American Tower Corporation: Financial and Operational Update. Fourth Quarter 2017

Transcription

1 American Tower Corporation: Financial and Operational Update Fourth Quarter 2017

2 Forward-Looking Statements Safe Harbor Statement under the Private Securities Litigation Reform Act of 1995: This presentation contains forward-looking statements concerning our goals, beliefs, strategies, future operating results and underlying assumptions. Actual results may differ materially from those indicated by these forward-looking statements as a result of various important factors, including those described at the end of this presentation and in Item 1A of our Form 10-K for the year ended December 31, 2017 under the caption Risk Factors. We undertake no obligation to update the information contained in this presentation to reflect subsequently occurring events or circumstances. Definitions and reconciliations are provided at the end of the presentation. 2

3 Investment Highlights 2017 Results and 2018 Expectations Solid growth driven by strong network investments and geographic diversification Historical Financial Performance Consistent cash flow based returns Strong balance sheet Solid Business Model Fundamentals Long-term revenue stream Secure real estate assets High quality tenant base Global Demand Drivers and Positioning for Growth Secular growth trends in wireless New high growth assets 3

4 Portfolio Summary (1) 16 Countries 4,700+ Global Employees 150,000+ Total Communications Sites U.S. towers International towers Distributed Antenna Systems (DAS) Asset count 40, , Types of locations served Mainly suburban and rural locations. Mix of urban, suburban and rural locations, typically clustered around key population centers. U.S. and international indoor and outdoor venues with clear multitenant opportunities. (1) Data as of December 31,

5 Consolidated Results Highlights $ in millions, except per share data 4Q17 4Q16 Y/Y Change FY 2017 FY 2016 Y/Y Change Total Property Revenue $1,678 $1, % $6,566 $5, % Total Revenue $1,705 $1, % $6,664 $5, % Net income attributable to AMT Common Stockholders (1) $220 $ % $1,152 $ % Per diluted share attributable to AMT (1) $0.51 $ % $2.67 $ % Adjusted EBITDA $1,031 $ % $4,090 $3, % Adjusted EBITDA Margin 60.5% 60.8% 61.4% 61.4% Consolidated AFFO $707 $ % $2,902 $2, % Per diluted share $1.64 $ % $6.72 $ % (1) Reflects an impairment charge primarily related to assets in India, partially offset by an income tax benefit associated with the impairment charge, both recorded in Q The portion of this charge attributable to American Tower Corporation Common Stockholders is approximately $127 million. Definitions and reconciliations are provided at the end of this presentation. 5

6 2017 Property Revenue $5.7B Property Revenue $6.6B $6.3B 7.4% Organic Tenant Billings Growth 10.8% 9.7% 9.4% 8.5% 6.2% 14.9% Growth 12.6% Tenant Billings Growth 7.4% Organic Tenant Billings Growth Initial 2017 Outlook (1) Total U.S. Total Intl. Asia LatAm EMEA Total Property revenue growth of nearly 15%, exceeding initial outlook by ~$270 million Consolidated Organic Tenant Billings Growth of over 7% U.S colocation and amendment contribution up ~17% vs International Organic Tenant Billings Growth was nearly 4% higher than that of the U.S. Global demand for mobile data continued to drive strong demand for our real estate Portfolio diversification supports strong global revenue growth (1) Reflects midpoint of initial 2017 outlook, as reported in the Company s 8-K dated February 27, Definitions and reconciliations are provided at the end of this presentation. 6

7 2017 Adjusted EBITDA and Consolidated AFFO Adjusted EBITDA Consolidated AFFO $3.6B $4.1B $3.9B $2.5B $2.9B $2.8B 15.1% Growth 16.5% Growth 15.9% per Share Growth Initial 2017 Outlook Initial 2017 Outlook (1) (1) 61.4% Margin 61.4% Margin 60.4% Margin $5.80/share $6.72/share $6.40/share Surpassed initial outlook for Adjusted EBITDA growth and margin by 6.5% and 1.0%, respectively Outpaced initial Consolidated AFFO and AFFO/share growth expectations by 6.1% and 5.5%, respectively 10 th consecutive year of double digit growth in Consolidated AFFO and AFFO per Share (1) Reflects midpoint of initial 2017 outlook, as reported in the Company s 8-K dated February 27, Definitions and reconciliations are provided at the end of this presentation. 7

8 2018 Outlook (1) Property Revenue Total Property Revenue $6.6B $7.0B Organic Tenant Billings Growth ~6-7% ~6-7% ~9-10% ~5% >6% ~3-4% ~6-7% ~2-3% ~7% Outlook Growth ~9% Normalized (2) ~(8%) Total U.S. Total Intl. Asia LatAm EMEA Outlook Normalized for Indian Carrier Consolidation-Driven Churn (2) U.S. Organic Tenant Billings Growth again expected to be >6%, supported by record levels of new business Driven by strong pipeline of colocations and amendments, including FirstNet-related activity Total International Organic Tenant Billings Growth of approximately 6-7% excluding expected Indian Carrier Consolidation-Driven Churn Includes highest levels of Latin American gross new business in the Company s history on a dollar basis Gross new business in EMEA expected to increase double-digits vs. 2017, but commencements weighted to 2H18 (1) Reflects midpoint of 2018 outlook, as reported in the Company s 8-K dated February 27, (2) See reconciliations on pages 31 and 34 of this presentation for additional details regarding Indian Carrier Consolidation-Driven Churn and calculation of normalized metrics. Definitions and reconciliations are provided at the end of this presentation. 8

