q1 21 PF Q1 21 Q1 21 PF (1)
1% 1% 3% 7% 10% 5% 12% 6% 21% 11% 13% 10% 15% 8% 6% 1% 16% 6% 1% 26% 40% 8% 4% 9% 2% 41% 7% 5% 29% 7% 3% 28% 14% 52% 41% 43% 28% 28% 32%
Q1 21 Q1 21 PF Q1 21 Q1 21 PF Q1 21 Q1 21 PF Tanzania DRC Ghana Congo B South Africa
Senegal Airtel Transactions(3) Oman
(1) Revenue and Adjusted EBITDA for the acquired assets from Free Senegal, Airtel Africa Group Companies (“Airtel”) and Omantel reflects estimated Day 1 annualised estimates. This does not include revenues and EBITDA from committed BTS or potential future colocation growth. These figures should not be treated as profit forecast, nor are they audited. 15 (2) Difference between stated Group EBITDA and sum of OpCo EBITDA shown in the chart is $25m of HoldCo costs. (3) Includes signed acquisition agreements with Airtel Africa Group Companies (“Airtel”) across Madagascar and Malawi and exclusive memorandum of understanding arrangements in Chad and Gabon, and are subject to completion. Strengthened business through increase in hard-currency Adj. EBITDA and customer diversification across Tier 1 MNOs
FY 2020 FY 2020 PF (Senegal, Airtel & Omantel acquisitions) Vodacom 13% 10% 19% Airtel 22% 5% 28% 10% Tigo 4% Orange REVENUE BY 14% 6% Free CUSTOMER 28% 10% MTN 22% 18% Omantel 13%13% Other 65% hard 73% hard currency currency 27% 35% USD(1) / EBITDA BY EUR Pegged CURRENCY Local 65% currency 73%
• All acquisitions provide long-term service contracts for an initial period of 12 – 15 years, providing $2.6bn of future contracted revenue, which combined with FY 20 of $2.8bn and 7 years, increases Group contracted revenue to c.$5.4bn and extends average remaining life to 9 years • Strengthens Group Adjusted EBITDA in hard currency to 73%
(1) Includes USD linked revenues. Helios Towers plc 16 Financial results Q1 2021: Continued tenancy growth and operational excellence YoY QoQ
In US$m, unless Q1 21 Q1 20 % change Q1 21 Q4 20 % change otherwise stated
Revenue 104 102 +2% 104 106 -2%
Adj. EBITDA(1) 56 54 +3% 56 60 -7%
LQA Adj. EBITDA(2) 223 216 +3% 223 240 -7%
Adj. EBITDA margin (%) 54% 53% +1ppt 54% 57% -3ppt
Portfolio free cash flow 37 46 -19% 37 41 -10%
Sites (#) 7,358 6,991 +5% 7,358 7,356 0%
Colocations (#)(3) 8,374 7,686 +9% 8,374 8,300 +1%
Tenancies (#) 15,732 14,677 +7% 15,732 15,656 0%
Tenancy ratio (x) 2.14x 2.10x +0.04x 2.14x 2.13x +0.01x
Capex 27 11 >100% 27 35 -23%
Net debt(4) 673 653 +3% 673 692 -3%
Net leverage (x)(5) 3.0x 3.0x - 3.0x 2.9x +0.1x
(1) Management defines Adjusted EBITDA as loss before tax for the year, adjusted for finance costs, other gains and losses, interest receivable, loss on disposal of property, plant and equipment, amortisation of intangible assets, depreciation and impairment of property, plant and equipment, depreciation of right-of-use assets, deal costs for aborted acquisitions, deal costs not capitalised, share-based payments and long-term incentive plan charges, and other adjusting items. Adjusting items are material items that are considered one-off by management by virtue of their size and/or incidence. (2) LQA Adj. EBITDA is defined as Adjusted EBITDA for the most recent quarter multiplied by 4. This is not a forecast of future results. (3) Includes standard and amendment colocations. (4) Net debt is calculated as gross debt less cash and cash equivalents. Gross debt is calculated as non-current loans and current loans and long-term and short-term lease liabilities. (5) Calculated as net debt divided by LQA Adj. EBITDA. Helios Towers plc 18 Q1 2021: Steady growth in sites and tenancies
Evolution of sites portfolio Evolution of tenants Evolution of tenancy ratio
+5% +7% +0.04x
0% 0% +0.01x
15,656 15,732 6,991 7,356 7,358 14,677 419 236 242 404 620 123 426 427 218 617 384 565 1,914 1,929 964 978 981 1,891 4,096 4,132 1,853 1,895 1,895 3,883 2.14x 2.10x 2.13x
3,667 3,821 3,813 8,120 8,625 8,632
Q1 20 Q4 20 Q1 21 Q1 20 Q4 20 Q1 21 Q1 20 Q4 20 Q1 21
Tanzania DRC Ghana Congo Brazzaville South Africa
• Site count broadly flat QoQ at 7,358 sites, with YoY site increase of 367 sites.
