MAY 14, 2024
DISCLAIMER
Forward-Looking Information
This presentation contains forward-looking statements. We intend such forward-looking statements to be covered by relevant safe harbor provisions for forward-looking statements (or their equivalent) of any applicable jurisdiction, including those contained in Section 27A of the Securities Act of 1933, as amended (the "Securities Act"), and Section 21E of the Securities Exchange Act of 1934, as amended (the "Exchange Act"). All statements other than statements of historical facts contained in this presentation may be forward-looking statements. In some cases, you can identify forward-looking statements by terms such as "may," "will," "should," "expects," "plans," "anticipates," "could," "intends," "targets," "projects," "contemplates," "believes," "estimates," "forecast," "predicts," "potential" or "continue" or the negative of these terms or other similar expressions. Forward-looking statements contained in this presentation include, but are not limited to statements regarding our future results of operations and financial position, future organic growth, anticipated results for the fiscal year 2024, industry and business trends, business strategy, plans (including productivity enhancements and cost reductions, and our ability to refinance or meet our debt obligations), market growth and our objectives for future operations, and the impact of the devaluation of the Naira and other economic and geopolitical factors on our future results and operations, the outcome and potential benefit of our strategic review, and the impact of and our ability to execute on the corporate governance changes pursuant to our settlement with Wendel. We have based these forward-looking statements largely on our current expectations and projections about future events and financial trends that we believe may affect our business, financial condition and results of operations. Forward-looking statements involve known and unknown risks, uncertainties and other important factors that may cause our actual results, performance or achievements to be materially different from any future results, performance or achievements expressed or implied by the forward-looking statements, including, but not limited to: non-performance under or termination, non-renewal or material modification of our customer agreements; volatility in terms of timing for settlement of invoices or our inability to collect amounts due under invoices; a reduction in the creditworthiness and financial strength of our customers; the business, legal and political risks in the countries in which we operate; general macroeconomic conditions in the countries in which we operate; changes to existing or new tax laws, rates or fees foreign exchange risks, particularly in relation to the Nigerian Naira, and/or ability to hedge against such risks in our commercial agreements or to access U.S. Dollars in our markets; the effect of regional or global health pandemics, geopolitical conflicts and wars, and acts of terrorism; our inability to successfully execute our business strategy and operating plans, including our ability to increase the number of Colocations and Lease Amendments on our Towers and construct New Sites or develop business related to adjacent telecommunications verticals (including, for example, relating to our fiber businesses in Latin America and elsewhere) or deliver on our sustainability or environmental, social and governance (ESG) strategy and initiatives under anticipated costs, timelines, and complexity, such as our Carbon Reduction Roadmap (and Project Green), including plans to reduce diesel consumption, integrate solar panel and battery storage solutions on tower sites and connect more sites to the electricity grid; our reliance on third-party contractors or suppliers, including failure, underperformance or inability to provide products or services to us (in a timely manner or at all) due to sanctions regulations, supply chain issues or for other reasons; our estimates and assumptions and estimated operating results may differ materially from actual results; increases in operating expenses, including increased costs for diesel; failure to renew or extend our ground leases, or protect our rights to access and operate our Towers or other telecommunications infrastructure assets; loss of customers; risks related to our indebtedness; changes to the network deployment plans of mobile operators in the countries in which we operate; a reduction in demand for our services; the introduction of new technology reducing the need for tower infrastructure and/or adjacent telecommunication verticals; an increase in competition in the telecommunications tower infrastructure industry and/or adjacent telecommunication verticals; our failure to integrate recent or future acquisitions; the identification by management of material weaknesses in our internal control over financial reporting, which could affect our ability to produce accurate financial statements on a timely basis or cause us to fail to meet our future reporting obligations; increased costs, harm to reputation, or other adverse impacts related to increased intention to and evolving expectations for environmental, social and governance initiatives; our reliance on our senior management team and/or key employees; failure to obtain required approvals and licenses for some of our sites or businesses or comply with applicable regulations; inability to raise financing to fund future growth opportunities or operating expense reduction strategies; environmental liability; inadequate insurance coverage, property loss and unforeseen business interruption; compliance with or violations (or alleged violations) of laws, regulations and sanctions, including but not limited to those relating to telecommunications regulatory systems, tax, labor, employment (including new minimum wage regulations), unions, health and safety, antitrust and competition, environmental protection, consumer protection, data privacy and protection, import/export, foreign exchange or currency, and of anti-bribery,anti-corruption and/or money laundering laws, sanctions and regulations; fluctuations in global prices for diesel or other materials; disruptions in our supply of diesel or other materials; legal and arbitration proceedings; our reliance on shareholder support (including to invest in growth opportunities) and related party transaction risks; risks related to the markets in which we operate, including but not limited to local community opposition to some of our sites or infrastructure, and the risks from our investments into emerging and other less developed markets; injury, illness or death of employees, contractors or third parties arising from health and safety incidents; loss or damage of assets due to security issues or civil commotion; loss or damage resulting from attacks on any information technology system or software; loss or damage of assets due to extreme weather events whether or not due to climate change; failure to meet the requirements of accurate and timely financial reporting and/or meet the standards of internal control over financial reporting that support a clean certification under the Sarbanes Oxley Act; risks related to our status as a foreign private issuer; and the important factors discussed in the section titled "Risk Factors" in our Annual Report on Form 20-F for the fiscal year ended December 31, 2023. The forward-looking statements in this presentation are based upon information available to us as of the date of this presentation, and while we believe such information forms a reasonable basis for such statements, such information may be limited or incomplete, and our statements should not be read to indicate that we have conducted an exhaustive inquiry into, or review of, all potentially available relevant information. These statements are inherently uncertain and investors are cautioned not to unduly rely upon these statements. You should read this presentation and the documents that we reference in this presentation with the understanding that our actual future results, performance and achievements may be materially different from what we expect. We qualify all of our forward-looking statements by these cautionary statements. Additionally, we may provide information herein that is not necessarily "material" under the federal securities laws for SEC reporting purposes, but that is informed by various ESG standards and frameworks (including standards for the measurement of underlying data), and the interests of various stakeholders. Much of this information is subject to assumptions, estimates or third-party information that is still evolving and subject to change. For example, we note that standards and expectations regarding greenhouse gas (GHG) accounting and the processes for measuring and counting GHG emissions and GHG emissions reductions are evolving, and it is possible that our approaches both to measuring our emissions and any reductions may be at some point, either currently or in future, considered by certain parties to not be in keeping with best practices. In addition, our disclosures based on any standards may change due to revisions in framework requirements, availability of information, changes in our business or applicable government policies, or other factors, some of which may be beyond our control. These forward-looking statements speak only as of the date of this presentation. Except as required by applicable law, we do not assume, and expressly disclaim, any obligation to publicly update or revise any forward-looking statements contained in this presentation, whether as a result of any new information, future events or otherwise.
