Q4 2024 IHS Holding Ltd Earnings Call

Operator: Good day and welcome to the IHS Hldg Limited fourth quarter and full year 2024 earning results call for the three month and full year periods ended December 31st, 2024. Please note that today's conference is being webcast and recorded.

Good day, and welcome to the IHS, holding limited's fourth quarter and full year 'twenty 'twenty four adding results call for the three months and full year periods ended December 31st 'twenty 'twenty four.

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

You might ask a question. Please press star and then one on your telephone keypad at any time.

Robert Berg: At this time, I'd like to turn the conference over to Robert Berg. Please go ahead, sir. Thank you, Operator. Thanks to everyone for joining the call today. I'm Robert Berg, Head of Investor Relations here at IHS.

Speaker Change: This time I'd like to tons confiscate the two bolt Pittsburgh. Please go ahead Sir.

Robert Berg: Thank you operator, thanks to everyone for joining the call today I'm, Robert Berg head of Investor Relations here IHS with me today are sound Darwish, our chairman and CEO, Steve Howard our CFO.

Robert Berg: With me today are Sam Darwish, our Chairman and CEO, and Steve Howden, our CFO.

Robert Berg: This morning we filed our annual report on Form 20-F for the full year ended December 31st 2024 with the SEC, which can also be found on the Investor Relations section of our website and issued a related earnings release, presentation and supplemental deck. 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.

Robert Berg: This morning, we filed our annual report on form 20-F for the full year ended December 31st 2024, with the SEC, which can also be found on the Investor Relations section of our website and issued our related earnings release presentation and supplemental deck.

Robert Berg: These are the consolidated results of I guess housekeeping limited, which is listed on the New York stock exchange under the ticker symbol I H S on which comprises the entirety of the group's operations.

Robert Berg: Before we discuss the results, I would like to draw your attention to the disclaimer set out at the beginning of the presentation on slide two. We should be read in full, along with the cautionary statement regarding forward looking statements set out in our earnings release and 20F filed as well today. In particular, the information to be discussed may contain forward-looking statements which, by their nature, involve known and unknown risks, uncertainties and other important factors, some of which are beyond our control but are difficult to predict, and other factors which 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 the risk factors section of our Form 20F filed today with the Securities and Exchange Commission and other filings with the FCC.

Robert Berg: Yeah.

Robert Berg: Before we discuss the results I would like to draw your attention to the disclaimer that's out at the beginning of the presentation on slide two we.

Robert Berg: We should be ready to food along with the cautionary statements regarding forward looking statements set out in our earnings release, and 20-F filed as well today.

In particular, the information we discuss may contain forward looking statements, which by their nature involve known and unknown risks uncertainties and other important factors some of which I'll be on back control, which are difficult to predict and other factors, which may cause actual results performance or achievements or industry results.

Robert Berg: 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 the risk factors section of our form 20-F filed today with the Securities and Exchange Commission and other filings with the SEC.

Robert Berg: 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. Our reconciliation of non-IFRS metrics to the nearest IFRS metrics can be found in our earnings presentation, which is available on the Investor Relations section of our website.

Robert Berg: We'll also refer to non <unk> measures, including adjusted EBITA that we view as important in assessing the performance of our business and L. S. C. F that we view as important in assessing the liquidity of our business a reconciliation of non ferrous metrics to the nearest ifr S metrics can be found in our earnings presentation.

Robert Berg: Which is available on the Investor Relations section of our website and with that I'd like to turn the call over to Sam Darwish, our chairman and CEO.

Sam Darwish: And with that, I'd like to turn the call over to Sam Darwish, our Chairman and CEO. Thanks, Robert, and welcome everyone to our fourth quarter and full year 2024 earnings results. We're reporting a strong performance in 2024, ending the year on a high with a strong Q4. Our key metrics, revenue, adjusted EBITDA, and ALFCF, all coming in ahead of our guidance, while CAPEX was below expectations, and we saw a drop in our consolidated net leverage ratio. Our positive momentum reflects the continued strong secular trends we are seeing across our business, a more stable macroeconomic environment, strong operational focus, as well as the significant commercial and financial progress we have made during 2024, as part of our ongoing strategic review.

Thanks, Robert and welcome everyone to our fourth quarter and full year 2024 earnings results call.

Robert Berg: 14, a strong performance in 2024, ending the year on a high with a strong Q4.

Robert Berg: Our key metrics revenue adjusted EBITDA and a L. S. C F. All coming in ahead of our guidance, while Capex was below expectations and we saw a drop in our consolidated net leverage ratio.

Robert Berg: Our positive momentum reflects the continued strong secular trends, we are seeing across our business a more stable macroeconomic environment strong operational focus as well as the significant commercial and financial progress. We have made during 2024 as part of our ongoing strategic review.

Sam Darwish: I'll go into more details on these important drivers on the next slide. Looking at our revenue, we saw 48% organic growth driven by 6.5% constant currency. as well as a significant benefit from our forex resets and power indexation, which play a vital role in helping to offset the currency devaluation we face during the year. As you can see from the slide, this was above our guidance range and was aided by 9.2% constant currency growth in the fourth quarter 2024 compared to the fourth quarter of 2023, driven by growth in revenue from collocation, lease amendments, and new sites.

Robert Berg: I'll go into more details on these important drivers on the next slide.

Robert Berg: Looking at our revenue, we sold 48% organic growth driven by six 5% constant currency growth.

Robert Berg: As well as a significant benefit from our Forex resets and power indexation, which play a vital role in helping to offset the currency devaluation, we faced during the year.

Robert Berg: As you can see from the slide this was above our guidance range and was aided by nine 2% constant currency growth in the fourth quarter of 2024 compared to the fourth quarter of 2023, driven by growth in revenue from Colocation lease amendments and new sites.

Sam Darwish: We continue to benefit from strong structural trends with growth underpinned by continued 5G deployment across our markets, and importantly, macroeconomic stabilization within our largest market, Nigeria. Turning to profitability, our adjusted EBITDA reached $928 million in 2024, with a margin of 54.3%, up 100 basis points compared to 2023. Again, this came in ahead of our guidance on the back of strong momentum in Q4, where we achieved a 56.3% margin. This performance against the backdrop of the macroeconomic headwinds we have been navigating highlights the resilience of our financial model, the strength of our current structures, and our continued financial discipline.

Robert Berg: We continue to benefit from strong structural trends with growth underpinned by continued <unk> deployment across our markets and importantly, macroeconomic stabilization within our largest markets Nigeria.

Robert Berg: Turning to profitability, our adjusted EBITA reached $928 million in 2024 with a margin of 54, 3% up 100 basis points compared to 2023 again. This came in ahead of our guidance on the back of strong momentum in Q4, we achieved a 50.

Robert Berg: Six 3% margin.

Robert Berg: This performance against the backdrop of the macroeconomic headwinds we have been navigating highlights the resilience of our financial model the strength of our structures and our continued financial discipline.

Sam Darwish: We are pleased with our ALFCF generation during the year, which at $304 million was also ahead of guidance and was driven by operational performance and ongoing CAPEX optimization. As I will discuss shortly, we continue to focus on our balance sheet with our net leverage at 3.7 times at the end of 2024, falling from 3.9 times at the end of Q3 2024. We carried out a number of significant refinancings through the year, which pushed out our maturities and shifted more of our debt into local currency. As part of our strategic review, we received disposal proceeds from the sale of our Kuwait operations in December 2024, which we sold at 14.2 adjusted EBITDA after leases, and we will look to continue to earmark excess cash or further debt repayment.

Robert Berg: We are pleased with our <unk> generation during the year, which at $304 million was also ahead of guidance and was driven by operational performance and ongoing capex the optimization.

Robert Berg: And I will discuss shortly we continue to focus on our balance sheet with our net leverage at three seven times at the end of 'twenty 'twenty four falling from three nine times at the end of Q3 2024.

Robert Berg: We carried out a number of significant refinancings through the year, which pushed out our maturities and shifted more of our debt into local currency.

Robert Berg: As part of our strategic review, we received disposal proceeds from the sale of our Kuwait operations in December 2020 for which we sold at $14 to adjusted EBITDA. After leases and we will look to continue to earmark excess cash for further debt repayments.

Sam Darwish: We are comforted that since the Q1 2024 significant Naira devaluation in Nigeria, we have seen the Naira strengthening on good US dollar availability, enabling us to source and upstream $271 million from Nigeria alone in 2024.

Robert Berg: We are comforted that since the Q1 2024 significant naira devaluation in Nigeria, we have seen the night is strengthening on good U S dollar availability, enabling us to source, an upstream $471 million from Nigeria alone in 2024.

Sam Darwish: In addition to the solid financial performance, we have made significant progress through 2024 across a number of our strategic initiatives.

Robert Berg: In addition to the solid financial performance, we have made significant progress through 2024 across a number of our strategic initiatives.

Sam Darwish: Let's turn to slide six to look at some of the highlights.

Robert Berg: Let's turn to slide six to look at some of the highlights.

Sam Darwish: In May 2024, we outlined some initial objectives of our strategic review, all aimed at creating shareholder value. These included, one, increasing our profitability and substantially reducing our capex to increase cash flow generation. Two, continuing to review our portfolio of markets with a target of raising 500 million to a billion dollars. And three, capital allocation of excess cash flow following the implementation of these strategic initiatives was expected to be primarily utilized to reduce debt. And we will also consider share buybacks and or introducing a dividend.

Robert Berg: In May 2024, we outlined some initial objectives of our strategic review all aimed at creating shareholder value.

Robert Berg: These included one increasing our profitability and substantially reducing our capex to increase cash flow generation to continuing to review our portfolio of markets with a target of raising 500 million to $1 billion and three capital allocation of excess cash flow. Following the implementation of these strategic initiatives was expect.

Robert Berg: It will be primarily utilized to reduce debt and we will also consider share buybacks and or introducing a dividend policy.

Sam Darwish: During the year, we have delivered on numerous elements of our strategic review, pushing to unlock shareholder value versus what we believe is our existing suppressed valuation. We believe we have made strong commercial progress, an important area for us in terms of improving the financial profile of the business, while also enabling us to continue to de-risk our future cash flows. We have extended commercial contracts with key customers into the next decade, including all our MTN MLAs covering over 25,000 tenancies out to 2032 or beyond, in addition to the extension of our Ertel Nigeria MLA to 2031.

Robert Berg: During the year, we have delivered on numerous elements of our strategic review pushing to unlock shareholder value versus what we believe is our existing suppressed evaluation.

Robert Berg: We believe we have made strong commercial progress and important area for us in terms of improving the financial profile of the business.

Robert Berg: While also enabling us to continue to Derisk, our future cash flows.

Robert Berg: We have extended commercial concepts with key customers into the next decade, including all our MTN msas covering over 25000 tenancies. After 200, it out to 2000 2032 or beyond in addition to the extension of our Airtel, Nigeria MLA to 2031 <unk>.

