Results Q1 2020 14 May 2020 Helios Towers team today Tom - - PowerPoint PPT Presentation

Results Q1 2020

14 May 2020

2 Helios Towers plc

Helios Towers team today

Tom Greenwood

Chief Financial Officer

Kash Pandya

Chief Executive Officer

Manjit Dhillon

Head of Investor Relations and Corporate Finance

Agenda

3

Highlights 1 Financial Results 2 Q&A 3

Helios Towers plc

Highlights

Q1 2020 highlights

Helios Towers plc

+11% Adj. EBITDA growth from $49m in Q1 19 to $54m in Q1 20, with margin expansion of +1ppt to 53%

CONTINUED EBITDA EXPANSION… FINANCIAL STRONG REVENUE GROWTH

+9% revenue growth from $94m in Q1 19 to $102m in Q1 20 STRATEGIC/ OPERATIONAL Site growth of +4% YoY to 6,991 and tenancy growth of +8% YoY to 14,677, resulting in a +0.07x tenancy ratio increase to 2.10x

SOLID SITE AND TENANCY GROWTH

(1) Portfolio free cash flow defined as Adj. EBITDA less payment of lease liabilities, tax paid and maintenance and corporate capital additions.

Delivered our 21st consecutive quarter of growth with revenue up +2% and Adj. EBITDA up +1% from Q4 19

…AND QoQ PROGRESSION

5

Demonstrated resilience against impact of COVID-19, delivering strong Q1 20 results and maintaining FY 20 outlook

RESILIENT BUSINESS MODEL

Multiple deals progressing, in-line with expansion strategy

M&A STRATEGY ONGOING

Portfolio free cash flow of US$46m(1) for Q1 20, a +14% increase YoY

…DRIVING CASH FLOW GENERATION

42 50 60 63 83 85 126 127 133 138 148 164 168 176 181 186 195 201 210 215 216

25% 27% 28% 28% 35% 35% 39% 38% 40% 40% 42% 46% 47% 49% 51% 52% 52% 52% 54% 54% 53%

0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%

• 50

100 150 200 250

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

6

21 consecutive quarters of LQA Adj. EBITDA(1) growth

Helios Towers plc

LQA Adj. EBITDA(1) CAGR Q1 2015 – Q1 2020

39%

Margin has more than doubled through top-line growth and implementation of business excellence strategy

>2x

LQA Adj. EBITDA(2) ($m)

• Adj. EBITDA(1) 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 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.

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Commentary Impact Assessment

Workforce & Operations

• Office staff are working from home across all markets
• Field operations are in discrete locations and outdoor

environments with personnel classified as essential workers

• Minimal disruption to-date

Existing Revenue / Liquidity

• $2.9bn contracted revenues with 7 years contract duration

across five countries and 82% with Africa’s Big-Five MNOs(1)

• Cash balance of $146m and undrawn debt facilities of $85m

at Group and ZAR 525m at Helios Towers South Africa

• Minimal impact to existing revenue expected
• Sufficient liquidity

Customer roll-out

• Implications for rate of roll out if equipment supply chains are

disrupted

• Mobile services are critical and in high demand
• Robust pipeline

Supply Chain

• Minimal supply chain delays have been experienced to date
• Forward purchased FY 20 materials in late Q1 / early Q2
• Forward purchasing of fuel
• Accelerated equipment orders provide sufficient

inventory to support our growth through 2020

• High quality operational performance ensured

Situation management

• Regular monitoring and communications with Board,

executive management and employees

• Cloud-based systems and group-wide video-conferencing

for smooth remote-working transition

• Minimal disruption expected

Helios Towers plc

Resilient business model with minimal impact of COVID-19 to both operations and financials

(1) Big-Five MNOs defined as: Airtel, MTN, Orange, Tigo and Vodafone/Vodacom.

