Q1 2024 IHS Holding Limited Earnings Call

Operator: Good day, and welcome to the IHS Hldg Limited First Quarter 2024 Earnings Results Call for the three-month period ended March 31st, 2024. Please note that today's conference is being webcast and recorded. If you would like to ask a question, please press star and then the number 1 on your telephone keypad at any time. And at this time, I'd like to turn the conference over to Colby Synesael. Please go ahead, sir.

Good day and welcome to the IHS holding Ltd first quarter 'twenty to 'twenty four earnings results call for the three months period ended March 31st 2024.

Please note that today's conference is being webcast and recorded.

If you would like to ask a question. Please press star and then the number one on your telephone keypad at any time.

Speaker Change: At this time I'd like to turn the conference.

Kobe Sinusoid. Please go ahead Sir.

Colby Alexander Synesael: Thank you, Operator. Thanks also to everyone for joining the call today. I'm Colby Synesael, the EVP of Communications here at IHS. With me today are Sam Darwish, our Chairman and CEO, and Steve Howden, our CFO. This morning, we published our unaudited financial statements for the three-month period ended March 31, 2024 with the FEC, which can also be found on the Investor Relations section of our website, and issued a related earnings release, presentation, and supplemental deck.

Speaker Change: Thank you operator, they felt to everyone for joining the call today I'm Colby's Finance Albi EVP Communications with me today is Dan Jarvis.

Jeremy: Jeremy do you have.

Yes.

Speaker Change: This morning, we published our unaudited financial statements for the three months period ended March 31.

Speaker Change: 2024 with the SEC.

Dan Jarvis: What we found on Investor Relations section of our website at Michigan related earnings release presentation supplemental that you guys can davita resolved Holdings limited, which is listed on the New York stock Exchange.

Colby Alexander Synesael: These are the consolidated results of IHS Hldg Ltd., which is listed on the New York Stock Exchange under the ticker symbol IHS, and which comprises the entirety of the group's operations. Before we discuss the results, I would like to draw your attention to the disclaimer on slide 2, which should be read in full along with the cautionary statement regarding forward-looking statements set out in our earnings release in 6K, filed as well.

Michigan related: I guess I was surprised that the entirety of the group's operations.

Michigan related: The results I would like to draw your attention to the disclaimer that ought to be getting it in the presentation on slide two.

Michigan related: Have you got any fall along with the cautionary statements regarding forward looking statements did out in our earnings release, and 6K filed as well today.

Colby Alexander Synesael: In particular, the information to be discussed may contain forward-looking statements that, by their nature, involve known and unknown risks, uncertainties, and other important factors, some of which are beyond our control, that are difficult to predict, and other factors that may cause actual results, performance, or achievements, or industry results to be materially different from any future results, performance, or achievements, or industry results expressed or implied by such forward-looking statements, including those discussed in our risk section, We'll also refer to non-IFRS measures, including adjusted EBITDA, that we view as important in assessing the performance of our business, and ALFCF, that we view as important in assessing the liquidity of our business.

Michigan related: Thank you for the information to be discussed today.

Speaker Change: Forward looking statements, which by their nature.

Speaker Change: Risks uncertainties and other important factors some of which are beyond our control and are difficult to predict and other factors that may cause actual.

Speaker Change: Performance or achievements or any.

Speaker Change: Results materially different from any future results performance or achievements or industry results.

Speaker Change: Our implied by such forward looking statements, including those discussed in our risk factors section.

Speaker Change: Of our form 20-F.

Speaker Change: Securities and Exchange Commission and our other filings with the SEC.

Speaker Change: Also refer to non <unk> measures.

Speaker Change: Hi, Jerry.

Jerry: The EBITDA that we view as important in assessing the performance of our business and yeah that we view as important liquidity.

Colby Alexander Synesael: Reconciliation of non-IFRS metrics to nearest IFRS metrics can be found in our earnings presentation, which is available in the investor relations section of our website. With that, I'd like to turn the call over to Sam Darwish, our Chairman and CEO.

Jerry: Reconciliation of non <unk>, yes.

Jerry: Yes.

Speaker Change: That can be found in our earnings presentation, which is available on Investor Relations section of our website with that I'd like to turn the call over our chairman and CEO.

Sam Darwish: Thanks, Colby, and welcome everyone to our first quarter 2024 earnings results call. We're reporting solid performance across our key metrics when considering the further significant devaluation of the Nigerian currency, the Naira, that took place during the second half of 2023 and continued into the first quarter of 2024. Results were broadly in line with our expectations, while ALFCF meaningfully outperformed due to timing. We expect to see more positive momentum in the second quarter as our contract resets kick in post the devaluation in Q1 2024. As such, we are maintaining our 2024 guidance, including our forex assumptions. We've made strong commercial progress since the beginning of the year across our African business. Organic growth for the quarter was 35%.

Colby: Thanks, Colby and welcome everyone to our first quarter 2024 earnings results call.

Speaker Change: We're reporting solid performance across our key metrics one considering the further significant devaluation of the Nigerian Kevin its EBIT Ida.

Colby: During the second half of 2023 and continuing into the first quarter of 2024.

Speaker Change: There is all sort of broadly in line with our expectations Y N. S. C. S meaningfully outperformed your study.

Speaker Change: We expect to see more positive momentum in the second quarter and our complex and he said you can post the devaluation in Q1 24.

Speaker Change: As such we are maintaining our 2024 guidance, including our assumptions.

Speaker Change: We've made strong commercial progress since the beginning of the year across our African business.

Speaker Change: Organic growth for the quarter was 35%.

Sam Darwish: Group-wide, we added 270 tenants and 523 lease amendments and built 216 towers, including 158 in Brazil. We previously announced the signing of a new 3,950-tenant multi-year rollout agreement with Airtel in Nigeria in February, which also included a three-year contract extension. We have renewed our master lease agreement with MTN in Zambia for a further 10 years and have also just extended our MLA with MTN South Africa by another two years until 2034.

Speaker Change: Worldwide, we added 277, and 523 lease amendments and this $116, including 158 in Brazil.

Speaker Change: Previously announced the signing of a new 3900 <unk>.

Speaker Change: The current <unk>.

Speaker Change: Multiyear rollout agreement with <unk> in Nigeria in February which also included a three year contract extension.

MTN: We have renewed our master lease agreement with MTN in Zambia for a further 10 years and also just extended out our MLA with MTN South Africa by another two years until 2034.

Sam Darwish: For the remainder of the year, we expect an acceleration in our KPIs as the underlying trends driving our business remain healthy, and the impact of our forex resets that are associated with the Naira devaluation that occurred this quarter start to meaningfully benefit our adjusted EBITDA margin. During the quarter, the average forex rate for the U.S. dollar to the Naira was 1,316, which was in line with our guidance of 1,316.

MTN: For the remainder of the year, we expect an acceleration in our kpis.

MTN: <unk> been driving our business remain healthy and the impact of our 43 said that's associated with it not a devaluation that occurred this quarter starts to meaningfully benefit our adjusted EBITDA margin.

MTN: During the quarter the average forex rates for the U S. Dollar. The Nighthawk was 1316 and was in line with our guidance of 1316 mishap.

Sam Darwish: This, however, compares to H15 in Q423 and 461 a year ago and equates to a $133 million headwind quarter over quarter and a $392 million headwind year over year. We, however, have seen the Naira appreciate versus the peak rates we saw in March, which I will speak to shortly. Skipping to slide 7, I want to discuss our highlights. I'd like to start by providing an update on our strategic review that we announced during our earnings call in March.

Speaker Change: However compares to <unk> 15 in Q4, 'twenty, three and 461, a year ago, and equates to a $133 million headwind quarter over quarter and.

Speaker Change: $92 million headwind year over year.

Speaker Change: We however have seen Tonight I appreciate versus the peak rate, we saw in March which I will speak to.

Speaker Change: Sure.

Speaker Change: Skipping to slide seven I want to discuss our highlights.

Speaker Change: I'd like to start by providing an update on our strategic review that we announced during our earnings call in March.

Sam Darwish: We continue to look at all options through a value creation lens with the goal of maximizing the value of our assets and, therefore, value for shareholders over the near, medium, and long term. There are a number of areas of focus.

Speaker Change: We continue to look at all options and value creation lens with a goal of maximizing the value of our assets and therefore value for shareholders over the near medium and long term.

Speaker Change: There are a number of areas of focus here.

Sam Darwish: One, increasing operating profitability and substantially reducing our capex to increase cash flow generation, which is reflected in our 2024 guidance and implies a notable step up in adjusted EBITDA margins for the remainder of the year and a significant reduction in CAPEX year over year. Two, we continue to review our portfolio of markets to determine the right composition for IHS going forward. This is expected to include the disposal of certain markets with a target of raising $500 million to $1 billion over the next 12 months. Additionally, capital allocation of increased cash flow and disposal proceeds is expected to be primarily utilized to reduce debt.