Sam Darwish: This draws a line under a series of successful customer renewals. The result of this significant commercial progress is that we have recently renewed or extended 72% of our group revenue, which we believe markedly improves our financial profile and visibility. Our average tenant term now sits at 7.8 years, and we have increased our contracted revenue to 11.9 billion dollars. We are also reassured by the improving backdrop within our largest market, Nigeria. In January, Nigeria's telecom regulator, the NCC, approved a 50 percent increase in tariffs for mobile network carriers. The first tariff adjustment in 12 years. These increases will support the ability of our carrier customers to continue investing in infrastructure and innovation, ultimately benefiting consumers through improved services and connectivity, including better network quality and greater coverage.

Robert Berg: Draws a line under a series of successful customer renewals.

Robert Berg: The result of this significant commercial progress is that we have recently renewed or extended 72% of our group revenue, which we believe markedly improves our financial profile and visibility.

Robert Berg: Our average tenant term now sits at seven eight years, and we have increased our contracted revenue to $11 $9 billion.

Robert Berg: We are also reassured by the improving backdrop within our largest market in Nigeria in January Nigeria Telecom regulator, the NCC approved a 50% increase in tariffs for mobile network carriers.

Robert Berg: The first tariff adjustments and 12 years. These increases will support the ability of our carrier customers to continue investing in infrastructure and innovation ultimately benefiting consumers through improved services and connectivity, including better network quality and greater coverage.

Sam Darwish: Through a number of initiatives, we have de-risked our operating model by materially reducing our exposure to power. with the expectation that this would result in reduced volatility of our earnings. Through our contract renewals, we have moved the significant majority of our business to either power pass-through, like in South Africa, or power indexation, like in Nigeria. Closer allowing our operating model to the steel and grass model in more developed countries.

Robert Berg: So a number of initiatives, we have derisked, our operating model by materially reducing our exposure to power prices with the expectation that this will result in reduced volatility of our earnings.

Robert Berg: Through our contract renewals, we have moved the significant majority of our business to either power pass pass through like in South Africa or power indexation like in Nigeria closer, allowing our operating model to the steel and glass model in more developed countries.

Sam Darwish: As I have already highlighted, our 2024 financial performance highlights the progress we have made towards our goal of increasing adjusted EBITDA and substantially reducing our capex to increase cash flow generation, with over $300 million of ALSCF generated in 2024, despite significant forex headwinds. In addition to our continued cost discipline and narrowed focus on capital allocation, we will benefit from a reduction in withholding tax rates in Nigeria. Effective from January 1, 2025, amounts withheld by customers in Nigeria, which are paid to the FIRS, were reduced from 10% to 2%, and we expect this to be significantly supportive to our cash flow generation in 2025 and going forward.

Robert Berg: And I have already highlighted our 'twenty 'twenty four financial performance highlights the progress we have made towards our goal of increasing adjusted EBITA and substantially reducing our capex to increase cash flow generation with over $300 million of L. S. T F generated in 2024 despite significant.

Robert Berg: Forex headwinds.

Robert Berg: In addition to our continued cost discipline and narrowed focus on capital allocation, we will benefit from a reduction in withholding tax rates in Nigeria effective from January one 2025, a month with held by customers in that by customers in Nigeria, which are paid to the F. I R. S were reduced from 10% to 2%.

Robert Berg: We expect this to be significantly T support is our cash flow generation in 2025 and going forward.

Sam Darwish: We also continue to assess group-wide costs, CAPEX structures, and new ways to operate our networks, including how we can introduce more technology, especially artificial intelligence, into our ways of working to help us realize future efficiency.

Robert Berg: We also continue to assess group wide cost capex structures, and new ways to operate our networks, including how we can introduce more technology, especially artificial intelligence into our ways of working to help us realize future efficiencies.

Sam Darwish: Steve will discuss our financial performance and 2025 guidance in more depth later in this call. But to summarize, we are pleased with the progress we have made, and our 2025 guidance implies a continuation of these trends with continued organic revenue growth and a further step up in adjusted EBITDA margin and ALSCF generation, notwithstanding the disposal of our Kuwaiti business.

Robert Berg: Steve will discuss our financial performance in 2025 guidance in more depth later in this call but to summarize we are pleased with the progress we have made in our 2025 guidance implies a continuation of these trends with continued organic revenue growth and a further step up in adjusted EBITDA margin and <unk> generation.

Robert Berg: Notwithstanding the disposal of our Kuwaiti business.

Sam Darwish: Moving to our balance sheet, we continue to take a disciplined approach to capital deployment, recognizing the importance of maintaining a strong balance. We made important moves during the year in line with our strategic priorities to extend our debt maturity profile and shift more of our debt into local currency. This was evidenced in Q4, when we refinanced $1.6 billion of our debt to the issuance of new senior notes and a new term loan. We remain comfortable with our cash and liquidity position with over $900 million of available liquidity at the end of 2024.

Robert Berg: Moving to our balance sheet, we continue to take a disciplined approach to capital deployment, recognizing the importance of maintaining a strong balance sheet we.

Robert Berg: We made important moves during the year in line with our strategic priorities to extend our debt maturity profile and shift more of our debt into local currency. This was evidenced in Q4, when we refinanced $1 $6 billion of our debt through the issuance of new senior notes and a new term loan we remain comfortable with.

Robert Berg: Our cash and liquidity position with over $900 million of available liquidity at the end of 2024.

Sam Darwish: During the year, we made significant enhancements to our governance.

Robert Berg: During the year, we made significant enhancements to our governance the proposal to amend the company's articles of association were approved by shareholders at the AGM held in June.

Sam Darwish: The proposals to amend the company's articles of association were approved by shareholders at the AGM held in June. The voting results marked a significant achievement for IHS, better aligning our governance framework with that of mature US listed companies.

Robert Berg: Working results marked a significant achievement for IHS better aligning our governance framework with that of the of mature U S listed companies.

Sam Darwish: As part of our strategic review, we committed to examining our portfolio of markets to determine the right composition for IHS going forward. In December, we completed the disposal of our 70% stake in IHS Kuwait to Zain Kuwait with an enterprise value of $230 million that we believe highlights the significant value contained within the component parts of our wider portfolio. This comes on top of the sale of our Peru business earlier in the year. Our current footprint spans 8 markets across 2 continents can be seen on slide 7. Our disposal work remains in progress as we continue with the target of raising $500 billion.

Robert Berg: As part of our strategic review, we committed to examining our portfolio of markets to determine the right composition for Iot is going forward.

In December we completed the disposal of our 70% stake in IHS, Kuwait to Zain, Kuwait with an enterprise value of $230 million that we believe highlights the significant value contained within the component parts of our wider portfolio. This.

Robert Berg: This comes on top of the sale of our Peru business earlier in the year, our parents footprint spans eight markets across two continents can be seen on slide seven.

Robert Berg: Our disposal work remains in progress as we continue with a target of raising 500 to a $1 billion.

Sam Darwish: As briefly indicated, excess cash following implementation of our strategic initiatives is expected to be primarily used to reduce debt, while also considering share buybacks and or introducing a dividend.

Robert Berg: As previously indicated excess cash following implementation of our strategic initiatives is expected to be primarily used to reduce debt, while also considering share buybacks and or introducing a dividend policy.

Sam Darwish: So to summarize, on slide 8, after a strong fourth quarter performance, we ended 2024 with financial results ahead of guidance, leverage reducing, asset disposals underway, shareholder rights improved, and with the de-risk commercial and operating business model. We have made significant progress toward our strategic goals, but there is more work to do. Looking to 2025 and beyond, we remain focused on further enhancing our profitability and cash flow generation, as can be seen in our 2025 guidance. We are committed to further strengthening our balance sheet, supported by further select asset disposals, aiming to deliver increasing returns for all our shareholders.

Robert Berg: So to summarize on slide eight after a strong fourth quarter performance. We ended 2024 with financial results ahead of guidance leverage reducing asset disposals underway shareholder rights improved and we've been derisked commercial and operating business model.

Robert Berg: We have made significant progress toward our strategic goals, but there is more work to do.

Robert Berg: Looking to 2025 and beyond we remain focused on further enhancing our profitability and cash flow generation.

Robert Berg: As can be seen in our 2025 guidance. We are committed to further strengthening our balance sheet supported by further select asset disposals aiming to deliver increasing returns for all our shareholders.

Sam Darwish: We remain excited by the strong structural growth opportunities across our footprint and believe we are well placed to leverage our market leading positions to support growing demand for our critical communications infrastructure with growth underpinned by continued 5G deployment across our larger market. An improving backdrop with our largest market, Nigeria, after recent after recent carrier tariff rate increases and an improving macroeconomic position continues to help.

Robert Berg: We remain excited by the strong structural growth opportunities across our footprint and believe we are well placed to leverage our market leading positions to support growing demand for our critical communications infrastructure with growth underpinned by continued fiber deployment across our larger markets.

Robert Berg: An improving backdrop with our largest market Nigeria after reset after recent carrier tariff rate increases.

Steve: And an improving macroeconomic position continues to help and with that I'll turn the call over to Steve.

Sam Darwish: And with that, I'll turn the poll over to Steve.

Steve Howden: Thanks Sam and hello everyone. Turning to slide 10 here we show our full year 24 and fourth quarter 24 performance. Our results came in better than expected against a challenging but improving macroeconomic environment in Nigeria, where we saw higher levels of stability in the latter part of the year. As we look at the results, please note the year-over-year comparisons are in some cases impacted by the Kuwait disposal that closed in December 2024, and we've called these out where relevant. In terms of the results, both towers and tenants are down approximately 2% and 1% respectively year over year, while lease amendments increased by high single digit percentages.

Steve: Thanks, Simon and Hello, everyone turning to slide 10 here, we show our full year 'twenty, four and fourth quarter to 24 performance.

Speaker Change: Our results came in better than expected against a challenging but improving macroeconomic environments in Nigeria, where we saw higher levels of stability in the latter part of the year.

Speaker Change: As we look at the results. Please note the year over year comparisons are in some cases impacted by the Kuwait disposal that closed in December 2024, and we've called these out where relevant.

Speaker Change: In terms of the results both towers and tenants are down approximately 2% and 1% respectively year over year, while lease amendments increased by high single digit percentages.

Steve Howden: Both tower and tenant figures would have grown year on year in the absence of the Kuwait disposal. On a reported basis in the fourth quarter, revenue declined by approximately 14% year-on-year impacted by the very different FX environment versus the fourth quarter of 2023 and the new financial terms with MTN Nigeria, but increased 4.2% compared to the third quarter of 2024. As a reminder, Naira average FX rate to the dollar was 815 Naira in the fourth quarter of 2023, and was 1629 Naira in the fourth quarter of 2024. Adjusted EBITDA was down 10% year-on-year, but adjusted EBITDA margin was up 250 basis points, reflecting our continued cost control and the resilience of our financial model.

