Document and Entity Information
Document and Entity Information | 12 Months Ended |
Dec. 31, 2021shares | |
Document Information [Line Items] | |
Document Type | 20-F |
Document Registration Statement | false |
Document Annual Report | true |
Document Period End Date | Dec. 31, 2021 |
Current Fiscal Year End Date | --12-31 |
Document Transition Report | false |
Document Shell Company Report | false |
Entity File Number | 001-40876 |
Entity Registrant Name | IHS Holding Ltd |
Entity Incorporation, State or Country Code | E9 |
Entity Address, Address Line One | 1 Cathedral Piazza |
Entity Address, Adress Line Two | 123 Victoria Street |
Entity Address, City or Town | London |
Entity Address, Postal Zip Code | SW1E 5BP |
Entity Address, Country | GB |
Title of 12(b) Security | Ordinary shares, par value $0.30 per share |
Trading Symbol | IHS |
Security Exchange Name | NYSE |
Entity Common Stock, Shares Outstanding | 327,820,418 |
Entity Well-known Seasoned Issuer | No |
Entity Voluntary Filers | No |
Entity Current Reporting Status | Yes |
Entity Interactive Data Current | Yes |
Entity Filer Category | Non-accelerated Filer |
Entity Emerging Growth Company | false |
ICFR Auditor Attestation Flag | false |
Document Accounting Standard | International Financial Reporting Standards |
Entity Shell Company | false |
Auditor Name | PricewaterhouseCoopers LLP |
Auditor Firm ID | 876 |
Auditor Location | London, United Kingdom |
Entity Central Index Key | 0001876183 |
Document Fiscal Year Focus | 2021 |
Document Fiscal Period Focus | FY |
Amendment Flag | false |
Business Contact | |
Document Information [Line Items] | |
Contact Personnel Name | Sam Darwish |
City Area Code | 44 |
Local Phone Number | 20 8106 1600 |
Entity Address, Address Line One | 1 Cathedral Piazza |
Entity Address, Adress Line Two | 123 Victoria Street |
Entity Address, City or Town | London |
Entity Address, Postal Zip Code | SW1E 5BP |
Entity Address, Country | GB |
CONSOLIDATED STATEMENT OF INCOM
CONSOLIDATED STATEMENT OF INCOME(LOSS) AND OTHER COMPREHENSIVE INCOME(LOSS) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
CONSOLIDATED STATEMENT OF INCOME/(LOSS) AND OTHER COMPREHENSIVE INCOME/(LOSS) | |||
Revenue | $ 1,579,730 | $ 1,403,149 | $ 1,231,056 |
Cost of sales | (907,388) | (838,423) | (810,967) |
Administrative expenses | (336,511) | (236,112) | (556,285) |
Reversal of loss allowance/(loss allowance) on trade receivables | 34,031 | (13,081) | (27,944) |
Other income | 18,509 | 16,412 | 7,036 |
Operating profit /(loss) | 388,371 | 331,945 | (157,104) |
Finance income | 25,522 | 148,968 | 36,045 |
Finance costs | (422,034) | (633,766) | (288,915) |
Profit/(loss) before income tax | (8,141) | (152,853) | (409,974) |
Income tax expense | (17,980) | (169,829) | (13,518) |
Loss for the year | (26,121) | (322,682) | (423,492) |
Loss attributable to: | |||
Owners of the Company | (25,832) | (321,994) | (423,492) |
Non-controlling interest | (289) | (688) | |
Loss for the year | $ (26,121) | $ (322,682) | $ (423,492) |
Loss per share - basic | $ (0.09) | $ (1.09) | $ (1.44) |
Loss per share - diluted | $ (0.09) | $ (1.09) | $ (1.44) |
Items that may be reclassified to profit or loss | |||
Fair value gain through other comprehensive income | $ 3 | $ 1 | |
Exchange differences on translation of foreign operations | 36,698 | $ 94,411 | 5,036 |
Other comprehensive income for the year, net of taxes | 36,701 | 94,411 | 5,037 |
Total comprehensive income/(loss) for the year | 10,580 | (228,271) | (418,455) |
Total comprehensive loss for the year attributable to: | |||
Owners of the Company | 14,250 | (227,560) | (418,455) |
Non-controlling interest | (3,670) | (711) | |
Total comprehensive income/(loss) for the year | $ 10,580 | $ (228,271) | $ (418,455) |
CONSOLIDATED STATEMENT OF FINAN
CONSOLIDATED STATEMENT OF FINANCIAL POSITION - USD ($) $ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 |
Non-current assets | ||
Property, plant and equipment | $ 1,708,834 | $ 1,438,040 |
Right of use assets | 520,651 | 468,130 |
Goodwill | 869,319 | 656,256 |
Other intangible assets | 701,425 | 690,841 |
Fair value through other comprehensive income financial assets | 11 | 8 |
Deferred income tax assets | 11,064 | 13,443 |
Derivative financial instrument assets | 165,100 | 155,196 |
Trade and other receivables | 69,479 | 36,409 |
Non-current assets | 4,045,883 | 3,458,323 |
Current assets | ||
Inventories | 42,022 | 49,222 |
Income tax receivable | 128 | |
Derivative financial instrument assets | 27,495 | |
Trade and other receivables | 469,130 | 327,187 |
Cash and cash equivalents | 916,488 | 585,416 |
Current assets | 1,427,768 | 989,320 |
TOTAL ASSETS | 5,473,651 | 4,447,643 |
Current liabilities | ||
Trade and other payables | 499,432 | 409,493 |
Provisions for other liabilities and charges | 343 | 3,797 |
Derivative financial instrument liabilities | 3,771 | 7,285 |
Income tax payable | 68,834 | 48,703 |
Borrowings | 207,619 | 186,119 |
Lease liabilities | 50,560 | 28,246 |
Current liabilities | 830,559 | 683,643 |
Non-current liabilities | ||
Trade and other payables | 312 | 9,565 |
Borrowings | 2,401,471 | 2,017,090 |
Lease liabilities | 325,541 | 286,501 |
Provisions for other liabilities and charges | 71,598 | 49,469 |
Deferred income tax liabilities | 118,210 | 177,184 |
Non-current liabilities | 2,917,132 | 2,539,809 |
TOTAL LIABILITIES | 3,747,691 | 3,223,452 |
EQUITY | ||
Stated capital | 5,223,484 | 4,530,870 |
Accumulated losses | (2,860,205) | (2,835,390) |
Other reserves | (780,272) | (485,505) |
Equity attributable to owners of the Company | 1,583,007 | 1,209,975 |
Non-controlling interest | 142,953 | 14,216 |
TOTAL EQUITY | 1,725,960 | 1,224,191 |
TOTAL EQUITY AND LIABILITIES | $ 5,473,651 | $ 4,447,643 |
CONSOLIDATED STATEMENT OF CHANG
CONSOLIDATED STATEMENT OF CHANGES IN EQUITY - USD ($) $ in Thousands | Equity attributable to owners of parent | Stated capital | Accumulated losses | Other reserves | Non-controlling interests | Total |
Beginning Balance, Stated capital at Dec. 31, 2018 | $ 1,332,075 | $ 4,518,502 | $ (2,089,904) | $ (1,096,523) | $ 1,332,075 | |
Issue of shares | 12,368 | 12,368 | 12,368 | |||
Share-based payment expense | 504,331 | 504,331 | 504,331 | |||
Total transactions with owners of the Company | 516,699 | 12,368 | 504,331 | 516,699 | ||
Profit (loss) | (423,492) | (423,492) | (423,492) | |||
Other comprehensive income/(loss) | 5,037 | 5,037 | 5,037 | |||
Total comprehensive income/(loss) for the year | (418,455) | (423,492) | 5,037 | (418,455) | ||
Ending Balance, Stated capital at Dec. 31, 2019 | 1,430,319 | 4,530,870 | (2,513,396) | (587,155) | 1,430,319 | |
NCI arising on business combination | $ 14,927 | 14,927 | ||||
Share-based payment expense | 7,216 | 7,216 | 7,216 | |||
Total transactions with owners of the Company | 7,216 | 7,216 | 14,927 | 22,143 | ||
Profit (loss) | (321,994) | (321,994) | (688) | (322,682) | ||
Other comprehensive income/(loss) | 94,434 | 94,434 | (23) | 94,411 | ||
Total comprehensive income/(loss) for the year | (227,560) | (321,994) | 94,434 | (711) | (228,271) | |
Ending Balance, Stated capital at Dec. 31, 2020 | 1,209,975 | 4,530,870 | (2,835,390) | (485,505) | 14,216 | 1,224,191 |
NCI arising on business combination | 132,407 | 132,407 | ||||
Issue of shares | 349,846 | 349,846 | 349,846 | |||
Options converted to shares | 342,768 | (342,768) | ||||
Share-based payment expense | 13,003 | 13,003 | 13,003 | |||
Other reclassifications related to share based payment | (4,067) | 1,017 | (5,084) | (4,067) | ||
Total transactions with owners of the Company | 358,782 | 692,614 | 1,017 | (334,849) | 132,407 | 491,189 |
Profit (loss) | (25,832) | (25,832) | (289) | (26,121) | ||
Other comprehensive income/(loss) | 40,082 | 40,082 | (3,381) | 36,701 | ||
Total comprehensive income/(loss) for the year | 14,250 | (25,832) | 40,082 | (3,670) | 10,580 | |
Ending Balance, Stated capital at Dec. 31, 2021 | $ 1,583,007 | $ 5,223,484 | $ (2,860,205) | $ (780,272) | $ 142,953 | $ 1,725,960 |
CONSOLIDATED STATEMENT OF CASH
CONSOLIDATED STATEMENT OF CASH FLOWS - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Cash flows from operating activities | |||
Cash from operations | $ 788,073 | $ 656,699 | $ 660,025 |
Employee long term retirement benefits | (112) | ||
Income taxes paid | (29,147) | (14,540) | (13,396) |
Payment for rent | (8,506) | (6,838) | (4,577) |
Payment for tower and tower equipment decommissioning | (231) | (65) | |
Net cash generated from operating activities | 750,189 | 635,256 | 641,940 |
Cash flows from investing activities | |||
Purchase of property, plant and equipment - capital work in progress | (224,479) | (87,014) | (91,004) |
Purchase of other property, plant and equipment - others | (13,666) | (7,786) | (21,648) |
Payment in advance for property, plant and equipment | (159,276) | (131,935) | (140,340) |
Purchase of software and licenses | (5,054) | (2,464) | (5,286) |
Consideration paid on business combinations, net of cash acquired | (401,039) | (542,905) | |
Proceeds from disposal of property, plant and equipment | 4,742 | 2,227 | 2,403 |
Insurance claims received | 16,672 | 6,264 | 3,607 |
Interest income received | 7,798 | 5,101 | 14,732 |
Payments of short term deposits | (103,647) | ||
Restricted cash transferred from other receivables | 1,730 | ||
Net cash used in investing activities | (877,949) | (758,512) | (235,806) |
Cash flows from financing activities | |||
Capital raised | 378,000 | 12,368 | |
Cost of capital raised | (28,154) | ||
Bank loans and bond proceeds received | 1,076,063 | 232,219 | 1,800,000 |
Bank loans and bonds repaid | (653,504) | (99,903) | (1,622,317) |
Fees on loans and derivative instruments | (20,426) | (9,403) | (61,398) |
Interest paid | (168,285) | (167,938) | (171,883) |
Costs paid on early loan settlement | (18,171) | (22,153) | |
Payment for the principal of lease liabilities | (63,324) | (39,153) | (58,330) |
Interest paid for lease liabilities | (32,923) | (19,239) | (11,634) |
Initial margin received on non-deliverable forwards | 36,714 | 5,066 | 8,023 |
Initial margin deposited on non-deliverable forwards | (19,436) | (33,846) | (8,072) |
Profits received/(losses settled) on non-deliverable forwards | 37,711 | 4,061 | (2,923) |
Net cash generated from/(used in) financing activities | 524,265 | (128,136) | (138,319) |
Net increase/(decrease) in cash and cash equivalents | 396,505 | (251,392) | 267,815 |
Cash and cash equivalents at beginning of year | 585,416 | 898,802 | 633,450 |
Effect of movements in exchange rates on cash | (65,433) | (61,994) | (2,463) |
Cash and cash equivalents at end of year | $ 916,488 | $ 585,416 | $ 898,802 |
General Information
General Information | 12 Months Ended |
Dec. 31, 2021 | |
General information | |
General information | 1. These consolidated financial statements are the financial statements of IHS Holding Limited (‘the Company’) and its subsidiaries (together hereafter referred to as ‘the Group’ or ‘IHS’). IHS Holding Limited is incorporated in the Cayman Islands under the Companies Act (as amended) as a limited liability company. The Company is domiciled in the Cayman Islands and the address of its registered office is 190 Elgin Avenue, George Town, Grand Cayman KY1-9008, Cayman Islands. IHS is principally involved in providing infrastructure for the telecommunications industry. The consolidated financial statements are presented in US Dollars ($) and all values are rounded to the nearest thousands, except where otherwise indicated. These consolidated financial statements have been authorized for issue on March 15, 2022 by the Board of Directors. |
Summary of significant accounti
Summary of significant accounting policies | 12 Months Ended |
Dec. 31, 2021 | |
Summary of significant accounting policies | |
