Helios Towers 2025 Capital Markets Day Summary Company Overview - **Company**: Helios Towers - **Industry**: Telecommunications Infrastructure - **Key Markets**: Africa and the Middle East - **Current Operations**: Over 15,000 towers across nine markets, supporting connectivity for approximately 160 million people, with plans to grow to 200 million in the next five years [10][12][13] Core Points and Arguments Strategic Vision and Growth - **Impact 2030 Strategy**: Aims to capture growth through capital-efficient organic growth, sector-leading lease-up, and customer experience excellence, targeting 2.5 tenants per site and a return on invested capital (ROIC) of 15%-20% [17][25] - **Cumulative Free Cash Flow**: Expected to reach $1.3 billion over the next five years, with at least $400 million returned to investors [18][25] - **Market Demand**: Driven by structural mega trends, including population growth and increased mobile adoption, with Africa and the Middle East projected to account for significant global population growth [25][26] Financial Performance - **EBITDA Growth**: Achieved 10 consecutive years of EBITDA growth, with a compound annual growth rate (CAGR) of 24% from $54 million in 2015 to a projected $470 million in 2025 [16][52] - **Tenancy Ratio**: Increased from 1.8 to 2.2 tenants per site, achieving this target ahead of schedule [19][49] - **Free Cash Flow**: Positive free cash flow of $49 million reported, with expectations to exceed $60 million for the year [49][51] Operational Excellence - **Lean Six Sigma**: The foundation of the Business Excellence Program, with 65% of employees trained, leading to improved operational efficiency and customer satisfaction [15][38] - **Power Management**: Achieved 99.99% power uptime, critical for mobile operators, reducing average downtime significantly [33][38] - **Infrastructure Sharing Model**: Lowers costs for customers and allows mobile operators to focus on active network technology, enhancing service quality [23][24] Customer Relationships - **Diverse Customer Base**: Leading mobile operators account for 99% of revenue, with 70% from investment-grade customers, providing resilience and stability [31][53] - **Long-Term Contracts**: Contracts typically span 10-15 years with auto-renewals, ensuring revenue visibility and stability [54][55] Additional Important Insights - **Future Revenue**: $5.5 billion of future contracted revenue with an average remaining life of about seven years, with 71% of EBITDA in hard currency [21][57] - **Market Position**: Helios Towers is the leading independent tower company in seven of its nine markets, benefiting from operational reliability and strong customer relationships [31][32] - **Technological Advancements**: The shift towards 4G and 5G technologies is expected to drive demand for more tenancies and infrastructure [26][30] Conclusion Helios Towers is positioned for significant growth in the telecommunications infrastructure sector, with a robust strategy focused on operational excellence, strong customer relationships, and a clear path to delivering shareholder returns. The company is entering a phase characterized by cash compounding and sustainable growth, supported by favorable market dynamics and a commitment to customer experience excellence.

Core Viewpoint - Helios Towers reported stronger-than-expected third-quarter results and initiated a $75 million share buyback as part of a new five-year plan targeting over $40 billion in revenue [1] Financial Performance - The company achieved third-quarter results that exceeded market expectations [1] - Specific financial metrics were not detailed in the provided content, but the overall performance indicates positive growth [1] Strategic Initiatives - Helios Towers launched a $75 million share buyback program [1] - The share buyback is part of a broader five-year plan aimed at achieving more than $40 billion in revenue [1]

Investment Rating - The report highlights ten stock picks rated as "Buy" that are expected to be resilient in the current uncertain economic environment [11][23]. Core Insights - The initial sell-off in the market was broad-based, with 99% of S&P 500 stocks declining, but the recovery has been uneven, primarily driven by technology stocks [3][11]. - A bottom-up approach is recommended to understand how policies impact individual companies, especially in light of ongoing macroeconomic and policy uncertainties [4][11]. - The report anticipates continued volatility in equity markets as macro and micro data worsen, with a focus on defensive sectors [4][11]. Summary by Relevant Sections Market Overview - The S&P 500 has outperformed the equal-weighted index, with a significant contribution from technology stocks, while many sectors, particularly recession-resilient ones like healthcare, remain below pre-sell-off levels [3][22][19]. - Only 35% of S&P 500 stocks have recovered to pre-Liberation Day levels, indicating a challenging recovery landscape [3][11]. Stock Picks - **AIG (AIG US)**: Rated "Buy" with a target price of USD 93.00, expected to benefit from its solid risk management and low leverage [6][23]. - **American Tower (AMT US)**: Rated "Buy" with a target price of USD 245.00, noted for its geographical diversification and resilience in a high-tariff environment [6][24]. - **Coca-Cola (KO US)**: Rated "Buy" with a target price of USD 82.00, positioned to leverage its brand strength and local sourcing to mitigate tariff impacts [6][29]. - **Johnson & Johnson (JNJ US)**: Rated "Buy" with a target price of USD 184.00, recognized for its diversified portfolio and strong R&D pipeline [6][30]. - **McDonald's (MCD US)**: Rated "Buy" with a target price of USD 343.00, expected to benefit from its franchise model and focus on affordability [6][34]. - **Oracle (ORCL US)**: Rated "Buy" with a target price of USD 246.00, anticipated to capitalize on AI demand and improve revenue growth [6][37]. - **Procter & Gamble (PG US)**: Rated "Buy" with a target price of USD 185.00, noted for its strong brand equity and global supply chain [6][40]. - **TechnipFMC (FTI US)**: Rated "Buy" with a target price of USD 36.00, positioned to benefit from its operational efficiencies [6][43]. - **Walmart (WMT US)**: Rated "Buy" with a target price of USD 108.00, expected to maintain its market position amid economic challenges [6]. - **Waste Management (WM US)**: Rated "Buy" with a target price of USD 265.00, recognized for its stable revenue model [6].