Speaker Change: Increasing our operating profitability and substantially reducing our capex to increase cash flow generation, which is reflected in our 2020 for guidance and implies a notable step up in adjusted EBITDA margins for the remainder of the year and a significant reduction in capex year over year.

IHS: So we continue to review our portfolio of markets to determine the right composition for IHS going forward.

IHS: This is expected to include the disposal of certain markets with a target of raising 500 million to $1 billion over the next 12 months.

IHS: And three capital allocation of increased cash flow and disposal proceeds rate are expected to be primarily utilized to reduce debt. However, we will also consider deploying excess proceeds through share buybacks and or introducing a dividend policy to.

Sam Darwish: However, we will also consider deploying excess proceeds through share buybacks or introducing a dividend policy. To be clear, these initial targets do not rule out further initiatives to continue increasing shareholder value, which we continue to assess in parallel. While it's only been two months, we're off to a good start, with significant work already completed by us and our advisors to identify and analyze these various opportunities. We will continue providing updates as we progress.

Speaker Change: To be clear. These initial target do not rule out further initiatives to continue increasing shareholder value, which we continue to add that.

IHS: But.

Speaker Change: While it's only been two months would after a good start with significant work already completed by us and our advisors to identify analyze these values opportunity.

IHS: We will continue providing updates as we progress.

Sam Darwish: Moving on to governance, as previously disclosed in January 2024, we reached a settlement agreement with Vandel reflecting a commitment to strong corporate governance and constructive shareholder engagement. IHS's Board of Directors is supportive of the proposals being put forward by VANDEL and recommends investors vote to approve these changes at our next AGM, which is expected to occur in June.

Speaker Change: Moving onto governance as previously disclosed in January 2024, we reached a settlement agreement with bank debt, reflecting our commitment to strong corporate governance and constructive shareholder engagement.

Speaker Change: <unk> Board of directors are supportive of the proposals being put forward by one dead and recommend investors a vote to approve these changes at our next AGM, which is expected to occur in June.

Sam Darwish: Future holders who support these proposals will have better aligned our governance policies with that of a mature U.S. listed company, which was an important goal we set at the time of our public listing. In terms of our commercial relationship with MTN, we are constantly in constructive and evolving discussions as matters keep progressing. In March, we signed a 10 year renewal with MTN in Zambia, and we just extended the South Africa MLA by two years as we reached an agreement to unwind our power managed services arrangements with MTN in the country. This agreement reflects the escalating load shedding situation in South Africa, whereby both companies agreed for MTN to undertake the CAPEX and OPEX requirements to build the resilience they desired.

Speaker Change: Cause shareholder support these proposals would have better aligned our governance policies with that of the mature U S listed companies, which was an important goal. We set at this time of our public listing.

Speaker Change: In terms of our commercial relationship with MTN.

Speaker Change: Our constant being constructive and evolving discussions as Matt just keep progressing.

Speaker Change: In March we signed a 10 year renewal with MTN in Zambia, and we just extended the South Africa M&A by two years as we reached an agreement to unwind our power managed services arrangements with MTN in the country.

Speaker Change: This agreement reflects the escalating load-shedding situation in South Africa, whereby both companies agreed for MTN to undertake the capex and opex requirements to visit the resilient they desire.

Sam Darwish: In Nigeria, we continue to constructively discuss and explore ways to support our largest clients. Moving to our balance sheet, which is a top priority, we continue to actively pursue initiatives to extend maturities, manage interest expense, and shift more debt into local currency. During the quarter, we signed a new $270 million term loan and used the proceeds to pay down U.S. dollar letters of credit in Nigeria, reducing interest costs and releasing cash collateral, which improved our liquidity position and reduced our interest expense.

MTN: In Nigeria, we continue to constructively discuss and explore ways to support our largest client.

MTN: Moving to our balance sheet, which is a top priority. We continue to actively pursue initiatives to extend maturities manage interest extend and shift more debt into local currency.

Speaker Change: During the quarter, we signed a new $270 million term loan and used the proceeds to pay down U S. Dollar letters of credit in Nigeria.

Speaker Change: Did you see interest costs, and really using cash collateral, which improved our liquidity position and improve our interest expense.

Sam Darwish: At the end of the quarter, we had $693 million of available liquidity. As anticipated, given the devaluation during the quarter, our leverage increased further, ending the quarter at 3.8. However, we continue to expect to remain within our target range of 3 to 4 this year. I'd now like to provide an update on Nigeria's macro. In March, the Central Bank of Nigeria announced it had fully cleared the official forex backlog, and the Monetary Policy Committee further increased the policy interest rate by 200 basis points to 24.75%.

MTN: At the end of the quarter, we had $693 million of available liquidity.

MTN: As anticipated given the devaluation during the quarter, our leverage increase further ending the quarter at three eight however, we continue to expect to remain within our target range of three to four this year.

Sam Darwish: Positive actions that appear to have had a positive impact on the Naira, which peaked at $16.25 on March 11, but ended the quarter stronger at $1,394. We've also seen a narrowing in the spread between the official rate and the parallel rate to between 0 and 5% on most days and a material improvement in US dollar availability. This has enabled us to access approximately $200 million since the beginning of the year, of which we have invested $61 million to grow since the end of the quarter, and $78 million to settle USD letters of credit in Nigeria, with the balance used for general corporate purposes.

Speaker Change: I'd now like to provide an update on Nigeria macro.

Speaker Change: In March the Central Bank of Nigeria, and now that's fully appreciated for the backlog and the monetary policy Committee further increase the policy interest rate by 200 basis points to $24 75 per cent.

Speaker Change: Positive action that appears to have had a positive impact on the data, which peaked at 16 25 to the dollar on March 11, but ended the quarter stronger at 1394.

Speaker Change: We'll also see it in not only in the spread between the official rate and the parallel rate to between zero and 5% on most days and any material improvement in U S dollar and visibility.

Speaker Change: This has enabled us to access approximately $200 million since the beginning of the year of which we have upstream $61 million to grow since the end of the quarter and $78 million to set the USD letters of credit in Nigeria with the balance used for general corporate purposes. We.

Sam Darwish: We expect to upstream more during the remainder of the year. Lastly, on LATAM, we completed the sale of our Peruvian subsidiary to SBA Communications on April 30, 2024. And, as noted earlier, we built 158 towers in Brazil during the quarter. We remain committed to Brazil, which is our second largest market and one of our fastest growing. We continue to drive strong operational results there and see significant ongoing growth opportunities. And with that, I will turn the call over to Steve.

Speaker Change: Upstream more during the remainder of the year.

SBA communication: Lastly on Latam, we completed the sale of our <unk> subsidiary to SBA communication on April 32024, and as noted earlier, we built 158 towers in Brazil during the quarter.

SBA communication: We remain committed to Brazil, which is our second largest market and one of our fastest growing.

Speaker Change: We continued to drive strong operational results, there and see a significant ongoing growth opportunity.

SBA communication: And with that I will turn the call over to Steve.

Steve Howden: Thanks, Sam. And hello, everyone.

Steve: Thanks, Tom and Hello, everyone turning to slide nine as I mentioned today, we show our Q1 performance I see here, but how is it.

Steve: 43% in Q1, 24 that Q1, 'twenty three while lease amendments again increased by double digit percentages fundamental underlying growth continues across our key markets clearly the financial performance in Q1 before it was mainly impacted by the devaluation in the quarter through nine months from 12 nine to the dollar.

Steve Howden: Turning to slide nine, as Sam mentioned here, we show our Q1 performance. As you can see here, both towers and tenants are up approximately 3% in Q1'24 versus Q1'23, while lease amendments again increased by double digit percentages. Fundamental underlying tenancy growth continues across the Aki market.

Steve Howden: Clearly, the financial performance in Q1'24 was majorly impacted by the Naira devaluation in the quarter, from $912 Naira to the dollar on 31 December to $1,394 Naira to the dollar on 31 March 2024. Therefore, on a reported basis, revenue and adjusted EBITDA declined in the quarter, consistent with our prior expectation that our Q1'24 results would reflect the impact of the January devaluation of the Specifically, in Q1, revenue declined by 30.7%, adjusted EBITDA decreased by 44.8%, and ALFCF fell by 72.2%, in each case on a reported basis, driven largely by the impact of the devaluation more than offsetting the strong organic growth.

Speaker Change: So if you wanted to set them up to $1394 $1 31 March 2020, full therefore on a reported basis revenue and adjusted EBITDA declined in the quarter consistent with our prior expectations that Q1 2004 results will reflect the impact of the January devaluation or not.

