Results Q1 2020 14 May 2020
Helios Towers team today Tom Greenwood Kash Pandya Manjit Dhillon Chief Financial Officer Chief Executive Officer Head of Investor Relations and Corporate Finance Helios Towers plc 2
Agenda 1 Highlights 2 Financial Results 3 Q&A Helios Towers plc 3
Highlights
Q1 2020 highlights STRONG REVENUE +9% revenue growth from $94m in Q1 19 to $102m in Q1 20 GROWTH CONTINUED EBITDA +11% Adj. EBITDA growth from $49m in Q1 19 to $54m in Q1 20, with EXPANSION… margin expansion of +1ppt to 53% FINANCIAL Delivered our 21 st consecutive quarter of growth with …AND QoQ PROGRESSION revenue up +2% and Adj. EBITDA up +1% from Q4 19 …DRIVING CASH FLOW Portfolio free cash flow of US$46m (1) for Q1 20, a +14% increase YoY GENERATION SOLID SITE AND Site growth of +4% YoY to 6,991 and tenancy growth of +8% YoY to TENANCY GROWTH 14,677, resulting in a +0.07x tenancy ratio increase to 2.10x STRATEGIC/ RESILIENT Demonstrated resilience against impact of COVID-19, delivering OPERATIONAL BUSINESS MODEL strong Q1 20 results and maintaining FY 20 outlook M&A STRATEGY Multiple deals progressing, in-line with expansion strategy ONGOING (1) Portfolio free cash flow defined as Adj. EBITDA less payment of lease liabilities, tax paid and maintenance and corporate capital additions. Helios Towers plc 5
21 consecutive quarters of LQA Adj. EBITDA (1) growth LQA Adj. EBITDA (2) ($m) Adj. EBITDA (1) margin (%) 250 100% LQA Adj. EBITDA (1) CAGR 39% 90% Q1 2015 – Q1 2020 200 80% Margin has more than doubled 70% >2x through top-line growth and implementation of business 150 60% excellence strategy 54% 54% 53% 52% 52% 52% 51% 49% 47% 46% 50% 42% 40% 40% 39% 215 216 38% 210 100 40% 201 35% 35% 195 186 181 176 168 28% 164 28% 27% 30% 25% 148 138 133 127 126 50 20% 85 83 63 60 10% 50 42 - 0% 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 Q1 19 Q2 19 Q3 19 Q4 19 Q1 20 (1) Adjusted EBITDA is defined as loss for the period, adjusted for tax expenses, 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, 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) LQA 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 plc 6
Resilient business model with minimal impact of COVID-19 to both operations and financials Commentary Impact Assessment Office staff are working from home across all markets • Workforce & Field operations are in discrete locations and outdoor Minimal disruption to-date • • Operations environments with personnel classified as essential workers $2.9bn contracted revenues with 7 years contract duration • Minimal impact to existing revenue expected • Existing Revenue / across five countries and 82% with Africa’s Big -Five MNOs (1) Sufficient liquidity • Liquidity Cash balance of $146m and undrawn debt facilities of $85m • at Group and ZAR 525m at Helios Towers South Africa Customer Implications for rate of roll out if equipment supply chains are Mobile services are critical and in high demand • • roll-out disrupted • Robust pipeline Minimal supply chain delays have been experienced to date Accelerated equipment orders provide sufficient • • Supply Forward purchased FY 20 materials in late Q1 / early Q2 inventory to support our growth through 2020 • Chain Forward purchasing of fuel High quality operational performance ensured • • • Regular monitoring and communications with Board, Situation executive management and employees Minimal disruption expected • management Cloud-based systems and group-wide video-conferencing • for smooth remote-working transition Full year guidance maintained (1) Big-Five MNOs defined as: Airtel, MTN, Orange, Tigo and Vodafone/Vodacom. Helios Towers plc 7