Use of Non-IFRS financial measures
Certain parts of this presentation contain non-IFRS financial measures, including but not limited to Adjusted EBITDA, Adjusted EBITDA Margin, Adjusted Levered Free Cash Flow ("ALFCF"), ALFCF Cash Conversion Rate, Return on Invested Capital ("ROIC"). The non-IFRS financial information is presented for supplemental informational purposes only and should not be considered a substitute for financial information presented in accordance with IFRS and may be different from similarly titled non-IFRS measures used by other companies. Our management uses Adjusted EBITDA, Adjusted EBITDA Margin and ROIC as an indicator of the operating performance of our core business. We believe that Adjusted EBTIDA, Adjusted EBITDA Margin and ROIC are useful to investors and are used by our management for measuring profitability and allocating resources, because they exclude the impact of certain items which have less bearing on our core operating performance. We believe that utilizing Adjusted EBITDA, Adjusted EBITDA Margin and ROIC allows for a more meaningful comparison of operating fundamentals between companies within our industry by eliminating the impact of capital structure and taxation differences between the companies. Our management uses ALFCF and ALFCF Cash Conversion Rate to assess the long-term, sustainable operating liquidity of our business. Starting in the third quarter of 2023, we replaced RLFCF with ALFCF. As a result, we have represented the 1Q23 and 2Q23 measures to be on a consistent basis with the ALFCF presented for the subsequent periods. Unlike RLFCF, ALFCF and ALFCF Cash Conversion Rate excludes the reversal of movements in the net loss allowance on trade receivables and impairment of inventory to better reflect the liquidity position in each period. ALFCF and ALFCF Cash Conversion Rate only includes the cash costs of business combination transaction costs, other costs and other income. There is otherwise no change in the definition or calculation of this metric for the periods presented as a result of the name change. Non-IFRS measures are frequently used by securities analysts, investors and other interested parties in their evaluation of companies comparable to us, many of which present non-IFRS measures when reporting their results. Non-IFRS financial measures are used by different companies for differing purposes and are often calculated in ways that reflect the circumstances of those companies. You should exercise caution in comparing non-IFRS financial measures as reported by us to non-IFRS financial measures as reported by other companies. These metrics have limitations as analytical tools, you should not consider such financial measures in isolation from, or as a substitute analysis for, our results of operations as determined in accordance with IFRS. These metrics are not measures of performance or, in the case of ALFCF and ALFCF Cash Conversion Rate, liquidity under IFRS and you should not consider Adjusted EBITDA, Adjusted EBITDA Margin or ROIC for the period as an alternative to profit/(loss) or ALFCF and ALFCF Cash Conversion Rate as an alternative to cash from operations, or other financial measures determined in accordance with IFRS. Non-IFRS financial measures described in this presentation are unaudited and have not been prepared in accordance with IFRS or any other generally accepted accounting principles. In addition, the presentation of these measures is not intended to and does not comply with the reporting requirements of any regulatory authority and will not be subject to review by a regulatory authority; compliance with such requirements may require us to make changes to the presentation of this information. Definitions and reconciliations of these non-IFRS measures to the most directly comparable IFRS measures are provided in the Appendix and Glossary as applicable. The presentation of LTM Pro Forma Adjusted EBITDA should not be construed as an inference that our future results will be consistent with our "as if" estimates. These "as if" estimates of potential operating results were not prepared in accordance with IFRS or the pro forma rules of Regulation S-X promulgated by the Securities and Exchange Commission (the "SEC"). Furthermore, while LTM Pro Forma Adjusted EBITDA gives effect to management's estimate of a full year of Adjusted EBITDA in respect of acquisitions completed in the applicable period, LTM Pro Forma Adjusted EBITDA does not give effect to any Adjusted EBITDA in respect of such acquisitions for any period prior to such applicable period. As a result, the LTM Pro Forma Adjusted EBITDA across different periods may not necessarily be comparable. This presentation also includes certain forward-lookingnon-IFRS financial measures, including Adjusted EBITDA and ALFCF. We are unable to provide a reconciliation of such forward-lookingnon-IFRS financial measures without an unreasonable effort due to the uncertainty regarding, and the potential variability of, the applicable costs and expenses that may be incurred in the future, including, in the case of Adjusted EBITDA, share-based payment expense, finance costs, insurance claims, net movement in working capital, other non-operating expenses, and impairment of inventory, and in the case of Adjusted Levered Free Cash Flow, cash from operations, net working capital movements and maintenance capital expenditures, all of which may significantly impact these non-IFRS measures. Accordingly, investors are cautioned not to place undue reliance on this information.
Rounding
Certain numbers, sums, and percentages in this presentation may be impacted by rounding.