Speaker Change: Specifically in Q1 revenue declined by 37% adjusted EBITDA increased by 44, 8% <unk>, 2% in each case on a reported basis driven largely by the impact of the devaluation more than offsetting the strong organic growth.

Steve Howden: However, it is worth noting that the period-on-period comparison is also distorted by the presence of $48 million of one-off revenue in adjusted EBITDA and $43 million of one-off ALFCF in Q1 of 2023. As a result, our adjusted EBITDA margin decreased to 44.3%.

Speaker Change: However, it is worth noting that the peer to peer comparison is it looks like it started by the presence of $48 million of one off revenues adjusted EBITDA and $43 million well MSCI in Q1 of 2023.

Speaker Change: Our adjusted EBITDA margin decreased to 44, 3%.

Steve Howden: We expect our financial results to notably improve in Q2-24, driven in part by our FX reset. The level of CapEx investment decreased by 65% in the quarter, largely due to lower capital expenditure for our Nigeria and SSA segments, partially offset by an increase in LATAM, all of which I'll discuss shortly. As communicated last quarter, while we've increased our focus on cash generation and pulled back on our capital allocation, we continue to focus on projects that we believe promise the highest returns and are the most strategic. Finally, our consolidated net leverage ratio increased to 3.8 times at the end of Q1, up 0.4 times versus Q4-23.

Speaker Change: We expect our financial results and nicely in premiums due to a 24 driven in part by our ethics resets.

Speaker Change: Our level of Capex investment decreased by 65% in the quarter largely due to lower capital expenditure around Nigeria, and SSA segments, partially offset by an increase in loss.

Speaker Change: All of which I'll discuss shortly.

Speaker Change: Communicated last quarter, while we've increased our focus on cash generation and pulled back on our capital allocation. We continue to focus on projects that we believe promise the highest returns out of the most strategic.

Speaker Change: Finally, our consolidated net leverage ratio increased to three eight times at the end of Q1 up low 0.4 times versus Q4 2003 the.

Steve Howden: This is consistent with the expected increase we flagged last quarter due to the most recent devaluation in Nigeria and still within our target 3 to 4 times the range as we have guided. Turning to our revenue on a consolidated basis, you can see how the continued devaluation turns a quarter of strong growth into a 30.7% decline. Deniably valued at 35% in Q1, as mentioned already, yet the business delivered organic revenue growth of 35.5%, driven primarily by FX resets, CCO escalations, and power.

Speaker Change: This is consistent with the expected increase in flagged last quarter G to the most recent devaluation in Nigeria.

Speaker Change: Target, 3% to four times range as we had guided.

Speaker Change: Turning to our revenue on a consolidated basis, you can see how the continued devaluation tens of course of strong growth in two subsequent 7% decline.

Speaker Change: And I really value, 35% in Q1 as mentioned already the business delivered organic revenue growth of 35, 5% driven primarily by FX resets CPI.

Speaker Change: Escalations in power.

Steve Howden: Our Q1 2024 results also reflect the absence of $48 billion from a one-time cash payment from our smallest key customer in Nigeria in Q1 of last year and include a $5 billion headwind as a result of the Brazilian telecom operator Oi having reached resolution on its restructuring plan. Additionally, new lease amendments, new collocation, and new sites also contributed to organic growth this quarter and came from countries across that portfolio.

Speaker Change: Actually one quick score results also reflect the absence of $48 million from a one time cash payment from our smallest catastrophe in Nigeria in Q1 of last year and includes a 5 million dollar headwind as a result of the Brazilian telecom operator.

Speaker Change: Having released reached resolution on all this restructuring plan.

Speaker Change: Hi, Matt do lease amendments co location sites or say contributed to organic growth. This quarter came from countries across our portfolio.

Steve Howden: The right side shows the organic growth rates of each of our segments for the quarter, where our Nigeria segment grew approximately 46%, including a large benefit from FX reset. On slide 11, you can see our consolidated revenue, adjusted EBITDA, and adjusted EBITDA margins for Q1 2024. As discussed, the Nigerian devaluation drove a 31% decrease in reported revenue in the first quarter, despite quarterly organic revenue growth of over 35% that again demonstrated the continued strong top-line growth trends of the business.

Matt Smith: The right side shows the organic growth rates of each of our segments for the quarter were about Nigeria segment grew approximately 46%, including a large benefit from FX resets.

Speaker Change: On Slide 11, you can see a consolidated revenue adjusted EBITDA and adjusted EBITDA margins for Q1 'twenty for us.

Speaker Change: As discussed in Nigeria devaluation drove 31% decrease in reported revenue in the first quarter. Despite the quarterly organic revenue growth of over 35%, but again demonstrates the continued strong topline growth trends of the business.

Steve Howden: Q124 reported revenue includes a $133 million headwind quarter over quarter and a $392 million headwind year over year from the Naira devaluation, or $219 million after adjusting for the impact of FX resets over the past year. FX with an incremental $1 million headwind during the quarter versus rates assumed in prior guidance when factoring in all currency assumptions. As we have previously noted, most of the FX resets on the US dollar denominated portion of our Nigeria contracts are calculated using the average rate of the prior quarter or the spot rate at the beginning of the current quarter, and therefore, our Q1-24 results don't reflect the FX reset benefit from the late January evaluation, but this will start to show in our Q2 results.

Speaker Change: Q1 quick for reported revenue includes $133 million headwind quarter over quarter, and a 392 million dollar headwind year over year devaluation.

Speaker Change: $219 million after adjusting for the impact of FX reset over the past year.

Jim: FX with an incremental $1 billion headwind during the quarter as rates as Jim described items when factoring in currency assumptions.

Jim Smith: As we have previously noted most of the FX reset of the U S. Dollar denominated portion of our Nigeria contracts are calculated using the average rate of the prior quarter or the spot rate at the beginning of the current quarter and that brought Q1 'twenty four results don't reflect the FX.

Speaker Change: From the late January devaluation, as I said will start showing up Q2 results.

Steve Howden: In addition, as we said, the comparison is also distorted due to the $48 billion of one-off revenue in Q1 2023 and the $5 billion headwind from OY's restructuring plan, both of which have similar impacts on adjusted EBITDA. In Q124, adjusted EBITDA of $185 million decreased 45%, and adjusted EBITDA margin was 44.3%, down 1,100 basis points from the prior year. The year-over-year changes in adjusted EBITDA and margin for the first quarter primarily reflect a decrease in revenue, including the absence of the one-off items we've already discussed, as well as higher operating costs in Nigeria versus certain expectations, albeit power generation cost of sale has decreased by more than $26 million. As previously highlighted through Project Green, we continue to prioritise alternative sources of power to reduce our dependency on diesel.

Speaker Change: In addition, as we said the comparisons also distorted GBP $48 million of one off revenue in Q1, 2023, and the $5 million headwind from voice restructuring plan.

Speaker Change: Both of which have similar impacts on adjusted EBITDA.

Speaker Change: In Q1, 'twenty four adjusted EBITDAR of $195 million decreased 45% and adjusted EBITDA margin was 44, 3% down 100 basis points from the prior year.

Speaker Change: The year over year changes in adjusted EBITDA margin for the first quarter, primarily reflects decreased revenue, including the absence of the one off items, we already discussed as well as the high operating costs in Nigeria et cetera.

Speaker Change: Patients, albeit power generation cost of service decreased by more than $26 million.

Speaker Change: As previously highlighted three project right. We continue to prioritize the alternative sources of power to reduce that dependency of diesel.

Steve Howden: On slide 12, we first review our adjusted levy-free cash flow, or ALSCF, and in Q1 2024, we generated an ALSCF of $43 million, a 72% decrease versus Q1 2023, primarily due to a decrease in cash from operations and an increase in net interest paid, partially offset by a decrease in maintenance capex and withholding tax. However, the ALSDS growth rate is impacted by the $43 million one-off impact we saw in Q1 of last year. ALFC at the cash conversion rate was 23.3%.

Speaker Change: On slide 12, the first would be our adjusted Levered free cash flow of ILS, yet and in Q1 'twenty four we generated <unk> of $43 million seven 2% decrease versus Q1 2003, primarily due to a decrease in cash from operations and an increase in net interest paid.

Speaker Change: We offset by a decrease in maintenance capex of withholding tax however that growth.

Speaker Change: The growth rate is impacted by the $43 million of one off impacts we saw in Q1 of last year.

Speaker Change: Unless you're a cash conversion rate was 23, 3%.

Steve Howden: ALSDF in the quarter does benefit positively from some timing aspects related to maintenance capex and interest and should normalize in Q2. Turning to CapEx in Q4, excuse me, in Q1 2024, CapEx, at $53 million, decreased 65% year-on-year. This decrease was primarily driven by lower capital expenditure for our Nigeria and SSA segments of $77 million and $22 million, respectively, partially offset by an increase in capital expenditure of $1 million for our LATAM segments.