9 India Carrier Consolidation Summary Transitory event leading to improved Industry dynamics and organic growth Expect carrier consolidation to last for next couple of years In-Year 2018 Consolidation Churn Impacts (1)(2) Metric Tenant Revenue In-Year Impact (Included in Outlook) ($90) million Number of carriers in the market expected to rationalize to 3-4 Anticipate total consolidation-driven annualized churn of about $150-$200M over the course of the consolidation process Return to more normalized organic growth levels expected once consolidation process concludes Larger, better capitalized tenants with improved spectrum positions Nationwide deployment of 4G networks expected to result in significant incremental long-term demand for our portfolio Pass-Through Revenue Adjusted EBITDA Consolidated AFFO Asia Organic Tenant Billings Growth Consolidated Organic Tenant Billings Growth ($55) million ($85) million ($65) million ~(11%) ~(1.5%) Near-term elevated churn expected to give way to improved long-term organic growth (1) Reflects midpoint of 2018 outlook, as reported in the Company s 8-K dated February 27, (2) See reconciliations on pages 31 and 34 of this presentation for additional details regarding Indian Carrier Consolidation-Driven Churn and calculation of normalized metrics. 9 Definitions and reconciliations are provided at the end of this presentation.

10 2018 Outlook (1) Adjusted EBITDA and Consolidated AFFO $4.1B Adjusted EBITDA $4.4B $2.9B Consolidated AFFO $3.2B >6% Outlook Growth ~11% Outlook Growth >8% Normalized (2) ~13% Normalized (2) Outlook Outlook As Reported $6.72/Share ~$7.30/Share ~9% Y/Y (3) Margins throughout the business continue to expand, excluding the impacts of Indian Carrier Consolidation-Driven Churn, the addition of lower initial tenancy sites and lower non-cash net straight-line recognition Cash SG&A as a percent of revenue expected to be well under 8% Excluding impacts of Indian Carrier Consolidation-Driven Churn, double-digit Consolidated AFFO per Share Growth expected in 2018 Normalized $6.74/Share ~$7.45/Share ~11% Y/Y Outlook reflects Adjusted EBITDA to Consolidated AFFO conversion of over 100% (2) (3) (1) Reflects midpoint of 2018 outlook, as reported in the Company s 8-K dated February 27, (2) See reconciliations on pages 31 and 34 of this presentation for additional details regarding Indian Carrier Consolidation-Driven Churn and calculation of normalized metrics. (3) Assumes 2018 weighted average diluted share count of million shares. Definitions and reconciliations are provided at the end of this presentation. 10

11 $3.00 $2.50 $2.00 $1.50 $1.00 $0.50 $ % 40% 35% 30% 25% 20% 15% 10% 5% 0% Expect to Build Upon Double-Double in Global Site Count (Thousands) Consolidated AFFO/Share $6.72 $5.80 $5.08 $4.54 $3.68 $3.06 $7.30 Common Stock Dividend/Share & Payout Ratio ~20%+ growth 36% 29% 30% 31% $2.17 $ % 39% >40% $1.81 $1.40 $1.10 $0.90 (1) E (1) (2) E (3) E Common Stock Dividend/Share Payout Ratio Significantly exceeded Double-Double targets from Continue to invest in new sites to support long-term growth and cash flow generation Expect to grow dividend ~20%+ in 2018, subject to board approval, with payout ratio rising to low-40% range Disciplined capital deployment strategy supports consistent total stockholder return through long-term growth and rising dividend (1) Reflects midpoint of 2018 outlook, as reported in the Company s 8-K dated February 27, 2018, inclusive of pending Vodafone and Idea transactions in India and expected 2018 new site builds. (2) Assumes 2018 weighted average diluted share count of million shares. (3) Subject to board approval. Definitions and reconciliations are provided at the end of this presentation. 11

12 Diverse Capital Deployment Strategy and Strong Cash Flow Generation ~$39 Billion Deployed in Last 10 Years ~$30 Billion Invested in Portfolio (1) ~$21 Billion in Cash From Operations (2) Stock Repurchases ~11% Common Stock Dividend ~11% Discretionary Capex ~13% ~62% Acquisitions EMEA ~12% Asia ~9% Latin America ~25% U.S. ~54% $0.7B >$3B ~2% Non- Discretionary Capex Balanced capital allocation program focused on investing in growth and shareholder returns Majority of capital has been allocated to the U.S., our largest market and primary source of Free Cash Flow Grew cash from operations at CAGR of >15% over last decade; expect double digit growth in 2018 (1) Includes acquisitions and capital spending. Acquisitions include assumed debt amounts. (2) Includes assumption of >$3 billion in cash from operations in Definitions and reconciliations are provided at the end of this presentation. 12

13 Solid Balance Sheet Position $197 $500 $59 $1,000 $674 $2,076 $165 $33 $348 $1,444 $1,889 December 31, 2017 (1) ($ in millions) $33 $1,269 $1,505 $1,489 $33 $1,292 $1,683 $19 $520 $1,002 $1,330 $1,480 $1, Senior Notes U.S. Secured Debt Viom Debt Drawn Bank Debt Revolving Credit Facility Availability $691 Net Leverage Ratio (LQA) 6.0x 5.0x 4.0x 3.0x 2.0x 1.0x 0.0x 5.2x 5.3x 5.0x 5.0x 4.7x 4.6x 4.5x 4.7x 4.4x 4Q15 1Q16 2Q16 3Q16 4Q16 1Q17 2Q17 3Q17 4Q17 Within target leverage of 3-5x Liquidity of $~3.0 billion as of 12/31/17 Weighted average debt tenor of approximately 5 years Weighted average cost of debt of <4% Committed to maintaining investment grade credit rating (1) Excludes approximately $515 million of subsidiary and international debt. 13 Definitions and reconciliations are provided at the end of this presentation.