Use of Market and Industry Data
We obtained the industry, market and competitive position data and forecasts in this presentation from our own internal estimates and research as well as from publicly available information, industry and general publications and research conducted by third parties, including Analysys Mason Limited (Analysys Mason), delivered in April 2024 for use in this presentation. Such market data is derived from publicly available information released by independent industry analysts and other third-party sources, as well as data from internal research, and are based on assumptions made by us upon reviewing such data, and our experience in, and knowledge of, such industry and markets, which we believe to be reasonable. Analysys Mason's third-party data is also prepared on the basis of information provided and views expressed by mobile operators, tower operators and other parties (including certain views expressed and information provided or published by individual operators, service providers, regulatory bodies, industry analysts and other third-party sources of data). Although Analysys Mason has obtained such information from sources it believes to be reliable, neither we nor Analysys
Mason have verified such information. This information involves a number of assumptions and limitations, and you are cautioned not to give undue weight to these estimates, as there is no assurance that any of them will be reached. Forecasts and other forward-looking information obtained from these | 2 |
sources and from our and Analysys Mason's estimates are subject to the same qualifications and uncertainties as the other forward-looking statements in this presentation and as described under "Forward-Looking Information." These forecasts and other forward-looking information are subject to | |
uncertainty and risk due to a variety of factors which could cause results to differ materially from those expressed in the forecasts or estimates from independent third parties (including Analysys Mason) and us. |
COMPANY AND SECURITIES INFORMATION
Contacts
Corporate Headquarters
IHS Holding Limited 1 Cathedral Piazza 123 Victoria Street London, SW1E 5BP United Kingdom www.ihstowers.com
Investor Relations
Colby Synesael
Executive Vice President of Communications
152 W 57th Street
New York, NY 10019 United States investorrelations@ihstowers.com
Transfer Agent
Computershare
P.O. Box 43006 Providence, RI 02940 +1 866-201-5087
Resources
Earnings Materials http://www.ihstowers.com/investors/earnings-materialsInvestor Presentations and Events www.ihstowers.com/investors/investor-presentations-eventsDistribution list / email alerts www.ihstowers.com/investors/email-alerts
Board of Directors | Executive Officers | ||||
Director | Independent | Officer | Title | ||
Sam Darwish | X | Sam Darwish | Chairman & Group Chief Executive Officer | ||
Aniko Szigetvari | ✓ | ||||
Steve Howden | Executive Vice President, Chief Financial Officer | ||||
Frank Dangeard | ✓ | ||||
William Saad | Executive Vice President, Chief Operating Officer | ||||
John Ellis (Jeb) Bush | ✓ | ||||
Mallam Bashir Ahmad El-Rufai | ✓ | Mohamad Darwish | Executive Vice President, Nigeria Chief Executive Officer | ||
Maria Carolina Lacerda | ✓ | Mustafa Tharoo | Executive Vice President, General Counsel | ||
Nick Land | ✓ | ||||
Ayotade Oyinlola | Executive Vice President, Chief Human Resources Officer | ||||
Phuthuma Nhleko | ✓ | ||||
Colby Synesael | Executive Vice President of Communications | ||||
Ursula Burns | ✓ | ||||
Securities
Common Stock
The New York Stock Exchange
Ticker: IHS
Debt Securities
Issuer | Description | Original Date Issue | Type |
IHS Netherlands Holdco B.V. | US$940,000,000 8.000% Senior Notes due 2027 | 2019 | Reg S/ 144 |
IHS Holding Limited | US$500,000,000 5.625% Senior Notes due 2026 | 2021 | Reg S/ 144 |
IHS Holding Limited | US$500,000,000 6.250% Senior Notes due 2028 | 2021 | Reg S/ 144 |
Analyst Coverage
Equity | Fixed Income | |||
Institution | Analyst | Institution | Analyst | |
Barclays | Maurice Patrick | Barclays | Stella Cridge | |
Citigroup | Mike Rollins | J.P. Morgan | Nandini Boomakanti | |
Cowen | Michael Elias | |||
J.P. Morgan | Richard Choe | |||
New Street Research | Chris Hoare | |||