Summary of significant accounting policies | 2. The principal accounting policies applied in the preparation of these financial statements are set out below. These policies have been consistently applied to all the periods presented, unless otherwise stated. 2.1 The consolidated financial statements of IHS have been prepared in accordance with International Financial Reporting Standards (IFRS) as issued by the International Accounting Standards Board (IASB). The consolidated financial statements have been prepared under the historical cost convention, as modified by financial assets and liabilities (including derivative financial instruments) which are recognized at fair value. 2.1.1 (a) The Group has applied the following standards and amendments for the first time for its annual reporting period commencing January 1, 2021: ● Interest Rate Benchmark Reform – Phase 2 (Amendments to IFRS 9, IAS 39 and IFRS 7) ● Annual Improvements to IFRS Standards 2018-2020 Cycle The amendments to standards listed above did not have any material impact on the Group’s financial statements. (b) Certain new accounting standards, interpretations and amendments have been published that are not effective for December 31, 2021 reporting period and have not been early adopted by the Group. They are: ● Annual Improvements to IFRS Standards 2018–2020 (subsidiary as a first-time adopter) (Amendment to IFRS 1) ● Reference to the Conceptual Framework (Amendment to IFRS 3) ● IFRS Standards 2018–2020 (fees in the ‘10 per cent’ test for derecognition of financial liabilities) (Amendment to IFRS 9) ● Classification of liabilities (Amendment to IAS 1) ● Defer the effective date of the January 2020 amendments (Amendment to IAS 1) ● Disclosure of accounting policies (Amendment to IAS 1) ● Deferred tax on leases and decommissioning obligations (Amendment to IAS 12) ● Prohibiting a company from deducting from the cost of property, plant and equipment amounts received from selling items produced while the company is preparing the asset for its intended use (Amendment to IAS 16) ● Costs which should be included in the cost of fulfilling a contract when determining whether a contract is onerous (Amendment to IAS 37) None of the above amendments to standards are expected to have a material effect on the Group’s financial statements. 2.2. (a) The consolidated financial statements include the financial information and results of the Company and those entities in which it has a controlling interest. The Group controls an entity when the Group is exposed to, or has rights to, variable returns from its involvement with the entity and has the ability to affect those returns through its power over the entity. Subsidiaries are all entities (including structured entities) over which the Group has control. Subsidiaries are fully consolidated from the date on which control is transferred to the Group. They are deconsolidated from the date the control ceases. All intercompany balances and transactions have been eliminated. (b) For acquisitions that meet the definition of a business combination, the Group applies the acquisition method of accounting where assets acquired and liabilities assumed are recorded at fair value at the date of each acquisition, and the results of operations are included with those of the Group from the dates of the respective acquisitions. Any excess of the purchase price paid by the Group over the amounts recognized for assets acquired and liabilities assumed is recorded as goodwill and any acquisition related costs are expensed as incurred. The Group recognizes any non-controlling interest in the acquiree either at fair value or at the non-controlling interest’s proportionate share of the recognized amounts of acquiree’s identifiable net assets. The consideration transferred for the acquisition comprises the fair value of the assets transferred, liabilities incurred, equity interests issued by the Group and any contingent consideration. Where settlement of any part of cash consideration is deferred, the amounts payable in the future are discounted to their present value as at the date of exchange. The discount rate used is the entity’s incremental borrowing rate, being the rate at which a similar borrowing could be obtained from an independent financier under comparable terms and conditions. If the Group gains control in a business combination in stages, the acquisition date carrying value of the acquirer’s previously held equity interest in the acquiree is remeasured to fair value at the acquisition date; any gains or losses arising from such remeasurement are recognized in profit or loss. The Group has considered whether any of its business combinations represent a sale and leaseback transaction from a lessor perspective. It has been determined that since the space on towers and associated assets are able to be leased to multiple tenants without restriction, that no such arrangement of the entire tower site portfolio acquired exists. (c) The Group treats transactions with non-controlling interests as transactions with equity owners of the Company. A change in ownership interest results in an adjustment between the carrying amounts of the controlling and non-controlling interests to reflect their relative interests in the subsidiary. Any difference between the amount of the adjustment to non-controlling interests and any consideration paid or received is recognized in a separate reserve within equity attributable to owners of the Company. 2.3 Operating segments are components of IHS’s business activities about which separate financial information is available and reported internally to the chief operating decision maker. The Group’s Executive Committee has been identified as the chief operating decision maker, responsible for allocating resources and assessing performance of the operating segments. The Group’s Executive Committee consists of: the Chief Executive Officer (“CEO”), the Chief Operating Officer (“COO”), the Chief Financial Officer (“CFO”), the General Counsel, both Deputy CFOs, the IHS Nigeria CEO, and the Chief Human Resource Officer. Latam and MENA are operating segments effective from February 2020 following the acquisition of IHS Brasil Cessão de Infraestruturas S.A. and IHS Kuwait Limited (refer to note 31). This reflects the way the Company’s chief operating decision maker (‘‘CODM’’) is provided with financial information which aligns to internal regional management organizational reporting lines and responsibilities. All reporting to the CODM analyzes performance in this way and resources are allocated on this basis. 2.4 (a) Items included in the financial statements of each of the Group’s entities are measured using the currency of the primary economic environment in which the entity operates (the “functional currency”). The consolidated financial statements are presented in US Dollars. (b) During the year ended December 31, 2017, the Central Bank of Nigeria introduced a new foreign exchange window, which includes the NAFEX (Nigerian Autonomous Foreign Exchange Fixing). This resulted in a situation where there are several different official exchange rates in the market, thereby requiring the Company to monitor and evaluate which exchange rate is most appropriate to apply in translating foreign currency transactions in its Nigeria businesses and in translating Naira amounts for Group reporting purposes. Where multiple official exchange rates exist, the Group assesses the appropriate rate to use and takes into account relevant factors. In the case of translating foreign operations or foreign transactions, such factors include access to those rates in the future to meet payments or dividends. In determining whether it is appropriate to move from one official rate to another, the Group considers the available rates in official markets for settlement of transactions. Refer to note 3 for further information. (c) Foreign currency transactions are translated into the functional currency using the exchange rates prevailing at the dates of the transactions or valuation where items are remeasured. Foreign exchange gains and losses resulting from the settlement of such transactions and from the translation at year end exchange rates of monetary assets and liabilities denominated in foreign currencies are recognized in profit or loss. Foreign exchange gains and losses that relate to borrowings and cash and cash equivalents are presented in the statement of income and other comprehensive income within “finance income” or “finance cost.” Foreign exchange gains and losses that relate to other monetary items are presented in the statement of income and other comprehensive income within “cost of sales,” “administrative expense” and “other income” as appropriate. Non-monetary items that are measured at fair value in a foreign currency are translated using the exchange rates at the date when the fair value was determined. Translation differences on assets and liabilities carried at fair value are reported as part of the fair value gain or loss. For example, translation differences on non-monetary assets and liabilities such as equities designated as fair value through other comprehensive income are recognized in other comprehensive income. The subsidiaries based in Nigeria translated their foreign currency transactions into the functional currency, Nigerian Naira, at the Nigerian Autonomous Foreign Exchange Fixing (“NAFEX”) prevailing rate at the date of the transaction. Monetary items and liabilities denominated in foreign currencies were also translated at the NAFEX rate. The NAFEX rate was between 394.13 and 435.00 during 2021 (2020: 363.2 and 410.25, 2019: 360.4 and 364.7) and at December 31, 2021 was 435.00 (December 31, 2020: 410.25, December 31, 2019: 364.7). Both years experienced a spike in the month of December of that year, with the average rate for December 2021 being 415.6 (2020: 394.3). Refer to note 3 for further information on foreign exchange rate assessment. The results and financial position of all the Group entities (none of which has the currency of a hyper inflationary economy) that have a functional currency different from the presentation currency are translated into the presentation currency as follows: ● assets and liabilities for each statement of financial position presented are translated at the closing rate at the date of that statement of financial position, ● income and expenses for each statement of income and other comprehensive income are translated at the monthly average exchange rates (unless this average is not a reasonable approximation of the cumulative effect of the rates prevailing on the transaction dates, in which case income and expenses are translated at the rate on the dates of the transactions), and ● all resulting exchange differences are recognized in other comprehensive income. On consolidation, exchange differences arising from the translation of the net investment in foreign operations and of borrowings are taken to other comprehensive income. Goodwill and fair value adjustments arising on the acquisition of a foreign entity are treated as assets and liabilities of the foreign entity and translated at the closing rate. Exchange differences arising are recognized in other comprehensive income. The results of the subsidiaries based in Nigeria were translated into US Dollars at the NAFEX monthly average exchange rate for income and expenses and the assets and liabilities at the NAFEX closing rate at the date of the statement of financial position with rates as noted above. Refer to note 3 for further information. 2.5 Our revenue is derived from fees paid by our customers for services from our colocation business and its ancillary managed services. The colocation business involves the lease of space on IHS owned and leased towers, which are shared by various operators and data service providers. Revenue is generated on towers either from anchor tenants (original tenants on towers) or colocation tenants (subsequent tenants) when they install equipment on towers. A portion of colocation arrangements for the rental of space on the towers and other assets on tower sites, on which the use of space is dependent, is within the scope of IFRS 16 Leases. A portion of colocation arrangements for the provision of services and energy charges is within the scope of IFRS 15 ‘Revenue from contracts with customers’ as a provision of service. The Group also offers ancillary services to manage tenant operations of existing customers on a limited basis. Revenue from such managed services is within the scope of IFRS 15 ‘Revenue from contracts with customers’. In determining the amounts of colocation revenue from our contracts with customers that fall within the scope of IFRS 15 or IFRS 16, the Group considers whether there are separate performance obligations to which a portion of the transaction price needs to be allocated and revenue recognized separately. For colocation services the Group determines the transaction price (including lease and non-lease elements) at contract inception and considers the effects of: ● Variable consideration - The contractual price may be subject to service credits, price indexation, discounts provided on site consolidation and discounts associated with site occupancy. All of these items of variable consideration are considered to relate to individual service periods of series performance obligations, or represent contingent rentals, and are therefore recognized in the future periods in which they arise rather than when estimating the transaction price at contract inception. ● The existence of significant financing components - Financing components are not expected to be significant as services and payments are generally in line over the period of the contract. ● Consideration payable to the customer (if any) - Payments to customers (such as rebates and discounts refunded to the customer and payments for exit fees) are deducted from transaction price unless they are payments for a distinct good or service supplied to the Group in return for the payments. At the date of contract inception, the Group determines the stand-alone selling prices of the performance obligations (including the lease elements of the contract) using a combination of data on observable prices from comparable managed service arrangements, supplemented by the cost plus a margin approach. The Group allocates the transaction price to these non-lease elements of the contract and between performance obligations within the non-lease element of the contract on the basis of relative stand-alone selling price. Revenue is typically invoiced quarterly in advance except where a deferral of invoicing has been agreed with a customer such as where there is an ongoing dispute over pricing in which case revenue is accrued on the basis of the expected outcome for performance obligations satisfied in the period. Customer contracts typically require payment within 30 to 60 days. (a) For non-lease revenue, two separate performance obligations have typically been identified, one in respect of the operation of tower infrastructure and one in respect of the provision of maintenance services and power, with each being a series of performance