Full year guidance maintained

99.60% 99.70% 99.80% 99.90% 100.00% Q1 18 Q2 18 Q3 18 Q4 18 Q1 19 Q2 19 Q3 19 Q4 19 Q1 20

Servicing our customers and communities during COVID-19

Helios Towers plc 8

• Customers continuing to rollout, with high demand on mobile networks

due to COVID-19:

• Compared to pre-lockdown levels, Vodacom have seen data volumes

increase +10-15% in international markets (which includes DRC and Tanzania) and +20% in South Africa (+110% in April YoY) (1)

• No impact to site maintenance, with telecommunications sector

classified as essential in lockdown

• Helios Towers’ power uptime continues to be close to 100%, which

enables communication to continue throughout our communities during this time

Continued customer roll-out Ongoing site maintenance Helios Towers operational excellence continues Commentary

% tower uptime per week

Accra, Ghana Dar es Salaam, Tanzania

“South Africa’s Vodacom Group will spend more than 500 million rand (US$27 million) over two months to increase network capacity as traffic surges” (Reuters, April 2020) “More than ever, the roll-out of very high-speed mobile coverage throughout our territories remains a priority” (Orange, Q1 2020 results)

Performance levels have been consistently high for the last few years

It is “Business As Usual” for Helios Towers’ operations

Vodacom Orange

(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.

9

Leading Values, Ethics and SHEQ

 Quality Management  Environmental Management  Health and Safety Management  Anti-Bribery Management System certified ISO 37001 compliant relating to business functions

ESG Roadmap Comprehensive Suite of Management Systems Values

Demonstrates Helios Towers’ alignment with international best practice

Between Q2 – Q4 20 we will be reviewing key elements of ESG management outlined below:

• Strategy
• Governance
• Performance Management
• Reporting

Environment

Group-wide strategy to proactively monitor and improve our contribution to the environment

441 solar solutions(1), 740 hybrid sites(1) and 531 grid connections

installed(1)

Helios Towers plc

(1) Between 1 January 2017 to 31 December 2019.

The substantial tower opportunity in Africa

Number of towers growing rapidly Mobile operators are selling their towers

5% 27% 70% Africa World 2010 2019 2019 Percentage of towers owned by independent TowerCos Number of towers in Africa 2k 1k 0.8k 0.4k 25k

Shareable towers owned by MNOs in Africa (2019): HT Markets 29k Non-HT Markets 136k

Shareable towers owned by MNOs Non-HT markets with substantial independent towerco presence (IHS, ATC) Countries with no substantial independent towerco presence

10

Significant number of potential countries for expansion

Africa 165k

Helios Towers plc

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.

150k 228k 2014 2019

Financial Results

Q1 2020: Continued strong financial and

• perational performance

Helios Towers plc 12

(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. (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.

QoQ YoY In US$m, unless

• therwise stated

Q4 19 Q1 20 % change Q1 19 Q1 20 % change 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

Q1 2020: Strong revenue and Adj. EBITDA growth

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• Q1 20 revenue increased 9% YoY and 2% QoQ to $102m. YoY revenue growth in all OpCos
• Adj. EBITDA grew 11% YoY and 1% QoQ to $54m
• Adj. EBITDA margin at 53%, increasing 1ppt YoY and a decline of -1ppt QoQ, driven by an increase in SG&A (+$1m QoQ)

94 100 102 Q1 19 Q4 19 Q1 20 Revenue

• Adj. EBITDA

+11%

52% 54% 53% Q1 19 Q4 19 Q1 20

+9%

• Adj. EBITDA margin

+1 ppt

Helios Towers plc

49 54 54 Q1 19 Q4 19 Q1 20

+1% +2%

• 1 ppt

Tanzania 41% DRC 42% Congo B 6% Ghana 11% South Africa 1% USD 54% XAF/EUR 5% LCY (Power) 20% LCY (CPI) 21% Africa’s Big 5 MNOs(1) 86% Other 14%

Consistent and strong currency protection and blue-chip customer base

Helios Towers plc 14

• High quality contracts with inflation and power price escalators

and 59% of revenue pegged to hard currencies

• Long-term relationships with Africa’s Big-Five MNOs, who

generated 86% of Q1 20 revenues

• 82% of future contracted revenues with Africa’s Big-Five MNOs(1)
• Diversified business and strong currency protection provides

resilience against macro impact during COVID-19

Q1 2020 revenue breakdown by customer Q1 2020 revenue breakdown by FX Q1 2020 revenue breakdown by operating company Commentary

(1) Big-Five MNOs defined as: Airtel, MTN, Orange, Tigo and Vodafone/Vodacom.