Speaker Change: Lastly, after the call was that does benefit positively from some timing aspects related to licensed Capex loot chests and should normalize in Q2.

Speaker Change: Turning to Capex in Q4, excuse me in Q1, 2020 for Capex of $53 million decreased 65% year on year.

Nigeria Ssi: This decrease was primarily driven by lower capital expenditure front of Nigeria Ssi's segments.

Nigeria Ssi: $7 million and $22 million, respectively, partially offset by an increase in capital expenditures of $1 million for a long time segment.

Steve Howden: The decrease in Nigeria was primarily driven by decreases related to Project Green and maintenance capex, while the decrease in SSA was primarily driven by decreases related to refurbishment and also maintenance capex. As it relates to these decreases in maintenance capex over the past few quarters, we've challenged our operating teams to find ways to improve efficiency, and they are delivering. Thus, we believe much of the savings we see will be permanent, as opposed to being pushed out into the future.

Nigeria Ssi: The decrease in Nigeria was primarily driven by decrease relates to project Green and it's the maintenance capex, while the decrease in SSA, it's primarily driven by decreased as rates to refurbishment and also maintenance capex.

Speaker Change: As it relates to a decrease in maintenance capex over the past few quarters, we've challenged our operating teams to find ways to create efficiency and deliberate as we believe much of the savings we see repayment as opposed to push outs throughout the years. The increase in Latam is primarily driven by increases related to new sites type of expenditure.

Steve Howden: The increase in LATAM is primarily driven by increases related to new site capital expenditure. As we discussed previously, we remain focused on cash generation but are still allocating some capital to projects that we believe promise the highest returns and are the most strategic. On the segment review on slide 13, I want to add Sam's earlier comments on what we are seeing in Nigeria.

Speaker Change: As we've discussed previously we remain focused on cash generation.

Speaker Change: We're taking some capital projects the weekly promised the highest returns out of the money strategic.

Speaker Change: On a segment review on slide 13, I want to add any comments on what we are seeing in Nigeria.

Steve Howden: In March 2024, the CBN announced having fully cleared the official backlog of FX transactions and raised interest rates by 200 basis points to 24.75%, the second rate hike in 2024. These actions appear to have had a positive impact on Nigeria's FX market, with the May 10th US dollar to Naira Bloomberg rate at $1,436 versus a peak of $1,625 in March. The government, including the Ministry of Finance and the Central Bank of Nigeria, passed a number of reforms in the last six months, both small and large, aimed at increasing dollar flow within Nigeria, increasing the attractiveness of Nigeria as a foreign direct investment destination, and increasing transparency in the money market.

Speaker Change: In March 2020 for Seagate announced having fully cleared the official backlog of FX transactions and raised interest rates by 200 basis points to $24 seven 5% the second rate hike in 2024.

Speaker Change: These actions appear to have had a positive impact on Nigeria is FX market with the Mitre 10 U S dollar Tonight deny or Bloomberg rates at 1436, that's the peak of 1625 in March the government, including the Ministry of Finance, the Central Bank of Nigeria cost number for them in the last six months, but smaller.

Speaker Change: Large aida, increasing dollar flow within Nigeria increasingly attractiveness that Nigeria is a foreign direct investment destination and increasing transparency in the money markets. There is still more to do but as a result, we've seen an increase in U S dollars in Nigeria, and FX reserves in the country have increased to $33 $8 billion at the end of March 24.

Steve Howden: There is still more to do, but as a result, we've seen an increase in US dollars in Nigeria, and FX reserves in the country increased to $33.8 billion at the end of March 24, from $32.9 billion at the end of December 23. Since the FX rate environment adjusted in January, we were able to access $78 million to settle U.S. dollar obligations locally in Nigeria, and additionally, we've upstreamed $61 million to the group since the end of the quarter. We expect to increase production more over the remainder of the year. Meanwhile, the price of both oil and light gas oil has increased recently.

Speaker Change: From $32 $9 billion at the end of December 'twenty three.

Speaker Change: Since the FX rate environment adjusted in January we were able to access $78 million settle U S dollar obligations likely in Nigeria, and Additionally, we've upstream $61 million degree since the end of the quarter.

Speaker Change: We expect upstream more either the remainder of the year.

Steve Howden: Looking at gas oil, it was $813 per tonne in Q1'24, up from $792 per tonne in Q4'23, and inflation jumped to 33.2% this March versus 22% in March last year. For IHS, Q124 revenue of £228 million decreased 46% year-on-year on a reported basis, reflecting the ongoing devaluation in the quarter and the one-off revenue in Q123, but increased 46% Organic growth is driven primarily by FX reset and Escalation. The negative effects impact was $392 million or 65% due to devaluation. The Tower of Tenet count increased by 0.2% and 1.9%, respectively, versus Q1 of last year.

Gaslog: Meanwhile, the price of oil it is gaslog have increased recently looking at gas oil it was $813 per ton in Q1 24 up from $792 per ton in Q4 2003.

Speaker Change: I always say inflation jumped to 33, 2% this march versus 22% in March last year.

IHS: For IHS Q1 switch full revenue of $228 million decreased 46% year on year on a reported basis, reflecting the ongoing devaluation in the quarter and the one off revenue in Q1, 'twenty, three but increased 46% organically.

Speaker Change: Organic growth was driven primarily by FX resets escalations.

Speaker Change: The negative FX impact was $392 million was 65% devaluation.

IHS: Tower tenant count increased by 12, 2% of one 9% respectively versus Q1 of last year.

Steve Howden: Co-location rates consequently improved to 1.59 times, up from 1.57 times in Q1 last year. Lease amendments continue to be a strong driver of growth, increasing 9.3% year-on-year as our customers add additional equipment to our sites, particularly 5G upgrades. Q1 2024 segment-adjusted EBITDA in Nigeria was $103 million, a 62% decrease from a year ago, and segment-adjusted margin was down 1,800 basis points to 45.2%, largely driven by the NIRA devaluation impacting revenue and the one-off item in Q1 last year.

IHS Q1: <unk> ranked consequently improved to $1 five nine times up from 1.5 to seven times in Q1 last year.

Lease amendments: Lease amendments continue to be a strong driver of growth increasing nine 3% year on year is that customers, adding additional equipment to our sites, particularly <unk> upgrades.

Nigeria: Q1, 2024 segment adjusted EBITDA in Nigeria, with $103 million of 62% decrease in Uruguay.

Nigeria: Adjusted margin was down 200 basis points to 45, 2% in each case, largely driven by the devaluation impacting resonate and the one off item in Q1 last year, while operating costs this quarter, the hot and our own expectations for things such as bad debt diesel with year over year. We saw an overall reduction in cost of sales primarily from Keith.

Steve Howden: While operating costs were higher than our own expectations for things such as bad debt and diesel, albeit year-over-year, we saw an overall reduction in cost of sales, primarily from diesel savings. In our Sub-Saharan African segment, Towers and Tenants increased by 1.4% and 2.9%, respectively, versus Q1 2023. Revenue increased by seven and a half percent, of which organic revenue grew 15% driven primarily by escalations and FX reset. Segment-adjusted EBITDA increased 6.4%, which primarily reflects the increased revenue.

Nigeria: Savings.

Nigeria: Yeah, I'm, sorry, an African segment towers tenants increased by one 4% to 9% respectively versus Q1 'twenty three.

Nigeria: Revenue increased by seven 5%, which organic revenue grew 15% driven primarily by Escalations in FX resets segment adjusted EBITDA increased six 4%, which primarily reflects the increased revenue partially offset by an increase in cost of sales due to higher power generation costs.

Steve Howden: Partly offset by an increase in cost of sales due to higher power generation costs. Segment adjusted EBITDA margin was stable at 53% versus 53.6% in Q1 2023. And also, as Sam mentioned, starting in Q2 of this year, we will no longer be providing backup power services to MTN South Africa and now have a more traditional steel and grass model with MTN South Africa.

Nigeria: Segment, adjusted EBITDA margin was stable at 53% versus 53, 6% in Q1 'twenty three.

Unknown Attendee: And also as I mentioned, starting in Q2 of this year, we will no longer be providing backup power services to MTN, South Africa, and now have a more traditional steel in gross model without kids South Africa. This is derisked, our business and will improve margins and cash flow.

Steve Howden: This has de-risked our business and will improve margins and cash flow. In our last segment, towers and tenants grew by 11% and 6.4%, respectively, versus Q1 2023. Revenue increased by 4.7%, of which organic revenue growth decreased 0.4%, but that was as a result of the Brazilian telecom operator OIS's restructuring plan and the subsequent renegotiation of their contraction agreement with us in Brazil, leading to a 5 million reduction in revenue this quarter that we had not anticipated in guidance.

