Cellnex Telecom (BME: CLNX) Capital Markets Day 2024
From Expansion to Value Creation
Cellnex has entered its “Next Chapter” — a confident, forward-looking shift designed for today’s market realities. After building Europe’s leading TowerCo through more than 40 acquisitions, the company is moving decisively from acquisition-led expansion to an industrial model focused on efficiency, organic growth, and disciplined capital allocation.
The goal is clear: reinforce Cellnex’s leadership by delivering stronger cash flow, higher margins, and long-term value for shareholders.
The Foundation (2015–2022)
Growth driven by >40 M&A deals
Emerging European tower market
Abundant large portfolios for acquisition
Low cost of capital
The Next Chapter (Today & Beyond)
Focus on operational excellence & value creation
Mature market with stable dynamics
Limited inorganic opportunities
Higher cost of capital and inflation
Cellnex’s strategy rests on three integrated pillars designed to strengthen performance, improve returns, and unlock substantial free cash flow for shareholders.
Operational Excellence
Cellnex is implementing a comprehensive efficiency programme to streamline costs and improve productivity.
Key initiatives include:
Lease Cost Optimization through accelerated land acquisition and securitisation.
Tower Rationalisation to simplify and optimise the footprint.
O&M Enhancement via automation and contract optimisation.
Targets by 2027:
EBITDAaL margin: 64%
Lease cost reduction: ~8%
Maintenance OpEx and CapEx reduction: ~10%
These improvements are enabled by the “One Cellnex” model — a digitally enabled operating system leveraging data and AI to standardise processes and support better decisions.
The result is stronger margins and greater free cash flow, directly supporting shareholder distributions.
Organic Growth & Portfolio Optimization
Cellnex is prioritizing value-accretive organic growth through:
Co-location: High-margin, low-investment tenant additions on existing sites.
Build-to-Suit (BTS): New sites backed by long-term anchor commitments.
Cellnex expects ~5% annual PoP growth through 2027, split evenly between co-locations and BTS.
A strategic portfolio review is also underway to focus capital and management attention on the highest-value assets.
The recent sale of a 49% stake in the Nordics business at 24x EBITDAaL is an early example of this disciplined approach.
Capital Allocation & Shareholder Returns
Cellnex has adopted a clear, disciplined financial framework designed to strengthen the balance sheet and accelerate shareholder returns.
Key priorities:
Achieve S&P Investment Grade by end-2024
Maintain 5.0–6.0x Net Debt / EBITDA long-term
Shift capital allocation toward dividends and buybacks
Shareholder return commitments to 2030:
>€10B total capital to be deployed
~€3B minimum dividends, starting with €500M+ by 2026, growing at ≥7.5% per year
>€7B allocated to buybacks, special dividends, and selective industrial opportunities — with direct returns as the priority
This policy provides transparency, predictability, and a clear pathway to meaningful long-term returns.
Cellnex has translated its strategy into clear financial targets through 2027, demonstrating strong growth in revenue, profitability, and cash generation. The standout figure is the ~8x increase in FCF from 2023 to 2027, driven by completed investment cycles and substantial efficiency gains. This provides strong visibility on the company’s ability to deliver rising, long-term shareholder returns.
Strategic Pivot
Cellnex is transitioning from rapid expansion to a model centered on efficiency, organic growth, and industrial value creation — fully leveraging its leadership position across Europe.
Commitment to Shareholders
A clear, investment-grade financial framework underpins predictable dividend growth and more than €7B in additional returns through buybacks and special distributions.
Financial Roadmap
Ambitious yet realistic 2027 targets — especially in free cash flow — provide visibility and confidence in the company’s ability to deliver long-term, compounding value.
Cellnex is entering its next stage with clarity, discipline, and a strong commitment to maximizing shareholder returns.