14 Tenant Base Characteristics (1)(2) Q Property Revenue Distribution Global Tenant Lease Renewal Schedule International Pass-through Revenue 14% AT&T (U.S.) 15% 52% International Tenant Revenue 32% Verizon 16% Sprint 8% 11% 6% 13% 17% Other U.S. 7% (3) T-Mobile (U.S.) 8% Pricing is primarily based on amount and positioning of equipment on the tower Leases are typically non-cancellable Leases generally include an initial term of at least 5-10 years with multiple 5-year renewal periods Annual embedded lease escalators: U.S.: typically fixed at an average of approximately 3% International: typically based on local inflation indices (4) (1) Data as of the quarter ended December 31, (2) Percentages in charts may not sum to 100% due to rounding. (3) Other U.S. includes additional voice/data providers, broadcast companies, government agencies, local municipalities, etc. (4) Escalators in India and Nigeria are typically fixed. Majority of Nigerian revenues denominated in USD. 14

15 Commitment to a Secure Real Estate Portfolio (1) Property interest overview: Annual escalators: average approximately 3% in the U.S. and typically based on local inflation rates internationally In the United States: Over 31% of land is owned or operated pursuant to a capital lease or perpetual easement Average remaining term of more than 27 years for properties under lease Average lease term extensions are typically years or more Landlord base characteristics: Our landlord base is highly fragmented Approximately 90% of our ground leases are held by landlords who own a single site Global ground lease expiration schedule: 82% 5% 4% 4% 4% (1) Data as of the quarter ended December 31,

16 Focused on Partnering with Multinational Wireless Carriers (1) U.S. Mexico Brazil Colombia Chile Peru Costa Rica Argentina Paraguay India South Africa Ghana Uganda Nigeria Germany France Approximately 84% of our revenues are generated from our top 15 tenants Most of our over $32 billion of non-cancellable contracted revenue as of December 31, 2017 is from large, multinational tenants Focus on large, established tenants has helped to keep historical churn rates between 1-2% per year (1) Data as of the quarter ended December 31, (2) Pending mergers include Vodafone and Idea, and Airtel and Tata Communications. 16

17 Evolution of Fixed to Mobile Advanced Devices Driving up Total Wireless Capex Spend $35 US WIRELESS CARRIER CAPEX ($ in BILLIONS) $30 $25 $20 $15 $10 $5 2G Telephony 3G Internet 4G Media & Content $ E Technology Continues to Evolve Towards Ubiquitous Mobility Sources: AV&Co. analysis, CTIA, UBS forecasts, Bank of America Merrill Lynch Wireless Matrix, Wall Street research. 17

18 U.S. Total Mobile Data Traffic Growth Expected to grow at 35% CAGR through at least 2021 U.S. Total Mobile-Connected Devices (Millions) CAGR U.S. Traffic per Mobile Connection (MB per mo.) CAGR U.S. Total Mobile Data Traffic (Petabytes) 16% 17% 6,006 35% CAGR X Non-IoT 5,172 16% = 5,587 Non- IoT 34% 2,491 1,014 IoT 1,342 Non-IoT IoT % % % 1, IoT 64% Exponential Growth in Devices and per Device Usage = Significant Growth in Overall Traffic Notes: IoT: based on M2M module connections, traffic and data usage; IoT includes everything other than M2M modules (e.g. smartphones, tablets, laptops, etc.) ; Sources: Cisco VNI 2016, AV&Co. Research & Analysis 18

19 4G Densification Will Be Needed to Support Data Growth 4G will remain critical, even post-5g introduction 100% Projected U.S. market share of connectivity standards ( ) based on % devices 80% 60% 40% 2G ~24 years lifecycle ( ) 3G ~20 years lifecycle ( ) 4G Est. ~18-20 years lifecycle ( /30) 20% 0% 3G launch 4G launch Pre-5G launches beginning in 2018 (fixed wireless and mobile at 600MHz) 5G Defined 5G E 2025E Non-standalone mobile 5G launches are expected in 2018, ahead of official standalone 5G standardsetting. At the same time, significant 4G investments are expected to continue, given the over 50% estimated 4G market share through 2025 Source: AV&Co. Research & Analysis 19

20 >95% of U.S. Sites Outside of Urban Environments Vast majority of sites located where the traditional macro tower will continue to be the backbone of the mobile network 20

21 Mobile Data Growth Global Smartphone Data Usage Developing markets expected to see more rapid growth than U.S. and global average 11.9 Average Monthly Smartphone Data Usage (GB) CAGR ( 16-21) U.S. Nigeria India Mexico Brazil South Africa Global 34% 49% 49% 48% 41% 57% 37% Sources: AV&Co. research & analysis, Cisco VNI

22 Global Scale Leverages Global Demand (1) American Tower has a global portfolio of >150,000 communications sites U.S. ~40,600 France ~2,500 Germany ~2,200 Mexico (2) ~9,100 Costa Rica ~500 Ghana ~2,200 Nigeria ~4,800 Uganda ~1,400 India ~58,000 Chile, Columbia & Peru ~6,600 Brazil ~18,900 Paraguay ~840 Argentina (3) 8 South Africa (4) ~2,500 Year Market Launched & Later (1) Data as of December 31, (2) Portfolio also includes urban telecommunications assets, including fiber, concrete poles and other infrastructure, which are excluded from the site count. (3) Portfolio primarily consists of urban telecommunications assets, fiber and the rights to utilize certain existing utility infrastructure for future telecommunications equipment installation. Tower build program initiated in the market resulted in 8 incremental communications sites during (4) Portfolio also includes fiber and fiber-related assets, which are excluded from the site count. 22

