IHS : Supplemental Information (IHS Holding Limited 3Q24 Supplemental Information)

Published: 2024-11-12 06:24:10 ET IHS

NOVEMBER 12, 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 our strategic review and related productivity enhancements and cost reductions, and our ability to refinance or meet our debt obligations), market growth, position and our objectives for future operations, including our ability to maintain relationships with customers and continue to renew customer lease agreements or the potential benefit of the terms of such renewals or our ability to grow our business through acquisitions, the impact (illustrative or otherwise) of the new agreements with MTN Nigeria (including certain rebased fee components) on our financial results, the impact of currency and exchange rate fluctuations (including 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 our objectives for future operations. 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 EBITDA, 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-looking non-IFRS financial measures, including Adjusted EBITDA and ALFCF. We are unable to provide a reconciliation of such forward-looking non-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.

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

Robert Berg

1 Cathedral Piazza

123 Victoria Street

London, SW1E 5BP United Kingdom [email protected]

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

Chairman & Group Chief Executive Officer

Aniko Szigetvari

✓

Steve Howden

Executive Vice President, Chief Financial Officer

Frank Dangeard

✓

John Ellis (Jeb) Bush

✓

William Saad

Executive Vice President, Chief Operating Officer

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

✓

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

Goldman Sachs

Jim Schneider

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

COMMON STOCK INFORMATION

1Q22

2Q22

3Q22

4Q22

1Q23

2Q23

3Q23

4Q23

1Q24

2Q24

3Q24

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

3.20

2.99

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

327,517

537,356

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

333,830

336,031

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

1,068

$1,005

FY2022 FY2023

6.15 4.60

192,943 307,497

336,046 335,156

2,067 1,542

FINANCIAL METRICS

1Q22

2Q22

3Q22

4Q22

1Q23

2Q23

3Q23

4Q23

1Q24

2Q24

3Q24

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

269,572

242,290

1,352,402

1,381,627

27.0%

10.4%

28.7%

27.3%

46.6%

36.7%

36.3%

65.5%

45.9%

105.1%

86.8%

23.2%

46.5%

SSA

85,628

94,902

114,801

117,492

122,160

123,393

133,481

124,016

131,315

108,215

120,139

412,824

503,049

3.6%

4.6%

3.1%

9.2%

15.6%

15.2%

20.7%

12.0%

15.1%

(4.7%)

(6.2%)

5.2%

15.9%

Latam

31,233

42,780

42,104

43,891

45,649

48,344

51,883

54,331

47,773

46,464

45,148

160,008

200,207

33.0%

27.9%

36.1%

31.6%

18.4%

13.8%

14.8%

16.6%

(0.4%)

1.5%

(0.6%)

32.1%

15.7%

MENA

8,615

8,876

9,061

9,514

9,741

9,875

10,265

10,775

10,922

11,126

12,705

36,065

40,656

10.7%

13.5%

16.2%

15.1%

11.2%

8.4%

7.4%

6.4%

6.0%

6.4%

19.2%

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

435,377

420,282

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%

69.3%

49.0%

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

171,391

158,900

802,822

855,317

63.3%

57.2%

59.1%

58.0%

64.0%

60.2%

60.5%

62.3%

45.2%

63.6%

65.6%

59.4%

61.9%

SSA(5)

46,999

52,990

63,521

66,555

65,481

62,933

66,285

62,373

69,652

76,456

81,046

230,066

257,072

54.9%

55.8%

55.3%

56.6%

53.6%

51.0%

49.7%

50.3%

53.0%

70.7%

67.5%

55.7%

51.1%

Latam(6)

22,113

30,904

29,993

31,425

31,172

35,330

38,163

41,089

33,845

33,279

33,798

114,434

145,754

70.8%

72.2%

71.2%

71.6%

68.3%

73.1%

73.6%

75.6%

70.8%

71.6%

74.9%

71.5%

72.8%

MENA

3,618

4,170

3,828

4,405

3,666

5,384

5,155

7,916

6,072

6,167

8,014

16,021

22,121

42.0%

47.0%

42.2%

46.3%

37.6%

54.5%

50.2%

73.5%

55.6%

55.4%

63.1%

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)