Strong tenancy growth and tenancy ratio expansion

15

• Tenancy growth of 8% YoY, reaching 14,677 tenancies in Q1 20
• Site and tenancy growth in all markets YoY
• Tenancy growth of 1% QoQ, in line with typically quiet Q1 activity (Q1 19: 0% QoQ, Q1 18: 1% QoQ)
• Tenancy ratio of 2.10x increased +0.07x YoY and +0.01x QoQ

3,654 3,661 3,667 1,759 1,850 1,853 910 961 964 380 384 384

13 118 123

6,716 6,974 6,991 Q1 19 Q4 19 Q1 20 Evolution of sites portfolio Evolution of tenants 7,824 8,099 8,120 3,519 3,828 3,883 1,709 1,888 1,891 531 568 565

17 208 218

13,600 14,591 14,677 Q1 19 Q4 19 Q1 20

+8%

2.03x 2.09x 2.10x Q1 19 Q4 19 Q1 20

+4%

Evolution of tenancy ratio

+0.07x

Helios Towers plc Tanzania DRC Congo Brazzaville Ghana South Africa

+1% +0% +0.01x

Q1 2020 costs and tower cash flow analysis

16 Helios Towers plc

38 39 39 36 35 34 31 32 34 34 32 33 34 46% 45% 45% 40% 40% 38% 35% 35% 36% 35% 33% 33% 33% 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

Quarterly operating cost breakdown(1)

Q1 20 SG&A: $14m

• Strong YoY growth in tower cash flow driving
• Adj. EBITDA margin growth
• Q1 20 opex flat YoY, decreasing as a % of revenues

from 36% to 33%

• SG&A of $14m increased +$3m YoY and $1m QoQ

primarily due to Plc related expenses, South Africa introduction and Congo B licence fee(3)

Adjusted monthly gross profit per tower ($) (2) Commentary 2,967 3,249

Q1 19 Q1 20

+10%

Opex (US$m) Opex (% of revenue)

23% 19% 8% 9% 3% 38%

DRC Tanzania Ghana Congo B South Africa HoldCo

(1) Cost breakdown excludes depreciation, amortisation, exceptional items, deal costs and share-based payments and long-term incentive plan charges. (2) Adjusted monthly gross profit calculated as reported gross profit + site depreciation divided by average sites. (3) Licence fee of 3% of revenue in Congo B, introduced for FY 20.

11 110 1 30 19 57 26 114 11 110 -140

FY 19 Q1 20 FY 20 Organic Capex FY 20 Potential Acquisition Capex FY 20 Group Total

Maintenance Corporate Upgrade Growth Acquistions

Capital expenditure – tightly controlled and carefully applied for growth

17

• FY 20 capex guidance of $110 - 140m:
• $110m for organic investments, of which $20-25m

maintenance and corporate capex expected

• $30m for potential acquisitions reflecting bolt-on
• pportunities in existing markets

Commentary Capex breakdown ($m)

Helios Towers plc

$20-25m maintenance and corporate capex Guidance Small in-market acquisitions, in near-term pipeline

Summary of financial debt

Debt KPIs

Helios Towers plc 18

Gross and net leverage Commentary

• YoY deleveraging driven by continued growth in

Adjusted EBITDA

• Q1 20 net leverage(5) of 3.0x below target range of

3.5x and 4.5x

• HT continues to monitor the market for an appropriate

window for a potential refinancing of its existing financing structure

($m) Q1 19 FY 19 Q4 19 Q1 20 Cash & cash equivalents

109 221

221 146 Less: restricted cash (1)

• 38

38

• Cash excl. restricted cash

109 183

183 146 Bond 600 600 600 600 Term loan 75 75 75 75 Lease obligations + other (2) 106 135 135 126 Gross debt 781 810 810 800 Net debt (3) 672 627 627 653 Annualised Adj. EBITDA 195 (4) 205 215 (4) 216 (4) Gross leverage (5)

4.0x 3.9x 3.8x 3.7x

Net leverage (6)

3.4x 3.1x 2.9x 3.0x

4.0x 3.9x 3.8x 3.7x

3.4x 3.1x 2.9x 3.0x

Q1 19 FY 19 Q4 19 Q1 20

Gross leverage Net leverage

• 0.3x / -0.4x

(3)

(1) Restricted cash reflects cash held for the payment of change of control taxes related to our initial public offering in 2019, funded by a capital contribution from our shareholders immediately prior to the initial public offering. (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. 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. (4) 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 result. (5) Calculated as gross debt divided by annualised Adj. EBITDA for the quarter and Adj. EBITDA for the year. (6) Calculated as net debt divided by annualised Adj. EBITDA for the quarter and Adj. EBITDA for the year.