Unknown Attendee: Yeah last time segment tailored tenants grew by 11% and six 4% respectively versus Q1 'twenty three.

Speaker Change: Revenue increased by 47% of which organic revenue growth decreased <unk>, 4%, but that as a result of the Brazilian telecom price are always restructuring plan and the subsequent renegotiation of that contractual agreement with us in Brazil.

Speaker Change: Turning to our 5 million reduction in revenue this quarter that we had not anticipated in the guidance.

Steve Howden: Segment-adjusted EBITDA increased by 9%, leading to a 70.8% segment-adjusted EBITDA margin, a 250 basis point increase versus Q1 of 2023. In Brazil, our second largest market with 7,815 towers, macro conditions were largely positive as FX rates were essentially flat, and both interest rates and inflation came down.

Speaker Change: Segment, adjusted EBITDA increased by 9% leading to a 78% segment adjusted EBITDA margin.

Speaker Change: 50 basis point increase versus Q1 of 'twenty three.

Speaker Change: In Brazil, our second largest market was 7815 towers macro conditions were largely positive as FX rates were essentially flat in both interest rates and inflation came down.

Steve Howden: In MENA, towers and tenants grew by 8.7% and 9.1%, respectively, while revenue increased by 12%, including 6% organic revenue growth driven primarily by new sites and escalation. Segment adjustment EBITDA grew by nearly 66%, and the Q1 2024 segment adjustment EBITDA margin increased to 55.6%. Now, skipping to slide 15, we look at our capital structure and related items. At March 31, 2024, we had approximately $4 billion of external debt and IFRS 16 lease liabilities. The $4 billion of debt, approximately $2 billion of which represents our bond financings, and other indebtedness includes $370 million that have been drawn down from the three-year bullet term loan facility at the IHS Hldg limited level.

Speaker Change: It made us housing tenants grew by eight 7%.

Speaker Change: Nine 1%, respectively, while revenue increased by 12%, including 6% organic revenue growth driven primarily by new sites and Escalations.

Speaker Change: Segment adjusted EBITDA grew by nearly 66% in the Q1 'twenty four segment adjusted EBITDA margin increased to 55, 6%.

Speaker Change: Now skipping to slide 15, we look at our capital structure and related items.

Speaker Change: <unk> 31, 2024, we had approximately $4 billion external debt and <unk> 16 lease liabilities, but the $4 billion of debt approximately $2 billion represents a bond financings and other index increased $370 million, that's been drawn down from the three year bullet tagline facility at the IHS holding limited level.

Steve Howden: That facility had $130 million of undrawn capacity in Q1, of which we voluntarily reduced the undrawn amount by $70 million in the quarter. And in April, we completed a drawdown of the remaining $60 million balance since the availability of that remaining balance was expiring. As Sam mentioned, the balance sheet is an important component of our thinking as it relates to the strategic review.

Speaker Change: That facility had $130 million undrawn capacity in Q1 of which we voluntarily reduced the undrawn amount by $17 million in the quarter and in April we completed the drawdown of the remaining $60 million balance to the availability of that remaining balance was expiring.

Speaker Change: As I mentioned the balance sheet is an important component of our thinking as it relates to the strategic review, we have already undertaken and continue with various balance sheet initiatives to one extend maturities to manage interest rate expense three swapped all obligations into local currency, where possible and four add flexibility to our capital structure.

Steve Howden: We have already undertaken, and continue to pursue, various balance sheet initiatives to 1. extend maturities, 2. manage interest rate expense, 3. swap dollar obligations into local currency where possible, and 4. add flexibility to our capital structure. This conclusion marks when we signed a $270 million bilateral loan to refinance our letters of credit in Nigeria, extending the maturity of these obligations, reducing interest expense by approximately 300 basis points, and releasing approximately $95 million equivalent of cash collateral previously held against these letters of credit.

Speaker Change: This concludes in March when we signed the $270 million bilateral lines to refinance our letters of credit in Nigeria, extending the maturity of these obligations reducing interest expense by approximately 300 basis points and released approximately $95 million equivalent of cash collateral pretty previously held against the likes of credit.

Steve Howden: As you can imagine, we're pleased to have completed these initiatives, which further de-risk the balance sheet and increase our financial flexibility. The cash and cash equivalent increase of $33 million at March 31 and excludes the $60 million of additional funds from the term loan we drew down in April. In terms of where that cash is held, approximately 34% was held in Naira, that's our Nigerian business, given the money that was recently freed up from the collateral against the credit line.

Speaker Change: You can imagine we're pleased to have completed the initiatives, which further de risk the balance sheet and increased our financial flexibility.

Speaker Change: Cash and cash equivalents increased to $33 million at March 31, and excludes the $60 million of additional funds from the satellite which you've done in April.

Speaker Change: In terms of where that cash is held approximately 34% was held in Iraq, Nigeria business given the money that was recently freed up from the collateral against our credit lines.

Steve Howden: We're in the process of upstreaming much of this, and we have been able to upstream $61 million following the end of the quarter, at an average rate of approximately $1,279.00. This is a positive reflection of the government's recent actions to increase daily FX turnover, or UFD availability, and bring together the divergence between the parallel and official rates.

Speaker Change: Prices in upstream and much of this would have been able to upstream $61 million. Following the end of the quarter at an average rate of approximately $1279 to the dollar.

government: Positive reflection of the government's recent actions to increase daily FX tied over USD availability and bring together the divergence between the parallel an official rates.

Steve Howden: While we anticipate going upstream again in 2024, we do caution that it remains to be determined if the increased dollar availability can be sustained. Consequently, from all these moving elements, at the end of Q1 2024, our consolidated net debt had reduced to approximately $3.7 billion, and we had a consolidated net leverage ratio of 3.8 times, up 0.4 times, versus the end of 2023. We expect leverage to remain within our current target of 3 to 4 times net leverage ratio this year prior to the realisation of any future disposals, at which time we expect the leverage to drop.

Speaker Change: While we anticipate upstream again in 2024, we do caution that remain to be determined if the increased donor availability can be sustained.

Speaker Change: Consequently, commodity maybe elements at the end of Q1 'twenty for a consolidated net debt has reduced to approximately $3 7 billion.

Speaker Change: And we had consolidated net leverage ratio of three eight times at no 0.4 times at the end.

Speaker Change: 2023.

Speaker Change: We expect leverage to remain within our current target of three to four times net leverage ratio. This year prior to the realization of any future disposals at which time, we expect the leveraged stroke.

Steve Howden: Finally, as it further relates to devaluation, I want to point out that our Q1 results show an unusually large net loss of $1.6 billion, which is driven primarily by finance costs, the vast majority of which is unrealized FX losses. As we saw in Q2 of last year, in particular after the then-Nigeria devaluation, these costs arise principally due to our US dollar bonds and because of the US dollar intercompany shareholder loan structure we have used historically to fund the business. These costs, which are very large amounts of non-cash, can vary significantly and typically increase in the context of a devaluation of denial, which is the primary reason why they increased dramatically in Q1.

Speaker Change: Finally, as it relates to the devaluation I want to point out that our Q1 results showed unusually large that's also one 6 billion.

Speaker Change: Which is driven primarily by the finance costs.

Speaker Change: The majority of which is unrealized FX losses.

Speaker Change: As we saw in Q2 of last year in particular answer then Nigeria devaluation. These costs arise principally G by U S dollar bonds and because of the U S. Dollar intercompany shattered a lighter structure, we have used historically for the business.

Nigeria devaluation: These costs, which are very large noncash can vary significantly in typically increase in the context of a devaluation of the <unk>, which is the primary reason why they increased dramatically in Q1.

Operator: We've added back slide 21 to the appendix of the presentation as we did in Q2 of last year to help further explain this dynamic and highlight the Delta this past quarter. Moving to slide 16, we are maintaining our 2024 guidance, including our effects assumptions, but we are now absorbing an additional $12 million in lost revenue from OI versus our previous expectations, and 100% has flowed through to adjust EGADAR and ALFCF. Despite that, we expect to see an improvement in our financial results and margins starting in Q2-24 as we benefit from the FX resets associated with devaluation in Q1-24 and based on our expectations for our KPIs.

Speaker Change: We've added back slide 21 to the appendix of the presentation and in Q2 of last year to help further explain this dynamic and highlight the delta this past quarter.

Speaker Change: Moving to slide 16, we are maintaining our 2020 full guidance, including our FX assumptions, but we announced there will be an additional $12 million in lost revenue from boy that previous expectations.

Speaker Change: 100% in flight III to adjusted EBITDA and I left yet despite.

Speaker Change: Despite that we expect to see improvement in our financial results and margins starting in Q2 24, as we benefit from the FX resets associated with the devaluation in Q1, 24 and based on our expectations for our Kpis.