Speaker Change: By tower and tenant figures would've grown year on year in the absence of the Kuwait disposal.

Speaker Change: On a reported basis in the fourth quarter revenue declined by approximately 14% year on year impacted by the very different FX environment versus the fourth quarter of 2023, and the new financial terms with MTN, Nigeria, but increased four 2% compared to the third quarter of 2024.

Speaker Change: As a reminder, naira average FX rate to the dollar was 815 naira in the fourth quarter of 2023 and was 1629 naira in the fourth quarter of 2024.

Speaker Change: Adjusted EBITDA was down 10% year on year, but adjusted EBITDA margin was up 250 basis points, reflecting our continued cost control and the resilience of our financial model.

Steve Howden: fourth quarter 2024 adjusted EBITDA was in line with third quarter adjusted EBITDA. Meanwhile, ALFCF declined by almost 9%, impacted by similar factors affecting revenue and adjusted EBITDA, in addition to the higher interest costs following our bond refinancing in November. Fourth quarter 2024 ALFCF increased again though by 23% versus third quarter 2024 ALFCF. Our level of CapEx investment decreased by 37% in the quarter and 56% for the year, largely driven by the pullback in CapEx across all segments as we continue to focus on improving cash generation. Finally, our consolidated net leverage ratio increased year-on-year to 3.7 times at the end of the year.

Speaker Change: Fourth quarter 2024, adjusted EBITDA was in line with third quarter adjusted EBITDA.

Speaker Change: Meanwhile, Lf CF declined by almost 9% impacted by similar factors affecting revenue and adjusted EBITDA and adjusted in addition to the higher interest costs following our bond refinancing in November.

Speaker Change: Fourth quarter 2020 for FCS increased again, now by 23% versus third quarter 2024 afcs.

Speaker Change: Our level of Capex investment decreased by 37% in the quarter and 56% for the year largely driven by the pullback in capex across all segments as we continue to focus on improving cash generation.

Speaker Change: Finally, our consolidated net leverage ratio increased year on year to three seven times at the end of the year having.

Steve Howden: Having peaked at 3.9 times in second quarter and third quarter of 2024, it has now delevered 0.2 times from third quarter to the end of the year, which obviously includes the impact of the Kuwait disposal. Slide 11 shows the components of our fourth quarter 2024 revenue on a consolidated basis, where you can see how the Naira devaluation in particular turned a quarter of strong organic and constant currency growth into a 14% decline. The Naira devalued 50% in Q4'24 versus Q4'23, yet the business delivered organic revenue growth of 39%, driven primarily by FX resets, power, CPI escalators, and lease amendments.

Speaker Change: Having peaked at three nine times in second quarter and third quarter of 2020 full is now de Levered two times from third quarter to the end of the year, which obviously includes the impact of the Kuwait disposal.

Speaker Change: Slide 11 shows the components of our fourth quarter 2020 for revenue on a consolidated basis, where you can see how the naira devaluation in particular 10, a quarter of strong organic and constant currency growth into a 14% decline.

Speaker Change: The naira devalues, 50% in Q4 24 versus Q4 'twenty three yeah. The business delivered organic revenue growth of 39% driven primarily by FX resets power CPI escalators and lease amendments.

Steve Howden: And from a constant currency perspective, revenue grew over 9%, driven primarily by CPI escalations, new lease amendments and new collocations, so positive signs of the fundamental underlying tenancy growth continuing across our key markets. The right side of the page shows the organic growth rates of each of our segments for the quarter, where our Nigeria segment grew approximately 62%, obviously including a large benefit from the FX reset. Slide 12 shows the full year version of our growth bridge, highlighting the FX impact again, but also the contractual protections of CPI escalators and FX resets that help to partly mitigate the FX volatility.

Speaker Change: And from a constant currency perspective revenue grew over 9% driven primarily by CPI Escalations, new lease amendments and new co locations. So positive signs of the fundamental underlying tenancy growth continuing across our key markets.

Speaker Change: The right side of the page shows the organic growth rates of each of our segments for the quarter were on Nigeria segment grew approximately 62%, obviously, including a large benefit from the FX resets.

Speaker Change: Slide 12 shows the full year version of outgrowth bridge, highlighting the FX impact again, but oh, sorry, the contractual protections of CPI escalators and FX resets the helped to partly mitigate the FX volatility.

Steve Howden: On slide 13, you can see our consolidated revenue, adjusted EBITDA, and adjusted EBITDA margins for the fourth quarter and for the year 2024, as we've already discussed, and highlighting that our results beat our guidance across these metrics. Specifically, in the fourth quarter of 2024, adjusted EBITDA of $246 million and adjusted EBITDA margin of 56.3% continues the trend of higher margins post our first quarter dip from that NARA devaluation.

Speaker Change: On Slide 13, you can see our consolidated revenue adjusted EBITDA and adjusted EBITDA margins for the fourth quarter and full year 2020 full as we've already discussed and highlighting that our results beat our guidance across these metrics.

Speaker Change: Specifically in the fourth quarter of 2024, adjusted EBITDA of $246 million and adjusted EBITDA margin of 56, 3% continues the trend of higher margins pilot stuff first quarter dip from that dollar devaluation.

Steve Howden: On to slide 14, an adjusted levered free cash flow. In the fourth quarter of 2024, we generated ALFCF of $107 million. That's a 9.3% decrease versus the fourth quarter of 2023. This was primarily due to the decrease in adjusted EBITDA and an increase in interest costs following our November bond refinancing, partially offset by a decrease in revenue withholding tax. ALFCF cash conversion rate was 43.5%.

Speaker Change: On to slide 14, and adjusted Levered free cash flow.

Speaker Change: In the fourth quarter of 2024, we generated a L. F C ASP of $107 million, that's a nine 3% decrease versus the fourth quarter of 2023.

Speaker Change: This was primarily due to the decrease in adjusted EBITDA and an increase in interest costs. Following our November bond refinancing, partially offset by a decrease in revenue withholding tax.

Speaker Change: I L. S. CF cash conversion rate was 43.5% again now I'd like Tonight, the positive progression of <unk> and its conversion rate through the quarters of 2024.

Steve Howden: Again though, I'd like to note the positive progression of ALFCF and its conversion rate through the quarters of 2024. For the full year we generated ALFCF of $304 million and our ALFCF cash conversion rate was 32.8%.

Speaker Change: For the full year, we generated <unk> of $304 million and Lf CF cash conversion rate was 32, 8%.

Steve Howden: On to CapEx and fourth quarter 24 CapEx of $83 million decreased 37% year-on-year and full-year CapEx of $256 million decreased by 56% continuing the trends that we've seen over recent quarters. The decrease in the full-year CapEx is driven by lower expenditure across all of our segments. The decrease in Nigeria, primarily driven by reductions related to Project Green, given the investment in that project is largely complete. in Sub-Saharan Africa, primarily driven by a decrease in refurbishment capex, and the reduction in LATAM capex driven by decreases related to fiber and new site capex, although we still retain a healthy level of new site build in Brazil.

Speaker Change: Onto Capex in fourth quarter, 'twenty, four capex of $83 million decreased 37% year on year.

Speaker Change: Full year Capex of $256 million decreased by 56% continuing the trends that we've seen over recent quarters.

The decrease in our full year Capex was driven by lower expenditure across all of our segments. The.

Speaker Change: The decrease in Nigeria, primarily driven by reductions related to project Green given the investment in that project is largely complete.

Speaker Change: In sub Saharan Africa.

Primarily driven by a decrease in refurbishment capex and the reduction in Latam Capex driven by decreases relates to fibre and new site Capex, although we still retain a healthy level of new site build in Brazil.

Steve Howden: On the segment review, on to slide 15, I'll start as usual with Nigeria. In November, the Central Bank of Nigeria introduced the Payment System Vision 2025. That's a strategic roadmap for the Nigeria payment system as the CBN aims to continue enhancing its financial transparency. In November, the Monetary Policy Committee increased interest rates by 25 basis points, bringing the NPR to 27.5%. That's a total of six rate hikes during 2024. These actions appear to have had a positive impact again on Nigeria's FX market with the currency appreciating in December and more recently into Q1 2025. We've seen an increase in US dollars in Nigeria and FX reserves in the country have again increased to $40.9 billion at the end of December 2024, up from $38.4 billion at the end of September.

Speaker Change: On the segment review on Slide 15, I'll start as usual with Nigeria.

Speaker Change: In November the Central Bank of Nigeria introduced the payment system vision 2025, and our strategic roadmap for the Nigeria payment system as the CBA and aims to continue enhancing its financial transparency.

Speaker Change: In November the monetary policy Committee increased interest rates by 25 basis points, bringing the MTR to 27, 5%. That's a total of six rate hikes during 2024.

Speaker Change: These actions appear to have had a positive impact again on Nigeria, FX market with the currency appreciating in December and more recently into Q1 2025.

Speaker Change: We've seen an increase in U S dollars in Nigeria, and FX reserves in the country of again increased to $40 9 billion at the end of December 2024 up from $38 4 billion at the end of September 2024.

Steve Howden: And since the FX environment adjusted in Q1, we've been able to continue upstreaming. We've upstreamed $271 million to the group during the year from Nigeria alone. Most recently, the National Bureau of Statistics rebased Nigeria's consumer price index, bringing the January 2025 headline inflation rate to 24.5% versus the 34.8% in December of 2020. And then most recently in February of this year 2025, the MPC held the policy rates steady at 27.5% for the first time in six meetings, and reaffirmed they remain focused on creating price stability in the country.

Speaker Change: And since the FX environment adjusted in Q1, we've been able to continue up streaming.

Speaker Change: We've upstream $271 million to the group during the year from Nigeria alone.

Speaker Change: Most recently the National Bureau of Statistics, Rebased, Nigeria, consumer price index, bringing January 2025 headline inflation rate to 24, and a half a percent versus the 34, 8% in December of 2024.

Speaker Change: And then most recently in February of this year 2025, and the MPC held the policy rates steady.

Speaker Change: At 27, 5%.

Speaker Change: For the first time in six meetings and reaffirm they remain focused on creating price stability in the country. So continued macroeconomic progress, but obviously more work still to be done.

Steve Howden: So continued macroeconomic progress, but obviously more work still to be done.

Steve Howden: For us, specifically in Nigeria for IHS, our fourth quarter 2024 revenue of $259 million decreased 19% year-on-year on a reported basis, reflecting what we've previously discussed, the significant FX headwind year-over-year and the impact of the new financial terms with MTN Nigeria. This more than offset the 61.5% organic growth, which was driven primarily by FX resets and power indexation. Our co-location rate was down to 1.56 times, that's down from 1.59 times in the fourth quarter of 2023, given we reintegrated 210 towers, and we had 529 tenant churn in the third quarter of 2024 from our smallest key customer in Nigeria, which we were not recognizing revenue on at the time.