Strong growth in portfolio free cash flow conversion; Working capital investments in Q1 20 for growth and business resilience

Helios Towers plc

($m) 2017 2018 2019 Q1 20

• Adj. EBITDA

146 178 205 54 Non-discretionary capex(1), leases(2) & taxes (49) (45) (36) (8) Portfolio free cash flow 97 133 169 46 Cash conversion % (3) 66% 75% 82% 85% Net payment of interest (4) (41) (62) (68) (31) Levered portfolio free cash flow 56 71 101 15 Discretionary capex (5) (149) (103) (102) (9) Adjusted free cash flow (93) (32) (1) 6 Net change working capital (6) (23) 10 (45) (35) Cash paid for exceptional and EBITDA adjusting items and proceeds on disposal of assets (7) (7) (32) (36) (7) Cash paid in related to change of control taxes (8)

• (38)

Vodacom minority acquisition (59)

• Free cash flow

(182) (54) (82) (74) Net cash flow from financing activities 168 25 214

• Net cash flow

(14) (29) 133 (74) Cash brought forward (8) 134 120 89 221 FX (1) (1) Cash carried forward 120 89 221 146

(1) Non-discretionary capex includes maintenance and corporate capital additions. (2) Payment of lease liabilities includes interest and principal repayments of lease liabilities. (3) Cash conversion % is calculated as portfolio free cash flow divided by Adjusted EBITDA. (4) Net payment of interest corresponds to the net of “Interest paid” (including withholding tax) and “Interest received” in the condensed consolidated statement of cash flows, excluding interest payments on lease liabilities. (5) Discretionary capex includes acquisition, growth and upgrade capital additions. (6) Net change in working capital corresponds to movements in working capital, excluding cash paid for exceptional and EBITDA adjusting items and including movements in capital expenditure related working capital. (7) Cash paid for exceptional and EBITDA adjusting items includes cash paid for exceptional project costs, deal costs, litigation costs, share- based payments and long term incentive plan charges and associated costs. (8) Opening cash balance in Q1 20 included $37.7m of restricted cash, which had been funded at the time of IPO by Helios Towers’ pre-IPO

• shareholders. This was paid to the relevant tax authority in Q1 2020.

(9) Net receivables equals total trade receivables (including related parties) and accrued revenue, less amounts billed not yet due. (10) Net receivables days calculated as net receivables divided by revenue reported in the period multiplied by number of days in the period.

Strong portfolio free cash flow conversion

19

66% 75% 82% 85%

FY 17 FY 18 FY 19 Q1 20

• Investment in working capital for growth

and business resilience:

• Capex: $16m
• Opex: $11m
• Net customer receivables(9) increased by

$9m driven by Big 5 MNO payment timings:

Working capital commentary

31 8 40 57 16 17 16 7 1 5 4 5

20 40 60 20 40 60

Q4 17 Q4 18 Q4 19 Q1 20

Net receivables days(10) Net Billing (US$m)

Big 5 MNO Other MNOs Other Net recievables days Net receivables days

Q1 2020 summary

Helios Towers plc 20

 Q1 20 in line with expectations  Business operating as normal through COVID-19 event  Organic and inorganic pipeline robust  2020 guidance maintained with further update at H1 20 reporting

Q&A

Disclaimer

Helios Towers plc

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

• r 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
• r 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.

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Appendix

Summary Income Statement

Helios Towers plc

(1) Exceptional project costs relate to the preparation for a potential debt refinancing. (2) Share-based payments and long term incentive plan charges and associated costs. (3) Deal costs comprise deal costs for aborted acquisitions, which mainly comprise professional fees and travel costs incurred while investigating potential site acquisitions that are expensed when the potential site acquisition does not proceed, and deal costs not capitalized, which relate to the exploration of investment opportunities across Africa.

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($m) Q1 20 Q1 19 Revenue 101.8 93.7 Cost of sales (65.0) (65.3) Gross Profit 36.8 28.4 Admin expenses (24.1) (16.3) Loss on disposal of PPE (0.6) (5.1) Operating profit/(loss) 12.1 7.0 Investment income 0.7 0.1 Other gains and losses (41.0) 15.7 Finance costs (29.3) (31.5) Loss before tax (57.5) (8.7) Tax expenses (4.0) (0.7) Loss after tax (61.5) (9.4) Loss Attributable to: Owners of the Company (61.3) (9.4) Non-controlling interests (0.2)

• Loss after tax

(61.5) (9.4)