(36,445)

(35,783)

(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

250,848

245,975

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%

57.6%

58.5%

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

66,857

87,109

363,083(2)

432,782(10)

35.2%

37.8%

32.7%

35.6%

46.2%

26.0%

36.0%

43.1%

23.3%

26.7%

35.4%

35.2%

38.2%

CAPEX

New Site

9,805

32,766

26,461

17,990

10,411

23,947

29,197

28,316

15,129

8,238

14,728

87,022

91,872

Non-discretionary

39,880

29,993

49,128

50,724

44,247

52,325

19,295

26,271

10,000

20,090

18,824

169,726

142,138

Discretionary (ex-New Site)

67,318

84,010

98,526

126,868

97,944

125,663

52,389

76,040

28,018

25,339

32,908

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

53,667

66,460

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

KPIs AND REVENUE DRIVERS

1Q22

2Q22

3Q22

4Q22

1Q23

2Q23

3Q23

4Q23

1Q24

2Q24

3Q24

FY2022

FY2023

KPIs

Towers

Consolidated

33,275

39,052

39,397

39,652

39,104(1)

39,298

39,739

40,075

40,278

40,332

40,650

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

26,196

25,648

26,210

26,009

1.52x

1.53x

1.54x

1.57x

1.58x

1.59x

1.60x

1.56x

1.54x

1.59x

SSA

13,493

20,650

20,858

21,036

21,106

21,193

21,429

21,593

21,711

21,931

22,158

21,036

21,593

1.70x

1.50x

1.51x

1.52x

1.53x

1.54x

1.55x

1.57x

1.52x

1.54x

Latam

9,022

9,585

9,651

9,781

9,837

9,896

10,155

10,429

10,463

10,577

10,812

9,781

10,429

1.28x

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

1,698

1,697

1,546

1,696

1.01x

Consolidated

49,643

57,381

57,893

58,573

58,146(1)

58,447

59,196

59,727

59,997

60,382

60,315

58,573

59,727(1)

1.49x

1.47x

1.48x

1.49x

1.50x

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

34,707

34,855

30,218(3)

33,999

SSA

774

1,085

1,403

1,523

1,669

1,922

2,433

2,565

3,775

3,983

1,403

2,433

Latam

171

186

196

279

171

MENA

272

Consolidated

28,517

30,670

30,169

31,674

33,038

34,234

35,254

36,603

37,126

38,692

39,389

31,674

36,603

REVENUE DRIVERS

Y/Y growth(4)

CPI Escalators

4.7%

5.6%

5.1%

5.5%

7.3%

7.9%

7.1%

5.0%

5.9%

6.1%

8.5%

5.2%

6.8%

FX Resets

3.3%

1.8%

1.7%

3.1%

3.4%

4.3%

16.6%

27.0%

30.8%

58.8%

21.0%

2.5%

13.4%

New Sites

1.6%

1.3%

0.9%

1.0%

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%

1.9%

1.0%

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%

2.6%

2.9%

2.7%

3.2%

Power

5.4%

8.9%

5.1%

1.0%

1.6%

3.1%

4.3%

17.6%

5.0%

3.0%

Fiber

1.1%

1.3%

1.0%

1.2%

1.3%

2.8%

2.1%

2.9%

2.0%

1.2%

1.6%

Inorganic

5.3%

8.7%

13.1%

10.8%

8.3%

3.9%

0.1%

0.0%

9.6%

2.9%

(3.4%)

(2.2%)

(6.0%)

(7.7%)

(11.3%)

(16.9%)

(41.2%)

(51.7%)

(66.2%)

(89.7%)

(59.1%)

(4.9%)

(31.4%)

Consolidated

23.4%

16.4%

30.2%

26.6%

35.1%

16.8%

(10.4%)