Servicing our customers and communities during COVID-19 It is “Business As Usual” for Helios Towers’ operations Ongoing site maintenance Helios Towers operational excellence continues % tower uptime per week Dar es Salaam, Tanzania Accra, Ghana 100.00% 99.90% Performance levels have 99.80% been consistently high for the last few years 99.70% 99.60% Q1 18 Q2 18 Q3 18 Q4 18 Q1 19 Q2 19 Q3 19 Q4 19 Q1 20 Continued customer roll-out Commentary • Customers continuing to rollout, with high demand on mobile networks Vodacom due to COVID-19: “ South Africa’s Vodacom Group will spend more than 500 Compared to pre-lockdown levels, Vodacom have seen data volumes • million rand (US$27 million) over two months to increase increase +10-15% in international markets (which includes DRC and Tanzania) network capacity as traffic surges ” (Reuters, April 2020) and +20% in South Africa ( +110% in April YoY ) (1) Orange No impact to site maintenance, with telecommunications sector • classified as essential in lockdown “More than ever, the roll -out of very high-speed mobile coverage throughout our territories remains a priority” Helios Towers’ power uptime continues to be close to 100%, which • (Orange, Q1 2020 results) enables communication to continue throughout our communities during this time (1) Vodacom Group Annual Results Presentation for the year ended 31 March 2020. Unless specified, data volume growth rates reflect April 2020 vs. March 2020. Helios Towers plc 8
Leading Values, Ethics and SHEQ Values ESG Roadmap Between Q2 – Q4 20 we will be reviewing key elements of ESG management outlined below: Strategy • Governance • Performance Management • Reporting • Comprehensive Suite of Management Systems Environment Group-wide strategy to proactively monitor and improve our Demonstrates Helios Towers’ alignment with international best practice contribution to the environment Quality Management 441 solar solutions (1) , Environmental Management 740 hybrid sites (1) and 531 grid connections Health and Safety Management installed (1) Anti-Bribery Management System certified ISO 37001 compliant relating to business functions (1) Between 1 January 2017 to 31 December 2019. Helios Towers plc 9
The substantial tower opportunity in Africa Number of towers Significant number of potential countries for expansion growing rapidly Number of Shareable towers owned by towers in Africa MNOs in Africa (2019): 228k Africa 150k 165k 2014 2019 0.8k Mobile operators are selling Non-HT Markets their towers 0.4k Percentage of towers owned by 1k independent TowerCos 2k 136k Africa 5% 27% 2010 2019 HT Markets World Shareable towers owned by MNOs Countries with no substantial 25k 29k 2019 independent towerco presence 70% Non-HT markets with substantial independent towerco presence (IHS, ATC) Sources: Tower portfolios in HT markets: Hardiman Report, August 2019. Tower portfolios outside HT markets, Number of Towers in Africa: TowerXchange “Africa Dossier”, 2019, TowerXchange “MENA Dossier”, 2020. Helios Towers plc 10
Financial Results
Q1 2020: Continued strong financial and operational performance QoQ YoY In US$m, unless Q4 19 Q1 20 % change Q1 19 Q1 20 % change otherwise stated Revenue 100 102 2% 94 102 9% Adj. EBITDA (1) 54 54 1% 49 54 11% LQA Adj. EBITDA (2) 215 216 1% 195 216 11% Adj. EBITDA margin (%) 54% 53% -1ppt 52% 53% 1ppt Sites (#) 6,974 6,991 0% 6,716 6,991 4% Colocations (#) (3) 7,617 7,686 1% 6,884 7,686 12% Tenancies (#) 14,591 14,677 1% 13,600 14,677 8% Tenancy ratio (x) 2.09x 2.10x 0.01x 2.03x 2.10x 0.07x Capex 30 11 -63% 16 11 -29% Net debt (4) 627 653 4% 672 653 -3% Net leverage (x) (5) 2.9x 3.0x 0.1x 3.4x 3.0x -0.4x (1) Adjusted EBITDA is defined as loss for the period, adjusted for tax expenses, finance costs, other gains and losses, interest r eceivable, 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, 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) LQA 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. Q4 19 net debt excludes US$37.7m of restricted cash for the payment of change of control taxes related to our initial public offering in 2019, funded by a capital contribution from our pre-IPO shareholders immediately prior to the initial public offering. (5) Calculated as net debt divided by annualised Adj. EBITDA for the quarter. Helios Towers plc 12
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