COMPANY PRESENTATION 8 TH APRIL 2019 Website: www.heliostowers.com LinkedIn: www.linkedin.com/company/helios-towers
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, and should not be construed as, an offer, Company included in this Presentation is sourced changes in domestic and foreign business, market, invitation or inducement or recommendation to from publicly available third party sources. As such financial, political and legal conditions. There can purchase or subscribe for any securities in Helios it presents the views of those third parties, but may be no assurance that any particular Forward Towers, Ltd. (the “Company”) or any of its affiliates not necessarily correspond to the views held by Looking Statements will be realised, and the or subsidiaries (together the “Group”) in any the Company and the Company expressly performance of the Company may be materially jurisdiction nor should it or any part of it form the disclaims any responsibility for, or liability in respect and adversely different from the Forward Looking basis of, or be relied on in connection with, any of, such information. Statements. The Forward Looking Statements contract to purchase or subscribe for any speak only as of the date of this Presentation. The securities of the Company or any member of its Forward-looking statements Company expressly disclaims any obligation or group or with any other contract or commitment This Presentation contains illustrative returns, undertaking to release any updates or revisions to whatsoever. projections, estimates and beliefs and similar any Forward Looking Statements to reflect any information (together, “Forward Looking change in the Company’s expectations with Further, it should not be treated as giving Statements”) . The Forward Looking Statements regard thereto or any changes in events, investment, legal, accounting, regulatory, taxation can be identified by the use of forward looking conditions or circumstances on which any or other advice and recipients should each make terminology, including the terms “believes”, Forward Looking Statements are based. their own evaluation of the Company and of the “estimates”, “anticipates”, “expects”, “intends”, Accordingly, no reliance should be placed upon relevance and adequacy of the information “plans”, “may”, “will” or “should” or, in each case, the Forward Looking Statements. contained herein. their negative or other variations or comparable terminology. No warranty No representations or warranties, express or The Forward Looking Statements are subject to implied are given in, or in respect of, this inherent uncertainties and qualifications and are Presentation. To the fullest extent permitted by based on numerous assumptions, in each case law, in no circumstances will the Company, or any whether or not identified in the Presentation. The of its respective subsidiaries, shareholders, Forward Looking Statements are provided for affiliates, representatives, partners, directors, illustrative purposes only and are not intended to officers, employees, advisers or agents be serve as, and must not be relied upon by any responsible or liable for any direct, indirect or investor as a guarantee, an assurance, a consequential loss, loss of profit, damages or costs prediction or a definitive statement of fact or arising from the use of this Presentation, its probability. contents (including the internal economic models), its omissions, reliance on the information Nothing in this Presentation should be construed as contained within it, or on opinions communicated a profit forecast. Actual events and circumstances in relation thereto or otherwise arising in are difficult or impossible to predict and will differ connection therewith. The information contained from assumptions. Many actual events and in this Presentation has not been independently circumstances are beyond the control of the verified. Company. Some important factors that could 2
Company Overview
1 Helios Towers | Private & Confidential Company Overview 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 $186m Q4 2018 LQA (3) Sites Market Share (1) 3,701 66% 51% CAGR FY 2015 – Q4 2018 DRC Sites (annualised) Market Share (1) 1,773 63% c.65% 2018 Adj. EBITDA in $/€ Congo B Sites Market Share (1) Attractive, Long-term 380 49% Contracted Revenues Contracted revenues (2) Ghana $3.1bn Market Share (1) 81% of future contracted Sites 21% 891 revenues from Africa’s Big 5 MNOs (4) Lease-weighted average South Africa contract life remaining As of January 2019 8.1 years Tower market share Source: Company as of 31 December 2018, except as otherwise indicated (1) Hardiman Report, March 2019. Based on online, marketable sites 4 (2) Refers to revenue contracted until 2035 (3) LQA = Last quarter annualised (4) Big 5 MNOs defined as: Airtel, MTN, Orange, Tigo, Vodafone/com
1 Helios Towers | Private & Confidential Company Overview 16 Consecutive Quarters of Adj. EBITDA (1) Growth Group Annualised Adj. EBITDA ($m) Margin 25% 27% 28% 28% 35% 35% 39% 38% 40% 40% 42% 46% 47% 49% 51% 52% CAGR 51% FY 2015 – Q4 2018 LQA Margin has more than doubled >2x through top-line growth and implementation of business excellence strategy 186 181 176 168 164 148 138 133 126 127 85 83 63 60 50 42 Q1 15 Q2 15 Q3 15 Q4 15 Q1 16 Q2 16 Q3 16 Q4 16 Q1 17 Q2 17 Q3 17 Q4 17 Q1 18 Q2 18 Q3 18 Q4 18 (1) “Adjusted EBITDA” is defined as earnings before interest, tax, depreciation and amortization adjusted for discontinued operat ions, other gains and losses, investment income, loss on disposal of PP&E, impairment of intangible assets and PP&E, deal costs relating to unsuccessful tower transactions or successful tower transactions that cannot be capitalized, and exceptional items. Exceptional items are material items that are considered exceptional in nature by 5 management by virtue of their size and/or incidence. Annualised Adjusted EBITDA calculated as per the bond definition as the most recent fiscal quarter multiplied by 4. This is not a forecast of future results
1 Helios Towers | Private & Confidential Company Overview 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 6,519 6,477 161 126 239 Existing Sites (net of consolidations) 196 5,424 22 961 Site Asset Purchases 244 4,656 535 New Build/BTS 496 1,186 2,974 6,371 6,388 2,710 2,517 297 5,277 259 4,645 14 13 1,721 2,974 2,663 831 2,438 - 831 796 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 8 acquisitions in 9 years Entry into South Africa c. 1,800 organic BTS announced in 2019 Source: Company 6
1 Helios Towers | Private & Confidential Company Overview 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 c. 30,000 towers in SA with only 1 1 increase by 3 million over the next 5 c . 10% owned and operated by years (1) independent tower companies (2) c. 6,000 additional standard Multiple MNOs operating, including 2 MTN Vodacom 2 2 PoS required by 2024 (2) of Africa’s “Big - 5” MNOs Telkom Cell C A leader in telecommunications 3G and 4G widely available, increased 4G/ 3 4G densification expected and to be innovation in Africa, providing the 3 5G opportunity to develop expertise in “5G ready” , with over 4 million 5G adjacent technologies which can connections expected by 2023 (3) be leveraged in our four other markets (1) United nations population prospects 7 (2) Hardiman report, March 2019 (3) GSMA Intelligence, January 2019
1 Helios Towers | Private & Confidential Company Overview How HT has Entered South Africa Creation of infrastructure platform to drive growth in South Africa Helios Towers South Africa (“HTSA”) created through Partnership with Vulatel 1 • Partnership with Vulatel announced January 2019 with HTSA majority owned by HT • Vulatel management team made up of ex-Vodacom directors • Level 2 B-BEE rating, 69% black owned and 45% black women owned • Platform to expand HT product offering and geographical mix • Announced acquisition of 13 fibre regeneration sites in April 2019 HTSA Acquires SA Towers 2 • HTSA announced first investment in SA through acquisition of SA Towers • Pipeline of c.500 urban locations which are ready to be built or are in the process of being permitted • Expected to close Q2 2019 8
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