obligations to stand ready to deliver the required services. The identification of these two performance obligations does not change the timing of revenue recognition of the non-lease component as both are typically satisfied over the same time period. In limited cases, contracts may provide the customer with a right to purchase additional services at a significant discount. In these cases, the material right is also identified as a performance obligation. On initial recognition of revenue, the Group assesses the recoverability of revenue and recognizes the revenue, in respect of satisfied performance obligations, which is expected to be recovered. Amounts not expected to be recovered at the point of initial recognition are considered to be variable consideration, contingent upon the receipt of funds from the customer and are therefore subject to measurement constraints as such payments are not wholly within the control of the Group. The assessment of amounts expected to be recovered, and indirectly the variable consideration component, are closely aligned with the assumed credit risk of the customer, determined as part of the assessment of expected credit losses made in accordance with the Group’s IFRS 9 expected credit loss policy as described in note 2.17.4. (b) The portion of colocation revenue, for which IHS is the lessor, is treated as a lease. Revenue from these operating lease arrangements, including fixed escalation clauses present in non-cancellable lease agreements is recognized on a straight line basis over the current lease term of the related lease agreements, when collectability is reasonably assured. The duration of these lease arrangements is typically between 5 and 10 years. Escalation clauses tied to the Consumer Price Index (“CPI”) or other inflation based indices, are excluded from the straight line calculation, however, any fixed increases are included. Revenue is recognized in the accounting period in which the rental income is earned and services are rendered. Amounts billed or received for services prior to being earned are deferred and reflected in deferred revenue until the criteria for recognition have been met. (c) Revenue from managed services contracts with customers is recognized when control of the services is transferred to the customer at an amount that reflects the consideration to which the Group expects to be entitled in exchange for those services. Revenue is recognized in the accounting period in which the services are rendered by reference to the stage of completion based on the terms of each contract. Services revenues are derived under contracts or arrangements with customers that provide for billings either on a fixed price basis or a variable price basis, which includes factors such as time and expenses. Revenues are recognized as services are performed. Amounts billed or received for services prior to being earned are deferred and reflected in deferred revenue in the accompanying statement of financial position until the criteria for recognition have been met. 2.6 Certain revenue contracts and subsequent amendments include fees that are priced in $ but are invoiced and settled in the relevant local currency of the operation using foreign exchange rates calculated in accordance with the contractual terms. Where the contractual foreign exchange rates are reset at regular intervals in arrears, management evaluates and determines at the date of inception, or at the date of material modification, of the contracts whether the reset features are closely related to the host contracts or not. In making the evaluation, management assessed that the $ is a commonly used currency in the local operation, and that the reset interval was sufficiently frequent to approximate the local currency spot exchange rate given economic conditions at that time. Management also considers whether, at the time of inception or material modification, contract rates reference a liquid market exchange rate. If reference rates are assessed as liquid the embedded derivative is assessed as closely related and no accounting bifurcation is made. Where such fees that are priced in $ are translated to local currency at the time of billing using a fixed, pre-determined exchange rate or an exchange rate which is not referenced to a liquid market exchange rate, this results in an embedded derivative which is not closely related to the host contract and is thus bifurcated, fair valued and disclosed separately. The fair values of these embedded derivatives are determined by reference to the discounted forecast billings under the contractual rates compared to those under the forecast liquid market rates. Upon initial recognition of the revenue embedded derivative asset or liability, the Group recognizes a contract liability or asset, respectively. The contract liability or asset is released to revenue over the shorter of the term of the contract or the term over which the conditions that result in the embedded derivative expire. The release to revenue is recognized on the same basis that those contractual conditions materialize, to match the release of the contract liability or asset to the recognition of revenue from the underlying contract. 2.7 The Group is a lessee of various assets, comprising land and building, towers, equipment and motor vehicles. The determination whether an arrangement is, or contains, a lease is based on whether the contract conveys a right to control the use of an identified asset for a period of time in exchange for consideration. The following sets out the Group’s lease accounting policy for all leases with the exception of leases with low-value (i.e. < $5,000) and short term of less than 12 months for which the Group has taken the exemption under the standard and are expensed to profit or loss as incurred. (a) The Group recognizes right of use assets at the commencement date of the lease (i.e., the date the underlying asset is available for use under the contract). Right of use assets are measured at cost, less any accumulated depreciation and impairment losses, and adjusted for any remeasurement of lease liabilities. The cost of right of use assets includes the amount of lease liabilities recognized, initial direct costs incurred, and lease payments made at or before the commencement date (which do not form part of the lease liability value at the commencement date). Right of use assets are depreciated on a straight-line basis over the shorter of their estimated useful life and the lease term. The right-of-use assets are tested for impairment in accordance with IAS 36 “Impairment of Assets”. (b) At the commencement date of the lease, the Group recognizes lease liabilities measured at the present value of all remaining lease payments to be made over the lease term. The lease payments include fixed payments (including in-substance fixed payments where the contracts specify fixed or minimum uplifts) and variable lease payments that depend on an index or a rate. The variable lease payments that do not depend on an index or a rate are recognized as an expense in the period in which the event or condition that triggers the payment occurs. Due to the nature of our leased assets the interest rate implicit in the lease is usually not readily determinable, the Group therefore uses the incremental borrowing rate in calculating the present value of lease payments at the lease commencement date. The incremental borrowing rate is calculated using a series of inputs, including: a local currency cost of debt for each country based on local borrowing (or where not available, an inflation adjusted US$ cost of debt which encompasses the country specific adjustment), an adjustment for the duration of the referenced borrowings to arrive at an interest rate for a one-year facility, and an adjustment for the lease term based on local government, US or Eurozone bond yields, as appropriate in the context of each country’s debt markets. The finance cost is charged to profit or loss over the lease period so as to produce a constant periodic rate of interest on the remaining balance of the liability for each period. In addition, the carrying amount of lease liabilities is remeasured if there is a modification, a change in the lease term or a change in the in-substance fixed lease payments. The Group determines the lease term as the non-cancellable term of the lease, together with any periods covered by an option to extend the lease if it is reasonably certain to be exercised and any periods covered by an option to terminate the lease, if it is reasonably certain that the termination options will not to be exercised. The Group has the option under some of its leases to lease the assets for additional periods of up to 10 years. The Group applies judgement in evaluating whether it has a unilateral option to renew the lease for a further period and is reasonably certain to exercise the option to renew (note 3). That is, it considers all relevant factors that create an economic incentive for it to exercise the renewal. After the commencement date, the Group reassesses the lease term if there is a significant event or change in circumstances that is within its control and affects its ability to exercise (or not to exercise) the option to renew. 2.8 Cost of sales is mainly comprised of power generation costs, depreciation, tower repairs and maintenance costs, operational staff and costs, site rental costs. 2.9 Administrative expenses are costs not directly related to provision of services to customers, but which support our business as a whole. These overhead expenses primarily consist of administrative staff costs (including key management compensation), office rent and related property expenses, insurance, travel costs, professional fees, depreciation and amortization of administrative assets, net (gain)/loss on disposal of property, plant and equipment and other sundry costs. Administrative expenses also includes other corporate overhead expenses related to the Group’s acquisition efforts and costs associated with new business initiatives. 2.10 Other income includes proceeds from insurance claims and the remeasurement of contingent consideration arising from acquisitions. 2.11 Interest income is recognized in profit or loss and is calculated using the effective interest method as set out in IFRS 9. 2.12 These are mainly towers and towers equipment, fiber telecommunications network cables and equipment, land and buildings, furniture and office equipment, motor vehicles and capital work in progress that are used directly by the Group in the provision of services to customers, or for administrative purposes. The assets are carried at historical cost less accumulated depreciation and accumulated impairment losses. Historical cost includes expenditure that is directly attributable to the acquisition of the assets including amounts related to the cost of future decommissioning and site restoration obligations. Subsequent costs are included in the asset’s carrying amount or recognized as a separate asset, as appropriate, only when it is probable that future economic benefits associated with the asset will flow to the Group and the cost can be measured reliably. The carrying amount of the replaced asset is derecognized. All other repairs and maintenance are charged to profit or loss during the financial period in which they are incurred. Freehold land is not depreciated. Depreciation on other assets is calculated using the straight-line method to allocate their cost to their residual values over their estimated useful lives, as follows: Towers and tower equipment • Base station equipment (including civil costs and overheads) 10 - 20 years • Base station equipment (other equipment) 15 years • Base station equipment (rectifier and solar power) 10 years • Base station equipment (alarm and battery) 3 - 5 years • Base station equipment (generator & generator overhaul) 1 - 3 years Fiber assets • Fixed line network equipment (including civil works, duct system, cable system and survey costs) 25 years • Outdoor cabinet 10 years Land and buildings, furniture and office equipment, and motor vehicles • Office complex 40 years • Furniture and office equipment 3 years • Motor vehicles 4 years Asset residual values and useful lives are reviewed and adjusted if appropriate, at the end of each reporting period. Where an indication of impairment exists, an asset’s carrying amount is written down immediately to its recoverable amount if the asset’s carrying amount is greater than its estimated recoverable amount. The gain or loss arising on the disposal or retirement of an asset is determined as the difference between the sales proceeds and the carrying amount of the asset and is recognized in profit or loss for the period. The Group assesses its property, plant and equipment for possible impairment if there are events or changes in circumstances that indicate that carrying values of the assets may not be recoverable, or at least at the end of every reporting period. Such indicators include changes in the Group’s business plans, changes in diesel prices, evidence of physical damage and technological changes and impacts of obsolescence including those driven by climate change. 