RBC Capital Markets | Jon Atkin | |||
Tigress Financial Partners | Ivan Feinseth | |||
Wells Fargo Securities | Eric Luebchow |
3
COMMON STOCK INFORMATION
1Q22 | 2Q22 | 3Q22 | 4Q22 | 1Q23 | 2Q23 | 3Q23 | 4Q23 | 1Q24 | |
Closing price at end of quarter/year ($) | 11.08 | 10.44 | 5.58 | 6.15 | 8.76 | 9.78 | 5.55 | 4.60 | 3.53 |
Average daily trading volume at end of quarter/year | 155,642 | 96,498 | 260,111 | 256,331 | 184,511 | 295,094 | 351,964 | 396,270 | 637,014 |
Potentially dilutive weighted average common shares outstanding ('000) | 335,563 | 335,155 | 335,134 | 336,046 | 335,130 | 335,691 | 335,857 | 335,156 | 333,282 |
Fully diluted Market capitalization at end of quarter/year ($M) | 3,718 | 3,499 | 1,870 | 2,067 | 2,936 | 3,283 | 1,864 | 1,542 | 1,176 |
FY2022 FY2023
6.154.60
192,943 307,497
336,046 335,156
2,067 1,542
4
FINANCIAL METRICS
1Q22 | 2Q22 | 3Q22 | 4Q22 | 1Q23 | 2Q23 | 3Q23 | 4Q23 | 1Q24 | FY2022 | FY2023 | ||||||
In $000s | ||||||||||||||||
REVENUE | ||||||||||||||||
Segment Revenue | ||||||||||||||||
Organic Growth Y/Y | ||||||||||||||||
Nigeria | 320,656 | 321,125 | 355,351 | 355,270 | 424,978 | 364,592 | 271,394 | 320,662 | 227,734 | 1,352,402 | 1,381,627 | |||||
27.0% | 10.4% | 28.7% | 27.3% | 46.6% | 36.7% | 36.3% | 65.5% | 45.9% | 23.2% | 46.5% | ||||||
SSA | 85,628 | 94,902 | 114,801 | 117,492 | 122,160 | 123,393 | 133,481 | 124,016 | 131,315 | 412,824 | 503,049 | |||||
3.6% | 4.6% | 3.1% | 9.2% | 15.6% | 15.2% | 20.7% | 12.0% | 15.1% | 5.2% | 15.9% | ||||||
Latam | 31,233 | 42,780 | 42,104 | 43,891 | 45,649 | 48,344 | 51,883 | 54,331 | 47,773 | 160,008 | 200,207 | |||||
33.0% | 27.9% | 36.1% | 31.6% | 18.4% | 13.8% | 14.8% | 16.6% | (0.4%) | 32.1% | 15.7% | ||||||
MENA | 8,615 | 8,876 | 9,061 | 9,514 | 9,741 | 9,875 | 10,265 | 10,775 | 10,922 | 36,065 | 40,656 | |||||
10.7% | 13.5% | 16.2% | 15.1% | 11.2% | 8.4% | 7.4% | 6.4% | 6.0% | 14.0% | 8.3% | ||||||
Group | 446,132 | 467,683 | 521,317(2) | 526,167 | 602,528(3) | 546,204 | 467,023 | 509,784 | 417,744 | 1,961,299(2) | 2,125,539(3) | |||||
21.5% | 9.9%(1) | 23.1% | 23.5% | 38.0% | 29.7% | 30.6% | 48.4% | 35.5% | 19.5% | 36.9% | ||||||
ADJUSTED EBITDA(4) | ||||||||||||||||
Segment Adjusted EBITDA(4) | ||||||||||||||||
Segment Adjusted EBITDA Margin(4) | ||||||||||||||||
Nigeria | 203,019 | 183,698 | 210,039 | 206,065 | 271,879 | 219,445 | 164,152 | 199,841 | 102,869 | 802,822 | 855,317 | |||||
63.3% | 57.2% | 59.1% | 58.0% | 64.0% | 60.2% | 60.5% | 62.3% | 45.2% | 59.4% | 61.9% | ||||||
SSA(5) | 46,999 | 52,990 | 63,521 | 66,555 | 65,481 | 62,933 | 66,285 | 62,373 | 69,652 | 230,066 | 257,072 | |||||
54.9% | 55.8% | 55.3% | 56.6% | 53.6% | 51.0% | 49.7% | 50.3% | 53.0% | 55.7% | 51.1% | ||||||
Latam(6) | 22,113 | 30,904 | 29,993 | 31,425 | 31,172 | 35,330 | 38,163 | 41,089 | 33,845 | 114,434 | 145,754 | |||||
70.8% | 72.2% | 71.2% | 71.6% | 68.3% | 73.1% | 73.6% | 75.6% | 70.8% | 71.5% | 72.8% | ||||||
MENA | 3,618 | 4,170 | 3,828 | 4,405 | 3,666 | 5,384 | 5,155 | 7,916 | 6,072 | 16,021 | 22,121 | |||||
42.0% | 47.0% | 42.2% | 46.3% | 37.6% | 54.5% | 50.2% | 73.5% | 55.6% | 44.4% | 54.4% | ||||||
Unallocated corporate expenses(7) | (30,877) | (32,586) | (32,953) | (35,997) | (36,654) | (38,385) | (35,653) | (37,037) | (27,279) | (132,412) | (147,729) | |||||
Group | 244,872 | 239,176 | 274,428(2) | 272,453 | 335,544(3) | 284,707(8) | 238,102(8) | 274,182 | 185,159 | 1,030,931(2) | 1,132,535(3) | |||||
54.9% | 51.1% | 52.6% | 51.8% | 55.7% | 52.1% | 51.0% | 53.8% | 44.3% | 52.6% | 53.3% | ||||||
ALFCF(9) | ||||||||||||||||
Cash Conversion Rate | ||||||||||||||||
Group | 86,105 | 90,434 | 89,656(2) | 96,889 | 154,904(10) | 73,955(8) | 85,759(8) | 118,165 | 43,111 | 363,083(2) | 432,782(10) | |||||
35.2% | 37.8% | 32.7% | 35.6% | 46.2% | 26.0% | 36.0% | 43.1% | 23.3% | 35.2% | 38.2% | ||||||
CAPEX | ||||||||||||||||
New Sites | 9,805 | 32,766 | 26,461 | 17,990 | 10,411 | 23,947 | 29,197 | 28,316 | 15,129 | 87,022 | 91,872 | |||||
Non-discretionary | 39,880 | 29,993 | 49,128 | 50,724 | 44,247 | 52,325 | 19,295 | 26,271 | 10,000 | 169,726 | 142,138 | |||||
Discretionary | 67,318 | 84,010 | 98,526 | 126,868 | 97,944 | 125,663 | 52,389 | 76,040 | 28,018 | 376,722 | 352,036 | |||||
