Vantage Towers : Annual Report 2021/2022 of Vantage Towers AG

Annual Report 2021/22

Powering Europe's digital transformation

Key data

Vantage Towers

Financial results summary

		FY22		FY21PF	Change
		€m		€m	%
Macro sites (in thousand units)		45.7	45.7		-
Tenancy ratio (number of tenancies/
number of macro sites)	1.44x		1.40x	-
Group revenue (ex. pass through)	1,011	966		4.6
Adj. EBITDA	865	830		4.2
Adj. EBITDA margin	85%	86%		-
Capex recharge revenue		(12)	(4)		n/a
Ground lease expense		(310)		(302)		(2.7)
Adj. EBITDAaL		543		524		3.6
Adj. EBITDAaL margin	54%	54%		-
Recurring free cash flow (RFCF)		415	384		8.0
Leverage (net debt/adjusted EBITDAaL)		3.5x		3.8x		n/a

Vantage Towers AG -- Annual Report 2021/22

1

FY 2022

Highlights

Successful commercialisation of our tower footprint continues:

In FY 2022, we added 1,680 net new tenancies in total across our footprint with more than 840 non-committed and 1,670 non-­VF net additions, increasing the tenancy ratio by 0.04x year-on-year (YOY) to 1.44x

We increased our commercial footprint with the landmark

agreement­signed with 1&1 in December 2021 and further

agreements­across our markets

Macro site ramp up further progressed with more than 510 new macro sites in FY 2022

FY 2022 results in line with our FY 2022 guidance:

Group Revenue (ex. pass through) at €1,011 million, a 4.6% year-on-year (YOY)

Adj. EBITDAaL at €543 million (+3.6% YOY) and EBITDAaL margin of 54%

RFCF increased by 8.0% YOY to €415 million

We intend to propose a dividend of €0.63 per share, a total of

approximately­€319 million in dividend payout

We have revised the approach to our roll out plan in Germany leading to an adaptation of the built-to-suit (BTS) programme and the MSA terms, adding optionality to source up to 1,200 sites for Vodafone from third-­party TowerCos

We announce our FY 2023 guidance as follows whilst reaffirming our medium-­term targets: Revenue (ex. pass through) growth of 3.0-5.0% YOY; Adj. EBITDAaL €550 to €570 million and RFCF of €405 to €425 million

2

With 83k macro sites, we've got Europe covered

1.3k 14.5k

Ireland	UK**	19.4k	3.9k	2.1k	2.3k
1.56x*	2.0x*
		Germany	Czech Rep.	Hungary	Romania

1.23x* 1.11x* 1.52x* 2.05x*

3.5k	8.6k	22.8k	4.8k
Italy**
	1.68x*
		2.01x*	Greece
Portugal	Spain
1.25x*	1.79x*

• Tenancy ratio is the total number of tenancies (including virtual tenancies) on Vantage Towers'­ macro sites divided by the total number of macro sites. ­Virtual tenancies are when a customer shares its active equipment on a site with a counterparty under an active sharing agreement.
• Joint venture: Italy and UK

3

Who we are

As a leading European towers infrastructure company, we serve mobile network operators (MNOs), federal agencies and customers from the utilities and technology sector. We are at the heart of the 5G rollout and enable new applications for the Internet of Things. Benefiting from strong and resilient underlying demand within a growing towers market, we have a clear focus on strategic growth. Our experienced, independent and commercially-­ driven ­management team is dedicated to ­powering ­Europe's digital transformation.

4 To our Shareholders

4 Letter from our CEO

8 Our Management Team

1. Your 5G superhost­ for Europe

1. The Vantage Towers Share

1. Report of the Supervisory Board

1. Our Supervisory Board

31 Pro forma Financial Performance

35 Combined Management Report

115 Consolidated Financial ­ Statements

187 Further Information