2.13 Goodwill arises on the acquisition of businesses and represents the excess of the consideration transferred, the amount of any non-controlling interest in the acquiree and the acquisition-date fair value of any previous equity interest in the acquiree over the fair value of the identifiable net assets acquired. If the total of consideration transferred, non-controlling interest recognized and previously held interest measured at fair value is less than the fair value of the net assets of the subsidiary acquired, in the case of a bargain purchase, the difference is recognized directly in profit or loss. For the purpose of impairment testing, goodwill acquired in a business combination is allocated to each of the cash-generating units (“CGUs”), or groups of CGUs, that is expected to benefit from the synergies of the combination. Each unit or group of units to which the goodwill is allocated represents the lowest level within the entity at which the goodwill is monitored for internal management purposes. Goodwill is monitored at or below the operating segment level. Goodwill impairment reviews are undertaken annually or more frequently if events or changes in circumstances indicate a potential impairment. The carrying value of the CGU containing the goodwill is compared to the recoverable amount, which is the higher of value in use and the fair value less costs of disposal. Any impairment is recognized immediately as an expense and is not subsequently reversed. (a) Network related intangible assets represent future income from leasing excess tower capacity to new tenants. Customer related intangible assets represent customer contracts and relationships. Network and customer-related intangible assets acquired in a business combination are recognized at fair value at the acquisition date. Network and customer-related intangible assets have a finite useful life and are carried at cost less accumulated amortization. Amortization is calculated using the straight-line method to allocate the cost of network and customer related intangible assets over their estimated useful lives of 14-26 years (2020: 14-20 years, 2019: 14-16 years) and 5-37 years (2020: 5-30 years, 2019: 5-30 years) respectively. The remaining amortization period for network and customer related assets are between 5-26 years (2020: 6-26 years, 2019: 7-10 years) and 21-36 years (2020: 1-27 years, 2019: 1-26 years) respectively. (b) Separately acquired licenses are shown at historical cost. Licenses acquired in a business combination are recognized at fair value at the acquisition date. Licenses have a finite useful life and are carried at cost less accumulated amortization. Amortization is calculated using the straight-line method over their estimated useful lives of 3-15 years (2020: 3-15 years, 2019: 3-15 years). (c) Costs associated with maintaining computer software programs are recognized as expenses as incurred. Acquired computer software licenses are capitalized at the cost incurred to acquire and bring into use the software. Amortization is calculated using the straight-line method over their estimated useful lives of three 2.14 Goodwill and intangible assets that have an indefinite useful life are not subject to amortization and are tested annually for impairment, or more frequently if events or changes in circumstances indicate that they might be impaired (note 3). Other assets are tested for impairment whenever events or changes in circumstances indicate that the carrying amount may not be recoverable. An impairment loss is recognized for the amount by which the asset’s carrying amount exceeds its recoverable amount. The recoverable amount is the higher of an asset’s fair value less costs of disposal and its value in use. For the purposes of assessing impairment, assets are grouped at the lowest levels for which there are separately identifiable cash inflows which are largely independent of the cash inflows from other assets or groups of assets (cash-generating units). Non-financial assets other than goodwill that suffered an impairment are reviewed for possible reversal of the impairment at the end of each reporting period. 2 |
Critical accounting estimates a
Critical accounting estimates and judgements | 12 Months Ended |
Dec. 31, 2021 | |
Critical accounting estimates and judgements | |
Critical accounting estimates and judgements | 3. The preparation of financial statements requires management to make certain judgements, accounting estimates and assumptions that affect the amounts reported for the assets and liabilities as at the end of the reporting period and the amounts reported for revenues and expenses during the year. The nature of the estimation means that actual outcomes could differ from those estimates. The key sources of judgment and estimation uncertainty that have a significant risk of causing material adjustments to the carrying amounts of assets and liabilities are discussed below. In preparing these consolidated financial statements, the significant judgements made by management in applying the Group’s accounting policies and the key sources of estimation uncertainty were the same as those that applied to the consolidated financial statements for the year ended December 31, 2020. (a) 3.1 The COVID-19 outbreak and resulting measures taken, from time to time by the federal and state governments in the countries where we operate to contain the virus have required some changes to how we operate (for example travel restrictions, increased working from home, practicing social distancing, increased hygiene measures and enhanced risk and contingency planning). During the prior and current year however, and during the period after December 31, 2021 the financial impact on our business has not been significant as our operational teams were allowed to fulfil their responsibilities and visit sites even when local travel restrictions were in place. However, in addition to the already known effects, the macroeconomic uncertainty causes disruption to economic activity and it is unknown what the longer-term impact on our business may be. The remaining duration of this pandemic remains uncertain but is expected to continue to impact the way we run our business, in particular in relation to office working and the ability to travel internationally without restriction. The below table outlines Management’s assessment of and response to the main risks arising from the current uncertain situation regarding COVID-19. These risks inherently impact the significant judgements and estimates made by management. Assessment Risk discussion and response Revenue and profitability · Limited impact on revenue collections thus far. · Customers continue to perform, and we have not experienced significant deterioration in payments. · The Group has long-term revenue contracts with its customers amounting to $10.0 billion in contracted revenue. · Our ability to collect revenue from our customers is impacted by our customers’ ability to generate and collect revenues from their operations. Our customers have, in the main, seen an increased demand for their services. · The impact on collections has thus far been limited and the Group remains in constant conversation with customers regarding their liquidity and ability to meet their obligations. · The Group regularly reviews measures for cost savings whilst maintaining its ability to operate effectively and towards strategic goals. · The Group has continued to invest in capital expenditure which supports revenue growth, albeit at lower levels than initially planned for the year ended December 31, 2021, largely affected by a slow down in supply chain. The Group will continue to invest in capital expenditure relating to revenue growth during 2022. Liquidity · Sufficient liquidity is available. · No current impact on going concern. · The Group has cash and cash equivalents of $916 million as at December 31, 2021. · Management has assessed current cash reserves and the availability of undrawn facilities and continues to monitor available liquidity in the context of ongoing operational requirements and planned capital expenditure. · In the context of current commitments and available liquidity, management believes that the going concern assumption remains appropriate. · All of the Group’s operations are cash generative. Assessment Risk discussion and response Access to USD · Moderate risk due to decreased availability. · While there has been a reduction in US Dollar liquidity in the Nigerian market, we were still able to source US Dollars locally to fund our semi-annual coupons during the year, and management remain confident that we will be able to do so for the foreseeable future. Workforce and internal controls · Minimal impact to date. · Employees have returned to office following guidance by local regulations. The periods of remote working have had limited impact on the operation of and management oversight over internal controls which continue to operate effectively. · Operational employees continue to operate in the field while observing strict safety guidelines. · Our IT team monitors the increased risk of fraud, data or security breaches, loss of data and the potential for other cyber-related attacks and utilises security measures to mitigate such risks. Supply chain · Moderate risk due to delays. · The Group works closely with suppliers and contractors to ensure availability of supplies on site, especially diesel supplies which are critical to many of our operations. · Regular maintenance of our towers continues while observing strict safety guidelines for our employees and our suppliers and contractors. Due to the uncertainty of COVID-19, we will continue to assess the situation, including abiding by any government-imposed restrictions, market by market. As part of their regular assessment of the Group’s liquidity and financing position, the Directors have prepared detailed forecasts for a period which extends beyond 12 months after the date of approval of the financial statements. In assessing the forecasts, in addition to the impact of COVID-19 on the group’s operations, the Directors have considered: ● the current economic conditions in the operating markets and how that impacts trading; ● the impact of macroeconomic factors, particularly interest rates and foreign exchange rates; ● the status of the Group’s financial arrangements (see also note 22); ● mitigating actions available should business activities fall behind current expectations; and ● additional sensitivity analysis under a stressed scenario to assess the impact of a severe but plausible downside case. Whilst inherently uncertain, and we expect some impact to our operations and performance, we currently do not believe that the COVID-19 outbreak will directly have a material adverse effect on our financial condition or liquidity for the foreseeable future. Having carefully considered this and the other factors noted above, the Directors have a reasonable expectation that the Group and the Company have adequate resources to continue in operational existence for at least 12 months from the date of issuance of these financial statements and to operate within the covenant levels of its current debt facilities. The Directors therefore continue to consider it appropriate to adopt the going concern basis of accounting in preparing the financial statements. 3.2 The Group had been using the relevant central bank rate, being the relevant official rate in each jurisdiction for foreign currency translation. On April 24, 2017, the Central Bank of Nigeria (CBN) introduced a special foreign exchange window for investors and exporters, known as the NAFEX market. By introducing the NAFEX window, the CBN created a situation where there are multiple differing official rates in the market. This resulted in a need for the Group to reach a judgement regarding the appropriate exchange rates for translating foreign denominated transactions and balances for Nigerian subsidiaries and for the translation of Nigerian results on consolidation. The Group considered the requirements of IAS 21 ‘The Effects of Changes in Foreign Exchange Rates’ and performed an assessment of the availability of the NAFEX rate in that market. The Group concluded that access to US Dollar in Nigeria in the future to meet payments or dividends is expected to be obtained via the NAFEX market, which has since May 2021 been adopted by the CBN. From January 1, 2018, the NAFEX rate has been used for the translation of USD transactions and denominated balances in the Nigerian subsidiaries and also for consolidation purposes. 