Speaker Change: For us specifically in Nigeria for IHS at fourth quarter 2020 for revenue of $259 million decreased 19% year on year on a reported basis, reflecting what we've previously discussed the significant FX headwind year over year and the impact of the new financial terms with MTN Nigeria.

Speaker Change: This more than offset the 61 in ops and organic growth, which was driven primarily by FX reset some power indexation.

Speaker Change: Colocation rate was down to 1.56 times and that's down from 1.59 times in the fourth quarter of 2023.

Speaker Change: We reintegrated 210 towers, and we have 529 tenant churn in the third quarter of 2024 from our smallest key customer in Nigeria, and which we were not recognizing revenue on at the time.

Steve Howden: So lease amendments continue to be an important driver of growth increasing 3% year on year as our customers added additional equipment to our site.

Speaker Change: It's a lease amendments continue to be an important driver of growth increasing 3% year on year as our customers added additional equipment to our sites.

Steve Howden: And the fourth quarter 2024 segment adjusted EBITDA in Nigeria was $155 million, that's a 22.5% decrease from a year ago, while segment adjusted EBITDA margin was down 250 basis points to 59.8%, given the reduction in revenue described, and a write down of inventory in the period as well, partially offset by a reduction in tower repairs, maintenance costs and diesel Moving to our Sub-Saharan African segment, revenue was broadly flat and segment-adjusted EBITDA increased 29.6% year-on-year. This performance was primarily due to lower revenues and lower costs being recognised in South Africa following the unwind of the Power Managed Services Agreement with MTN South Africa, which has no impact on segment-adjusted EBITDA.

Speaker Change: And the fourth quarter 2024 segment adjusted EBITDAR in Nigeria was $155 million. That's a 22, 5% decrease from a year ago. While segment adjusted EBITDA margin was down 250 basis points to 59, 8% given the reduction in revenue described and a write down of inventory in the period as well.

Speaker Change: The offset by a reduction in tower repairs and maintenance costs and diesel costs.

Speaker Change: Moving to our sub Saharan African segment, our revenue was broadly flat and segment adjusted EBITDA increased 29, 6% year on year.

Speaker Change: This performance was primarily due to lower revenues and lower cost being recognized in South Africa. Following the unwind of the power managed services agreement with MTN, South Africa, which has no impact on segment adjusted EBITDA.

Steve Howden: The performance has further benefited from new co-locations, lower regulatory fees and reduced tower repairs and maintenance costs, and segment adjusted EBITDA margin increased substantially by 1,480 basis points as a result to 65.1%.

Speaker Change: The performance is further benefited from new co locations, lower regulatory fees and reduced tower repairs and maintenance costs.

Speaker Change: Segment, adjusted EBITDA margin increased substantially by 40 890 basis points as a result to 65, 1%.

Steve Howden: In our LATAM segment, Towers and Tenants grew by 7.9% and 7.2% respectively. Revenue decreased by 18% because of negative effects movements and the reduction in revenue recognition from OI, given their judicial recovery proceeding early in 2024. In Brazil, our second largest market with 8,326 towers, macro conditions softened this quarter as the Brazilian Rei continued to devalue against the dollar and there were increases in both interest rates and inflation. In terms of LATAM profitability, while segment-adjusted EBITDA decreased by 10%, segment-adjusted EBITDA margin increased 750 basis points versus the fourth quarter of 2023, which mostly reflects the decrease in revenue, while savings across several cost lines was accretive for margin.

Speaker Change: In our Latam segment thousand tenants grew by seven 9% and seven 2% respectively.

Speaker Change: Revenue decreased by 18% because of negative FX movements and the reduction in revenue recognition from oil given that judicial recovery proceeding early in 2024.

Speaker Change: In Brazil, our second largest market with 8326 towers macro conditions softened this quarter as the Brazilian Reais continued to devalue against the dollar and there were increases in both interest rates and inflation.

Speaker Change: In terms of Latam profitability, while segment adjusted EBITDA decreased by 10% segment adjusted EBITDA margin increased 750 basis points versus the fourth quarter of 2023, which mostly reflects the decrease in revenue while savings across several cost lines that was accretive to margins.

Steve Howden: And then Mina, as Sam discussed, we completed the disposal of our 70% interest in IHS Kuwait on December 19th, 2024, resulting in seven, excuse me, resulting in 12 fewer days trading in both the fourth quarter of 24 and the full year 24 when comparing to the prior period. Given the disposal date, as of the end of the year, the entire TOW portfolio, tenants and lease amendments have been deconsolidated.

Speaker Change: And then Mena as Sam discussed we completed the disposal of our 70% interest in IHS Kuwait on December 19, 2024, resulting in seven excuse me, resulting in 12 fewer days trading.

Speaker Change: Both the fourth quarter of 24, and the full year 'twenty four when comparing to the prior periods.

Speaker Change: The disposal date as of the end of the year the entire tower portfolio tenants and lease amendments have been de consolidated.

Steve Howden: Given our Kuwait disposal and our decision not to commence operations in Egypt, MENA will not be a reportable segment from Q1 2025.

Speaker Change: Given our Kuwait disposal and our decision not to commence operations in Egypt, Mena will not be a reportable segment from Q1 2025.

Steve Howden: Slide 17 looks at our returns and capital allocation. In 2024, we continue to focus on driving returns and delivered a return on invested capital of 15.8% versus 14.6% the prior year. Our improved 2024 ROIC reflects our narrowed focus on capital allocation and has benefited from amongst other things, robust pre-cash flow generation, the impact of the Naira devaluation and the disposal of our Kuwaiti operations.

Speaker Change: Slide 17 looks at high returns and capital allocation.

Speaker Change: In 2024, we continue to focus on driving returns and delivered a return on invested capital of 15, 8% versus 14, 6% the prior year and.

Speaker Change: Our improved 2020 for ROIC reflects our narrowed focus on capital allocation and has benefited from amongst other things robust free cash flow generation and the impact of the dollar devaluation and the disposal of our Kuwaiti operations.

Steve Howden: In terms of capital allocation, you can see that a significant portion of our spend in FY24 was related to discretionary CapEx outside of new sites, followed by maintenance or non-discretionary CapEx, and new site CapEx itself, where we're a leading builder of new sites in Brazil. The $130m Discretionary CapEx, excluding new sites, was largely spent on fibre rollout, augmentation for collocation and lease amendments, and some other cost-saving initiatives. Discretionary CapEx declined significantly from 2023 given our narrowed focus on capital allocation and given the project green investment is now largely complete.

Speaker Change: In terms of capital allocation, you can see that a significant portion of our spend in FY 'twenty four was related to discretionary capex outside of new sites, followed by maintenance or non discretionary capex.

Speaker Change: And new site Capex itself, where we're a leading builder of new sites in Brazil.

Speaker Change: The $130 million discretionary capex, excluding new sites was largely spent on fiber rollout augmentation for colocation and lease amendments and some other cost saving initiatives.

Speaker Change: Discretionary capex declined significantly from 2023, given our narrowed focus on capital allocation and given the project Green investment is now largely complete.

Steve Howden: Moving to slide 18, and we look at the capital structure and its related items. So at the end of the year, the end of 2024, we had approximately $3.9 billion of external debt in the IFRS 16 lease liabilities. That's a reduction of approximately $240 million versus the third quarter of 2024. And of the $3.9 billion, approximately $2.2 billion represent our bond financings, including our successful November 2024 $1.2 billion dual tranche senior notes refinance. In the other indebtedness line is our new $439 million five-year term loan refinance that we completed in October of 2024. And as Sam mentioned, these refinancings are evidence of a desire to continue to improve the strength and flexibility of our balance sheet, which is a really important component of our strategic review.

Moving to slide 18, and we look at the capital structure and its related items. So at the end of the end of 2024, we had approximately $3 $9 billion of external debt and the <unk> 16 lease liabilities and that's a reduction of approximately $240 million versus the third quarter of 2024.

Speaker Change: And of the $3 9 billion approximately $2 2 billion represents a bond financings, including a successful November 2020 for $1 2 billion dollar agile tranche senior notes refinancing.

Speaker Change: In the other indebtedness line as a new $439 million five year term loan refinance that we completed in October of 2024.

Speaker Change: And as I mentioned these refinancings are evidence of a desire to continue to improve the strength and flexibility of our balance sheet, which is a really important component of our strategic review.

Steve Howden: Through this new term loan and the senior notes, we've extended our 2025 partial 26 and 27 maturities out to 2029, 2030, and 2031. Also, with the new South African RAND tranche of our term loan, it swaps dollar obligations into local currency as we seek to more closely match our debt FX exposure to our current revenue FX profile. and we believe we've managed to achieve this at manageable interest rates versus the previous debt it was replacing.

Speaker Change: Through this new term loan and the senior notes, we extended out 2025 partial 26, and 27 maturities out to 2029 2013 2031.

Speaker Change: Also with the new South African Rand tranche of our term loan it's swaps dollar obligations into local currency as we seek to more closely match our debt FX exposure to our current revenue FX profile.

Speaker Change: And we believe we've managed to achieve this at manageable interest rates versus the previous debt it was replacing.

Steve Howden: Cash and cash equivalents were $578 million at the end of the year. And in terms of where that cash is held, approximately 19% was held in Naira at our Nigeria business. And as we mentioned earlier, we've been upstreaming from Nigeria. We upstreamed another $153 million from Nigeria in the fourth quarter, bringing the total from Nigeria to $271 million for 2024 as a whole. While we continue to upstream in 2025, we do caution it remains to be determined if the increased dollar availability will be sustained. Consequently, from all these moving elements, at the end of the year, our consolidated net debt was down over $400 million to $3.3 billion.

Cash and cash equivalents were $578 million at the end of the year and in terms of where that cash is held approximately 19% was held in naira and Nigeria business.

Speaker Change: And as we mentioned earlier, we've been upstream from Nigeria.

Speaker Change: Streamed another $153 million from Nigeria in the fourth quarter, bringing the total from Nigeria to $271 million for 2024 as a whole.

Speaker Change: While we continue to upstream in 2025, we do caution it remains to be determined if the increased dollar availability will be sustained.

Speaker Change: Consequently from all these moving elements at the end of the year, our consolidated net debt was down over $400 million to $3 3 billion Atkins.

Steve Howden: Our consolidated net leverage ratio came down 0.2 times to 3.7 times versus the end of the third quarter 2024. And as communicated last quarter, we expected leverage to drop following the realization of any disposals and our 3.7 times net leverage ratio captures the impact of our Kuwait sale in December of 2024. We expect leverage to remain within our target three to four times net leverage ratio in 2025, but continuing to drop organically during the year, supplemented by any further disposal.

Speaker Change: Our consolidated net leverage ratio came down <unk> two times to three seven times versus the end of the third quarter 2024.

Speaker Change: And as communicated last quarter, we expected leverage to drop following the realization of any disposals and at three seven times net leverage ratio captures the impact of our Kuwait sale in December of 2024.