23 Strong Growth in Key Financial Metrics, Complemented by Rising Dividend and ROIC (1) Property Segment Revenue $6.6B Adjusted EBITDA $4.1B $1.4B $1.0B $2,015 $2,016 Consolidated AFFO ROIC 2017 $2.9B 10.2% 9.0% $0.6B (2) Grew ROIC to >10% while generating average annual dividend per share growth >20% since 2012 (1) Net income reflects CAGR of ~36% from 2007 to (2) Adjusted to annualize impacts of acquisitions closed throughout the year. 23 Definitions and reconciliations are provided at the end of this presentation.

24 Our Stand and Deliver Strategy for the Next Decade Seeks to Extend our Strong Track Record of Growth Drive Operational Efficiency Improve internal processes with emphasis on tenant solutions Drive margin expansion by maximizing leasing growth on existing portfolio while driving opex and maintenance capex efficiencies Invest in and deploy renewable energy solutions to streamline internal operations and billing, improve industry efficiency and minimize carbon footprint Grow Portfolio and Capabilities Continued focus on classic macro tower investment opportunities Seek incremental investments using disciplined, proven investment evaluation process Secure franchise communications real estate assets with tower-like returns to enhance product offerings as technology continues to evolve Focus on Innovation Position AMT for success in an emerging 5G world Leverage existing assets for additional applications Evaluate new communications real estate architectures Capture opportunities to serve new tenants beyond traditional mobile operator client base Enhance Industry Leadership Elevate global position as preferred mission-critical communications real estate partner for existing and new tenants Work closely with industry, NGO and government bodies to expand the reach of mobile broadband while driving incremental cash flow 24

25 Definitions Adjusted EBITDA: Net income before income (loss) from equity method investments; Income tax benefit (provision); Other income (expense); Gain (loss) on retirement of long-term obligations; Interest expense; Interest income; Other operating income (expense); Depreciation, amortization and accretion; and Stock-based compensation expense. Adjusted EBITDA Margin: The percentage that results from dividing Adjusted EBITDA by total revenue. Consolidated Adjusted Funds From Operations, or Consolidated AFFO: Nareit FFO attributable to American Tower Corporation common stockholders before (i) straight-line revenue and expense, (ii) stock-based compensation expense, (iii) the deferred portion of income tax, (iv) non-real estate related depreciation, amortization and accretion, (v) amortization of deferred financing costs, capitalized interest, debt discounts and premiums and long-term deferred interest charges, (vi) other income (expense), (vii) gain (loss) on retirement of long-term obligations, (viii) other operating income (expense), and adjustments for (ix) unconsolidated affiliates and (x) noncontrolling interests, less cash payments related to capital improvements and cash payments related to corporate capital expenditures. The Company believes this measure provides valuable insight into the operating performance of its property assets by further adjusting the Nareit FFO attributable to American Tower Corporation common stockholders metric to exclude the factors outlined above, which if unadjusted, may cause material fluctuations in Nareit FFO attributable to American Tower Corporation common stockholders growth from period to period that would not be representative of the underlying performance of our property assets in those periods. In addition, it is a widely used performance measure across our telecommunications real estate sector. Consolidated AFFO per Share: Consolidated AFFO divided by the diluted weighted average common shares outstanding. Churn: Tenant Billings lost when a tenant cancels or does not renew its lease or, in limited circumstances, when the lease rates on existing leases are reduced. Free Cash Flow: Cash provided by operating activities less total cash capital expenditures, including payments on capital leases of property and equipment. The Company believes that Free Cash Flow is useful to investors as the basis for comparing our performance and coverage ratios with other companies in its industry, although this measure of Free Cash Flow may not be directly comparable to similar measures used by other companies. Indian Carrier Consolidation-Driven Churn: Tenant cancellations specifically attributable to short-term carrier consolidation in India. Includes impacts of carrier exits from the marketplace and carrier cancellations as a result of consolidation but excludes normal course churn. The Company believes that providing this additional metric enhances transparency and provides a better understanding of its recurring business without the impact of what it believes to be a transitory event. Nareit Funds From Operations Attributable to American Tower Corporation Common Stockholders: Net income before gains or losses from the sale or disposal of real estate, real estate related impairment charges, real estate related depreciation, amortization and accretion and dividends on preferred stock, and including adjustments for (i) unconsolidated affiliates and (ii) noncontrolling interests. Net Leverage Ratio: Net debt (total long-term debt, including current portion, less cash and cash equivalents) divided by the quarter s annualized Adjusted EBITDA. NOI Yield: The percentage that results from dividing gross margin by total investment. New Site Tenant Billings Growth: The portion of Tenant Billings Growth attributable to New Site Tenant Billings. The Company believes this measure provides valuable insight into the growth attributable to Tenant Billings from recently acquired or constructed properties. New Site Tenant Billings: Day-one Tenant Billings associated with sites that have been built or acquired since the beginning of the prior-year period. Incremental colocations/amendments, escalations or cancellations that occur on these sites after the date of their addition to our portfolio are not included in New Site Tenant Billings. Organic Tenant Billings: Tenant Billings on sites that the Company has owned since the beginning of the prior-year period, as well as Tenant Billings activity on new sites that occurred after the date of their addition to the Company s portfolio. Organic Tenant Billings Growth: The portion of Tenant Billings Growth attributable to Organic Tenant Billings. The Company believes that organic growth is a useful measure of its ability to add tenancy and incremental revenue to its assets for the reported period, which enables investors and analysts to gain additional insight into the relative attractiveness, and therefore the value, of the Company s property assets. 25