3.3 The Group determines the lease term as the non-cancellable term of the lease, together with any periods covered by an option to extend the lease if it is reasonably certain to be exercised and any periods covered by an option to terminate the lease, if it is reasonably certain that the termination options will not be exercised. The Group has the option under some of its leases to lease the assets for additional periods of up to 10 years. The Group applies judgement in evaluating whether it has a unilateral option to renew the lease for a further period or is otherwise provided that option under the laws governing the lease agreement and is reasonably certain to exercise the option to renew. That is, it considers all relevant factors that create an economic incentive for it to exercise the renewal or for the landlord to accept a renewal, including the nature of the underlying asset, the availability of a similar asset in a similar location, and the expected business impact or relocating its towers. After the commencement (b) 3.4 The Group assesses its non-financial assets including property, plant and equipment, goodwill, and other intangible assets for possible impairment if there are events or changes in circumstances that indicate that carrying values of the assets may not be recoverable, or at least at the end of every reporting period. Such indicators include changes in the Group’s business plans, changes in diesel prices, evidence of physical damage and technological changes and impacts of obsolescence. If there are rapid changes in technology of the existing telecommunication infrastructure, the Group may need to recognize significant impairment charges. The Group tests annually whether goodwill has suffered any impairment, in accordance with the accounting policy stated in note 2.13. An impairment loss is recognized for the amount by which the asset’s carrying amount exceeds its recoverable amount. The recoverable amount is the higher of an asset’s fair value less costs of disposal and its value in use. For the purposes of assessing impairment, assets are grouped at the lowest levels for which there are separately identifiable cash flows. Refer to note 15 for Goodwill and intangible assets impairment considerations. The assessment for impairment entails comparing the carrying value of the cash generating unit with its recoverable amount, that is, the higher of the value in use and the fair value less costs of disposal. Value in use is determined on the basis of discounted estimated future net cash flows. Fair value less costs of disposal is determined on the basis of tower cash flow multiples from recent comparable transactions. Determination as to whether and how much an asset is impaired involves management estimates on highly uncertain matters such as future revenue (taking into account tenancy rates), and the direct effect these have on gross profit margins in the initial five-year forecast period, discount rates, terminal growth rates, valuation multiples observed in comparable transactions and cost related to the disposal of a business. In determining value in use the Group makes estimates and assumptions concerning the future. The assumptions adopted in the computation of the value in use are considered reasonable to the circumstance of each CGU. The resulting accounting estimates will, by definition, seldom equal the related actual results. Such estimates and assumptions are continually evaluated and are based on historical experience and other factors, including expectations of future events that are believed to be reasonable under the circumstances. 3.5 The Group initially measures the cost of share-based payment transactions with employees using an option pricing model to determine the fair value of the liability incurred. Estimating fair value for share-based payment transactions require determination of the most appropriate valuation model, which is dependent on the terms and conditions of the grant. This estimate also requires determination of the most appropriate inputs to the valuation model including the expected life of the share option, volatility and weighted average share price of each option and making assumptions about them. Equity settled share-based payment obligations granted to employees are measured at their fair value (at the date of grant or the date of amendment in the case of modification of terms) and are recognized as an expense, with a corresponding increase in equity, over the vesting period of the awards. The amount recognized as an expense is adjusted to reflect the number of awards for which the related service and non-market performance conditions are expected to be met, such that the amount ultimately recognized is based on the number of awards that meet the related service and non-market performance conditions at the vesting date. This requires a reassessment of the expectation of the likelihood of meeting the non-market performance conditions used at the end of each reporting period. The assumptions and models used for estimating fair value for share-based payment transactions are disclosed in note 28. 3.6 The Group requires a variety of regulatory approvals and permits related to its license to operate and meets its compliance requirements in respect of individual tower sites. These charges are levied by various national and state authorities. There is uncertainty over the level of charges where rates (e.g. percentage of revenue) remain under negotiation with the relevant authorities and also over the period for which charges will apply where demands have not yet been received from authorities on a site by site basis. State authorities may also make claims on an ad-hoc basis for additional charges relating to new compliance requirements or charges significantly in excess of levels previously charged for an existing requirement. These ad-hoc claims may be made on a prospective or retrospective basis. The Group recognizes an accrual for unbilled regulatory costs based on management estimates of the rates per permit/approval type, periods for which permits/approvals potentially relate and the probability of charges being raised resulting in a cash outflow. The most significant accrual relates to the Group’s operations in Nigeria, where the amount accrued is $31.9 million (2020: $28.3 million, 2019: $43.8 million). The accrual is based both on permits where rates are known amounts and those where amounts are based on management estimates including: ● the assumed percentage of maximum “claimed” liability related to “ad hoc” state level claims; ● the assumption that the risk related to potentially unpaid “regular” claims reduces over time and is accrued at 100% but reduced to 0% for balance over a certain number of years; ● assumptions regarding the risk of liabilities arising in respect of one-off site development related charges in respect of sites acquired by the group. A 10 percentage point change in management’s estimate of the amount of the potential liability that, subject to these estimates, will eventually be demanded and paid to the relevant authorities would alter the accrual at December 31, 2021 by approximately $3.2 million (2020: $2.9 million, 2019: $3.5 million). Management has only considered items in the sensitivity analysis that are subject to management’s rates estimate in the total amount accrued. 3.7 (a) Initial recognition of revenue includes an assessment of the recoverability of revenue. Amounts not expected to be recovered at the point of initial recognition are considered to be variable consideration, contingent upon the receipt of funds from the customer, and are therefore subject to measurement constraints as such payments are not wholly within the control of the Group (see note 2.5(a)). A 10-percentage point change in management’s estimate of the amount of variable consideration that will eventually be received would alter revenue recognized by approximately $16.8 million (2020: $14.2 million, 2019: $nil). (b) Revenue also includes estimates in respect of services provided where billing is not completed, including in respect of tower sites coming into service, or changes in customer implemented technologies since the most recent invoicing cycle and in respect of services subject to ongoing negotiation regarding price or other contract interpretation disputes with customers. For each of these scenarios, revenue is accrued based on management’ expectation of the final billable amounts. A 20-percentage point change in management’s estimate of the amount of accrued revenue, subject to these delayed billing estimates would alter revenue recognized by approximately $5.0 million (2020: $3.3 million, 2019: $0.8 million). |
Introduction and overview of Gr
Introduction and overview of Group's risk management | 12 Months Ended |
Dec. 31, 2021 | |
Introduction and overview of Group's risk management | |
Introduction and overview of Group's risk management | 4. The Group’s activities expose it to a variety of financial risks including market risk (foreign exchange risk and interest rate risk), credit risk and liquidity risk. The Board of Directors has overall responsibility for the establishment and oversight of the Group’s risk management framework. The Group’s Executive Committee is responsible for developing and monitoring the Group’s risk management policies. The Group’s risk management policies are established to identify and analyze the risks faced by the Group, to establish appropriate risk appetite and controls, and to monitor risks and adherence to our risk appetite. Risk management policies and systems are reviewed regularly by the executive management to reflect changes in market conditions and the Group’s activities. The Group, through its training and management standards and procedures, aims to develop a disciplined and constructive control environment in which all employees understand their roles and obligations. The Board, through the Audit Committee, oversees how management monitors compliance with the Group’s risk management policies and procedures and reviews the adequacy of the risk management framework in relation to the risks faced by the Group. The Board is supported by various management functions that check and undertake both regular and ad hoc reviews of compliance with established controls and procedures. (a) Derivatives are only used for economic hedging purposes and not as speculative investments. Derivatives do not meet the criteria for hedge accounting and are therefore classified as financial instruments through fair value through profit or loss. ● Non-deliverable forwards ( NDFs ) — The calculation of an NDF fair value is based on the difference between the contracted exchange rate and the anticipated spot exchange rate at the relevant period. The rate applied to represent the anticipated spot exchange rate requires judgement given the limited market liquidity in Nigeria. The Group has determined that the spot NAFEX exchange rate obtained from FMDQ OTC securities exchange is the most appropriate rate. The gain or loss at the settlement date is calculated by taking the difference between the agreed upon contract exchange rate (NGN/USD) and the spot rate at the time of settlement, for an agreed upon notional amount of funds. ● Embedded options within listed bonds — The bonds issued by IHS Netherlands Holdco B.V. in October 2016 and September 2019 and the bonds issued by IHS Holding Limited in November 2021 have embedded options which allow early redemption at the option of the issuer and holder upon the occurrence of specified events. These are accounted for as derivatives at fair value through profit or loss. ● Embedded derivatives within revenue contracts — T he embedded derivatives within revenue contracts represent the fair value of the US$ linked components of the Group’s revenue contracts with customers, where such US$ linked components are translated to local currency at the time of billing using a fixed, pre-determined exchange rate or an exchange rate which is not referenced to a liquid market exchange rate. These are accounted for as derivatives at fair value through profit or loss. (b) Market risk is the risk that changes in market prices, such as foreign exchange rates and interest rates will affect the Group’s income or the value of its holdings of financial instruments. The objective of market risk management is to manage and control market risk exposures within acceptable parameters, while optimizing the return. The Group manages market risks by keeping costs low through various cost optimization programs. Moreover, market developments are monitored and discussed regularly, and mitigating actions are taken where necessary. (i) The Group operates internationally and is exposed to foreign exchange risk arising from currency exposures other than the US Dollar. Foreign exchange risk arises from future commercial transactions, recognized assets and liabilities and net investments in foreign operations. The Group is exposed to risks resulting from fluctuations in foreign currency exchange rates. A material change in the value of any such foreign currency could result in a material adverse effect on the Group’s cash flow and future profits. The Group is exposed to foreign exchange risk to the extent that balances and transactions are denominated in a currency other than the functional currency in which they are measured. In managing foreign exchange risk, the Group aims to reduce the impact of short-term fluctuations on earnings. The Group has no export sales, but it has customers that are either contracted using fees quoted in US Dollars or other foreign currencies, but with foreign exchange indexation. The Group’s significant exposure to currency risk relates to its loan facilities that are mainly in foreign currencies. The Group manages foreign exchange risk through the use of derivative financial instruments such as currency swaps and forward contracts. The Group monitors the movement in the currency rates on an ongoing basis. Currency exposure arising from assets and liabilities denominated in foreign currencies is managed primarily by setting limits on the percentage of net assets that may be invested in such deposits. Sensitivity analysis The table below shows the impact on the Group’s loss if the exchange rate between the following currencies to US Dollars had increased or decreased, with all other variables held constant. The rate of change was determined by an assessment of a reasonable or probable change in the exchange rate being applied as at December 31. The impact is based on external and intercompany loans. Effect on Effect on Effect on Effect on Effect on