We expect leverage to remain within our target three to four times net leverage ratio in 2025, but continuing to drop organically during the year supplemented by any further disposals.

Steve Howden: Moving to slide 19, we're introducing 2025 guidance that shows further growth in our revenues when excluding the impact of the Kuwait disposal. growth in adjusted EBITDA and also growth in ALFCS. It includes revenue in the range of $1.68 billion to $1.71 billion, implying organic growth of 12% year-on-year at the midpoint of the range. Adjusted EBITDA in the range of $960 million to $980 million, implying 4% growth at the midpoint. ALFCF in the range of $350 to $370 million, implying 18% growth at the midpoint. and total CapEx in the range of $260 million to $290 million.

Speaker Change: Leading to slide 19, we are introducing 2025 guidance that shows further growth in our revenues when excluding the impact of the Kuwait disposal.

Speaker Change: Growth in adjusted EBITDA and also growth in <unk>.

Speaker Change: It includes revenue in the range of $1 six 8 billion to $1 seven 1 billion.

Speaker Change: Implying organic growth of 12% year on year at the midpoint of the range.

Speaker Change: Adjusted EBITDA in the range of $960 million to $918 million, implying 4% growth at the midpoint.

Speaker Change: Oh, Fcs in the range of $350 million to $370 million, implying 18% growth at the midpoint.

Speaker Change: And total capex in the range of $260 million to $290 million.

Steve Howden: So a few points I'd like to make here, and number one, although it might be obvious, our 2025 guidance excludes any contribution from Kuwait after its disposal at the end of 2024, and as a reminder, the MENA segment revenue in 2024 was $45 million. Secondly, I'll speak more about FX in a moment, but we include assumptions of continuing devaluation in the NIRA, albeit much more moderate than what we saw in 2024. And thirdly, our 2025 guidance includes the impact from the approximate 1000 sites that were not renewed as part of the agreement with MTN Nigeria back in August of 2024.

Speaker Change: So a few points I'd like to make here are number one although it might be obvious at 2025 guidance excludes any contribution from Kuwait. After its disposal at the end of 2024 and as a reminder, the Mena segment revenue in 2024 was $45 million.

Speaker Change: Secondly, I'll speak more about FX in a moment, but we include assumptions of continuing devaluation in the naira, albeit much more moderate than what we saw in 2024.

Speaker Change: And thirdly at 2025 guidance includes the impact from the approximate thousand sites that were not renewed as part of the agreement with MTN, Nigeria back in August of 2024.

Steve Howden: With regards to CapEx, we anticipate to spend between $260 and $290 million. That's in line with our strategic priority of taking a narrower approach to capital deployment and improving our cash flow generation. This CapEx range, which includes the reduced BTS guidance versus previous years, is broadly in line with what we spent in 2024, and we believe enables us to still uphold our goal of maintaining double-digit organic revenue growth in 2025. For the year, we expect to build approximately 500 towers, including approximately 400 in Brazil. We continue to recognize the importance of maintaining a strong balance sheet and reiterate our net leverage target of three to four times, albeit we expect to be within the bottom half of the range by year end.

Speaker Change: With regards to Capex, we anticipate to spend between 260 and $290 million. That's in line with our strategic priority of taking a narrow approach to capital deployment and improving our cash flow generation.

Speaker Change: Is capex range, which includes the reduced bts guidance versus previous years is broadly in line with what we spent in 2024 and we believe enables us to still uphold our goal of maintaining double digit organic revenue growth in 2025.

Speaker Change: For the year, we expect to build approximately 500 towers, including approximately 400 in Brazil.

Speaker Change: We continue to recognize the importance of maintaining a strong balance sheet and reiterate our net leverage target of three to four times, albeit we expect to be within the bottom half of the range by year end.

Steve Howden: That's driven by adjusted EBITDA growth and higher cash flow generation. Disposals will supplement this deleveraging as and when they complete.

Speaker Change: That's driven by adjusted EBITDA growth and higher cash flow generation.

Speaker Change: Disposals will supplement this deleveraging as and when they complete.

Steve Howden: As I said, our guidance also reflects an expected significant increase in ALSCF in 2025, driven by adjusted EBITDA growth, narrowed capital allocation and lower withholding tax in Nigeria after the rate was reduced from 10% to 2% effective at the start of 2025. The bottom of the slide shows the average annual Fx rate assumptions we've used in our 2025 guidance. For the year, we're assuming an average rate of 1,640 Naira to the U.S. dollar, which includes 1,525 Naira to the dollar in Q1, and then devaluation through the year to 1,785 Naira to the dollar by year end.

Speaker Change: As I said our guidance also reflects an expected significant increase in <unk> in 2025, driven by adjusted EBITDA growth narrowed capital allocation and lower withholding tax in Nigeria. After the rate was reduced from 10% to 2% effective at the start of 2025.

Speaker Change: The bottom of the slide shows the average annual FX rate assumptions, we've used in our 2025 guidance.

Speaker Change: For the year, we're assuming an average rates of 1649 or to the U S. Dollar, which includes 1525 naira to the dollar in Q1, and then devaluation through the year to 1785 nine to the dollar by year end.

Steve Howden: And finally, on slide 20, we provide the estimated full-year financial impact of a theoretical 10% devaluation or appreciation in the NIRA and how that would impact our financials. While our 2025 guidance already assumes an annual average of $1,649 to the dollar for the full year, here we've shown the impact of a 10% movement beyond what we've already assumed in guidance. The figures in the middle of the page, including the approximate $35 to $40 million and $20 to $25 million impact to revenue and adjusted EBITDA respectively, provide a sense of what the 12-month run rate impact would be using our 2025 expectations.

Speaker Change: And finally on slide 20, we provide the estimated full year financial impact of the theoretical 10% devaluation or appreciation in an IRA and how that would impact our financials.

Speaker Change: While our 2025 guidance already assumes an annual average of 1649 to the dollar for the full year here, we've shown the impact of a 10% movement beyond what we've already assumed in guidance.

Speaker Change: The figures in the middle of the page, including the approximate $35 million to $40 million and $20 million to $25 million impact to revenue and adjusted EBITDA, respectively provide a sense of what the 12 month run rate impact would be using at 2025 expectations.

Steve Howden: You'll see on the right side of the illustration in the middle of the page excludes an incremental approximately $15 million that could impact in the quarter of devaluation actually occurring, assuming the devaluation was to occur at the beginning of the quarter. Yeah, that represents the maximum lag that could occur between devaluation and when most of our FX resets would start to kick in at the beginning of the next quarter. And as a reminder, the vast majority of our resets are quarter.

Speaker Change: You'll see on the right side the illustration in the middle of the page excludes an incremental approximately $15 million that could impact in the quarter of devaluation actually occurring assuming the devaluation was to occur at the beginning of the quarter.

Speaker Change: Yeah, not represents the maximum lag that could occur between devaluation and when most about FX resets, which start to kick in at the beginning of the next quarter and as a reminder, the vast majority of our resets on a quarterly.

Steve Howden: This now brings us to the end of our formal presentation.

Speaker Change: This now brings us to the end of <unk> presentation. We thank you for your time today and operator. Please now open the line for questions.

Operator: We thank you for your time today. And operator, please now open the line for questions. Thank you.

Keith: And Keith will now begin the Q&A session is over.

Operator: We will now begin the Q&A session. As a reminder, if you would like to ask a question, please press star followed by 1 on your telephone keypad.

Keith: Wonder if you'd like to ask a question. Please press star followed by one on your telephone keypad.

Richard Cho: Our first question for today comes from Richard Cho of J.P. Morgan. Your line is now open, please go ahead.

Speaker Change: Our first question for today comes from Richard Choe of Jpmorgan Your.

Speaker Change: Your line is now open. Please go ahead.

Richard Cho: Hi, I wanted to get an update on the Airtel new tenancies in Nigeria, how that's going so far, and how much of that is planned for this year. Hi Richard, good to hear from you. So yeah the SL contract is progressing, we've got quite a bit done in the second half of 2024 and then a lot of that comes through in 2025 and 2026. So we haven't kind of given specific guidance around numbers but you know that contract is flowing nicely and as a reminder most of that's co-location and 5G lease amendments. There is a little bit of BTS, a handful of sites in 2025 and 2026 but most of it's co-location lease amendments.

Richard Choe: I wanted to get an update on the Airtel, new tenancies in Nigeria.

Richard Choe: Going so far or how much of this plan for this year.

Richard Choe: Okay.

Richard Choe: Hi, Richard.

Richard Choe: That's it for me.

Richard Choe: DSO contracts is progressing.

Richard Choe: We've got quite a bit done in the second half of.

Richard Choe: 2024, and that that a lot.

Richard Choe: That comes through in 2025, and 2026 sites and we haven't given specific guidance around numbers.

Richard Choe: That contract is flowing.

Richard Choe: As a reminder, so thats calibration fudgy lease amendments.

Richard Choe: There is a little bit of Bts.

Richard Choe: A handful of sites in 2025, and 2026, but most of its colocation lease amendments.

Richard Cho: Great.

Sam Darwish: And then in talking about the potential for stock buybacks and dividend, is there a preference and how she about the timing of that evolving. I mean, I think that that continues to be under evaluation. And what we, you know, said for a little while is that we're in the process of disposing of 500 to a billion dollars of assets that's ongoing. And that's the first target, we want to get that done. Kuwait disposal was obviously a first step along that path, and more work to do that. And then, you know, once we got a bit further into that disposal program, then we'll look to, you know, reassess that option.

Richard Choe: Great and then.

Richard Choe: I'm talking about the potential for stock buybacks and dividend is there a preference and how should we think.

Richard Choe: About the timing of that evolving.

Richard Choe: This year.

Richard Choe: Yes.

That continues to be under evaluation and what we.

Richard Choe: <unk> said for a little while is that we're in the process all.

Richard Choe: Disposing of $502 billion of assets that's ongoing.

Richard Choe: And that's the first target, but we want to get that done Kuwait disposal was obviously, a first step along that path and more work to do that.

Richard Choe: And then once we got that feathering that disposal program.

Richard Choe: We'll look to reassess that that option, we've said that.

Sam Darwish: We've said that, you know, the first amount will primarily be reduced, the reducing debt, and that remains the case. But then we are, you know, obviously, starting to think through what a share buyback and dividend program could look like. As a reminder, we did, we have had a small share buyback program in place, we didn't utilize it for most of 2024, given we were under the strategic review. And so there is a history of doing that. But there's no real preference at this point between, you know, those eventual capital allocation decisions between share buyback and dividend.

Richard Choe: First amounts will primarily be reduced reducing debt and that remains the case.

Richard Choe: But then we all see it.

Richard Choe: Starting to think through what a share buyback and dividend program could look like as a reminder, we have had a small share buyback program in place.

Richard Choe: Didn't utilize it.