(3.1%)

(30.7%)

(20.3%)

(10.0%)

24.2%

8.4%

Diesel

Diesel-linked revenue ($000s)

27,047

25,299

42,272

57,601

56,231(5)

52,023

28,590

38,035

26,830

30,086

79,796

152,220

174,879

Diesel COS

76,451

93,879

100,938

100,539

99,378

81,634

65,574

74,807

68,012

75,827

70,264

371,806

321,392

ICE Low Sulphur Gasoil $/Metric Ton

786

1,031

1,012

948

819

687

911

792

813

766

703

944

802

Note: refer to page 18 (Appendix section) for footnotes related to KPIs and Revenue Drivers

DEBT AND LIQUIDITY

1Q22

2Q22

3Q22

4Q22

1Q23

2Q23

3Q23

4Q23

1Q24

2Q24

3Q24

FY2022

FY2023

DEBT ($000's)

8.000% Senior Notes due 2027

940,000

5.625% Senior Notes due 2026

500,000

6.250% Senior Notes due 2028

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

2,110,019

2,222,433

2,198,941

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

4,050,019

4,162,433

4,138,941

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

3,716,816

3,716,720

3,741,442

3,435,882

3,819,018

Consolidated net leverage ratio

2.5x

3.2x

3.1x

3.3x

3.4x

3.8x

3.9x

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%

9.0%

8.6%

9.4%

Fixed debt

76%

63%

66%

65%

57%

55%

56%

57%

55%

56%

65%

56%

Floating debt

24%

37%

34%

35%

43%

45%

44%

43%

45%

44%

35%

44%

Debt linked to hard currencies

83%

77%

78%

77%

79%

78%

79%

78%

LIQUIDITY

Cash and Cash Equivalents

508,609

567,298

530,468

514,078

515,589

433,048

425,436

293,823

333,203

445,713

397,499

514,078

293,823

IHS Group RCF (undrawn)

270,000

300,000

270,000

300,000

IHS Group Term-Loan (undrawn)

230,000

130,000

60,000

230,000

130,000

Total Liquidity

778,609

837,298

800,468

1,014,078

1,015,589

933,048

955,436

723,823

693,203

745,713

697,499

1,014,078

723,823

Cash upstreaming from Nigeria ($M)

147

207

Average NGN/USD

417

419

431

446

461

508

768

815

1,316

1,392

1,601

428

638

Debt Maturity Profile(2)

1,116

151

789

128

640

567

134

940

474

636

500

178

2024E

2025E

2026E

2027E

2028E

2029E

2030E

2031E

2032E

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(3)

Reg S/144a

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

Outstanding ($M) Undrawn ($M)

Maturity

RCF

IHS Holding Revolving Credit Facility

March 2020

300

October 2026

Term Loan

IHS Holding Term Loan

October 2022

430(4)

October 2029

RCF

Nigeria Revolving Credit Facility

January 2023

January 2026

Term Loan

Nigeria Term Loan

January 2023

January 2028

Term Loan

IHS Holding Term Facility

March 2024

210

March 2026

CONSOLIDATED FINANCIALS

CONSOLIDATED BALANCE SHEET

1Q22(1)

2Q22(2)

3Q22(2)

4Q22(2)

1Q23(2)

2Q23(3)

3Q23(3)