26 Definitions Segment Gross Margin: Segment revenue less segment operating expenses, excluding stock-based compensation expense recorded in costs of operations; depreciation, amortization and accretion; selling, general, administrative and development expense; and other operating expenses. Latin America Property segment includes interest income, TV Azteca, net. Segment Operating Profit: Segment gross margin less segment selling, general, administrative and development expense attributable to the segment, excluding stock-based compensation expense and corporate expenses. Latin America Property segment includes interest income, TV Azteca, net. International Pass-through Revenues: In several of our international markets we pass through certain operating expenses to our tenants, including in Latin America where we primarily pass through ground rent expenses, and in India and South Africa, where we primarily pass through power and fuel costs. We record pass-through as revenue and a corresponding offsetting expense for these events. Return on Invested Capital: Adjusted EBITDA less maintenance capital expenditures and corporate capital expenditures and cash taxes, divided by gross property, plant and equipment, intangible assets and goodwill (excluding the impact of recording deferred tax adjustments related to valuation). Straight-line expenses: We calculate straight-line ground rent expense for our ground leases based on the fixed non-cancellable term of the underlying ground lease plus all periods, if any, for which failure to renew the lease imposes an economic penalty to us such that renewal appears, at the inception of the lease, to be reasonably assured. Certain of our tenant leases require us to exercise available renewal options pursuant to the underlying ground lease, if the tenant exercises its renewal option. For towers with these types of tenant leases at the inception of the ground lease, we calculate our straight-line ground rent over the term of the ground lease, including all renewal options required to fulfill the tenant lease obligation. Straight-line revenues: We calculate straight-line rental revenues from our tenants based on the fixed escalation clauses present in non-cancellable lease agreements, excluding those tied to the Consumer Price Index or other inflation-based indices, and other incentives present in lease agreements with our tenants. We recognized revenues on a straight-line basis over the fixed, non-cancellable terms of the applicable leases. Tenant Billings: The majority of the Company s revenue is generated from non-cancellable, long-term tenant leases. Revenue from Tenant Billings reflects several key aspects of the Company s real estate business: (i) colocations/amendments reflects new tenant leases for space on existing towers and amendments to existing leases to add additional tenant equipment; (ii) escalations reflects contractual increases in billing rates, which are typically tied to fixed percentages or a variable percentage based on a consumer price index; (iii) cancellations reflects the impact of tenant lease terminations or nonrenewals or, in limited circumstances, when the lease rates on existing leases are reduced; and (iv) new sites reflects the impact of new property construction and acquisitions. Tenant Billings Growth: The increase or decrease resulting from a comparison of Tenant Billing for a current period with Tenant Billing for the corresponding prior-year period, in each case adjusted for foreign currency exchange fluctuations. 26

27 Risk Factors This presentation contains forward-looking statements concerning our goals, beliefs, expectations, strategies, objectives, plans, future operating results and underlying assumptions, and other statements that are not necessarily based on historical facts. Examples of these statements include, but are not limited to, statements regarding our full year 2018 outlook and our expectations for the closing of signed acquisitions and other targets, our expectations regarding Indian Carrier Consolidation- Driven Churn and factors that could affect our expectations, foreign currency exchange rates, our expectations for the closing of signed acquisitions and our expectations regarding the leasing demand for communications real estate. Actual results may differ materially from those indicated in our forward-looking statements as a result of various important factors, including: (1) a significant decrease in leasing demand for our communications infrastructure would materially and adversely affect our business and operating results, and we cannot control that demand; (2) increasing competition within our industry for tenants may materially and adversely affect our revenue; (3) if our tenants consolidate their operations, exit the telecommunications business or share site infrastructure to a significant degree, our growth, revenue and ability to generate positive cash flows could be materially and adversely affected; (4) our business is subject to government and tax regulations and changes in current or future laws or regulations could restrict our ability to operate our business as we currently do; (5) our foreign operations are subject to economic, political and other risks that could materially and adversely affect our revenues or financial position, including risks associated with fluctuations in foreign currency exchange rates; (6) a substantial portion of our revenue is derived from a small number of tenants, and we are sensitive to changes in the creditworthiness and financial strength of our tenants; (7) our expansion initiatives involve a number of risks and uncertainties, including those related to integrating acquired or leased assets, that could adversely affect our operating results, disrupt our operations or expose us to additional risk; (8) competition for assets could adversely affect our ability to achieve our return on investment criteria; (9) new technologies or changes in a tenant s business model could make our tower leasing business less desirable and result in decreasing revenues and operating results; (10) our leverage and debt service obligations may materially and adversely affect our ability to raise additional financing to fund capital expenditures, future growth and expansion initiatives and to satisfy our distribution requirements; (11) if we fail to remain qualified for taxation as a REIT, we will be subject to tax at corporate income tax rates, which may substantially reduce funds otherwise available, and even if we qualify for taxation as a REIT, we may face tax liabilities that impact earnings and available cash flow; (12) complying with REIT requirements may limit our flexibility or cause us to forego otherwise attractive opportunities; (13) restrictive covenants in the agreements related to our securitization transactions, our credit facilities and our debt securities could materially and adversely affect our business by limiting flexibility, and we may be prohibited from paying dividends on our common stock, which may jeopardize our qualification for taxation as a REIT; (14) our towers, data centers or computer systems may be affected by natural disasters and other unforeseen events for which our insurance may not provide adequate coverage; 27