• 76 new tenancy additions in Q1 21, reflecting typical seasonality in the first quarter. YoY tenancies increased by 1,055, in-line with annual guidance range of 1,000 - 1,500.
• Tenancy ratio of 2.14x increased +0.04x YoY and +0.01x QoQ.
Helios Towers plc 19 Q1 2021: Year-on-year growth in revenues & Adjusted EBITDA with moderate quarter-on-quarter declines
Revenue ($m) Adj. EBITDA ($m) Adj. EBITDA margin (%)
+2% +3% +1 ppt
-7% -2% -3 ppt
60 57% 102 106 104 54 56 53% 54%
Q1 20 Q4 20 Q1 21 Q1 20 Q4 20 Q1 21 Q1 20 Q4 20 Q1 21
• Q1 21 revenue increased +2% YoY to $104m, and decreased -2% QoQ, driven by a $3m decrease in DRC revenues, reflecting a catch-up payment for amendment revenues in Q4 2020 with underlying growth continuing as expected.
• Adj. EBITDA grew 3% YoY and declined -7% QoQ to $56m. Decrease reflects DRC revenue decline and update to licence fee in that market to 3% of local revenues.
• Adj. EBITDA margin at 54%, increasing 1ppt YoY (-3ppt QoQ), slightly below the medium-term target range of 55% - 60%.
Helios Towers plc 20 Q1 2021: Quarter-on-quarter Adj. EBITDA movement
Adj. EBITDA ($m)
(3) (1)
Decrease in DRC revenues Update to DRC licence fee in reflects catch-up payment 2021, increasing to 3% of local for amendment revenues in revenues. Q4 2020 with underlying 60 growth continuing as Increase is reflected within 56 expected. existing HT guidance and aligns DRC licence fee to other HT markets and developing markets more generally.
Q4 20 DRC Revenues DRC Licence Fee Q1 21
FY 2021 GUIDANCE UNCHANGED
Helios Towers plc 21 Strong currency hedged business underpinned by long- term contracts with blue-chip mobile network operators
Q1 2021 revenue breakdown by customer Q1 2021 revenue breakdown by FX
Other 1% 99% LCY (CPI) 22% 60% Other revenues from hard currency Multinational MNOs(2) multinational 11% MNOs LCY (Power) USD 17% Africa’s Big 5 56% MNOs(1) 88% XAF/EUR 5%
Q1 2021 revenue breakdown by operating company Commentary
Ghana South Africa • High quality contracts with inflation and power price escalators 10% 1% and 60% of Q1 21 revenue pegged to hard currencies.
Tanzania • Strong blue-chip customer base with 99% revenues from large Congo B 41% 7% multinational MNOs. • $2.8bn of future contracted revenue with an average remaining life of 7 years.
DRC • Diversified business and strong currency protection provide 41% robust and sustainable earnings.
(1) Big-Five MNOs: Airtel, MTN, Orange, Tigo and Vodafone/Vodacom. (2) Other multinational MNOs include: Viettel and Africell. Helios Towers plc 22 FY 2021: Over $1bn investment targeted
Capex breakdown ($m) Commentary
. Q1 21 capex of $27m, in line with expectations.