Effect on Rwandan Nigerian Zambian Brazilian Kuwaiti Euro Franc Naira Kwacha Real Dinar $’000 $’000 $’000 $’000 $’000 $’000 2021 Rate of change 5 % 5 % 5 % 5 % 5 % 5 % Effect of US Dollar weakening on loss (15,726) (3,284) (106,595) (11,078) (15,502) (424) Effect of US Dollar strengthening on loss 15,726 3,284 106,595 11,078 15,502 424 2020 Rate of change 5 % 5 % 5 % 5 % 5 % 5 % Effect of US Dollar weakening on loss (18,652) (3,522) (114,799) (10,808) (14,302) (250) Effect of US Dollar strengthening on loss 18,652 3,522 114,799 10,808 14,302 250 2019 Rate of change 5 % 5 % 5 % 5 % 5 % 5 % Effect of US Dollar weakening on loss (11,740) (6,308) (104,540) (9,807) n.a n.a Effect of US Dollar strengthening on loss 11,740 6,308 104,540 9,807 n.a n.a This analysis excludes the natural hedging arising from contracts with customers in the Nigeria, Zambia and Rwanda operations, which are either wholly or partly linked to the US Dollar exchange rate. It is, however, impracticable to incorporate the impact of this US Dollar component in the above analysis due to the complexity of the contracts and the timing of any devaluation event. The Group is exposed to foreign exchange exposure that arises on intercompany loans denominated in US Dollars and Euro at a subsidiary level as a result of loan revaluations in local functional currency at period ends. The balances, as translated into US$, of the foreign denominated intercompany loans in the local books of the subsidiaries are: Nigerian Rwandan Zambian Brazilian Kuwaiti Naira Franc Kwacha Real Dinar US Dollar $’000 $’000 $’000 $’000 $’000 $’000 2021 US Dollar loan 2,037,580 65,679 128,084 310,047 8,476 — Euro loan — — — — — 290,346 2020 US Dollar loan 2,189,385 56,449 119,245 286,032 5,007 — Euro loan — — — — — 331,668 The summary of quantitative data about the Group’s exposure to foreign exchange risk (balances excluding inter-company balances, and in currencies other than the local functional currency) is as follows: 2021 2020 $’000 $’000 Trade receivables 36,629 18,596 Cash and cash equivalents 43,928 52,569 Trade payables (28,707) (34,351) Borrowings (211,961) (258,859) Net exposure (160,111) (222,045) (ii) The Group’s main interest rate risk arises from long term borrowings with variable rates, which expose the Group to cash flow interest rate risk. The Group’s fixed rate borrowings and receivables are carried at amortized cost. They are therefore not subject to interest rate risk as defined in IFRS 7, since neither the carrying amount nor the future cash flows will fluctuate because of a change in market interest rates. The Group manages interest rate risk through the use of derivative financial instruments such as interest rate caps or by issuing fixed rate debt. The table below shows the impact on the Group’s post tax loss if the interest rates increased or decreased by 1% (2020: 1%, 2019: 1%). 2021 2020 2019 $'000 $'000 $'000 Effect of 1% (2020 and 2019: 1%) increase on post tax loss 6,343 5,850 3,041 Effect of 1% (2020 and 2019: 1%) decrease on post tax loss (6,079) (6,035) (2,681) (c) Credit risk is the risk of financial loss to the Group if a customer or counterparty to a financial instrument fails to meet its contractual obligations. Credit risk arises from cash and cash equivalents, derivative financial instruments and deposits with banks and financial institutions, as well as credit exposures to customers, including outstanding receivables and committed transactions. Credit risk is managed on a Group basis. The Group accounts for the write-off of a trade receivable when a specific customer is assessed to be uncollectible, based on a review of their specific trading circumstances, credit quality and continuing poor payment performance of the specific customer. The carrying amount of financial assets represents the maximum credit exposure. The maximum exposure to credit risk at the end of the reporting period was: 2021 2020 $’000 $'000 Other receivables (note 19) 199,136 85,011 Derivative financial instrument assets (note 18) 165,100 182,691 Trade receivables (net) (note 19) 222,789 200,652 Cash and cash equivalents (note 20) 916,488 585,416 1,503,513 1,053,770 No impairment allowance is recorded at December 31, 2021 in respect of cash and cash equivalents and other receivables (2020:nil). Derivative financial instruments are carried at fair value through profit or loss. Any fair value gains or losses are recognized in profit or loss during the period. Credit ratings The Group works with approved banks and financial institutions which it believes are financially sound, including by reference to their external ratings. The credit ratings of the Group’s other receivables at December 31, 2021 and 2020 are based on publicly reported Fitch ratings: 2021 2020 $’000 $'000 Other receivables AA+ — 4,650 B 145,300 4,881 B- 7,418 14,273 BB- 6,665 7,045 Not rated 39,753 54,162 199,136 85,011 Refer to note 18 and note 20 for the credit ratings of derivative financial instrument assets and cash and cash equivalents respectively. The finance department assesses the credit quality of a customer, taking into account its financial position, past experience and other factors. The compliance with credit limits by customers is regularly monitored by line management. The Group utilizes data analysis and market knowledge to determine the concentration of its risks by reference to independent and internal ratings of customers. The assessment of the concentration risk is consistent with the overall risk appetite as established by the Group. The Group’s credit concentration is based on internal ratings. The finance department classifies customers as first tier and second tier customers based on sales revenue from each customer during the period. First tier customers are the two to five customers that contributed 80% and above of total revenue and represent the major mobile network operators in our markets while second tier customers are the customers that contributed 20% and below of total revenue and typically represent ISPs or mobile operators with smaller or regional network footprints. Internal Credit rating 2021 First tier Second tier Total $'000 $'000 $'000 Accrued Revenue 102,931 438 103,369 Not due 37,238 2,712 39,950 0-30 days 15,113 1,419 16,532 31-60 days 25,585 2,824 28,409 61-90 days 8,024 1,964 9,988 Over 90 days 28,941 46,585 75,526 Gross trade receivables 217,832 55,942 273,774 Impairment allowance (6,682) (44,304) (50,986) Net trade receivables 211,150 11,638 222,788 Internal Credit rating 2020 First tier Second tier Total $'000 $'000 $'000 Accrued Revenue 89,138 822 89,960 Not due 18,772 181 18,953 0-30 days 3,616 204 3,820 31-60 days 26,393 883 27,276 61-90 days 2,588 2,254 4,842 Over 90 days 129,056 60,545 189,601 Gross trade receivables 269,563 64,889 334,452 Impairment allowance (84,219) (49,581) (133,800) Net trade receivables 185,344 15,308 200,652 Over the term of trade receivables, the Group accounts for its credit risk by appropriately providing for expected credit losses on a timely basis on a customer by customer basis. In calculating the expected credit loss for each customer, the Group considers historical loss rates, available information on the customer’s financial position and adjusts for forward looking macroeconomic data. Impairment allowances, derived in accordance with the policy described in note 2.17.4, predominantly relate to provisions representing a significant proportion of the aged balances due from a small number of customers with poor payment history. The movement in the allowance for impairment in respect of trade receivables during the year was as follows: 2021 2020 2019 $'000 $'000 $'000 Opening balance 133,800 133,889 110,615 (Decrease)/Increase in impairment provision (34,117) 13,081 27,944 Written-off during the year (67,053) (2,106) (5,591) Foreign exchange (1,567) (11,064) 921 31,063 133,800 133,889 (d) Liquidity risk is the risk that the Group will encounter difficulty in meeting the obligations associated with its financial liabilities that are settled by delivering cash or another financial asset. The Group’s approach to managing liquidity is to ensure, as far as possible, that it will always have sufficient liquidity to meet its liabilities when due, under both normal and stressed conditions, without incurring unacceptable losses or risking damage to the Group’s reputation. The Group has a clear focus on ensuring sufficient access to capital to finance growth and to refinance maturing debt obligations. As part of the liquidity management process, the Group has various credit arrangements with some banks which can be utilized to meet its liquidity requirements. At the end of the reporting period, the Group had $2.7 billion (2020: $2.3 billion) utilized of $3.5 billion (2020: $2.6 billion) credit facilities with its financiers. Typically, the credit terms with customers are more favorable compared to payment terms from its vendors in order to help provide sufficient cash on demand to meet expected operational expenses, including the servicing of financial obligations. This excludes the potential impact of extreme circumstances that cannot reasonably be predicted, such as natural disasters. The table below analyzes the Group’s financial liabilities including estimated interest payments and excluding the impact of netting agreements into relevant maturity groupings based on the remaining period from the end of the reporting period to the contractual maturity date. The amounts disclosed in the table are the contractual undiscounted cash flows. Within 1 year 2 - 3 years 4 - 5 years Over 5 years Total $'000 $'000 $'000 $'000 $'000 2021 Trade payables (note 21) 342,841 — — — 342,841 Other payables (note 21) 78,193 312 — — 78,505 Payroll and other related statutory liabilities (note 21) 53,446 — — — 53,446 Lease liabilities (note 23) 54,303 106,015 99,573 440,986 700,877 Bank and bond borrowings 363,345 657,292 1,008,212 1,515,659 3,544,508 892,128 763,619 1,107,785 1,956,645 4,720,177 2020 Trade payables (note 21) 301,813 — — — 301,813 Other payables (note 21) 72,286 9,565 — — 81,851 Payroll and other related statutory liabilities (note 21) 27,476 — — — 27,476 Lease liabilities (note 23) 39,677 152,386 44,294 217,233 453,590 Bank and bond borrowings 292,945 601,981 949,481 1,116,712 2,961,119 734,197 763,932 993,775 1,333,945 3,825,849 (e) The Group’s objectives when managing capital are to safeguard its ability to continue as a going concern in order to provide returns for shareholders and benefits for other stakeholders, and to maintain an optimal capital structure to reduce the cost of capital. In order to maintain or adjust the capital structure, the Group may adjust the amount of dividends paid to shareholders, return capital to shareholders, issue new shares or sell assets to reduce debt. The Group monitors capital on the basis of the leverage ratio to optimize market pricing, such that Net Debt (loan principal outstanding less cash and cash equivalents) to Adjusted Earnings Before Interest, Tax, Depreciation and Amortization (Adjusted EBITDA) would be within a long term target leverage of 3.0x and 4.0x (2020: 3.0x and 4.0x), subject to various factors such as the availability and cost of capital and the potential long term return on our discretionary investments. We may fall outside of the target range in the shorter term to accommodate acquisitions or other restructurings. Segment Adjusted EBITDA as defined by the Group is profit/(loss) for the period before income tax expense/(benefit), finance costs and income, depreciation and amortization, impairment of withholding tax receivables, business combination transaction costs, impairment of property, plant and equipment and related prepaid land rent on the decommissioning of sites, net (profit)/loss on sale of assets, share-based payment (credit)/expense, insurance claims, provisions for bad or doubtful debts related to one Key Customer as a result of its restructuring, listing costs and certain other items that management believes are not indicative of the core performance of its business. The Group’s net leverage ratios are shown in the table below: 2021 2020 $’000 $'000 Bank and bond borrowings (note 22) 2,609,090 2,203,209 Lease liabilities (note 23) 376,101 314,747 Less: Cash and cash equivalents (note 20) (916,488) (585,416) Net debt 2,068,703 1,932,540 Segment Adjusted EBITDA 926,396 819,014 Management net leverage ratio 2.2x 2.4x Fair value hierarchy The table below analyzes financial instruments carried at fair value, by valuation method. The different levels have been defined as follows: ● Quoted prices (unadjusted) in active markets for identical assets or liabilities (level 1). ● Inputs other than quoted prices included within level 1 that are observable for the asset or liability, either directly (that is, as prices) or indirectly (that is, derived from prices) (level 2). ● Inputs for the asset or liability that are not based on observable market data (that is, unobservable inputs) (level 3). The following table presents the Group’s financial instruments that are measured at fair value at December 31, 2021 and 2020. Level 1 Level 2 Level 3 Total 2021 $'000 $'000 $'000 $'000 Fair value through other comprehensive income financial assets 11 — — 11 Embedded options within listed bonds (note 18) — 165,100 — 165,100 Non-deliverable forwards (NDF) (note 18) — (3,771) — (3,771) 11 161,329 — 161,340 Level 1 Level 2 Level 3 Total 2020 $'000 $'000 $'000 $'000 Fair value through other comprehensive