28 Risk Factors (continued) (15) our costs could increase and our revenues could decrease due to perceived health risks from radio emissions, especially if these perceived risks are substantiated; (16) we could have liability under environmental and occupational safety and health laws; (17) if we are unable to protect our rights to the land under our towers, it could adversely affect our business and operating results; and (18) if we are unable or choose not to exercise our rights to purchase towers that are subject to lease and sublease agreements at the end of the applicable period, our cash flows derived from those towers will be eliminated. For additional information regarding factors that may cause actual results to differ materially from those indicated in our forward-looking statements, we refer you to the information contained in Item 1A of our Form 10-K for the year ended December 31, 2017, under the caption Risk Factors. We undertake no obligation to update the information contained in this presentation to reflect subsequently occurring events or circumstances. 28

29 Historical Reconciliations $ in Millions, totals may not add due to rounding RECONCILIATION OF ADJUSTED EBITDA TO NET INCOME Q Q17 2Q17 3Q17 4Q Net income $57 $347 $247 $374 $382 $594 $482 $803 $672 $233 $970 $307 $388 $335 $195 $1,225 Loss (income) from discontinued operations, net 36 (111) (8) (0) Income from continuing operations $93 $236 $239 $374 $382 $594 $482 $803 $672 $233 $970 $307 $388 $335 $195 $1,225 Income from equity method investments (0) (0) (0) (0) (0) (0) Income tax provision (53) 31 Other (income) expense (21) (6) (1) (0) (29) (12) 1 9 (31) Loss (gain) on retirement of long-term obligations (0) (1) Interest expense Interest income (11) (3) (2) (5) (7) (8) (10) (14) (16) (9) (26) (10) (8) (8) (9) (35) Other operating expenses Depreciation, amortization and accretion ,004 1, , ,716 Stock-based compensation expense ADJUSTED EBITDA $979 $1,092 $1,181 $1,348 $1,595 $1,892 $2,176 $2,650 $3,067 $936 $3,553 $998 $1,021 $1,040 $1,031 $4,090 Divided by total revenue $1,457 $1,594 $1,724 $1,985 $2,444 $2,876 $3,361 $4,100 $4,772 $1,540 $5,786 $1,616 $1,662 $1,681 $1,705 $6,664 ADJUSTED EBITDA MARGIN 67% 69% 68% 68% 65% 66% 65% 65% 64% 61% 61% 62% 61% 62% 60% 61% AFFO RECONCILIATION (1) Q Q17 2Q17 3Q17 4Q Adjusted EBITDA $979 $1,092 $1,181 $1,348 $1,595 $1,892 $2,176 $2,650 $3,067 $936 $3,553 $998 $1,021 $1,040 $1,031 $4,090 Straight-line revenue (70) (50) (36) (105) (144) (166) (148) (124) (155) (30) (132) (52) (51) (49) (43) (194) Straight-line expense Cash interest (227) (244) (240) (238) (301) (381) (435) (572) (573) (180) (694) (178) (179) (181) (185) (723) Interest Income Cash received (paid) for income taxes (2) (35) (35) (40) (36) (54) (69) (52) (69) (64) (24) (96) (23) (37) (27) (49) (137) Dividends on preferred stock (24) (90) (27) (107) (27) (23) (19) (19) (87) Dividend to noncontrolling interest (13) (13) Capital improvement Capex (29) (33) (33) (31) (61) (75) (81) (75) (90) (40) (110) (21) (25) (33) (36) (114) Corpora te Ca pex (13) (6) (8) (12) (19) (20) (30) (24) (16) (7) (16) (3) (4) (6) (5) (17) Consolidated AFFO $642 $756 $852 $953 $1,055 $1,223 $1,470 $1,815 $2,150 $655 $2,490 $721 $725 $748 $707 $2,902 Adjustments for noncontrolling interests N/A N/A N/A N/A ($1) ($16) ($30) ($24) ($34) ($24) ($90) ($41) ($44) ($43) ($19) ($147) AFFO Attributable to Common Stockholders $642 $756 $852 $953 $1,055 $1,207 $1,439 $1,791 $2,116 $631 $2,400 $681 $681 $705 $688 $2,755 Divided by weighted average diluted shares outstanding Consolidated AFFO per Share $ 1.51 $ 1.81 $ 2.09 $ 2.36 $ 2.64 $ 3.06 $ 3.68 $ 4.54 $ 5.08 $ 1.52 $ 5.80 $ 1.68 $ 1.68 $ 1.73 $ 1.64 $ 6.72 AFFO Attributable to Common Stockholders per Share $ 1.51 $ 1.81 $ 2.09 $ 2.36 $ 2.64 $ 3.02 $ 3.61 $ 4.48 $ 5.00 $ 1.47 $ 5.59 $ 1.58 $ 1.58 $ 1.63 $ 1.59 $ 6.38 (1) Calculation of Consolidated AFFO excludes start-up related capital spending. (2) Excludes one-time GTP cash tax charge incurred during the third quarter of