c.$1,010 - Existing markets c.$900m $1,040m . FY 21 capex guidance unchanged at $110 - $140m in Anticipate c.$900m capital expenditure our existing markets, of which $20 - $25m is expected in new markets Senegal, to be non-discretionary capex. Madagascar, Malawi and Oman New markets
. Free Senegal tower portfolio acquisition(1) - $215m
$110 – 140m capex for FY21, reflecting c.$190m consideration and c.$25m of growth, upgrade and maintenance capex. $97m $20-25m non- . Airtel Africa Madagascar & Malawi acquisitions - 16 discretionary $108m consideration expected to close in or around capex 49 $27m Q4 2021. 16 2 1 16 15 6 4 . Omantel tower portfolio acquisition - $575m FY 20 Q1 21 FY 21 New FY 21 consideration expected to close in H2 2021. Existing Markets markets . Updated capex guidance will be communicated upon closing of transactions. Maintenance Corporate Upgrade Growth Acquisition
(1) Senegal transaction closed on 18 May 2021. Helios Towers plc 23 Summary of financial debt
Debt KPIs Gross and net leverage
+2.1x / 0.0x ($m) Q2 20 Q3 20 Q4 20 Q1 21 6.0x 4.9x 4.7x Cash & cash equivalents 213 466 429 670 3.9x 3.0x 2.9x 2.9x 3.0x Bond 750 975 975 975 Convertible bond(1) - - - 205
SA loan facility 11 11 13 12 Q2 20 Q3 20 Q4 20 Q1 21 Lease obligations + other(2) 107 142 133 151 Gross leverage Net leverage Gross debt 868 1,128 1,121 1,343 Commentary Net debt (3) 656 662 692 673 . Q1 21 net leverage(6) of 3.0x increased by +0.1x QoQ and is below the (4) LQA Adj. EBITDA 220 230 240 223 Group’s target range of 3.5x and 4.5x, providing significant capacity for Gross leverage(5) 3.9x 4.9x 4.7x 6.0x acquisitions. Net leverage(6) 3.0x 2.9x 2.9x 3.0x . In March 2021 successfully issued $250m 6YR convertible bond with a coupon of 2.875% to support inorganic growth.
. On 10 May 2021, Helios Towers Senegal (“HTS”) signed facilities representing €120m (c.$145m), of which €40m was used to part-fund the upfront acquisition consideration.
. Combined with financing activities in 2020, the Group cash balance closed at $670m in Q1 21, with undrawn Group debt facilities of $270m, ZAR 351m in South Africa and €80m in Senegal.
(1) The convertible bond is accounted for as a compound instrument which creates a liability on initial recognition of $205m and an equity component of $45m. (2) ‘Other’ relates to unamortised loan issue costs, accrued bond and loan interest, derivative liability and shareholder loans. (3) Net debt is calculated as our gross debt less cash and cash equivalents. (4) LQA Adj. EBITDA is defined as Adjusted EBITDA for the most recent quarter multiplied by 4. This is not a forecast of future results. (5) Calculated as gross debt divided by LQA Adj. EBITDA for the quarter. (6) Calculated as net debt divided by LQA Adj. EBITDA for the quarter. Helios Towers plc 24 Q1 2021: Key takeaways – Significant momentum; Organic, Inorganic, ESG
1 Transformational period - announced acquisitions establishing Helios Towers as the most diverse tower company across the Middle-East and Africa
2 Delivering on our 5-year vision, well-ahead of plan
3 Full year outlook unchanged for the existing five markets
Helios Towers plc 25 Q&A Appendix Helios Towers market overview
Multinational MNOs
PoS PoS Growth Oman- Oore- Mobile Towers Additions(2) CAGR(2) Airtel Africell MTN Orange Axian(3) Voda Viettel tel doo Penetration(1) Available(2) (2020 – (2020 – 2026E) 2026E)
Tanzania 41% 2.0k 5.5k 6%
DRC 40% 1.2k 5.7k 11%
Ghana 56% 0.8k 2.6k 4%
Senegal 52% 2.7k 1.8k 6%
Congo B 47% 0.4k 0.5k 6%
South Africa 67% 24k 8.0k 3%
Chad 38% 0.9k 0.5k 5%
Gabon 63% 0.5k 0.2k 3%
Malawi 34% 0.3k 0.9k 7%
Madagascar 33% 1.9k 1.2k 6%
Oman 66% 2.4k 3.2k 7%
Group 49% 37k 30k 6%
(1) GSMA Intelligence Database, accessed April 2021. Unique mobile subscribers 2020. (2) Hardiman Report, March 2021. (3) Represents MNOs where Axian Group owns or partially owns the operating MNO. This includes Telma in Madagscar, Free Senegal in Senegal and the recently announced acquisition of Tigo assets from Millicom in Tanzania. Helios Towers plc 28 Strong operational execution and resilient business model drive financial performance and offset minimal COVID-19 impact
Commentary Impact Assessment Change since Q4 20
• Return to work protocols are being Workforce & • Field operations and home working • Minimal reviewed with employee wellbeing at Operations maintained across our operating companies the core
• $2.8bn contracted revenues with 6.6 years’ average contract life remaining • Strong cash balance and available Existing Revenue / • Strong Group cash balance of $670m with • Minimal facilities following c.$0.4bn capital Liquidity undrawn debt facilities of $270m at Group, raised year-to-date ZAR 351m in South Africa and €80m in Senegal
• Implications for tenancy roll out if equipment supply chains are disrupted Customer • Tenancies increased in line with • Strong pipeline of opportunities coming • Minimal roll-out seasonal pattern through from customers with tenancy outlook unchanged
Supply • Minimal supply chain delays • Minimal • None Chain • Forward purchase of capex & materials
• Regular Board monitoring and video Situation conference / cloud systems easing remote- • Minimal • None management working transition
Helios Towers plc 29 Q1 2021: Year-on-year portfolio free cash flow movement
Portfolio free cash flow ($m)
2 (4) (0) (7)
3% year-on-year Adj. EBITDA growth driven Reflects quarterly variation by tenancy additions in capital additions, with YoY increase in cash and operational Q1 20 lower than typical taxes driven by timing improvements across quarters. of tax payments. the business. 46 37
Q1 2020 Adj. EBITDA Non-discretionary Lease Liabilities Tax paid Q1 2021 growth capex
Helios Towers plc 30 Guidance and outlook unchanged for existing markets, with further growth expected through announced acquisitions
• Guidance unchanged, targeting 1-1.5k per year over the medium term. Tenancies • Of which 50% BTS gradually reducing to 25% BTS over the medium term.