Richard Choe: Most of 2024, given the strategic review I.

Richard Choe: Im sorry, there was a history of doing that.

Richard Choe: But theres no real preference at this point between.

Richard Choe: Venture capital allocation decisions between share buyback and dividends will envelope.

Sam Darwish: We'll, you know, we'll evaluate that, you know, over the coming months and quarters.

Richard Choe: Evaluate that.

Richard Choe: Coming months or quarters.

Sam Darwish: Thank you.

Richard Choe: Alright, thank you.

Sam Darwish: Hi, this is Sam. I do want to add something on the first question that you had on Airtel in Nigeria. Look, last year was a very tough year for everyone. But as we're seeing now Nigeria firing back, helped by the fact that it is maybe not tied or affected by the US tariff, new tariff policies. Its currency has increased by 7% since the November elections. It's probably the top performing currency in the world at the moment. Stock markets in Nigeria are delivering 4% growth in dollar terms since the beginning of this year, better than many bigger markets.

Tom: Hi, This is Tom I do want to add something on the first question that you have.

Speaker Change: On Airtel in Nigeria looked last year was a very tough year for everyone.

Speaker Change: But as we're seeing now Nigeria filing box held by the fact that it is.

Speaker Change: Maybe not five or affected the <unk> status.

Speaker Change: That is policies its currency has increased by 7% since the November elections.

Speaker Change: It's probably the top performing currency in the world at the moment stock markets in Nigeria are delivering 4% growth in dollar terms since the beginning of this year.

Speaker Change: And then many bigger markets inflation is subsiding. So we've seen the carriers beginning to be more bullish about their capex plans. Both studies the carrying amounts that so we are extremely bullish about Nigeria at the moment about the rollouts of both <unk> and <unk>.

Sam Darwish: Inflation is subsiding. So we've seen the carriers beginning to be more bullish about their CapEx plans. Both carriers, big carriers have announced that. So we are extremely bullish about Nigeria at the moment, about the rollouts of both MTM and Airtel and others. And you can see that in our numbers and in our guidance. One follow-up to that, Sam, do you expect the carriers, because of the new carriers, to... Network spending this year that will help IHS or is that more of a 20? Sorry, the what? I didn't get the question. Well, the spending from the new tariffs by NCN and Airtel and other carriers, do you think that's an impact for 2025 or more for 2026?

Speaker Change: Others and.

Speaker Change: You can see that in our numbers and our guidance.

Speaker Change: One follow up with that.

Speaker Change: Do you expect for the carriers because of the new tariffs too.

Speaker Change: In Poland.

Speaker Change: No. We're expecting this year that will help you IHS or is that more of a 2026.

Speaker Change: It's probably the one I didn't get the question.

Speaker Change: Will the spending from the new tariffs.

Speaker Change: And they're telling the other carriers do you think thats a good impact for 2025 or more for 2026.

Sam Darwish: I believe it will be partly in 2025. It has to be partly in 2025, because they have service, quality of service and rollout, soft rollout obligations, in my view. It wasn't really published, but I do believe that the government would like to see better quality of service, better rollout in certain areas, especially rural areas. So I do think, it's not crystal at the moment, but I do think that we will see a positive impact this year also. All right, thank you. Thank you.

Speaker Change: Hi.

Speaker Change: I believe it will be partly in 2025, it has to be positive in 2025 because it.

Speaker Change: Several of US they have shown great quality of service and rollout soft rollout obligations in my view it wasn't really published but I do believe that the government would like to see a better quality of service.

Speaker Change: Rollout in certain areas, especially in rural areas. So I do think it's not crystal clear at the moment, but I do think that we will see a positive impact this yields.

Speaker Change: Alright, thank you.

Speaker Change: Thanks Keith.

Jim Schneider: Our next question comes from Jim Schneider of Goldman Sachs. Your line is now open, please go ahead. Good morning. Thanks for taking my question. Just on the strategic review, you've obviously made very good progress on some of the portfolio optimization activities already. You're already within, you know, the high end, maybe of your target leverage range. So maybe could you characterize how much more is there to go in terms of portfolio optimization? Are we more than halfway done here? Are we even closer to that, to the end of that process?

Speaker Change: Our next question comes from Jim Schneider of Goldman Sachs.

Speaker Change: Now open. Please go ahead.

Jim Schneider: Good morning, Thanks for taking my question.

Speaker Change: Just on the strategic review, you've obviously made very good progress on some of the portfolio optimization activities already youre already within the high end maybe of your target leverage range. So maybe could you characterize how much more is there to go in terms of portfolio optimization are we more than halfway done here or are we even closer to that at the end of that.

Jim Schneider: And then maybe, you know, you've been very clear about your desire to do either sharebacks and or dividend policy, but can you maybe talk about your appetite for incremental acquisitions of assets to maybe bolster your portfolio in areas where you already have a large scale?

Jim Schneider: Process and then maybe.

Jim Schneider: <unk> been very clear about your desire to do either share backs <unk> dividend policy, but can you maybe talk about your appetite for incremental acquisitions of assets to maybe bolster your portfolio in areas, where you already have a watch Gil.

Jim Schneider: Hi, Jim. Thanks for the question. So in terms of the first part, you know, we've been pretty public and pretty consistent since May of last year that we were targeting $500 million to $1 billion of asset disposals. We've done one around $230 billion for Kuwait. So that, you know, indicates we're not done yet. You know, we've managed to get through, you know, a significant amount of work and lots of progress in other areas as well. We're down at 3.7 times now. And I just may, you know, make clear again, reiterate, you know, our target range is three to four times leverage, but we do expect to be in the bottom half of that range by the end of 2025.

Jim Schneider: Hi, Ken Thanks for the question.

Jim Schneider: Yes.

Speaker Change: Been pretty public and pretty consistent since may of last year that we were targeting $500 million of $1 billion.

Jim Schneider: Asset disposals, we've done one.

Speaker Change: Around two $7 billion for Kuwait.

Speaker Change: So that indicates we're not done yet.

Speaker Change: We've managed to get through.

Speaker Change: Significant amount of work and lots of progress in other areas as well last week, you had talked about earlier.

Speaker Change: And any color on the commercial side the operational side.

Speaker Change: Specifically in relation to balance sheet and yes, we are now starting to see all of that cash flow generation and dispose of those come to fruition in reducing debt reducing leverage without at three seven times now.

Speaker Change: Here again reiterate.

Speaker Change: Our target range of three to four times leverage, but we do expect to be in the bottom half of that range by the end of 2025, that's without any further disposals. So obviously, one would assume that future disposals.

Jim Schneider: That's without any further disposals. So obviously, you know, one would assume that, you know, future disposals would supplement that positively as well.

Speaker Change: I would supplement that positively as well so that's kind of where we are.

Jim Schneider: So, so that's kind of where we are on that, on that piece. In relation to wider capital allocation decisions, acquisitions are not on the agenda at this point in time. We're very focused on, you know, increasing cash flow generation, utilizing that cash debt pay down and more focused around potential share buybacks and dividends in due course before we think again about acquisitions. But, you know, as we've said, we keep evaluating that through the course of the year. We're very pleased with where things have come operationally in the business and also macroeconomically starting to look better and better in a variety of markets.

On that pace in relation to wide capital allocation decisions led acquisitions not not on the agenda at this point in time.

Speaker Change: We're very focused on increasing cash flow generation utilizing that cash to debt pay down.

Speaker Change: And at more focused around potential share buybacks and dividend Dingy course.

Speaker Change: We think again about acquisitions, but as we've said and keep evaluating that through the course of the year.

Speaker Change: Very pleased with where things have come operationally in the business and also macroeconomically starting to look at.

Jim Schneider: So, you know, we'll keep that under evaluation.

Speaker Change: Better investor in a variety of market. So, we'll keep that under evaluation, but yes M&A.

Jim Schneider: But yeah, M&A is probably at the end of the queue at the moment. So cool, thanks. And then in the answer to the prior question, Sam, I think you referenced the desire for MTN and other carriers in Nigeria to maybe start increasing capex spending as early as the end of this year and into next year. Can you maybe talk about maybe the one or two other markets where you see the most positive macro indicators and specific signals from carriers? Thank you, David. outside of Nigeria where they might start to increase capex. Thank you. Yeah, I'll say that at the same time you can jump in as well.

Speaker Change: M&A is probably at the end of Q1.

Speaker Change: It's helpful. Thanks, and then in the answer to the prior question Sam I think you referenced.

Speaker Change: Does the desire for MTN, rather carries a Nigeria, maybe start increasing capex spending as early as the end of this year and into next year can you maybe talk about.

Speaker Change: Maybe the <unk>.

Speaker Change: One or two other markets, where you see the most positive macro indicators and specific signaled from carriers.

Speaker Change: <unk>.

Speaker Change: Outside Nigeria, where they might start to increase capex. Thank you.

Jonathan: Yeah, I'll take that Jonathan.

Speaker Change: And as well.

Sam Darwish: You know, we're continuing to see decent momentum across a variety of our African markets. They don't add up to as much as, you know, a big market like Nigeria, but we're continuing to see positive momentum, you know, the Francophone markets, Cameroon and Cote d'Ivoire, with leasing activity, be it colocation and the want for new build sites, etc. So there's plenty going on in Francophone Africa. South and even Brazil, you know, Brazil's had a bit more macroeconomic softness in the last quarter or two. But even there, we're seeing some fundamental dynamics, you know, have shifted in the last six to 12 months in that market, which hopefully leads to a, you know, a much more positive near term outlook.

Speaker Change: We're continuing to see decent momentum across a variety of <unk>.

Speaker Change: African markets.

Speaker Change: So as much as in a big market like Nigeria, but we're continuing to see positive momentum Frankenstein market Cameron and kind of work with.

Speaker Change: Leasing activity.

Speaker Change: A case in the want for Newbuild sites et cetera.

Speaker Change: Plenty going on.

Speaker Change: Francophone Africa, South Africa continues to sort of add incrementally.

Speaker Change: And even Brazil, Brazil has had a bit more macroeconomic softness in the last quarter or two.

Speaker Change: But even though we're seeing some fundamental dynamics have shifted in the last six to 12 months in that market, which hopefully lead to.

Speaker Change: A much more positive near term outlook.

Sam Darwish: You know, we've been going through our workings with oil and some of the other talcos as well. That's kind of coming to a conclusion now. And what we're seeing is, you know, looking at, you know, substantial 5G rollout. So although, you know, Brazil and Latam's been a bit softer in quarters, we can see, you know, where it could go. And it's a positive, you know, longer term picture.

Speaker Change: We've been gaining three.

Speaker Change: Our weapons with oil as of some of the other tower case, well, thus kind of coming to a conclusion now.

Speaker Change: And what we're seeing is plenty of the carriers are looking at in a substantial <unk> rollout site.

Speaker Change: I appreciate a lot has been a bit softer enforces, we can see where to go and it's it's a positive.