Operator: I'd also add that we've been mentioning that we've been reviewing our Power Managed Services Agreement with MTA in South Africa for some time now, and as we've discussed, this has already been completed in Q224. However, this doesn't impact our guidance as this was already factored in. On slide 17, on the left, you can see our revenue by reporting currency for Q1, whereas on the right, we provide the breakout of revenue based on contract split.

Speaker Change: I'd also add that we've been mentioning that we've been reviewing out and how our managed services agreement with MTN South Africa for some time now and as we've discussed this has already been completed in Q2 'twenty. Four however, it doesn't impact our guidance this was already factored it.

Speaker Change: On slide 17, Nonetheless, GCI revenue reporting currency Q1, rather than the ryzen provides a breakout of revenue based on contract split.

Operator: The bottom of the slide shows the average annual FX rate assumptions used in our 2024 guidance and our own change from last quarter. This now brings us to the end of our formal presentation. We thank you for your time today. Operator, please now open the line for questions.

Speaker Change: The bottom of the slide shows the average annual FX rate assumptions used to not try and stretch full guidance and are unchanged from last quarter.

Speaker Change: This now brings to the end of our full presentation. We thank you for your time today operator. Please now open the line for questions.

Operator: Thank you, and as a reminder to those on the phones, please press star 1 to raise your hand. We'll now pause briefly while we register questions in the Q&A roster. And your first question comes from the line of Richard Choe from JP Morgan. Please go ahead.

Speaker Change: Thank you and as a reminder to those on the phone lines. Please press star one to raise your hand, we'll now pause briefly while we register questions in the Q&A roster.

Speaker Change: And your first question comes from the line of Richard Choe from J P. Morgan. Please go ahead.

Richard Choe: Hi, I wanted to check and see what you're seeing in terms of the transition to 4G and 5G in Nigeria. Given that the currency had been so unstable, did you see a pullback? And now with, I guess, the rates kind of converging and having a little bit more stability, do you think you'll see an acceleration in that build for the rest of the year?

Richard Choe: Hi, I wanted to check and see what youre seeing in terms of the transition to <unk> and <unk> in Nigeria, given the currency had been so unstable did you see a pullback and now with I guess the rates kind of converge.

Speaker Change: Having a little bit more stability do you think you'll see an acceleration in that build for the rest of the year.

Sam Darwish: Morning, Richard, this is Sam. Look, it's unavoidable.

Sam: Good morning, Richard This is Sam.

Richard Choe: A look at it.

Richard Choe: It's unavoidable at the moment the carriers in Nigeria are focused on.

Sam Darwish: At the moment, the carriers in Nigeria are focused on weathering the devaluation, the massive devaluation that has occurred. This will, in my view, slow down the transition from 4G to 5G. In any case, even as we talk 4G, they're still kind of in the final stages of that rollout. It's not going to be a massive delay, but my estimate is that we may see a little bit of a slowdown on the rollout of 5G until they see a little bit more clarity on where the Naira will land.

Sam: Whether in basically the devaluation the massive devaluation that has occurred.

Sam: They will in my view is slow down a.

Sam: The transition from <unk> to <unk> <unk> in.

Speaker Change #103: In any case, even as we talked <unk> theres still kind of like in the final stages of that rollout.

Speaker Change #102: He's not going to be a massive D D but.

Speaker Change #100: My estimate is that we may see a little bit of a slowdown on the rollout of five D until they see a little bit more clarity on where are the night hours.

Steve Howden: Richard, Steve, I'd also just add, you know, we've factored in a bunch of that into our guidance already, so if you remember, we pulled back significantly on CAPEX, a lot of that's being driven through reductions in noodle sites in Nigeria, as well as small things as well, so some of that was already baked in. I would also say, if you look at ASL Africa's results in Nigeria, they still continue to be pushing pretty hard, as evidenced by our agreement with them in February, around 3,950 tenant rollout over five years. So there's certainly a bit of a slowdown, given where the macro is, but we're still seeing, you know, particularly people like ASL are still keen to push ahead.

Steve Howden: Now Richard, and Steve Howden.

Richard Choe: Yes, Richard.

Speaker Change: We've got a bunch of that into our guidance already second remember we pulled back significantly on Capex a lot of that's being driven three.

Steve Howden: Reduction in Newbuild sites in Nigeria, as well as some other things as well.

Steve Howden: So some of that was already baked in I would also say if you look at <unk> as a result, so nigeria, they still continue to be pushing pretty hard.

As evidenced by our agreement with them in February at around 3090, <unk> fifth tenant rollout of <unk> sites.

Speaker Change: It's there's certainly a bit of a slowdown.

Steve Howden: Given where the macro is but we're still seeing good I would say that people like NFL is still key to push to get out some <unk>.

Steve Howden: Just noticed in the quarter, we used 523 lease amendments types in Q1.

Steve Howden: We did not that was surpassed two five <unk>.

Steve Howden: And then regarding the OI churn, I guess it's 12 million for the year. Is there any more after this year, or is that largely going to be it?

NFL: And then regarding the Oi churn I guess, it's $12 million for the year is there any more after this year or is that largely going to be it.

Steve Howden: I mean, that impact will continue thereafter, but it actually moderates a bit next year, given the restructuring plan that's been agreed with them.

Speaker Change: Okay.

Steve Howden: That impact will continue that offset.

Steve Howden: It actually moderates a bit next year given that restructuring partners.

Speaker Change: Great with that.

Steve Howden: But that's effectively what we're seeing through the impact of 2024. So just to reiterate, that 12 was not forecast. We had forecast some already, but that 12 was not forecast. So you can consider that almost an outperformance versus the guidance, because we haven't changed guidance ranges, but we're absorbing that additional hit.

Speaker Change: But effectively what we're saying that's great for the impact of a 2024, so I need to reiterate that that 12 would not forecast that forecast already but up 12 and not forecast say.

Steve Howden: And you can consider that a waste of the outperformance of the guidance because we haven't changed guidance ranges, but we're absorbing that additional.

Speaker Change: Great. Thank you.

Operator: Your next question comes from the line of Michael Rollins from City. Please go ahead.

Speaker Change: Your next question comes from the line of Michael Rollins from Citi. Please go ahead.

Speaker Change: Okay.

Michael Ian Rollins: Thanks and good morning. A couple questions, you know. First, I'm curious. Good morning. I was curious if you could give us an update on churn, you know, what you're seeing from customers, and if there's still some churn that needs to be processed in any of your key markets that we should be mindful of. And then second, in terms of the strategic review, did you look into the question as to whether or not the public markets are the right place for IHS equity, and what did you learn on that front? Thanks.

Speaker Change: Thanks, and good morning.

Michael Ian Rollins: Couple of questions first I'm curious if you. Good morning, I was curious if you could give us an update on churn and what youre seeing from customers and if there is still some churn that needs to be processed in any of your key markets that we should be mindful of.

Speaker Change: And then second in terms of the strategic review. This is look into the question as to whether or not the public markets are the right place.

Michael Ian Rollins: For IHS equity and what did you learned on that front. Thanks.

Steve Howden: So, Mike, on the churn point, there isn't anything particularly new in terms of what we're seeing. There are no particular situations with carriers in any of our markets. I mean, people are obviously aware of the ongoing discussions with MTN in Nigeria, and that originally centered around 2,500 sites at the end of this year. But outside of that, you know, we haven't changed our stance on that either. But, you know, other than that, there isn't really anything to comment on. And, you know, different or new trends or outsized trends in churn remain pretty likely.

Sharon: So Michael it's Sharon.

Steve Howden: The reason.

Sharon: Anything, particularly new.

Steve Howden: In terms of what we say.

Michael Ian Rollins: No particular situations with carriers in any of our markets to make paper, obviously aware of the ongoing discussions with MTN and.

Steve Howden: In Nigeria.

MTN: Originally said throughout 2500 sites.

MTN: Yes.

Steve Howden: Outside of that we haven't changed our stance so not a lot either.

Steve Howden: But other than that there is work yet to come at all different.

Steve Howden: Different or new trends or outsized trends in Chad.

Steve Howden: It's pretty low.

unknown: [inaudible]

Speaker Change: And hi, Michael This is the look on the second question.

Sam Darwish: And hi Michael, this is Sam. So look, on the second question: Look, we like New York. We like public markets. We definitely like you guys.

MTN: Look.

Speaker Change: We like New York like public markets, we definitely like you guys.

Sam Darwish: So kind of like, we're happy where we are. But at the moment, we have announced a strategic review. The strategic review will look at every different aspect of where we are.

Speaker Change: So kind of like we're happy where we are but at the moment, we have announced a strategic review the strategic view, we'll look at every different aspect of where we are we fundamentally believe that that that we are being undervalued by by public markets not now the whole asset class is kind of like under pressure given where.