Total | 117,003 | 146,769 | 174,115 | 195,582 | 152,603 | 201,935(8) | 100,881(8) | 130,627 | 53,147 | 633,470 | 586,046 | |||||
ROIC(11) | 9.9%(12) | |||||||||||||||
Group | - | - | - | - | - | - | - | - | - | 14.6% | ||||||
Note: refer to page 17 (Appendix section) for footnotes related to these Financial Metrics | ||||||||||||||||
5
KPIs AND REVENUE DRIVERS
1Q22 | 2Q22 | 3Q22 | 4Q22 | 1Q23 | 2Q23 | 3Q23 | 4Q23 | 1Q24 | FY2022 | FY2023 | |||
KPIs | |||||||||||||
Towers | |||||||||||||
Consolidated | 33,275 | 39,052 | 39,397 | 39,652 | 39,104(1) | 39,298 | 39,739 | 40,075 | 40,278 | 39,652 | 40,075(1) | ||
Tenants | |||||||||||||
Colo Rate(2) | |||||||||||||
Nigeria | 25,690 | 25,685 | 25,861 | 26,210 | 25,650 | 25,798 | 25,927 | 26,009 | 26,129 | 26,210 | 26,009 | ||
1.52x | 1.53x | 1.53x | 1.54x | 1.57x | 1.57x | 1.58x | 1.59x | 1.59x | 1.54x | 1.59x | |||
SSA | 13,493 | 20,650 | 20,858 | 21,036 | 21,106 | 21,193 | 21,429 | 21,593 | 21,711 | 21,036 | 21,593 | ||
1.70x | 1.50x | 1.51x | 1.52x | 1.52x | 1.52x | 1.53x | 1.54x | 1.54x | 1.52x | 1.54x | |||
Latam | 9,022 | 9,585 | 9,651 | 9,781 | 9,837 | 9,896 | 10,155 | 10,429 | 10,463 | 9,781 | 10,429 | ||
1.28x | 1.34x | 1.34x | 1.34x | 1.35x | 1.33x | 1.32x | 1.31x | 1.29x | 1.34x | 1.31x | |||
MENA | 1,438 | 1,461 | 1,523 | 1,546 | 1,553 | 1,560 | 1,685 | 1,696 | 1,694 | 1,546 | 1,696 | ||
1.01x | 1.01x | 1.01x | 1.01x | 1.01x | 1.01x | 1.01x | 1.01x | 1.01x | 1.01x | 1.01x | |||
Consolidated | 49,643 | 57,381 | 57,893 | 58,573 | 58,146(1) | 58,447 | 59,196 | 59,727 | 59,997 | 58,573 | 59,727(1) | ||
1.49x | 1.47x | 1.47x | 1.48x | 1.49x | 1.49x | 1.49x | 1.49x | 1.49x | 1.48x | 1.49x | |||
Amendments | |||||||||||||
Nigeria | 27,743 | 29,585 | 29,084(3) | 30,218 | 31,460 | 32,496 | 33,254 | 33,999 | 34,375 | 30,218(3) | 33,999 | ||
SSA | 774 | 1,085 | 1,085 | 1,403 | 1,523 | 1,669 | 1,922 | 2,433 | 2,565 | 1,403 | 2,433 | ||
Latam | - | - | - | 53 | 55 | 69 | 78 | 171 | 186 | 53 | 171 | ||
MENA | - | - | - | - | - | - | - | - | - | - | - | ||
Consolidated | 28,517 | 30,670 | 30,169 | 31,674 | 33,038 | 34,234 | 35,254 | 36,603 | 37,126 | 31,674 | 36,603 | ||
REVENUE DRIVERS | |||||||||||||
Y/Y growth | |||||||||||||
CPI Escalators | 4.7% | 5.6% | 5.1% | 5.5% | 7.3% | 7.9% | 7.1% | 5.0% | 5.9% | 5.2% | 6.8% | ||
FX Resets | 3.3% | 1.8% | 1.7% | 3.1% | 3.4% | 4.3% | 16.6% | 27.0% | 30.8% | 2.5% | 13.4% | ||
New Sites | 1.6% | 1.3% | 0.9% | 1.0% | 1.0% | 1.2% | 1.2% | 0.7% | 0.8% | 1.2% | 1.0% | ||
New Colocation | 1.7% | 1.5% | 1.7% | 2.0% | 1.5% | 1.4% | 1.1% | 1.2% | 1.5% | 1.7% | 1.3% | ||
New Lease Amendments | 2.4% | 3.5% | 2.0% | 2.9% | 4.4% | 2.8% | 2.3% | 3.4% | 1.9% | 2.7% | 3.2% | ||
Power | - | - | 5.4% | 8.9% | 5.1% | 5.1% | 1.0% | 1.6% | 3.1% | 5.0% | 3.0% | ||
Fiber | - | - | 1.1% | 1.3% | 1.0% | 1.2% | 1.3% | 2.8% | 2.1% | 1.2% | 1.6% | ||
Inorganic | 5.3% | 8.7% | 13.1% | 10.8% | 8.3% | 3.9% | 0.1% | 0.1% | 0.1% | 9.6% | 2.9% | ||
FX | (3.4%) | (2.2%) | (6.0%) | (7.7%) | (11.3%) | (16.9%) | (41.2%) | (51.7%) | (66.2%) | (4.9%) | (31.4%) | ||
Consolidated | 23.4% | 16.4% | 30.2% | 26.6% | 35.1% | 16.8% | (10.4%) | (3.1%) | (30.7%) | 24.2% | 8.4% | ||
Diesel | |||||||||||||
Diesel-linked revenue ($000s) | 27,047 | 25,299 | 42,272 | 57,601 | 56,231(4) | 52,023 | 28,590 | 38,035 | 27,000 | 152,220 | 174,879 | ||
Diesel COS | 76,451 | 93,879 | 100,938 | 100,539 | 99,378 | 81,634 | 65,574 | 74,807 | 68,012 | 371,806 | 321,392 | ||
ICE Low Sulphur Gasoil $/Metric Ton | 786 | 1,031 | 1,012 | 948 | 819 | 687 | 911 | 792 | 813 | 944 | 802 |
Note: refer to page 18 (Appendix section) for footnotes related to KPIs and Revenue Drivers
6
DEBT AND LIQUIDITY
1Q22 | 2Q22 | 3Q22 | 4Q22 | 1Q23 | 2Q23 | 3Q23 | 4Q23 | 1Q24 | FY2022 | FY2023 | |||||
DEBT ($000's) | |||||||||||||||
8.000% Senior Notes due 2027 | 940,000 | 940,000 | 940,000 | 940,000 | 940,000 | 940,000 | 940,000 | 940,000 | 940,000 | 940,000 | 940,000 | ||||
5.625% Senior Notes due 2026 | 500,000 | 500,000 | 500,000 | 500,000 | 500,000 | 500,000 | 500,000 | 500,000 | 500,000 | 500,000 | 500,000 | ||||
6.250% Senior Notes due 2028 | 500,000 | 500,000 | 500,000 | 500,000 | 500,000 | 500,000 | 500,000 | 500,000 | 500,000 | 500,000 | 500,000 | ||||