4Q23

1Q24

2Q24

3Q24

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

1,423,021

1,436,945

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

795,000

807,033

965,019

886,909

Goodwill

945,750

915,832

888,350

763,388

761,487

664,450

638,538

619,298

467,991

442,542

441,971

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

804,643

809,667

1,049,103

933,030

Deferred income tax assets

8,438

8,826

10,938

78,369

89,092

59,250

60,873

63,786

63,467

60,938

64,508

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

12,140

31,170

6,121

1,540

Trade and other receivables

141,237

155,763

163,417

130,357

152,652

131,130

153,982

147,305

125,714

119,558

127,198

130,357

147,305

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

3,657,842

3,718,492

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

33,559

31,874

74,216

40,589

Income tax receivable

260

666

604

1,174

1,464

2,187

2,375

3,755

3,968

3,012

1,992

1,174

3,755

Derivative financial instrument assets

565

527

402

157

565

Trade and other receivables

630,318

716,200

686,470

663,467

776,509

610,319

629,245

607,835

351,654

399,627

421,218

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

445,713

397,499

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

882,313

852,740

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

4,540,155

4,571,232

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

5,351

5,153

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

3,421,861

3,354,762

2,906,288

3,056,696

Lease liabilities

358,221

518,899

505,863

518,318

515,689

504,118

507,008

510,838

492,475

492,698

513,484

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

81,011

95,447

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

120,984

127,923

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

4,121,905

4,096,769

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

386,364

400,929

669,149

532,627

Provisions for other liabilities and charges

448

502

496

483

492

295

309

277

183

172

160

483

277

Derivative financial instrument liabilities

3,597

5,328

1,971

1,393

1,067

50,051

51,887

68,133

40,655

12,946

10,537

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

60,507

58,106

70,008

75,612

Borrowings

257,461

595,282

709,505

438,114

351,582

437,337

457,941

454,151

183,223

157,814

176.996

438,114

454,151

Lease liabilities

54,806

79,243

72,371

87,240

87,682

88,321

86,898

91,156

89,203

90,060

93,699

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

707,863

740,427

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

4,829,768

4,837,196

4,960,503

5,017,356

Stated capital

5,309,954

5,311,953

5,385,325

5,401,385

5,391,363

5,394,812

5,397,690

5,399,205

5,399,635

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)

(6,967,791)

(7,171,934)

(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

1,076,281

1,299,858

(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)

(492,305)

(472,441)

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

202,692

206,477

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)

(289,613)

(265,964)

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

4,540,155

4,571,232

6,320,733

5,364,710

Note: refer to page 20 (Appendix section) for footnotes related to the Consolidated Balance Sheet

CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME

1Q22(1)

2Q22(2)

3Q22(2)

4Q22(3)

1Q23(3)

2Q23(4)

3Q23(4)

4Q23

1Q24

2Q24

3Q24

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

435,377

420,282

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)

(206,710)

(201,745)

(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)

(83,763)

(97,099)

(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)

2,381

4,286

4,446

(7,202)

Other income

1,170

2,967

469

175

161

710

883

4,676

404

Operating profit/(loss)

108,619

96,519

133,859

(26,752)

195,173

147,593

13,628

174,258

(7,092)

148,168

125,787

312,245

530,652

Finance income

114,967

3,895

6,412

4,790

6,828

8,373

5,823

8,420

10,806

43,010

25,732

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)

(279,156)

(350,825)

(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)

(87,978)

(199,306)

(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

(36,336)

(6,397)

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)

(124,314)

(205,703)

(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)

(121,069)

(204,143)

(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)

(3,245)

(1,560)

(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)

(124,314)

(205,703)

(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)

(0.36)

(0.61)

(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)

(0.36)

(0.61)

(1.39)

(5.93)

Other comprehensive income/(loss)

Items that may be reclassified to profit or loss

Exchange differences on translation of foreign operations

132,682

(123,047)

(52,946)

115,970

44,192

585,264

5,346

336,006

1,043,520

(6,996)

227,539

72,661

970,808

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

(6,996)

227,539

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)

(131,310)

21,836

(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)

(107,091)

18,051

(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)

(24,219)

3,785

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)

(131,310)

21,836

(396,305)

(1,017,370)

Note: refer to page 21 (Appendix section) for footnotes related to the Consolidated Statement of Comprehensive Income

Disclaimer

IHS Holding Ltd. published this content on November 12, 2024, and is solely responsible for the information contained herein. Distributed by Public, unedited and unaltered, on November 12, 2024 at 11:23:15.433.