Sam Darwish: We fundamentally believe that we are being undervalued by public markets. Now, the whole asset class is kind of under pressure given where the cost of money is at the moment. Our peers, our US peers, are 40% down, for example, over the past two years. So we do acknowledge this is some kind of a trough at the moment that the markets are seeing. But again, Michael, look, nothing is off the table as we conduct the strategic review, and we will kind of make the relevant announcement as and when we progress that review.

Sam Darwish: The cost of money is at the moment are our peers. Our U S. Peers are 40% down for example over the past two years. So we do acknowledge this as some kind of a trough at the moment that the markets are seeing but again, Mike look nothing is off the table as we conduct the strategic review and we would kind of like me.

Sam Darwish: The relevant announcements as and when we progress.

MTN: Hugh.

Speaker Change: Thank you.

Operator: Your next question comes from the line of Jon Atkin from RBC. Please go ahead.

Speaker Change: Your next question comes from the line of John Atkin from RBC. Please go ahead.

Jonathan Atkin: Thanks. I'm just curious about capital allocation relative to the strategic review. And what are some of the criteria that you're evaluating when you think about, you know, potential dispositions? You talked about wanting to, you know, remain in Brazil, but whether it's by asset class or relative scale or geography, but any kind of broad brush criteria that we should think about as you think about dispositions. Yeah, I think I need to see that.

MTN: Thanks.

Jonathan Atkin: Just curious about capital allocation relative to the strategic review and what are some of the criteria that you're evaluating when you think about.

John Atkin: Potential dispositions you talked about wanting to.

Jonathan Atkin: We remain in Brazil, but whether it's by asset class or relative scale or geography, but any kind of broad brush criteria that.

Jonathan Atkin: We should think about as you as you are.

Jonathan Atkin: Think about this if you think about dispositions.

Steve Howden: Yeah, I think I don't see, I think just a broad brush, you know, the business has always been a growth stock, and we're in growth markets when it comes to emerging market growth infrastructure companies, and I think that that is the intention to remain as such. And you've seen this year that we've pulled back significantly on sort of organic capex spend. And that's so that we can focus on specific areas this year, which is

Jonathan Atkin: Yeah, I think I don't see them I think just broad brush.

Steve Howden: Business as it's always been a great stock and we're in great markets for an emerging market, Greg infrastructure company and I think that obviously intention to remain as such.

Steve Howden: Saying this year that we've pulled back significantly on sort of organic capex spend.

John Atkin: And that so that we can focus on specific areas this year as Brazil.

Steve Howden: And so hopefully, that forms part of the long-term capital allocation. But what we're also being very clear on is that the totality of capital allocation is changing from history. And, you know, historically, we looked historically to deploy significant capital into M&A opportunities. And right now, we're thinking through what we have already, we're thinking through the balance sheet, and potentially looking at paying down some debt. And we're also looking at near-term shareholder returns, and whether that be through reinvigorating share buybacks or whether that be through dividends at some point in the future. So those are sort of the broad brush changes that we are working through right now and that we're trying to be clear on.

Steve Howden: I hope to see that forms part of the long term capital allocation, but what we're also being very clear on that.

Steve Howden: That tightens the totality of capital allocation is changing from history.

Steve Howden: If we look historically to deploy significant capital into M&A opportunities.

Steve Howden: And right now we're thinking three what we have already with <unk>.

Steve Howden: Thinking through the balance sheet.

Steve Howden: As you look at paying down some debt.

Steve Howden: I'll say looking at <unk> share.

Steve Howden: Shareholder returns whether that be three reinvigorate some share buybacks or whether it be through dividends at some point in the future.

Speaker Change: <unk> said I, just sort of the broad brush changes that we are working through right now is that we're trying to be clear.

Steve Howden: Thanks. Again, I think you kind of gave us some of the tools to think about this. But what, what can you highlight just to maybe repeat or accentuate the, you know, the 55% EBITDA margins for the year. So there's a step up here. And what are the major drivers of that, of your EBITDA margin expansion?

Speaker Change: Thanks, and then I think you kind of gave us some of the tools to think about this but what what can you highlight.

Speaker Change #114: Maybe to repeat or accentuate the the 55% EBIT margins.

Steve Howden: For the year, so there's a step up here and what are the major drivers of that of your EBIT margin expansion.

Steve Howden: Yeah, so I think

Steve Howden: Yeah, so I think a few things. First, the Q1 margin into the margin looks a little low in comparison to the four-year trend. And that's, in part, driven by the oil fees that we covered, but it's also in part driven by some pass-through revenue that we have in South Africa, which is coming to an end next quarter. So you'll see a step-up in margin from technicalities around pass-throughs, but also particularly from contract resets.

Speaker Change: Yeah. So I think I think if he thinks that the Q1 EBITDA margin it looks it looks a little low in comparison to the Soviet trend in that path.

Steve Howden: Driven by the Boise recovered, but it is so sad part driven by some pass through revenues that we have in South Africa, which is coming to an end next quarter safe Youll see step up.

Steve Howden: And from technicalities around <unk>, but it looks like particularly.

Steve Howden: For all of the contract resets.

Steve Howden: You know, we've commented clearly on how Q1 has been impacted by the narrative valuation and contracts will start. In fact, we have started resetting at the beginning of April in Q2. So you'll see that step back up again. So, you know, for the rest of the year, given where we are in Q1, given the implied four-year margin of 55%, you know, we're expecting to see a 56%, 57% type margin run through the next three quarters of the year. And, you know, the business is heading in that direction.

Speaker Change: Yes, we'd be compensated.

Steve Howden: Clearly on how Q was that impacted by the devaluation of the contracts will start in fact, where we have staff resetting.

Speaker Change: Uh huh.

Steve Howden: <unk> said that Youll see that step back up again.

Speaker Change #107: As for the rest of the year, given where we are in Q1, given the implied will be <unk>, 5%.

Steve Howden: You can see a 50, 657% type margin run.

Steve Howden: <unk> III the next three quarters of the air.

Steve Howden: The business is.

Speaker Change #139: Heading in that direction.

Steve Howden: And lastly, on the builder suits, can you share what the kind of the single tenant or initial tenant returns are that you're underwriting for the bills you have in your pipeline? Yeah, I mean, no.

Steve Howden: And then lastly on the build to suits.

Speaker Change #108: Can you share what the.

Speaker Change #153: Kind of the single tenant.

Speaker Change #118: Initial tenant returns are that you're underwriting to.

Speaker Change #111: For the adults you have in your pipeline.

Steve Howden: Yeah, I mean, no, no difference in history, to be honest. We've obviously shrunk back the number of sites from last year, and the majority of those main sites are in Brazil.

State Street: Yeah, I mean, I have no idea for state Street.

Speaker Change #152: We're obviously, we've obviously shrunk back the number of sites.

State Street: But the majority of those main sites for Brazil.

Speaker Change #113: Always been a view that United States, 10% should be double digit.

Speaker Change #116: Once we get a second tenant on where I can say something around the 20% Mark.

Speaker Change #116: Where it says quite a bit.

Speaker Change #116: That continues.

Speaker Change #140: That's the way to think about things.

Speaker Change #141: With the sale of <unk>.

Speaker Change: Thank you.

Steve Howden: We've always been of the view that, you know, single tenant returns should be, you know, double digits. And then once we get a second tenant on, we're hoping to see something around the 20% mark from a returns point of view. And that continues to be the way we think about things.

Speaker Change #113: Your next question comes from the line of David Lopez from New Street Research. Please go ahead.

Operator: Your next question comes from the line of David Lopez from New Street Research. Please go ahead.

David Lopez: Hi, good morning.

Steve Howden: Most of my questions have been answered, but one.

David Lopez: On the on net rich I was wondering and leverage and sugar remuneration I was wondering what would be the the leverage level.

David Lopez: Hi, good morning. Most of my questions have been answered.

Steve Howden: I've got one left on leverage. I was wondering about leverage and short-term remuneration. I was wondering what the leverage level you would like before starting to think about further share buybacks or increasing the dividend? And actually, a follow-up; apologies if this has been answered in the first question, but I missed part of it. We have seen MTN Nigeria cutting its CAPEX guidance materially a few weeks ago. I was wondering what the risk to your guidance is and does that mean that we should maybe expect more to be toward the lower end? of the Revenue Range, Arnott. Thank you. Hi, I think we covered the MTN point already in terms of the very first question we had.

David Lopez: You would like.

Speaker Change #144: Before starting to think about.

Speaker Change #145: Yes, so the share buybacks.

Speaker Change #120: Introducing the duty.

Speaker Change #120: And actually.

Speaker Change #135: Apologies if it has been on solving the sub question about I missed part of it.

Speaker Change #121: We have seen MTN, Nigeria continuous capex guys aren't materially.

