Results Q3 2019 14 November 2019
Helios Towers Team Today Tom Greenwood Kash Pandya Manjit Dhillon Chief Financial Officer Chief Executive Officer Head of Investor Relations and Corporate Finance 1
Agenda 1 Key Highlights 2 Financial Results 3 Q&A 2
Key Highlights
Q3 2019 Highlights Our 19 th consecutive quarter of Adj. EBITDA • growth, with continued improvement across key financial and operating metrics Successful float of HT plc with premium • listing on the London Stock Exchange New Board members announced • Helios Towers 4
Strong Q3 2019 Performance, both Financially and Operationally Q3 2019 Performance 19 Quarters of Annualised Adj. EBITDA (2) Growth CAGR • Revenue +11% YoY to $97m Margin has more than Q1 2015 – Q3 2019 43% doubled through top-line >2x growth and implementation of business excellence 54% • Adjusted EBITDA (1) up +16% YoY to $52m strategy 164 168 176 181 186 195 201 210 ($210m annualised) reflecting our 19 th consecutive quarter of growth 126 127 133 138 148 • Adj. EBITDA margin up 3ppt YoY to 54% 83 85 25% 42 50 60 63 • Total tenancies up +9% YoY to 14,226 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 15 15 15 15 16 16 16 16 17 17 17 17 18 18 18 18 19 19 19 • Tenancy ratio increased 0.07x YoY to 2.06x % = Adj. EBITDA Margin (1) “Adjusted EBITDA” is defined as loss for the period, adjusted for tax expenses, finance costs, other gains and losses, interest receivable, loss on disposa l of property, plant and equipment, amortisation of intangible assets, depreciation and impairment of property, plant and equipment, depreciation of right-of-use assets, recharged depreciation, deal costs for aborted acquisitions, deal costs not capitalised, share-based payments and long- term incentive plan charges, and exceptional items. Exceptional items are material items that are considered exceptional in nature by management by virtue of their size and/or incidence. (2) Annualised Adj. EBITDA calculated as per the bond definition as the most recent fiscal quarter multiplied by 4. This is not a forecast of future results Helios Towers 5
Successful float of HT plc with premium listing on the London Stock Exchange • On 18 October 2019 Helios Towers was admitted to the premium segment of the Official List and trading on the Main Market of the London Stock Exchange • IPO raised $360m: • $125m primary proceeds to be deployed in value-accretive future expansion opportunities – new geographies/ M&A • $235m part sale by existing shareholdings • Initial pricing at 115p per share with market capitalisation of £1.15bn • Free float of $500m 1 1 Includes shareholders owning less than 5% of issued share capital with a lock-up of 180 days or less; excludes management and board members. Helios Towers 6
New Helios Towers plc Board New Appointments: • Sir Samuel Jonah - Chairman • Magnus Mandersson - Senior Independent Director • Alison Baker - Independent Non-Executive Director Existing Board Members: • Kash Pandya - Chief Executive Officer • Tom Greenwood - Chief Financial Officer • Richard Byrne - Independent Non-Executive Director • David Wassong - Non-Executive Director • Temitope Lawani - Non-Executive Director Helios Towers 7
Financial Results
Q3 2019 Key Highlights Results Snapshot Financial Summary % % Q2 19 Q3 19 change YTD 18 YTD 19 change Q3 YTD Revenue: +8% YoY / +0% QoQ • In US$m, unless QoQ YoY otherwise stated Q3 YTD Adj. EBITDA: +16% YoY / +5% QoQ • Revenue 97 97 0% 266 288 8% Q3 YTD Adj. EBITDA margin: +4ppt YoY / • +2ppt QoQ Adj. EBITDA (1) 50 52 5% 131 151 16% Annualised adj. EBITDA (2) 201 210 5% 181 210 16% Operational Summary Adj. EBITDA margin (%) 52% 54% 2ppt 49% 53% 4ppt YoY +343 sites (+5%) and +820 colocations (+13%) • Sites (#) 6,882 6,903 0% 6,560 6,903 5% YoY +1,163 tenancies (+9%) • Colocations (#) (3) 7,218 7,323 1% 6,503 7,323 13% YoY growth driven by organic demand across all • markets, including new our market South Africa Tenancies (#) 14,100 14,226 1% 13,063 14,226 9% Tenancy ratio increased to 2.06x (+0.07x YoY) • Tenancy Ratio (x) 2.05x 2.06x 1.99x 2.06x QoQ 21 sites (+0%) and +105 colocations (+1%) • Capex 40 29 -27% 94 84 -10% Net Debt (4) 716 730 2% 648 730 13% (1) Adjusted EBITDA is defined as loss for the period, adjusted for tax expenses, finance costs, other gains and losses, interest receivable, loss on disposa l of property, plant and equipment, amortisation of intangible assets, depreciation and impairment of property, plant and equipment, depreciation of right-of-use assets, recharged depreciation, deal costs for aborted acquisitions, deal costs not capitalised, share-based payments and long-term incentive plan charges, and exceptional items. Exceptional items are material items that are considered exceptional in nature by management by virtue of their size and/or incidence. (2) Annualised Adj. EBITDA calculated as per the bond definition as the most recent fiscal quarter multiplied by 4. This is not a forecast of future results (3) Includes standard and amendment colocations (4) Net debt is calculated as our gross debt less cash and cash equivalents Helios Towers 9
Strong Revenue and Adj. EBITDA Growth Revenue growth Adj. EBITDA growth Adj. EBITDA margin expansion +3 ppt +11% +16% +2 ppt 0% +5% 54% 52% 51% 97 97 52 50 88 45 Q3 18 Q2 19 Q3 19 Q3 18 Q2 19 Q3 19 Q3 18 Q2 19 Q3 19 Q3 19 Revenue increased 11% YoY to $97m (Q3 18: $88m); flat QoQ • Adj. EBITDA grew 16% YoY to $52m (Q3 18: $45m) • Adj. EBITDA margin improved to 54%, an increase of 3 ppt YoY and 2 ppt QoQ • Helios Towers 10
YTD 2019 Revenue Breakdown YTD 2019 Revenue Breakdown by Customer YTD 2019 Revenue Breakdown by FX Other LCY (CPI) 21% 13% USD LCY (Power) 53% 22% Africa’s Big 5 MNOs (1) 87% XAF/EUR 4% YTD 2019 Revenue Breakdown by Country Commentary 87% of YTD 19 revenues from Africa’s Big 5 MNOs • Ghana South Africa 10% 0% (YTD 18= 86%) Tanzania Congo B 41% 57% of revenues in USD or XAF (which is pegged to • 7% the Euro) DRC 42% (1) Big 5 MNOs defined as: Airtel, MTN, Orange, Tigo and Vodafone/Vodacom Helios Towers 11
Tenancy Growth up 9% YoY, Tenancy Ratio rose to 2.06x Evolution of sites portfolio Evolution of tenants Evolution of tenancy ratio +5% +9% +0.07x +0% +1% +0.01x 6,882 6,903 14,226 14,100 6,560 110 13,063 193 101 168 557 385 533 381 378 526 1,788 1,744 933 950 888 1,665 3,705 3,717 1,817 1,821 3,374 1,775 2.06x 2.05x 1.99x 7,950 7,971 3,650 3,637 7,498 3,519 Q3 18 Q2 19 Q3 19 Q3 18 Q2 19 Q3 19 Q3 18 Q2 19 Q3 19 Tanzania DRC Congo Brazzaville Ghana South Africa Tenancy growth of 9% YoY, reaching 14,226 tenancies in Q3 19 • Site growth in all markets except Tanzania (ongoing site consolidation program) • Tenancy growth across all markets • Tenancy ratio of 2.06x increased +0.07x YoY and +0.01x QoQ • Helios Towers 12
YTD 2019 Costs and Tower Cash Flow Analysis YTD 19 Operating Cost Breakdown (1) Monthly Cash Flow per Tower ($) (2) YTD 19 Site Opex: $100m 3,157 +8% % Revenue 46% 45% 45% 40% 40% 38% 35% 35% 36% 35% 33% 2,914 US$m: 39 39 38 36 35 34 34 34 32 32 31 Q3 18 Q3 19 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 17 17 17 17 18 18 18 18 19 19 19 Commentary YTD 19 SG&A: $36m Strong YoY growth in Tower Cash Flow and Adj. • Tanzania 22% EBITDA margin DRC 34% Ghana Q3 19 Opex decreased -$2m QoQ to $32m (33% of • Congo B revenues) 25% South Africa 8% 9% 2% Holdco (1) Cost breakdown excludes depreciation, amortisation, exceptional items, deal costs and share-based payments and long-term incentive plan charges (2) Tower Cash Flow calculated as Reported Gross Profit + Site Depreciation Helios Towers 13
Capital Expenditure Capex Breakdown ($m) Commentary YTD 2019 capex of $84m: Guidance Acquisition capex relates to South African investments and Tanzanian acquisition of colocation rights 130 119 Growth capex of $41m represents investments in 2 30 new sites and tenancies across all group 100 operations, plus site efficiency initiatives (power, 84 78 consolidations etc) 22 FY 19 capex guidance remains unchanged at $130m • $20-25m 41 maintenance and corporate 22 capex 3 12 1 13 8 FY 18 YTD 19 FY 19 FY 19 FY 19 Organic ex. Acquisitions / Group South Africa South Africa Total Maintenance Corporate Upgrade Growth Acquistions Helios Towers 14
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