30 Historical Reconciliations $ in Millions, totals may not add due to rounding RETURN ON INVESTED CAPITAL (ROIC) RECONCILIATION (1) (2) (3) 2016 (4) 2017 (5) Adjusted EBITDA $979 $1,092 $1,181 $1,348 $1,595 $1,892 $2,401 $2,650 $3,206 $3,743 $4,149 Cash Taxes (35) (35) (40) (36) (54) (69) (114) (69) (107) (98) (137) Maintenance Capex (29) (33) (33) (31) (61) (75) (81) (75) (124) (159) (115) Corporate Capex (13) (6) (8) (12) (19) (20) (23) (24) (26) (27) (17) Numerator $903 $1,019 $1,100 $1,268 $1,462 $1,728 $2,183 $2,482 $2,948 $3,459 $3,880 Gross PPE $4,992 $5,213 $5,621 $6,376 $7,889 $9,047 $10,844 $11,659 $14,397 $15,652 $16,950 Gross Intangibles 2,666 2,619 2,790 3,213 3,978 4,892 8,471 9,172 12,671 14,795 16,183 Gross Goodwill (6) 2,333 2,334 2,399 2,660 2,824 2,991 3,928 4,180 4,240 4,510 4,879 Denominator $9,991 $10,166 $10,810 $12,249 $14,691 $16,930 $23,243 $25,011 $31,308 $34,957 $38,012 ROIC 9.0% 10.0% 10.2% 10.4% 10.0% 10.2% 9.4% 9.9% 9.4% 9.9% 10.2% NET LEVERAGE RECONCILIATION 4Q15 1Q16 2Q16 3Q16 4Q16 1Q17 2Q17 3Q17 4Q17 Total Debt $17,119 $17,022 $18,717 $18,679 $18,533 $18,890 $19,242 $19,269 $20,205 Less: Cash and cash equivalents Net Debt 16,798 16,686 18,306 18,149 17,746 18,177 18,472 18,469 19,403 Divided by: annualized Adjusted EBITDA 3,206 3,332 3,476 3,660 3,743 3,991 4,082 4,161 4,125 Net Leverage Ratio 5.2x 5.0x 5.3x 5.0x 4.7x 4.6x 4.5x 4.4x 4.7x (1) Historical denominator balances reflect purchase accounting adjustments. (2) 2013 has been adjusted to reflect a full year contribution from the GTP assets. (3) Represents Q annualized numbers to account for full year impact of Verizon transaction. (4) Represents Q annualized numbers to account for full year impact of Viom transaction. (5) Adjusted to annualize impacts of acquisitions closed throughout the year. (6) Excludes the impact of deferred tax adjustments related to valuation. 30

31 Historical Reconciliations: Indian Carrier Consolidation Driven Churn $ in Millions, totals may not add due to rounding Growth Rates vs. Prior Year Inclusive of Indian Carrier Consolidation-Driven Churn 4Q16 4Q17 FY 2016 FY Q17 FY 2017 Total Revenue $1,540 $1,705 $5,786 $6, % 15.2% Total Property Revenue 1,521 1,678 5,713 6, % 14.9% Adjusted EBITDA 936 1,031 3,553 4, % 15.1% Adjusted EBITDA Margin 60.8% 60.5% 61.4% 61.4% Consolidated AFFO ,490 2, % 16.5% Consolidated AFFO per Share $1.52 $1.64 $5.80 $ % 15.9% Consolidated Organic Tenant Billings Growth % 7.4% International Organic Tenant Billings Growth % 9.7% Impact of Indian Carrier Consolidation-Driven Churn 4Q16 4Q17 FY 2016 FY 2017 Total Revenue - $7 - $9 (0.5%) (0.2%) Total Property Revenue (0.5%) (0.2%) Adjusted EBITDA (0.7%) (0.2%) Adjusted EBITDA Margin - 0.2% - 0.0% Consolidated AFFO (0.7%) (0.3%) Consolidated AFFO per Share - $ $0.02 (0.7%) (0.3%) Consolidated Organic Tenant Billings Growth (0.6%) (0.2%) International Organic Tenant Billings Growth (1.5%) (0.6%) Normalized 4Q16 4Q17 FY 2016 FY Q17 FY 2017 Total Revenue $1,540 $1,712 $5,786 $6, % 15.3% Total Property Revenue 1,521 1,686 5,713 6, % 15.1% Adjusted EBITDA 936 1,038 3,553 4, % 15.3% Adjusted EBITDA Margin 60.8% 60.7% 61.4% 61.4% Consolidated AFFO ,490 2, % 16.8% Consolidated AFFO per Share $1.52 $1.65 $5.80 $ % 16.2% Consolidated Organic Tenant Billings Growth % 7.6% International Organic Tenant Billings Growth % 10.3% 31