Speaker Change: A few weeks ago I was wondering what's the risk to you guys on some so does that mean.

Speaker Change #112: We should maybe expect them all to be toward the lower end.

Speaker Change #112: Of the revenue range.

Speaker Change: Thank you.

Steve Howden: Hi, I think we covered the MTN point already in terms of the very first question we have. So yes, we've seen MTN pull back on some CapEx. We'd expected that, and that was sort of baked into our guidance, but it's being offset by Airtel's push in the country, given the announcement we signed. So I'm not expecting that to materially impact the guidance that we've put out already. And on the leverage before a return, that's all being worked out right now. I don't want to get ahead of that.

Speaker Change #124: Uh huh.

Speaker Change #133: It kind of a deal.

Speaker Change #122: I think we have a dx checkpoint already extensive the very fast, especially has a yes, we've seen.

Speaker Change #142: In a pullback on some capex, we expected that.

Steve Howden: And that was sort of baked into that guidance or stay offset by push.

Speaker Change #125: Bush is a country that is a good day.

Speaker Change #146: Now some selling site have not expecting not necessarily impact the guidance that we've put out already.

Speaker Change #115: And on the leverage before ash overtime like that that's still being worked out right now.

Speaker Change #112: Is that clear.

Speaker Change #112: Clearly three eight times Q1 is up towards the top end of that range.

Steve Howden: Clearly, 3.8 times where we are in Q1 is up towards the top end of our range. But, in time, we'd like to be back down at the bottom end of that range. Historically, we've been at the bottom of that range, but we're working through that right now as part of the broader strategic review to put some real framework around the disposals, which we've spoken about a little bit already today, but also how we allocate those. The majority is in debt, but some may come back to direct shareholding.

Speaker Change #155: I would love to be back down to the bottom end of that range and historically, we've been as the bulk of that range.

Speaker Change #112: But we're working through that right now as part of the broader strategic review is pursuing some real framework around disposals vicious cycle hasn't been raised today.

Steve Howden: But it looks like that.

Speaker Change: I would say that majority of that.

Speaker Change: Some may makeup plexiglass show dark shadow itself.

Sam Darwish: Thank you. David, if you would also add that, look, we are comfortable with our liquidity position at the moment. I mean, we have roughly $700 million of liquidity. Traditionally, however, we have always been conservative on our debt allocation. And we've always kind of liked, even the range that we like to stay in, with three to four, is a range that is lower than most of where our peers are, even as we are now with a massive devaluation of the Naira that took it from $400 to the dollar to almost $1,400 or $1,500 to the dollar.

Steve Howden: Thank you David if you allow me to also add that look we are comfortable with our liquidity position at the moment I mean, we have roughly $700 million of liquidity. Traditionally however, we have always been conservative on our debt allocation I mean, we've always kind of like even the range that we like to stay win.

Speaker Change #110: Three to four is the range that is lower than most of what our peers are even as we are now with a massive devaluation of matter that took it from 400 to the dollar to almost 1400 or 500 to the dollar.

Sam Darwish: We still are within our range. But again, this conservative mentality that Steve is talking about is the one that is driving us to basically say, you know what? Let's further reduce our leverage. But it's not basically, it's not something that, it's not a danger we face at the moment.

Speaker Change #110: All within our.

Speaker Change #123: Have a range, but again this conservative mentality that Steve has spoken about is the one that is driving us to basically say you know what let's further reduce our leverage but it's not basically it is not something that it's not there's not a it's not a danger we face at the moment is just something that we feel comfortable staying.

Sam Darwish: It's just something that we feel comfortable staying basically at lower levels of the range. And by the way, this is not tied to the dividend payment, or this is not tied to a shareholder buyback situation. Those are more kind of like tied to concluding the strategic review that we are doing. We want to make sure that we get all the pieces somehow tied together before we kind of commit to shareholder return.

Speaker Change #156: Basically at lower levels of their it and by the way. This is not tied to the dividend payment or this is not tied to issue a holder buyback a situation though.

Speaker Change #123: These are more kind of like tied to concluding this year. The strategic review that we are doing what I make sure that we get all the pieces somehow tied together before we kind of like a commit to shareholders.

Speaker Change #123: Return.

David Lopez: Okay, very clear. Thank you.

Speaker Change #117: Okay very clear thank you.

Operator: Your next question comes from the line of Stella Cridge from Barclays. Please go ahead.

Speaker Change #131: Your next question comes from the line of still Akridge from Barclays. Please go ahead.

Stella Cridge: Hi there. Morning all.

Speaker Change #147: Hi, there good morning, all many thanks for the update.

Stella Cridge: Many thanks for all of the updates. Yeah, there were just a couple of other areas I wanted to ask about. So on the sub-Saharan African contracts, were there any changes of note in the Zambian contract versus before? And I remember you also had the Rwandan contract maturing, so I just wondered what the status of that was. And secondly, I had also noticed that the negative EBITDA portion, the other part, a.k.a.

Stella Cridge: Just a couple of other areas I wanted to ask about Amazon the sub Saharan African contracts were there any changes of note and the Zambia contract, especially at this point and I remember at Q.

Speaker Change #157: When the contract maturing so I just wondered what the status of that was.

Stella Cridge: And secondly, and I had also noticed that the.

Speaker Change #134: The negative EBITDA portion the other part.

Speaker Change #134: A key other cost cuts cocoa cost just under 27 million parcels being at the Cherokee Prior quarters. I was just wondering is that sustainable level.

Stella Cridge: Perhaps HOCO costs were down at $27 million versus being in the $30s in prior quarters. So I was just wondering, is that at a sustainable level going forward, or could this come down a little bit further? That would be great.

Speaker Change #117: Or could that come down a little bit farther that'd be great.

Steve Howden: Stella, on the first question, nothing particularly of note to comment on in terms of the Zambia renewal, pluses and minuses as ever, but a 10-year renewal with MTA in Zambia. Rwanda is not quite done yet, still progressing, still constructive, but we're not quite there yet. And, sorry, the final question. Can you just repeat the final question for me?

Speaker Change #137: So on the first question nothing in particular.

Speaker Change #137: Colorado, Texas is that they were no pluses and minuses of that.

Speaker Change #125: A 10 year renewal without checks out there.

Speaker Change #131: It's not quite done yet.

Speaker Change #117: They have still constructive but not.

Speaker Change #117: Not quite there yet.

Speaker Change #149: And sorry, just final question can you just repeat the progression point, we're talking when you're talking about.

Stella Cridge: Yeah, so the other, like the negative EBITDA from other areas, so these unallocated costs, I just noticed it's covered quite a bit. Yeah, so that's kind of holding company costs that have been represented this quarter just to make

unknown: [inaudible]

Speaker Change #117: Yes.

Speaker Change #143: Like the negative EBITDA from other areas. So these unallocated costs I just noticed it kind of yes.

unknown: Yeah. So that so that's kind of holding company costs as they represented this quarter just to make sure that the presentations correct.

Speaker Change #129: That is a great cost, yes, it has come down versus the prior quarters.

Speaker Change #129: We do expect it to.

Speaker Change #127: Remains sort of lower than it has been historically, we can take various cost saving initiatives at a group level.

Speaker Change #127: So yes, we expect.

Speaker Change #158: That's good to me.

Steve Howden: Okay, that's super. And maybe if I could just ask about the South Africa change in the agreement there. What is there any economic impact on the profitability of the contracts versus prior? So that's all already baked into our guidance.

Speaker Change #138: Okay that's super.

Speaker Change #154: And maybe if I could just ask also on the South Africa and <unk>.

Speaker Change #159: If the agreement there.

Speaker Change: Is there any economic impact on the profitability of that.

Speaker Change #138: Of the contract.

Steve Howden: So that's all already baked into our guidance, Stella.

Speaker Change #148: So that's already baked into our guidance.

Speaker Change #127: Are there sort of ups and ups and downs, but switching back to the guidance.

Steve Howden: Okay. All right. That's great. Thank you.

Speaker Change #136: Okay, Alright, that's great. Thank you.

Operator: And that brings us to the end of the IHS Hldg Limited first quarter 2024 earnings results call. Should you have any questions, please contact the Investor Relations team via the email address InvestorRelations at IHStowers.com. The management team thanks you for your participation today and wishes you a good day.

Speaker Change #150: And that brings us to the end of the IHS holding Ltd first quarter 2020, full earning results call.

Speaker Change #128: You have any questions. Please contact the Investor relations team via the email address Investor relations at IHS towers Dotcom.

Speaker Change #151: The management team. Thank you for your participation today and wish you a good day.

Speaker Change #128: Okay.

Speaker Change #128: [music].

Speaker Change #128: Yeah.

Speaker Change #128: [music].

Speaker Change #128: Okay.

Speaker Change #128: Okay.

Speaker Change #128: [music].