Other Indebtedness(1) | 1,120,284 | 1,909,096 | 1,925,096 | 2,009,960 | 2,119,354 | 2,118,547 | 2,196,061 | 2,172,841 | 2,110,289 | 2,009,960 | 2,172,841 | ||||
Total Indebtedness | 3,060,284 | 3,849,096 | 3,865,096 | 3,949,960 | 4,059,354 | 4,058,547 | 4,136,061 | 4,112,841 | 4,050,289 | 3,949,960 | 4,112,841 | ||||
Consolidated Net Leverage | 2,551,675 | 3,281,798 | 3,334,628 | 3,435,882 | 3,543,765 | 3,625,499 | 3,710,625 | 3,819,018 | 3,717,086 | 3,435,882 | 3,819,018 | ||||
Consolidated net leverage ratio | 2.5x | 3.2x | 3.2x | 3.2x | 3.1x | 3.1x | 3.3x | 3.4x | 3.8x | 3.2x | 3.4x | ||||
Weighted average cost of debt | 7.6% | 7.8% | 8.2% | 8.6% | 9.4% | 9.5% | 9.6% | 9.4% | 8.8% | 8.6% | 9.4% | ||||
Fixed debt | 76% | 63% | 66% | 65% | 57% | 57% | 55% | 56% | 57% | 65% | 56% | ||||
Floating debt | 24% | 37% | 34% | 35% | 43% | 43% | 45% | 44% | 43% | 35% | 44% | ||||
Debt tied to hard currency | 83% | 77% | 78% | 78% | 77% | 79% | 78% | 78% | 79% | 78% | 78% | ||||
LIQUIDITY | |||||||||||||||
Cash and Cash Equivalents | 508,609 | 567,298 | 530,468 | 514,078 | 515,589 | 433,048 | 425,436 | 293,823 | 333,203 | 514,078 | 293,823 | ||||
IHS Group RCF (undrawn) | 270,000 | 270,000 | 270,000 | 270,000 | 270,000 | 270,000 | 300,000 | 300,000 | 300,000 | 270,000 | 300,000 | ||||
IHS Group Term-Loan (undrawn) | - | - | - | 230,00 | 230,00 | 230,000 | 230,000 | 130,000 | 60,000(2) | 230,00 | 130,000 | ||||
Total Liquidity | 778,609 | 837,298 | 800,468 | 784,078 | 785,589 | 933,048 | 955,436 | 723,823 | 693,203 | 784,078 | 723,823 | ||||
Cash upstreaming from Nigeria ($M) | 1 | 147 | - | 60 | 15 | 50 | - | - | - | 207 | 65 | ||||
Average NGN/USD (Bloomberg) | 417 | 419 | 431 | 446 | 461 | 508 | 768 | 815 | 1,316 | 428 | 638 | ||||
Debt Maturity Profile(3)
$M | 1,100 | |||||||||||
130 | ||||||||||||
30 | ||||||||||||
779 | ||||||||||||
114 | 620 | |||||||||||
561 | 30 | |||||||||||
112 | ||||||||||||
57 | ||||||||||||
940 | 7 | |||||||||||
30 | ||||||||||||
474 | 636 | 500 | ||||||||||
170 | 159 | |||||||||||
47 | 58 | 40 | ||||||||||
33 | ||||||||||||
90 | ||||||||||||
2024E | 2025E | 2026E | 2027E | 2028E | 2029E | 2030E | 2031E | |||||
Group | Nigeria | Other | ||||||||||
Note: refer to page 19 (Appendix section) for footnotes related to Debt and Liquidity
Notes and Facilities
Notes | |||
Issuer | Description | Original Date Issued | Type |
IHS Netherlands Holdco B.V. | US$940,000,000 8.000% Senior Notes due 2027 | 2019 | Reg S/144 |
IHS Holding Limited | US$500,000,000 5.625% Senior Notes due 2026 | 2021 | Reg S/144 |
IHS Holding Limited | US$500,000,000 6.250% Senior Notes due 2028 | 2021 | Reg S/144 |
Facilities | |||||
Type | Description | Entered in | Capacity ($M) | Drawn ($M) | Maturity |
RCF | IHS Holding Revolving Credit Facility | March 2020 | 300 | - | October 2026 |
Term Loan | IHS Holding Term Loan | October 2022 | 430 | 370(2) | October 2025 |
RCF | Nigeria Revolving Credit Facility | January 2023 | 29 | 11 | January 2026 |
Term Loan | Nigeria Term Loan | January 2023 | 118 | 118 | January 2028 |
7
CONSOLIDATED FINANCIALS
8
CONSOLIDATED BALANCE SHEET
1Q22(1) | 2Q22(2) | 3Q22(2) | 4Q22(2) | 1Q23(2) | 2Q23(3) | 3Q23(3) | 4Q23 | 1Q24 | FY2022(1)(2) | FY2023(2) | ||||
$000s | ||||||||||||||
Non-current assets | ||||||||||||||
Property, plant and equipment | 1,821,319 | 2,189,709 | 2,176,569 | 2,075,441 | 2,116,820 | 1,864,446 | 1,746,004 | 1,740,235 | 1,516,239 | 2,075,441 | 1,740,235 | |||
Right of use assets | 648,129 | 819,689 | 783,947 | 965,019 | 966,187 | 902,589 | 883,234 | 886,909 | 826,445 | 965,019 | 886,909 | |||
Goodwill | 945,750 | 915,832 | 888,350 | 763,388 | 761,487 | 664,450 | 638,538 | 619,298 | 467,991 | 763,388 | 619,298 | |||
Other intangible assets | 1,094,467 | 1,096,136 | 1,036,449 | 1,049,103 | 1,043,840 | 973,056 | 908,821 | 933,030 | 861,997 | 1,049,103 | 933,030 | |||
Fair value through other comprehensive income financial assets | 11 | 11 | 10 | 10 | 10 | 11 | 10 | 13 | 9 | 10 | 13 | |||
Deferred income tax assets | 8,438 | 8,826 | 10,938 | 78,369 | 89,092 | 59,250 | 60,873 | 63,786 | 63,467 | 78,369 | 63,786 | |||
Derivative financial instrument assets | 56,100 | 2,770 | 2,150 | 6,121 | 4,409 | 7,232 | 1,889 | 1,540 | 8,180 | 6,121 | 1,540 | |||
Trade and other receivables | 141,226 | 155,752 | 163,407 | 130,347 | 152,642 | 131,119 | 153,972 | 147,292 | 125,705 | 130,347 | 147,292 | |||