Lease rate • Decrease of c.3% in 2021 driven by power related lease de-escalations. per tenancy • USD inflationary growth from 2022 onwards, in-line with prior guidance.
Opex • Decrease of c.3% in 2021 driven by lower power opex. per site • Flat opex per site from 2022 onwards, in-line with prior guidance.
Existing • USD inflationary growth + c.$3m growth investment in 2021. five markets five SG&A • USD inflationary growth from 2022 onwards, in-line with prior guidance.
• FY 21 capex guidance of $110 - $140m in our existing five markets, of which $20 - $25m non-discretionary capex. Capex • Medium term driven by c.US$125k per new BTS and $10k per colocation tenant and non-discretionary capex growing with site count, in-line with prior outlook.
• 1,207 sites with further growth anticipated through 400 committed BTS over the next 5 years. Senegal • Anticipate c.$215m capex, reflecting the acquisition consideration of c.$190m and c.$25m of growth, upgrade and non-discretionary capex. considerations • In the first full-year of ownership, assets expected to deliver combined revenues(1) of $38m and adj. EBTDA(1) of $19m with acquisition.
Madagascar & Malawi • 1,229 sites with further growth anticipated through 195 committed BTS over the next 3 years. • The acquisitions are anticipated to close in or around Q4 2021 for the consideration of $108m. considerations (1) (1) markets • In the first full-year of ownership, assets expected to deliver combined revenues and adj. EBITDA of $38m and
$13m, respectively. New
Oman • 2,890 sites with further growth anticipated through 300 committed BTS over the next 7 years. • The acquisition is anticipated to close in H2 2021 for the consideration of $575m. considerations • In the first full-year of ownership, assets expected to deliver combined revenues(1) and adj. EBITDA(1) of $59m and $40m, respectively.
(1) These figures should not be treated as profit forecast, nor are they audited. Helios Towers plc 31 Disclaimer
This presentation does not constitute an offering of securities or otherwise constitute an invitation or inducement to any person to underwrite, subscribe for or otherwise acquire or dispose of securities in Helios Towers plc (the "Company") or any other member of the Helios Towers group (the “Group”), nor should it be construed as legal, tax, financial, investment or accounting advice.
This presentation contains forward-looking statements which are subject to known and unknown risks and uncertainties because they relate to future events, many of which are beyond the Group’s control. These forward-looking statements include, without limitation, statements in relation to the Company’s financial outlook and future performance. No assurance can be given that future results will be achieved; actual events or results may differ materially as a result of risks and uncertainties facing the Group. You are cautioned not to rely on these forward-looking statements, which speak only as of the date of this announcement. The Company undertakes no obligation to update or revise any forward-looking statement to reflect any change in its expectations or any change in events, conditions or circumstances. Nothing in this presentation is or should be relied upon as a warranty, promise or representation, express or implied, as to the future performance of the Company or the Group or their businesses.
This presentation also contains non-GAAP financial information which the Directors believe is valuable in understanding the performance of the Group. However, non-GAAP information is not uniformly defined by all companies and therefore it may not be comparable with similarly titled measures disclosed by other companies, including those in the Group's industry. Although these measures are important in the assessment and management of the Group’s business, they should not be viewed in isolation or as replacements for, but rather as complementary to, the comparable GAAP measures.
Helios Towers plc 32