• Adj. EBITDA

54.0 48.8

• Adj. EBITDA margin

53% 52% Reconciliation of Adj. EBITDA to loss before tax for Q1 19 and Q1 20

• Adj. EBITDA

54.0 48.8 Adjustments applied in arriving at Adj. EBITDA Exceptional items: Exceptional project costs(1) (4.3)

• Share-based payments and long term incentive plans(2)

(0.2)

• Deal costs(3)

(0.7) (1.2) Loss on disposals of assets (0.6) (5.1) Other gains and losses (41.0) 15.7 Depreciation and amortisation (36.1) (35.5) Finance costs (29.3) (31.5) Investment Income 0.7 0.1 Loss before tax (57.5) (8.7)

Summary Balance Sheet

Helios Towers plc 25

($m)

Q1 20 FY 19

Non–current assets Intangible assets 22.9 28.4 Property, plant and equipment 607.3 631.9 Right-of-use assets 110.6 108.2 Derivatives financial assets

• 41.0

740.8 809.5 Current assets Inventories 9.4 9.3 Trade and other receivables 173.1 166.5 Prepayments 25.4 14.1 Cash and bank balances 146.4 221.1 354.3 411.0 Total assets 1,095.1 1,220.5 Equity Issued capital and reserves Share capital 12.8 12.8 Stated capital 12.8 12.8 Other reserves (87.0) (87.0) Share based payment reserve 19.8 19.6 Translation reserve (84.9) (82.7) Treasury shares (4.4) (4.4) Retained Earnings 256.3 317.6 Equity attributable to owners 112.6 175.9 Non controlling interest (0.8) (0.6) Total Equity 111.8 175.3 Current liabilities Trade and other payables 173.1 222.7 Short term lease liabilities 21.2 21.4 Contingent consideration 2.7 3.6 Loans 4.7 19.2 201.7 266.9 Non–current liabilties Loans 666.3 665.1 Long-term finance liabilities 107.5 104.2 Contingent consideration 4.6 5.9 Deferred tax liability 3.2 3.1 Total Liablilities 983.3 1,045.2 Total Equity and Liabilities 1,095.1 1,220.5

Summary Management Cash Flow

Helios Towers plc

(1) Payment of lease liabilities includes interest and principal repayments of lease liabilities. (2) A reconciliation of cash generated from operating activities to portfolio free cash flow is available in the Alternative Performance Measures section of our Q1 2020 financial statements available on our website at www.heliostowers.com/investors/results-reports-and-presentations. (3) Cash conversion % is calculates as portfolio free cash flow divided by Adjusted EBITDA. (4) Net payment of interest corresponds to the net of “Interest paid” (including withholding tax) and “Interest received” in the consolidated statement of cash flows, excluding interest payments on lease liabilities. Consolidated financial statements are available on our website at www.heliostowers.com/investors/results-reports-and-presentations. (5) Discretionary capex includes acquisition, growth and upgrade capex. (6) Net change in working capital corresponds to movements in working capital, excluding cash paid for exceptional and EBITDA adjusting items and including movements in capital expenditure related working capital. (7) Cash paid for exceptional and EBITDA adjusting items corresponds to cash paid for exceptional project costs, deal costs, share-based payments and long term incentive plan charges and associated costs. (8) Opening cash balance for the period ended 31 March 2020 included $37.7m restricted cash which had been funded at the time of IPO by Helios Towers’ pre-IPO shareholders. This was paid to the relevant tax authority in Q1 2020.

26

($m) Q1 20 Q1 19

• Adj. EBITDA

54.0 48.8 Maintenance and corporate capex (2.6) (4.4) Payments of lease liabilities (1) (5.0) (3.7) Tax paid (0.5) (0.4) Portfolio free cash flow (2) 45.9 40.3 Cash conversion % (3) 85% 83% Net payment of interest (4) (31.1) (30.0) Levered Portfolio free cash flow 14.8 10.3 Discretionary capex (2)(5) (8.6) (11.3) Adjusted free cash flow 6.2 (1.0) Net change working capital (6) (34.7) (26.8) Cash paid for exceptional and EBITDA adjusting items (7) (7.7) (1.2) Cash paid in relation to change of control taxes (8) (37.7)

• Proceeds on disposal of assets

0.3

• Free cash flow

(73.6) (29.0) Net cash flow from financing activities

• 50.0

Net cash flow (73.6) 21.0 Cash brought forward (8) 221.1 89.0 FX (1.1) (0.5) Cash carried forward 146.4 109.5