4,715,440 | 5,188,725 | 5,061,820 | 5,067,798 | 5,134,487 | 4,602,153 | 4,393,341 | 4,392,103 | 3,870,033 | 5,067,798 | 4,392,103 | ||||
Current assets | ||||||||||||||
Inventories | 39,626 | 61,639 | 70,073 | 74,216 | 66,183 | 22,925 | 54,261 | 40,589 | 39,880 | 74,216 | 40,589 | |||
Income tax receivable | 260 | 666 | 604 | 1,174 | 1,464 | 2,187 | 2,375 | 3,755 | 3,968 | 1,174 | 3,755 | |||
Derivative financial instrument assets | - | - | - | - | - | - | - | 565 | 527 | - | 565 | |||
Trade and other receivables | 630,318 | 716,200 | 686,470 | 663,467 | 776,509 | 610,319 | 629,245 | 607,835 | 351,654 | 663,467 | 607,835 | |||
Cash and cash equivalents | 508,609 | 567,298 | 530,468 | 514,078 | 515,589 | 433,048 | 425,436 | 293,823 | 333,203 | 514,078 | 293,823 | |||
Assets held for sale | - | - | - | - | - | - | 21,139 | 26,040 | 6,875 | - | 26,040 | |||
1,178,813 | 1,345,803 | 1,287,615 | 1,252,935 | 1,359,745 | 1,068,479 | 1,132,456 | 972,607 | 736,107 | 1,252,935 | 972,607 | ||||
TOTAL ASSETS | 5,894,253 | 6,534,528 | 6,349,435 | 6,320,733 | 6,494,232 | 5,670,632 | 5,525,797 | 5,364,710 | 4,606,140 | 6,320,733 | 5,364,710 | |||
Non-current liabilities | ||||||||||||||
Trade and other payables | 330 | 334 | 1,411 | 1,459 | 2,237 | 2,320 | 5,493 | 4,629 | 5,069 | 1,459 | 4,629 | |||
Borrowings | 2,389,796 | 2,655,672 | 2,577,357 | 2,906,288 | 3,104,401 | 3,028,771 | 3,084,214 | 3,056,696 | 3,285,118 | 2,906,288 | 3,056,696 | |||
Lease liabilities | 358,221 | 518,899 | 505,863 | 518,318 | 515,689 | 504,118 | 507,008 | 510,838 | 492,745 | 518,318 | 510,838 | |||
Provisions for other liabilities and charges | 77,206 | 122,994 | 119,406 | 84,533 | 86,296 | 87,739 | 84,811 | 86,131 | 80,086 | 84,533 | 86,131 | |||
Deferred income tax liabilities | 236,082 | 286,811 | 191,394 | 183,518 | 170,410 | 154,588 | 141,842 | 137,106 | 123,342 | 183,518 | 137,106 | |||
3,061,635 | 3,584,710 | 3,395,431 | 3,694,116 | 3,879,033 | 3,777,536 | 3,823,368 | 3,795,400 | 3,986,090 | 3,694,116 | 3,795,400 | ||||
Current liabilities | ||||||||||||||
Trade and other payables | 558,609 | 617,571 | 595,871 | 669,149 | 687,287 | 524,456 | 575,727 | 532,627 | 411,175 | 669,149 | 532,627 | |||
Provisions for other liabilities and charges | 448 | 502 | 496 | 483 | 492 | 295 | 309 | 277 | 183 | 483 | 277 | |||
Derivative financial instrument liabilities | 3,597 | 5,328 | 1,971 | 1,393 | 1,067 | 50,051 | 51,887 | 68,133 | 40,655 | 1,393 | 68,133 | |||
Income tax payable | 69,427 | 57,348 | 64,101 | 70,008 | 71,749 | 59,443 | 65,322 | 75,612 | 58,732 | 70,008 | 75,612 | |||
Borrowings | 257,461 | 595,282 | 709,505 | 438,114 | 351,582 | 437,337 | 457,941 | 454,151 | 183,223 | 438,114 | 454,151 | |||
Lease liabilities | 54,806 | 79,243 | 72,371 | 87,240 | 87,682 | 88,321 | 86,898 | 91,156 | 89,203 | 87,240 | 91,156 | |||
944,348 | 1,355,274 | 1,444,315 | 1,266,387 | 1,199,859 | 1,159,903 | 1,238,084 | 1,221,956 | 783,171 | 1,266,387 | 1,221,956 | ||||
TOTAL LIABILITIES | 4,005,983 | 4,939,984 | 4,839,746 | 4,960,503 | 5,078,892 | 4,937,439 | 5,061,452 | 5,017,356 | 4,769,261 | 4,960,503 | 5,017,356 | |||
Stated capital | 5,309,954 | 5,309,954 | 5,309,954 | 5,311,953 | 5,385,325 | 5,401,385 | 5,391,363 | 5,394,812 | 5,397,690 | 5,311,953 | 5,394,812 | |||
Accumulated losses | (2,842,127) | (3,018,860) | (3,051,944) | (3,317,652) | (3,307,071) | (4,572,976) | (4,839,806) | (5,293,394) | (6,846,722) | (3,317,652) | (5,293,394) | |||
Other reserves | (830,922) | (915,707) | (963,881) | (861,271) | (892,510) | (331,664) | (316,393) | 8,430 | 1,059,000 | (861,271) | 8,430 | |||
Equity attributable to owners of the Company | 1,636,905 | 1,375,387 | 1,294,129 | 1,133,030 | 1,185,744 | 496,745 | 235,164 | 109,848 | (390,032) | 1,133,030 | 109,848 | |||
Non-controlling interests | 251,365 | 219,157 | 215,560 | 227,200 | 229,596 | 236,448 | 229,181 | 237,506 | 226,911 | 227,200 | 237,506 | |||
TOTAL EQUITY | 1,888,270 | 1,594,544 | 1,509,689 | 1,360,230 | 1,415,340 | 733,193 | 464,345 | 347,354 | (163,121) | 1,360,230 | 347,354 | |||
TOTAL EQUITY AND LIABILITIES | 5,894,253 | 6,534,528 | 6,349,435 | 6,320,733 | 6,494,232 | 5,670,632 | 5,525,797 | 5,364,710 | 4,606,140 | 6,320,733 | 5,364,710 |