income financial assets 8 — — 8 Embedded options within listed bonds (note 18) — 155,196 — 155,196 Non-deliverable forwards (NDF) (note 18) — 27,495 — 27,495 Embedded derivatives within revenue contracts (note 18) — — (7,285) (7,285) 8 182,691 (7,285) 175,414 As at the end of the reporting period, the Group has both level 1,level 2 and level 3 financial instruments. Financial instruments in level 1 The fair value of financial instruments traded in active markets is based on quoted market prices at the reporting date. A market is regarded as active if quoted prices are readily and regularly available from an exchange, dealer, broker, or regulatory agency, and those prices represent actual and regularly occurring market transactions on an arm’s length basis. The quoted market price used for financial assets held by the Group is the current bid price. These instruments are included in level 1. Instruments included in level 1 comprise investment in marketable securities and classified as fair value through other comprehensive income financial assets. Financial instruments in level 2 The fair value of financial instruments that are not traded in an active market (for example, over-the-counter derivatives) is determined by using valuation techniques. These valuation techniques maximize the use of observable market data where it is available and rely as little as possible on entity specific estimates. If all significant inputs required to fair value an instrument are observable, the instrument is included in level 2. Instruments included in level 2 comprise primarily of Non deliverable forwards (NDF), options embedded in the bond and share-based payments. Their fair values are determined based on mark to market values provided by the counterparty financial institutions or valuation techniques using observable market data. Financial instruments in level 3 The fair value of financial instruments that are not traded in an active market (for example, over-the-counter derivatives) is determined by using valuation techniques. These valuation techniques are not based on observable market data and rely on entity or market specific estimates. If all significant inputs required to fair value an instrument are not observable, the instrument is included in level 3. Instruments included in level 3 are the bifurcated embedded derivatives within revenue host contracts for the year ended December 31, 2020. There were no level 3 financial instruments for the year ended December 31, 2021 and December 31, 2019. Reconciliation of Level 3 fair value measurements of financial instruments 2021 2020 $'000 $'000 Opening balance at January 1 7,285 — Recognition of embedded derivatives within revenue contracts — 7,575 Change in fair value (7,231) (169) Foreign exchange translation impact (54) (121) Closing balance at December 31 — 7,285 Fair value estimation 2021 2020 Carrying Carrying value Fair value value Fair value Financial liabilities $'000 $'000 $'000 $'000 Bank and bond borrowings (note 22) 2,609,090 2,668,792 2,203,209 2,230,846 2,609,090 2,668,792 2,203,209 2,230,846 The fair values of non-current liabilities are based on discounted cash flows using a current borrowing rate. The fair value of current assets and current liabilities are not materially different from their carrying values. Financial instruments by category The Group’s financial instruments are categorized as follows: Financial assets Fair value through other Fair value Amortized comprehensive through profit cost income or loss Total $'000 $'000 $'000 $'000 2021 Trade receivables (note 19) 222,789 — — 222,789 Other receivables (note 19) 199,136 — — 199,136 Cash and cash equivalents (note 20) 916,488 — — 916,488 Fair value through other comprehensive income financial assets — 11 — 11 Derivative financial instruments assets (note 18) — — 165,100 165,100 1,338,413 11 165,100 1,503,524 2020 Trade receivables (note 19) 200,652 — — 200,652 Other receivables (note 19) 85,011 — — 85,011 Cash and cash equivalents (note 20) 585,416 — — 585,416 Fair value through other comprehensive income financial assets — 8 — 8 Derivative financial instruments assets (note 18) — — 182,691 182,691 871,079 8 182,691 1,053,778 Fair value through other comprehensive income financial assets (IFRS 9) are marketable securities in various financial institutions in Nigeria. Financial liabilities Fair value through profit Amortized cost or loss Total $'000 $'000 $'000 2021 Bank and bond borrowings (note 22) 2,609,090 — 2,609,090 Trade payables (note 21) 342,841 — 342,841 Other payables (note 21) 78,505 — 78,505 Derivative financial instruments liabilities (note 18) — 3,771 3,771 Lease liabilities (note 23) 376,101 — 376,101 3,406,537 3,771 3,410,308 2020 Bank and bond borrowings (note 22) 2,203,209 — 2,203,209 Trade payables (note 21) 301,813 — 301,813 Other payables (note 21) 72,286 — 72,286 Derivative financial instruments liabilities (note 18) — 7,285 7,285 Lease liabilities (note 23) 314,747 — 314,747 2,892,055 7,285 2,899,340 The fair values of non-current liabilities are based on discounted cash flows using a current borrowing rate. The fair values of trade payable and other current liabilities are not materially different from carrying values. |
Segment reporting
Segment reporting | 12 Months Ended |
Dec. 31, 2021 | |
Segment reporting | |
Segment reporting | 5. The Group’s Executive Committee, identified as the chief operating decision maker (“CODM”), reviews and evaluates the Group’s performance from a business perspective according to how the geographical locations are managed. Regional and operating company management are responsible for managing performance, underlying risks, and effectiveness of operations. Regions are broadly based on a scale and geographic basis because the Group’s risks and rates of return are affected predominantly by the fact that the Group operates in different geographical areas, namely Nigeria as the major market, Cameroon, Côte d’Ivoire, Rwanda and Zambia, as our Sub Saharan Africa business (“SSA”), Kuwait and Egypt as our Middle East and North Africa business (“MENA”) and Brazil, Colombia and Peru as our Latin America business (“Latam”). The Executive Committee reviews the Company’s internal reporting to assess performance and allocate resources. Management has determined the operating segments based on these reports. The CODM has identified four operating segments: ● Nigeria ● SSA, which comprises operations in Cameroon, Côte d’Ivoire, Rwanda and Zambia ● Latam, which comprises operations in Brazil, Colombia and Peru ● MENA, which comprises operations in Kuwait and Egypt. Although full operations in Egypt have not commenced, the business has incurred some startup costs. Latam and MENA are operating segments effective from February 2020 following the acquisition of IHS Brasil Cessão de Infraestruturas Limitada and IHS Kuwait Limited (refer to note 31). All operating segments are engaged in the business of leasing tower space for communication equipment and capacity leasing and services on fixed broadband networks to Mobile Network Operators (MNOs) and other customers (internet service providers, security functions or private corporations) and provide managed services in limited situations, such as maintenance, operations and leasing services, for certain towers owned by third parties within their respective geographic areas. However, they are managed and grouped within the four operating segments, which are primarily distinguished by reference to the scale of operations, to the similarity of their future prospects and long-term financial performance (i.e. margins and geographic basis). The CODM primarily uses a measure of Segment Adjusted EBITDA (as defined in note 4(e)) to assess the performance of the business. The CODM also regularly receives information about the Group’s revenue, assets and liabilities. The Group has additional corporate costs which do not meet the quantitative thresholds to be separately reported and which are aggregated in ‘Other’ in the reconciliation of financial information presented below. These include costs associated with centralized Group functions including Group executive, legal, finance, tax and treasury services. There are no revenue transactions which occur between operating segments. Intercompany finance income, finance costs and loans are not included in the amounts below. The segment’s assets and liabilities are comprised of all assets and liabilities attributable to the segment, based on the operations of the segment and the physical location of the assets, including goodwill and other intangible assets and are measured in the same way as in the financial statements. Other assets and liabilities that are not attributable to Nigeria, SSA, Latam and MENA segments consist principally of amounts excluded from specific segments including costs incurred for and by Group functions not attributable directly to the operations of the reportable segments, share-based payment and any amounts due on debt held at Group level as the balances are not utilized in assessing each segment’s performance. Summarized financial information for the year ended December 31, 2021 is as follows: 2021 Nigeria SSA Latam MENA Other Total $’000 $’000 $’000 $’000 $’000 $’000 Revenues from external customers 1,146,732 343,945 59,706 29,347 — 1,579,730 Segment Adjusted EBITDA (note 4(e)) 783,544 190,654 42,688 13,085 (103,575) 926,396 Depreciation and amortization (note 7 and 8) (382,882) Net gain on disposal of property, plant and equipment (note 8) 2,499 Insurance claims (note 9) 6,861 Impairment of withholding tax receivables in Nigeria (61,810) Business combination costs (15,779) Impairment of property, plant and equipment and prepaid rental (note 7) (51,113) Reversal of provision for decommissioning costs 2,671 Listing costs (22,153) Other costs (a) (15,752) Share ‑ (11,780) Finance income (note 10) 25,522 Finance costs (note 11) (422,034) Other non-operating income 11,213 Loss before income tax (8,141) Additions of property, plant and equipment and intangible assets: - through business combinations — — 677,226 — - In the normal course of business 318,971 56,291 103,338 20,725 Segment assets 2,038,376 1,024,347 1,385,224 173,888 Segment liabilities 745,944 494,236 342,181 100,947 (a) Other costs for the year ended December 31, 2021 included non-recurring professional costs related to financing of $15.1 million and aborted transaction costs of $0.7 million. Summarized financial information for the year ended December 31, 2020 is as follows: 2020 Nigeria SSA Latam MENA Other Total $’000 $’000 $’000 $’000 $’000 $’000 Revenues from external customers 1,037,836 313,416 30,185 21,712 — 1,403,149 Segment Adjusted EBITDA (note 4(e)) 701,273 170,784 22,696 9,937 (85,676) 819,014 Depreciation and amortization (note 7 and 8) (408,662) Net gain on disposal of property, plant and equipment (note 8) 764 Insurance claims (note 9) 14,987 Impairment of withholding tax receivables in Nigeria (31,533) Business combination costs (13,727) Impairment of property, plant and equipment and prepaid rental (note 7) (27,594) Listing costs (12,652) Other costs (a) (310) Share ‑ (8,342) Finance income (note 10) 148,968 Finance costs (note 11) (633,766) Loss before income tax (152,853) Additions of property, plant and equipment and intangible assets: - through business combinations — — 760,246 112,878 - In the normal course of business 195,692 61,147 31,703 8,465 Segment assets 2,040,911 1,043,669 682,813 142,210 Segment liabilities 747,428 532,801 266,596 92,917 (a) Other costs for the year ended December 31, 2020 related to aborted transaction costs. 2019 Nigeria SSA Other Total $’000 $’000 $’000 $’000 Revenues from external customers 925,704 305,352 — 1,231,056 Segment Adjusted EBITDA (note 4(e)) 559,049 165,626 (56,061) 668,614 Depreciation and amortization (note 7 and 8) (384,507) Net loss on disposal of property, plant and equipment (note 8) (5,819) Insurance claims (note 9) 3,607 Impairment of withholding tax receivables in Nigeria (44,586) Business combination costs (3,745) Impairment of property, plant and equipment and prepaid rental (note 7) (21,604) Listing costs (1,078) Other costs (a) (16,932) Share ‑ (351,054) Finance income (note 10) 36,045 Finance costs (note 11) (288,915) Loss before income tax (409,974) Additions of property, plant and equipment and intangible assets: - through business combinations — — - In the normal course of business 363,501 49,704 Segment assets 2,349,699 1,056,982 Segment liabilities 768,206 552,343 (a) Other costs for the year ended December 31, 2019 included redundancy costs of $3.2 million, aborted transaction costs of $ 0.6 million, $ 9.6 million of consultancy, facility set up, and other related expenses for the Group's finance transformation program and $3.4 million related to MENA start-up costs. Geographical information: The following countries contribute material revenue and/or have material non-current assets in country as follows: 2021 2020 2019 $’000 $'000 $'000 Revenue Nigeria 1,146,732 1,037,836 925,704 Rest of world 432,998 365,313 305,352 1,579,730 1,403,149 1,231,056 Non ‑ current assets* Nigeria 1,572,774 1,654,318 1,991,553 Côte d’Ivoire n.a as less than 10% 330,705 317,597 Cameroon n.a as less than 10% n.a as less than 10% 288,773 Brazil 812,100 641,253 — Rest of world 1,415,355 626,991 276,867 3,800,229 3,253,267 2,874,790 * Non-current assets exclude available for sale financial assets, non-current trade and other receivables and deferred tax assets. Revenue from two tier one customers represent approximately 10% or more of the Group’s total revenue: 2021 2020 2019 $’000 $'000 $'000 Customer A 66 % 66 % 63 % Customer B 14 % n.a as less than 10% 13 % Customer C n.a as less than 10% 14 % 14 % |