32 2018 Outlook Reconciliations (1)(2) $ in Millions, totals may not add due to rounding Reconciliations of Outlook for Adjusted EBITDA to Net Income: ($ in millions) Net income $1,390 to $1,470 Interest expense 870 to 850 Depreciation, amortization and accretion 1,770 to 1,810 Income Tax Provision 115 to 106 Stock based compensation expense 105 to 110 Other, including other operating expenses, interest income, gain (loss) on retirement of long-term Full Year 2018 obligations and other income (expense) 50 to 54 Adjusted EBITDA $ 4,300 to $ 4,400 Reconciliations of Outlook for Consolidated Adjusted Funds From Operations to Net Income: ($ in millions) Net income $1,390 to $1,470 Straight-line revenue (61) - (61) Straight-line expense Depreciation, amortization and accretion 1,770 to 1,810 Non-cash stock based compensation expense 105 to 110 Deferred portion of income tax (17) to (33) Amortization of deferred financing costs, capitalized interest and debt discounts and premiums and long-term deferred interest charges 13 to 21 Other, including other operating expense, loss on retirement of long-term obligations Full Year 2018 and other expense (income) 70 to 74 Dividends on preferred stock (10) - (10) Capital improvement capital expenditures (145) to (165) Corporate capital expenditures (10) - (10) Consolidated Adjusted Funds From Operations $ 3,160 $ 3,260 (1) As reported in the Company's 8-K dated February 27, (2) The Company s outlook is based on the following average foreign currency exchange rates to 1.00 U.S. Dollar for February 27, 2018 through December 31, 2018: (a) Argentinean Pesos; (b) 3.30 Brazilian Reais; (c) 615 Chilean Pesos; (d) 2,890 Colombian Pesos; (e) 0.81 Euros; (f) 4.55 Ghanaian Cedi; (g) Indian Rupees; (h) Mexican Pesos; (i) 385 Nigerian Naira; (j) 5,660 Paraguayan Guarani; (k) 3.25 Peruvian Soles; (l) South African Rand; and (m) 3,670 Ugandan Shillings. 32

33 Initial 2017 Outlook Reconciliations (1)(2) $ in Millions, totals may not add due to rounding Reconciliations of Outlook for Adjusted EBITDA to Net Income: ($ in millions) Full Year 2017 Net income $1,175 to $1,245 Interest expense 750 to 770 Depreciation, amortization and accretion 1,535 to 1,565 Income Tax Provision 143 to 133 Stock based compensation expense Other, including other operating expenses, interest income, gain (loss) on retirement of long-term obligations and other income (expense) 116 to 106 Adjusted EBITDA $ 3,810 to $ 3,910 Reconciliations of Outlook for Consolidated Adjusted Funds From Operations to Net Income: ($ in millions) Full Year 2017 Net income $1,175 to $1,245 Straight-line revenue (58) - (58) Straight-line expense Depreciation, amortization and accretion 1,535 to 1,565 Non-cash stock based compensation expense Deferred portion of income tax 7 to 23 Amortization of deferred financing costs, capitalized interest and debt discounts and premiums and long-term deferred interest charges (9) to (5) Other, including other operating expenses, loss on retirement of long-term obligations and other expense (income) 135 to 125 Dividends on preferred stock (87) - (87) Capital improvement capital expenditures (140) to (150) Corporate capital expenditures (15) - (15) Consolidated Adjusted Funds From Operations $ 2,700 $ 2,800 (1) As reported in the Company's 8-K dated February 27, (2) The Company s outlook is based on the following average foreign currency exchange rates to 1.00 U.S. Dollar for the remainder of 2017: (a) Argentinean Pesos; (b) 3.35 Brazilian Reais; (c) 675 Chilean Pesos; (d) 3,060 Colombian Pesos; (e) 0.95 Euros; (f) 4.45 Ghanaian Cedi; (g) Indian Rupees; (h) Mexican Pesos; (i) Nigerian Naira; (j) 3.40 Peruvian Soles; (k) South African Rand; and (l) 3,650 Ugandan Shillings. 33

34 Reconciliation of Indian Carrier Consolidation- Driven Churn Impact to 2018 Outlook (1)(2)(3) $ in Millions, totals may not add due to rounding FY 2017 Results 2018 Outlook, at the Midpoint Midpoint Growth Rates vs. Prior Year Inclusive of Indian Carrier Consolidation- Driven Churn Impact of Indian Carrier Consolidation- Driven Churn Normalized Inclusive of Indian Carrier Consolidation- Driven Churn Impact of Indian Carrier Consolidation- Driven Churn Normalized Inclusive of Indian Carrier Consolidation- Driven Churn Impact of Indian Carrier Consolidation- Driven Churn Normalized Total Property Revenue (4) $6,566 $9 $6,575 $7,025 $145 $7, % 2.0% 9.0% Adjusted EBITDA 4, ,098 4, , % 1.8% 8.2% Consolidated AFFO 2, ,909 3, , % 1.9% 12.5% Consolidated AFFO per Share (5) $6.72 $0.02 $6.74 $7.30 $0.15 $ % 1.9% 10.5% Consolidated Organic Tenant Billings (6) 330 ~5% ~1.5% ~6-7% International Organic Tenant Billings (6) 130 ~2-3% ~4% ~6-7% Asia Organic Tenant Billings (55) 80 (6) 25 ~(7-8%) ~11% ~3-4% (1) As reported in the Company's 8-K dated February 27, (2) The Company s outlook is based on the following average foreign currency exchange rates to 1.00 U.S. Dollar for February 27, 2018 through December 31, 2018: (a) Argentinean Pesos; (b) 3.30 Brazilian Reais; (c) 615 Chilean Pesos; (d) 2,890 Colombian Pesos; (e) 0.81 Euros; (f) 4.55 Ghanaian Cedi; (g) Indian Rupees; (h) Mexican Pesos; (i) Nigerian Naira; (j) 5,660 Paraguayan Guarani; (k) 3.25 Peruvian Soles; (l) South African Rand; and (m) 3,670 Ugandan Shillings. (3) The Company's outlook includes the impact of the Company's pending Vodafone and Idea transactions in India, with an assumed closing date of May 1, 2018 for both transactions. (4) Expected consolidation impacts include an anticipated decline of approximately $55 million in pass-through revenue. (5) Assumes 2018 weighted average diluted share count of million shares. (6) Reflects in-year impact associated with timing of anticipated churn. 34