Note: refer to page 20 (Appendix section) for footnotes related to the Consolidated Balance Sheet
9
CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME
1Q22(1) | 2Q22(2) | 3Q22(2) | 4Q22(3) | 1Q23(3) | 2Q23(4) | 3Q23(4) | 4Q23 | 1Q24 | FY2022(1)(2) | FY2023(3) | |||
$000s | |||||||||||||
Revenue | 446,132 | 467,683 | 521,317 | 526,167 | 602,528 | 546,204 | 467,023 | 509,784 | 417,744 | 1,961,299 | 2,125,539 | ||
Cost of sales | (250,589) | (270,611) | (297,598) | (338,203) | (306,649) | (297,097) | (358,882) | (220,678) | (254,290) | (1,157,001) | (1,183,306) | ||
Administrative expenses | (90,562) | (102,852) | (91,527) | (216,234) | (97,321) | (100,721) | (93,835) | (112,906) | (166,696) | (501,175) | (404,783) | ||
(Net loss allowance)/reversal of net loss allowance on trade receivables | 2,468 | (668) | 1,597 | 1,049 | (3,560) | (954) | (711) | (1,977) | (4,560) | 4,446 | (7,202) | ||
Other income | 1,170 | 2,967 | 70 | 469 | 175 | 161 | 33 | 35 | 710 | 4,676 | 404 | ||
Operating profit/(loss) | 108,619 | 96,519 | 133,859 | (26,752) | 195,173 | 147,593 | 13,628 | 174,258 | (7,092) | 312,245 | 530,652 | ||
Finance income | 114,967 | 3,895 | 6,412 | 4,790 | 6,828 | 8,373 | 5,823 | 8,420 | 10,806 | 15,825 | 25,209 | ||
Finance costs | (192,212) | (261,886) | (234,223) | (297,968) | (179,008) | (1,369,052) | (271,595) | (621,091) | (1,563,028) | (872,049) | (2,436,511) | ||
(Loss)/Profit before income tax | 31,374 | (161,472) | (93,952) | (319,930) | 22,993 | (1,213,086) | (252,144) | (438,413) | (1,559,314) | (543,979) | (1,880,650) | ||
Income tax (expense)/benefit | (16,254) | (17,102) | 57,304 | 51,067 | (15,218) | (57,241) | (16,659) | (18,410) | 2,064 | 75,013 | (107,528) | ||
(Loss)/Profit for the period | 15,120 | (178,574) | (36,648) | (268,863) | 7,775 | (1,270,327) | (268,803) | (456,823) | (1,557,250) | (468,966) | (1,988,178) | ||
(Loss)/Profit attributable to: | |||||||||||||
Owners of the Company | 16,518 | (176,757) | (30,702) | (268,066) | 10,581 | (1,266,773) | (266,829) | (453,588) | (1,553,328) | (459,007) | (1,976,609) | ||
Non-controlling interests | (1,398) | (1,817) | (5,946) | (797) | (2,806) | (3,554) | (1,974) | (3,235) | (3,922) | (9,959) | (11,569) | ||
(Loss)/Profit for the period | 15,120 | (178,574) | (36,648) | (268,863) | 7,775 | (1,270,326) | (268,804) | (456,823) | (1,557,250) | (468,966) | (1,988,178) | ||
(Loss)/Income per share-basic | 0.05 | (0.53) | (0.09) | (0.81) | 0.03 | (3.73) | (0.79) | (1.36) | (4.67) | (1.39) | (5.93) | ||
(Loss)/Income per share-diluted | 0.05 | (0.53) | (0.09) | (0.81) | 0.03 | (3.73) | (0.79) | (1.36) | (4.67) | (1.39) | (5.93) | ||
Other comprehensive income/(loss) | |||||||||||||
Items that may be reclassified to profit or loss | |||||||||||||
Fair value (loss)/gain through other comprehensive income | - | - | - | - | - | 7 | - | 5 | 1 | - | 12 | ||
Exchange differences on translation of foreign operations | 132,682 | (123,047) | (52,946) | 115,970 | 44,192 | 585,257 | 5,346 | 336,001 | 1,043,519 | 72,661 | 970,796 | ||
Other comprehensive income/(loss) for the period, net of taxes | 132,682 | (123,047) | (52,946) | 115,970 | 44,192 | 585,264 | 5,346 | 336,006 | 1,043,520 | 72,661 | 970,808 | ||
Total comprehensive (loss)/income for the period | 147,802 | (301,621) | (89,594) | (152,893) | 51,967 | (685,063) | (263,457) | (120,817) | (513,730) | (396,305) | (1,017,370) | ||
Total comprehensive (loss)/income attributable to: | |||||||||||||
Owners of the Company | 114,680 | (275,755) | (79,149) | (159,267) | 49,571 | (691,915) | (254,268) | (129,142) | (503,135) | (399,486) | (1,025,754) | ||
Non-controlling interests | 33,122 | (25,866) | (10,445) | 6,374 | 2,396 | 6,852 | (9,189) | 8,325 | (10,595) | 3,181 | 8,384 | ||
Total comprehensive (loss)/income for the period | 147,802 | (301,621) | (89,594) | (152,893) | 51,967 | (685,063) | (263,457) | (120,817) | (513,730) | (396,305) | (1,017,370) | ||
Note: refer to page 21 (Appendix section) for footnotes related to the Consolidated Statement of Comprehensive Income
10
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IHS Holding Ltd. published this content on 14 May 2024 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 14 May 2024 10:50:07 UTC.