Speaker Change: Longer term picture.

Sam Darwish: Sam, I don't know if you want to add anything. I think just to reiterate that we really believe Africa could be a direct beneficiary of the impending tariff wars that we're seeing happening between more markets that are integrated with the U.S. economy, because largely Africa is not integrated in terms of manufacturing or other large kind of like economic sectors. So we're seeing that. We're seeing the impact of many of these policies that have or many of the issues that we've seen, the macro issues that we've seen kind of like coming back out of it. So we're extremely bullish, and we believe the carriers will indeed increase their capex.

Speaker Change: So just want to add anything.

Speaker Change: I think just to the idea that we really believe after tax would be a direct beneficiary of the impending tariff wars that were seeing happening between more market, but all integrated with U S economy, because largely Africa is not integrated in terms of manufacturing or.

Speaker Change: Other large kind of like.

Speaker Change: Economically sectors. So we're seeing that we're seeing the impact of many of these policies that have or many of the issues that we've seen the macro issues that we've seen kind of like coming back out of it. So we're extremely bullish and we believe the carriers will indeed increase their capex. The recent announcements indicate that they are they are more bullish.

Sam Darwish: The recent announcement indicated they are more bullish. It's beginning to increase, so we expect to see much more in the coming few months.

Speaker Change: Sure.

Speaker Change: The beginning to increase so we expect to see much more in the coming few months.

Sam Darwish: Thank you.

Speaker Change: Thank you.

Michael Rollins: Thank you. Our next question comes from Michael Rollins of Citi.

Michael Rollins: Our next question comes from Michael Rollins of City.

Michael Rollins: Your line is now open, please go ahead. Thanks and good morning. So first, thank you for adding into the Revenue Bridge, the constant currency presentation disclosures.

Speaker Change: It is now open. Please go ahead.

Michael Rollins: Thanks, and good morning.

Michael Rollins: Thank you for adding into the revenue bridge constant currency presentation disclosures.

Michael Rollins: I'm curious if you could share those constant currency performance metrics by region for 2024 and compare what those expectations are within the guidance by segment for 2024.

Michael Rollins: Curious.

Michael Rollins: You could share those constant currency performance metrics by region for 2024.

Michael Rollins: And compare what those expectations are within the guidance by segment for 2025.

Michael Rollins: Hi Mike. Well, you're welcome. I know it's something that you were after, so we added it into our disclosures. I also know you like more and more.

Mike: Hi, Mike.

Mike: Well, you're welcome I know some of the newer after the insula disclosures.

Mike: I also I know you like more and more we haven't we haven't put it in in terms of the forward looking.

Michael Rollins: We haven't put it in in terms of the forward-looking guidance for the year. That's something that we can maybe think through for future periods, but hopefully it's helpful for people to see, you know, as we break down the various components of our growth, there's obviously quite a lot of moving parts, especially given we have FX resets and the impact of FX given our emerging market currency exposure. So we try to simplify all that. It doesn't actually change the fundamental presentation of what we've shown to people before in the revenue bridges, but obviously it just compartmentalises elements, stripping out that FX.

Mike: Our guidance for the year.

Mike: That's something that we can that can maybe think three for future periods, but.

Mike: It's helpful for people to see.

Mike: We break down the various components of that growth is obviously quite a lot of moving parts, especially given we have.

Mike: Tax resets and the impact of FX, given our emerging market currency exposure sites, we tried to simplify all of that it doesn't actually change the fundamental presentation of what we've shown to peak will for any revenue bridges, but obviously it just compartmentalize. This.

Mike: Elements stripping out.

Michael Rollins: So we haven't given it for forward-looking. Let us think through that as to whether that's something we could add in future. I don't see why not.

Mike: That FX site, we haven't given anything forward looking.

Mike: Let us think through that as to whether that's something that we could add in future.

Speaker Change: Why not.

Michael Rollins: And maybe then just in the aggregate level, so if you look at what's implied in that 12% at the Are there some... indications that you can give us. You know, how much is coming from co-location and lease amendments in aggregate for the portfolio versus your escalators or other components of the bridge, just to center around, you know, where the growth is coming from for the business in 25 as it would compare to full year 24.

Speaker Change: And maybe then just in the aggregate level.

Speaker Change: So if you look at what's implied in that 12% at the midpoint.

Speaker Change: Hum.

Speaker Change:

Speaker Change: The key issues that you can give us on like how much is coming from co location the lease amendments in aggregate for the portfolio versus your escalators or other.

Speaker Change: Pulling into the grids just center around where the growth is coming from the credit business grew 25 as it would compare to full year 'twenty four.

Michael Rollins: Yeah, so if you look at, if you look on our earnings presentation on slide 12, you see the FY24 bridge. And we just use that as a guide. So CPI for 2025 will be a little bit down, not too much down, but a little bit down versus that as we see inflation rates moderating. New sites, roughly similar. Co-location will be up versus that. New lease amendments and FIBA, similar, maybe, maybe a little bit less, but certainly new co-locations up. And then other is really sort of the noise and that that will be next to next to zero at this point in time.

Speaker Change: Yes. So if you look at if you look on our earnings presentation on Slide 12, you see the FY 'twenty full bridge.

Speaker Change: And we just use that as a guide and CPI 25 will be a little bit down not so much time in a little bit down versus not as we see inflation rates are moderating.

Speaker Change: New sites roughly similar.

Speaker Change: <unk> will be up.

Speaker Change: Is that new lease amendments and five are similar maybe a little bit less percent of new co locations up.

Speaker Change: And then other regions really are sort of the noise in that that would be next two extra data at this point in time.

Michael Rollins: And, you know, that's really 2023 items that are flushing out in the comparables. So, so yeah, not, not too dissimilar. But a bit more focused on co-locations is what we are forecasting and seeing in the market.

Speaker Change: Really 2023 items that are flushing out in a comparable set.

Speaker Change: So, yes, no not too dissimilar.

Speaker Change: Bit more focus on co locations is what we are forecasting and seeing in the market.

Michael Rollins: Great, and I apologize if I missed this in the commentary.

Speaker Change: Great and I apologize if I missed this in the commentary on slide 19, the Capex range of $2 66.

Michael Rollins: On slide 19, the CapEx range of 260 to 290 million. How much of that is recurring CapEx that's included in the ALFCF definition, and how much of that is together with the CapEx? Yeah, it's about a third, about a third of that capex is, is maintenance, which gets you to sort of, you know, within sort of ranges midpoints about 85, $90 million of maintenance capex. And if you remember, from the end of last year, we've been guiding some 24 to $25 million per quarter of maintenance capex.

Speaker Change: $290 million, how much of that is recurring.

Speaker Change: Recurring Capex that's included in the <unk> debt.

Speaker Change: Mission and how much is that maintenance capex.

Speaker Change: Yes, its about a third about a third of that Capex is maintenance.

Speaker Change: Which gets you to that sort of.

Speaker Change: Within sort of rate is mid points about $85 $9 million.

Speaker Change: Maintenance Capex and if you remember from the end of last year, we've been guiding sort of $24 million to $25 million per quarter.

Michael Rollins: And we've obviously disposed of the business. And, you know, some of the work we've been doing. So, you know, we're trending a little bit lower than that, about $22, $23 million a quarter at this point in time for maintenance capex.

Speaker Change: Maintenance Capex, we've obviously disposed of the business.

Speaker Change: <unk>.

Speaker Change: Some of the work we've been doing we're trending a little bit less than that about $20 million to $23 million a quarter at this point in time to maintenance Capex.

Michael Rollins: Just the last question.

Speaker Change: Just the last question as you think about your different markets industry structure possible consolidations.

Michael Rollins: As you think about your different markets, industry structure, possible consolidations, is there anything that you want to flag for us that's left in terms of the possible churn in a business over the next few years that we all should be mindful of? Well, I think everybody's aware of the NTN Nigeria piece, which is playing out through the course of 2025. And that was well signposted last year. But other than that, no, we're not seeing anything else. You know, we're seeing positive leasing trend across all major markets. So yeah, more of a positive picture to be honest.

Speaker Change: Is there anything that you want to flag for US that's left in terms of possible churn in the business over the next few years that we all should be mindful of.

Speaker Change: Well I think everybody is well.

Speaker Change: Paul.

Speaker Change: Nigeria pace, which is playing out through the course of 2025 and that was well some types of last year.

Speaker Change: But other than that no we're not seeing anything else.

Speaker Change: Sure.

Speaker Change: We're seeing positive leasing trends.

Speaker Change: Across all major markets.

Speaker Change: Yes.

Speaker Change: Or a positive picture.

Sam Darwish: Michael, at the moment, all our contracts are renewed into the 2030s. At the moment, we've got more than 12 or 13 billion, Steve, of contracted revenue. Our exposure to oil in Brazil at the moment is less than 1%, if any. So we feel extremely confident and comfortable with where we stand.

Speaker Change: Mike.

Speaker Change: All our contracts.

Speaker Change: Our renewed until the 2030 is at the moment, we've got more than $12 13 billion of contracted revenue.

Speaker Change: Yes.

Speaker Change: Yes.

Speaker Change: But our exposure to oil in Brazil at the moment is less than 1% if any so we feel extremely confident and comfortable with where we stand.

Michael Rollins: Thanks very much.

Speaker Change: Thanks very much.

Gustavo Campos: Thank you. Our next question comes from Gustavo Campos of Geoffreys. Gustavo, your line is now open. Please go ahead. Hello, yes, congratulations on the results and thank you very much for the presentation and all the details. My first question is, again, sorry to follow up on the asset disposals. I just wanted some confirmation if you are still going to adhere to your previous $0.5 to $1 billion target for asset sales. And as far as your portfolio selection for these asset sales, what will be the broader criteria, any specific geographies or types of assets that you are targeting here?

Speaker Change: Thank you.

Speaker Change: Our next question comes from just felt like Campath of Jefferies.

Speaker Change: Your line is now open. Please go ahead.

Speaker Change: Hello, Yes.

Speaker Change: Congratulations on the results and thank you very much for the presentation and all the details. My first question is again, sorry to follow up on the disposals I just wanted some confirmation if you are still going on.

Speaker Change: Here to your previous Europe.

Speaker Change: $521 billion target for asset sales and as far as your.

Speaker Change: Your portfolio selection for these asset sales what will be the brother criteria any any specific geographies or types of assets that you're targeting here any.

Gustavo Campos: Any caller on that would be very helpful. That's my first question. Thank you.

Speaker Change: Any color on that would be very helpful. That's my first question. Thank you.

Sam Darwish: So yes, the $500 million to $1 billion range is still the target, so that's fairly straightforward. We're working hard on that. And in terms of portfolio selection or market selection, we've also said historically that it could include things like minority stakes, for example, so we weren't ruling out a number of different value realisation opportunities. We haven't been specific on markets. Clearly, we're looking to highlight the value of IHS versus its share price performance. So we are looking at a number of different opportunities and we'll keep people updated.

Speaker Change: So yes.

Speaker Change: $500 million a billion dollar.

Speaker Change: Thanks to the target.

Speaker Change: So that's fairly straightforward, we're working hard on that.

Speaker Change: And in terms of portfolio selection of market selection.

Speaker Change: We've also said historically that it could include things like minority Stakes for example, so we werent sort of rolling out a number of different.

Speaker Change: Value realization opportunities.

Speaker Change: We haven't been specific on market clearly, we're looking to highlight in the valley.

Speaker Change: Of IHS versus this.

Speaker Change: Share price performance.

Speaker Change: We are looking a number of different opportunities and we'll keep people updated we don't want to be negotiating these transactions in the public domain studies you depreciate. It with all you can get too much information on a lot of discussions.

Sam Darwish: We don't want to be negotiating these transactions in the public domain, so it's appreciated we're not going to give too much information on live At the end of the day, the reason we are conducting this strategic review is that we believe that we remain undervalued. We have sold a couple of asset portfolios at almost, what, three times the multiples we are given by the public markets. I mean, Kuwait sold for 14.2, we're at the moment at roughly five, more or less. We believe that is an important thing that I wanted to put out there. Nigeria is coming back, things are changing, and that's why I think it's very important to stay current and keep recalibrating our view, taking into account all the new positive realities that we are seeing.

Speaker Change: I mean, ultimately it's doubtful that at the end of the day. The reason we are conducting the strategic.

Speaker Change: We believe that we remain undervalued, we have sold a couple of asset portfolios at almost three times. The multiples we are given by the public markets and in Kuwait sorts of $14 two at the moment, that's only five years.

Speaker Change: More or less so.

Speaker Change: So we believe.

Speaker Change: That is an important thing that I wanted to put a bit makes you guys coming back.

Speaker Change: All changing and Thats why I think it's very important to stay current and keep Recurvate recalibrating our view taking into account all the new positive reallocate that youre seeing.

Sam Darwish: Also, if I may add, our operational performance in terms of cash flow generation has materially improved in the last year as we are introducing new ways, new operating methods, new operating procedures, many of which are using artificial intelligence in the way we distribute diesel, in the way we plan our operations on site. And this has had also a very positive impact on our cash flow generation. So we're comfortable where things are at the moment, but yes, to Steve's point, we will continue with what we have promised the market. Understood. Yes. Thank you very much. That is very clear.

Speaker Change: Also if I may.

Performance in terms of cash flow generation.

Speaker Change: It has materially improved in the last year as we are.

Speaker Change: Introducing new ways, new operating muscle its new operating procedures, many of which are using artificial intelligence and the way we distribute.

Speaker Change: The way we plan our operations on site and this has had also a very positive impact on our cash flow generation. So we're comfortable working at the moment, but yes to <unk> point, we'll continue with.

Speaker Change: From what we have almost a month.

Speaker Change: Okay.

Speaker Change: Understood Yes.

Speaker Change: Very much that is very clear.

Sam Darwish: And if you mind, if I just clarify here, is this 0.5 billion to a billion dollar target, is this enterprise value or is this like a consideration that you're targeting to receive? Thank you. They are proceeds to receive. Okay, yeah, thank you. My second question would be around, you know, you were expecting to generate more positive free cash flow and potentially like leverage more to the bottom half of your target, as you mentioned. Would you have by chance like a total debt target that you're expecting to be by the end of the year? And as far as, you know, is there like, are you expecting to like have a tender offer on your bonds?

Speaker Change: If I just clarify here is this zero point half a billion to a $1 billion target.

Speaker Change: Enterprise revenue or is this like a considering.

Speaker Change: Consideration that you're you're you're targeting through to receive.

Speaker Change: Yeah.

Speaker Change: Yes, <unk> Thursday.

Speaker Change: Okay. Yeah. Thank you my second question would be around.

Speaker Change: You know you were expecting to generate positive free cash flow.

Speaker Change: And potentially like deleverage more.

Speaker Change: So the bottom half of your targets as you mentioned.

Speaker Change:

Speaker Change: Do you have by chance.

Speaker Change: Total debt target that you're expecting to be by the end of the year and as far as you know.

Speaker Change: Is there like are you expecting to.

Speaker Change: Hello.

Speaker Change: Tender offer on your bonds.

Sam Darwish: Any specific maturities are part of your capital structure that you're planning to target? No specific debt number in mind, other than making sure that the leverage is down, that will obviously depend a little bit on the activity through the course of the year, including potential future M&A disposals, as we've discussed. But we've been clear, we want to get the leverage down to the bottom end of our target range. So that's the goal. In terms of where excess cash gets utilized, obviously, you know, bonds are a significant part of our capital structure.

Speaker Change: Okay.

Speaker Change: Specific.

Much maturities are a part of your capital structure that Youre planning to target.

Speaker Change:

Speaker Change: No specific.

Speaker Change: That number in mind other than making sure that the leverages down that will obviously depend a little bit on that.

Speaker Change: Through the course of the year, including potential future M&A disposals as we've discussed.

Speaker Change: But we've been clear we want to get the leverage down to the bottom end of our target range.

Speaker Change: So that's the goal.

Speaker Change: In terms of where.

Speaker Change: Excess cash gets utilized obviously.

Speaker Change: A significant part of our capital structure.

Sam Darwish: I obviously wouldn't want to say anything to do with tender offers or anything like that. But there's a number of bonds that are either in call periods or coming into call periods, which is obviously an important consideration. We also have other debt in the structure outside of the bonds, which we could consider utilizing excess cash for. So we have a number of different options available to us to utilize cash as it comes through to us. That is very clear and very helpful. Thanks a lot. And my last question would be on working capital. We saw around 200 million in receivables outflows in fiscal year 2024, although there was like a material improvement in the fourth quarter.

Speaker Change: Obviously wouldn't want to say anything.

Speaker Change: Seems to be with tender offers or anything like that.

Speaker Change: But there's a number of our bonds the <unk> periods that were coming into the cold periods, which is obviously an important consideration.

Speaker Change: They have all the debt in the structure outside of the bonds, which we could consider utilizing excess cash flow. So we have a number of different options available to us to utilize cash.

Speaker Change: As it comes through to us.

Speaker Change: Okay.

Speaker Change: That is very clear and very helpful. Thanks, a lot.

Speaker Change: And my last question would be on working capital you saw around 200 million in receivables outflows in fiscal year 2024, although there was like a mature improvements in the fourth quarter.

Sam Darwish: What are your expectations for 2025? Should we see similar outflow pressure, or are you expecting an improvement with giving your updates on your commercial agreements, etc.? That's my last question. Thank you. Yeah, exactly. So, yeah, so as you point out, so there's significant, excuse me, improvement in Q4 with a pretty material work capital inflow in quarter four, which has reversed the trend. So the outflow has been slowing through the course of 2024, and then now back in positive territory in Q4. So I expect some continued momentum in that early part of the year. And we're not forecasting particular working capital outflows in 2025 at all.

Speaker Change: What are your expectations for 2025 should we see like similar.

Speaker Change: Outflow.

Speaker Change: Pressure or are you expecting an improvement with salt.

Speaker Change: Given your your updates on your commercial agreements et cetera.

Speaker Change: That's my last question. Thank you.

Speaker Change: Sorry.

Speaker Change: Yes, so as you point out that there is significant significant excuse me improvement in Q4 with.

Speaker Change: With a pretty material capital inflow.

Speaker Change: In quarter, four which has reversed the trend so the outflows have been slogging through the course of 2024, and then now back in positive territory in Q4.

I expect some continued momentum.

Speaker Change: Early part of the year.

Speaker Change: We're not forecasting.

Speaker Change: Working capital outflows in 2025 vessel that will always be a little bit of movement between the quarters that from a titled 2025 perspective, nine no no working capital outflow forecast.

Sam Darwish: There'll always be a little bit of movement between the quarters, but from a total 2025 perspective, no working capital outflow forecast. Okay, thank you. So just to clarify, your expectation is to be roughly working capital neutral in 2025? Yeah, flat positive, yep. All right. Perfect. Thank you very much. Congrats again. Thank you.

Speaker Change: Okay. Thank you so just to clarify your expectations to be roughly.

Speaker Change: Working capital neutral in 2025.

Speaker Change: Yes flat to positive yet.

Speaker Change: Alright, perfect. Thank you very much.

Speaker Change: Congrats again.

Speaker Change: Yeah.

Speaker Change: Thank you.

Stella Cridge: Our next question comes from Stella Cridge of Barclays.

Speaker Change: Our next question comes from Stella Courage of Barclays. Your line is now open. Please go ahead.

Stella Cridge: Your line's now open, please go ahead. Hi there, everyone. Many thanks for all the updates. And I wonder if I could just ask about Rwanda. So you were touching before on some of the outlook for some of your markets. I mean, after this, you know, these recent developments in DRC has been a little bit of political pressure on Rwanda.

Speaker Change: Hi, everyone. Thanks. Thanks.

Speaker Change: And I Wonder if I could just ask about Rwanda.

Speaker Change: Touching before.

For some of your markets.

Speaker Change: Thanks.

Speaker Change: And I think that's been a lot of political pressure on the Wanda I was just wondering if there's anything you want monitoring on a swing there in terms of rest of the business, perhaps right Curt.

Sam Darwish: I was just wondering if there's anything you were monitoring there in terms of risks to the business, you know, perhaps around currency or upstreaming or, you know, anything that would be relevant for you that would Hi Stella. No, nothing too untoward to be honest. Obviously, you know, we're monitoring that as a sort of a geopolitical situation, but no impact on our business, either operationally, financially, from an FX perspective, etc. So no really, you know, watching, but no, nothing, nothing untoward, no impact on business.

Speaker Change: Currency upstream being or anything that would be great. Thanks.

Speaker Change: Uh huh.

Speaker Change: No nothing nothing to untoward to be honest, obviously, we're monitoring.

Speaker Change: That is that some of the geopolitical situation, but.

Speaker Change: Impacts on our business by the operationally financially and from an FX perspective et cetera.

Speaker Change: So not really.

Speaker Change: Watching.

Speaker Change: Nothing nothing untoward.

Speaker Change: Yes.

Sam Darwish: Thanks, Cliffie. Thank you.

Speaker Change: Thanks for clarifying.

Operator: That brings us the end of the IHS Hldg Limited fourth quarter and four year 2024 earnings results call.

Speaker Change: That brings us to the end of the IHS holding limited's fourth quarter and full year 2024 earnings results call should you have any questions. Please contact the investor relations team by the email address Investor relations at IHS towers Dot com.

Operator: Should you have any questions, please contact the Investor Relations team by the email address InvestorRelations at IHStowers.com.

Operator: The management team, thank you for your participation today and wish you a good day. Thank you.

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

Speaker Change: Yeah.

Speaker Change: Yes.