Revenue
Revenue | 12 Months Ended |
Dec. 31, 2021 | |
Revenue. | |
Revenue | 6. The Group’s revenue accrues from providing telecommunication support services. The Group provides infrastructure sharing and leasing known as colocation (which includes colocation rental revenue and colocation services) and to a limited extent, managed services. 2021 2020 2019 $’000 $'000 $'000 Lease component 1,233,816 1,026,103 889,909 Services component 345,914 377,046 341,147 1,579,730 1,403,149 1,231,056 The following table shows unsatisfied performance obligations which represents the services component of future minimum receipts expected from customer under non-cancellable agreements in effect at December 31, as follows: 2021 2020 2019 $’000 $'000 $'000 Within one year 351,071 343,209 290,645 1-2 years 309,861 331,608 263,298 2-3 years 255,791 291,891 250,167 3-4 years 211,615 258,129 218,380 4-5 years 190,018 214,223 196,753 After 5 years 858,912 879,294 894,086 2,177,268 2,318,354 2,113,329 The Group leases space on its towers under leases over periods ranging between 5 and 20 years. The lease component of future minimum receipts expected from tenants under non-cancellable agreements in effect at December 31, were as follows: 2021 2020 2019 $’000 $'000 $'000 Within one year 1,284,692 1,011,501 791,654 1-2 years 1,177,665 981,778 704,054 2-3 years 1,083,942 880,316 678,734 3-4 years 847,224 801,452 572,273 4-5 years 749,839 625,352 520,933 After 5 years 2,703,888 2,594,074 2,108,418 7,847,250 6,894,473 5,376,066 Certain customer contracts allow for the cancellation of a proportion of sites during the contract term without payment of termination penalties. The minimum service and lease revenue in the tables above assumes that each customer will fully utilize this churn available to them under the contract. Where rentals are denominated in US Dollar, which is not the functional currency of the subsidiary, they have been included in the above table at the exchange rate at the end of the reporting period. |
Cost of sales
Cost of sales | 12 Months Ended |
Dec. 31, 2021 | |
Cost of sales.. | |
Cost of sales | 7. 2021 2020 2019 $'000 $'000 $'000 Tower repairs and maintenance 74,523 75,931 69,304 Power generation 267,044 216,030 237,640 Short term site rental** 11,165 7,543 3,547 Short term other rent 3,419 3,085 2,289 Vehicle maintenance and repairs 2,754 2,754 2,108 Site regulatory permits 41,165 27,313 19,360 Security services 36,132 32,719 33,027 Insurance 4,156 4,695 5,958 Staff costs (note 8.3) 26,323 24,588 20,561 Travel costs 7,155 4,313 4,719 Professional fees 3,385 2,457 2,122 Depreciation (note 14)* 330,799 367,007 353,368 Amortization (note 15) 34,051 32,503 24,549 Impairment of property, plant and equipment and prepaid land rent (note 30) 51,113 27,594 21,604 Other 14,204 9,891 10,811 907,388 838,423 810,967 Foreign exchange gains and losses on cost of sales are included in Other. * ** In 2019, site rental relates to short term leases and low value assets (note 23). |
Administrative expenses
Administrative expenses | 12 Months Ended |
Dec. 31, 2021 | |
Administrative expenses. | |
Administrative expenses | 8. 2021 2020 2019 $’000 $'000 $'000 Facilities, short term rental and upkeep 23,210 12,872 12,881 Depreciation (note 14) 13,917 6,240 2,392 Amortization (note 15) 4,115 2,912 4,198 Travel costs 8,654 6,815 13,475 Staff costs (note 8.3) 101,567 78,376 45,523 Key management compensation (note 30.2) 25,642 13,776 20,215 Share-based payment expense (note 28) 11,780 8,342 351,054 Professional fees 49,685 38,200 15,275 Business combination transaction costs 15,779 13,727 3,745 Impairment of withholding tax receivables* 61,810 31,533 44,586 Net (gain)/loss on disposal of property, plant and equipment (2,499) (764) 5,819 Operating taxes 1,561 2,239 505 Other 21,290 21,844 36,617 336,511 236,112 556,285 * Withholding tax receivables were impaired following the Group’s assessment of the recoverability of withholding tax assets based on a five year cash flow projection and an analysis of the utilization of withholding tax balances against future income tax liabilities. Foreign exchange gains and losses on administrative expenses are included in Other. 8.1 The net credit for the year of $34.0 million (2020: expense of $13.1 million and 2019: expense of $27.9 million) arising in respect of loss allowances for trade receivables represents the net impact of the reversal of allowances made in previous years in respect of balances recovered in the year or no longer considered doubtful partially offset by new or increased provisions for balances now assessed as doubtful. 8.2 2021 2020 2019 $’000 $'000 $'000 Salaries and wages 106,754 85,690 54,632 Pension contribution – employer 4,854 3,780 2,474 Other benefits 16,282 13,494 8,978 Share-based payment expense (note 28) 11,780 8,342 351,054 139,670 111,306 417,138 Other benefits are comprised of employee related insurances, employee training costs, staff entertainment and redundancy costs. 8.3 2021 2020 2019 $’000 $'000 $'000 Cost of sales 26,323 24,588 20,561 Administrative expenses 113,347 86,718 396,577 139,670 111,306 417,138 |
Other income
Other income | 12 Months Ended |
Dec. 31, 2021 | |
Other income. | |
Other income | 9. 2021 2020 2019 $’000 $'000 $'000 Insurance claims 6,861 14,987 3,607 Other income 11,648 1,425 3,429 18,509 16,412 7,036 The 2020 insurance claims includes $8.7 million (2019: $nil) relating to a one off claim in Cameroon. Other income for the 2021 year mainly relates to the remeasurement of the liabilities for contingent consideration on the Skysites Acquisition in 2021 and the IHS Kuwait Acquisition in 2020. |
Finance income
Finance income | 12 Months Ended |
Dec. 31, 2021 | |
Finance income. | |
Finance income | 10. 2021 2020 2019 $’000 $'000 $'000 Interest income - bank deposits 7,798 5,101 14,732 Net foreign exchange gain arising from derivative instruments - unrealized — 29,151 53 Net foreign exchange gain arising from derivative instruments - realized 9,889 4,061 228 Fair value gain on embedded options 604 110,655 17,245 Fair value gain on embedded derivative in revenue contract 7,231 — 3,787 25,522 148,968 36,045 |
Finance Costs
Finance Costs | 12 Months Ended |
Dec. 31, 2021 | |
Finance costs. | |
Finance costs | 11. 2021 2020 2019 $’000 $'000 $'000 Interest expenses – third party loans 179,280 182,246 193,829 Unwinding of discount on decommissioning liability 4,644 2,644 1,712 Interest and finance charges paid/payable for lease liabilities 32,826 27,384 16,024 Net foreign exchange loss arising from financing - unrealized 126,131 363,953 47,291 Net foreign exchange loss arising from financing – realized 43,422 49,564 — Net foreign exchange loss on derivative instruments – realized — — 1,594 Costs paid on early loan and bond settlement 18,171 — 22,153 Fees on loans and financial derivatives 13,663 7,806 6,312 Fair value loss on embedded derivative within revenue contract — 169 — Net foreign exchange loss on derivative instruments—unrealized 3,897 — — 422,034 633,766 288,915 Net foreign exchange loss arising from financing - unrealized in 2021 is primarily due to significant fluctuations in exchange rates predominantly between the Kwacha and the US Dollar, the Naira and the US Dollar rate and the Brazilian Real and the US Dollar (2020: predominantly from the Kwacha and US Dollar, the Naira and the US Dollar rate and the Brazilian Real and the US Dollar rate. 2019: predominantly from the Kwacha and US Dollar rate and the Naira and the US Dollar rate). This arises on commercial bank and related party loans denominated in US Dollars at subsidiary level as a result of loan revaluations in local functional currency at period ends. Refer to note 4(b) for further information. |
Income Tax Expense
Income Tax Expense | 12 Months Ended |
Dec. 31, 2021 | |
Income Tax Expense | |
Income Tax Expense | 12. 2021 2020 2019 $’000 $'000 $'000 Current taxes on income 91,692 95,107 3,304 Deferred income taxes (note 16) (73,712) 74,722 10,214 Total taxes 17,980 169,829 13,518 Reconciliation of effective tax charge Loss before income tax (8,141) (152,853) (409,974) Tax calculated at domestic tax rates applicable to profits in respective countries (4,433) (66,049) (71,224) Tax effects of: Tax incentives and income not subject to taxation (46,175) (34,932) (39,725) Expenses not deductible for tax purposes 76,059 82,662 88,792 Movement in deferred tax assets not recognized 74,084 181,403 20,475 Change in tax base* (86,184) — — Prior year under provision 6,636 478 (43,280) Other profit ‑ 5,239 876 5,813 Foreign tax credit — (3,570) (8,406) Effects of changes in tax rates** (5,272) — — Non-deductible share-based payment expense 1,441 1,082 52,136 Foreign exchange effects and other differences (3,415) 7,879 8,937 Total taxes 17,980 169,829 13,518 Current income tax receivables 128 — 233 Current income tax payables (68,834) (48,703) (30,373) (68,706) (48,703) (30,140) * Effect of change in tax base of assets in Brazil following the legal merger of acquired businesses and group holding entities in 2021. ** The rate of Education Tax, a component of the income tax charge in Nigeria, increased from 2% to 2.5% with effect from the year ended December 31, 2021. The movement in the current income tax is as follows: At beginning of year (48,703) (30,140) (26,415) Additions through business combination (note 31) (3,434) (1,538) — Charged to profit or loss (91,692) (95,107) (3,304) Paid during the year 29,147 14,540 13,396 Withholding tax netting off 45,849 59,986 — Exchange difference 127 3,556 (13,817) At end of year (68,706) (48,703) (30,140) Deferred income tax assets are recognized for deductible temporary differences and tax losses carried forward only to the extent that the realization of the related tax benefits are expected to be met through the reversal of taxable temporary differences and future taxable profits. For those jurisdictions which have operating losses that are not expected to be utilized against future taxable profits, any deferred tax assets recognized are only to the extent of deferred tax liabilities. Refer to note 16 for deferred income tax. |
Loss per share
Loss per share | 12 Months Ended |
Dec. 31, 2021 | |
Loss per share | |
Loss per share | 13. The following table sets forth basic and diluted net income per common share computational data (in thousands, except per share data): 2021 2020 2019 Loss attributable to equity holders ($'000) (26,121) (322,682) (423,492) Less: allocation of loss to non-controlling interest ($'000) (289) (688) — Loss attributable to IHS common shareholders ($'000) (25,832) (321,994) (423,492) Basic weighted average shares outstanding (‘000)* 301,185 294,103 293,570 Potentially dilutive securities (‘000)* 20,323 23,246 22,911 Potentially dilutive weighted average common shares outstanding (‘000)* 321,508 317,349 316,481 Loss per share: Basic loss per share ($) (0.09) (1.09) (1.44) Diluted loss per share ($) (0.09) (1.09) (1.44) * On October 13, 2021 all of the outstanding Class A and Class B shares of the Company were exchanged on a 500 to 1 basis for ordinary shares. The loss per share is based on the new number of shares. The comparatives have also been adjusted. Refer to note 25 for further information. Potentially dilutive securities include share-based compensation, but these securities are currently anti-dilutive and thus do not impact diluted loss per share . |
Property, plant and equipment
Property, plant and equipment | 12 Months Ended |
Dec. 31, 2021 | |
Property, plant and equipment. | |
Property, plant and equipment | 14. Total Towers Furniture and Capital (excluding Right- and tower Fiber Land and office Motor work in right-of-use of-use equipment assets buildings equipment vehicles progress asset) asset $’000 $’000 $’000 $’000 $’000 $’000 $’000 $’000 Cost At January 1, 2019 2,257,701 — 48,679 13,500 18,708 138,227 2,476,815 372,000 Additions during the year 15,135 — 859 2,732 3,327 91,004 113,057 47,470 Reclassification 129,420 — 1,825 — — (131,245) — — Transfer from advance payments 272,298 — 672 — — (10,873) 262,097 — Disposals* (106,757) — — (187) (1,689) — (108,633) (6,307) Effects of movement in exchange rates (40,160) — (301) (168) (522) (2,053) (43,204) (6,266) At December 31, 2019 2,527,637 — 51,734 15,877 19,824 85,060 2,700,132 406,897 At January 1, 2020 2,527,637 — 51,734 15,877 19,824 85,060 2,700,132 406,897 Additions during the year 10,287 — 768 2,470 2,576 87,014 103,115 72,888 Additions through business combinations (note 31) 144,388 — 566 305 — 4,970 150,229 129,711 Reclassification 91,165 — 887 808 658 (93,518) — — Transfer from advance payments 124,272 — 620 91 — (2,997) 121,986 — Disposals* (23,591) — (1,203) (95) (1,310) — (26,199) (15,721) Effects of movement in exchange rates (214,038) — (5,936) (1,287) (1,600) (5,883) (228,744) (44,181) At December 31, 2020 2,660,120 — 47,436 18,169 20,148 74,646 2,820,519 549,594 At January 1, 2021 2,660,120 — 47,436 18,169 20,148 74,646 2,820,519 549,594 Additions during the year 20,995 — 825 5,056 6,012 224,479 257,367 113,722 Additions through business combinations (note 31) *** 77,142 220,950 968 93 — 5,495 304,648 41,709 Reclassification 124,548 23,241 5,999 — — (153,788) — — Transfer from advance payments 111,439 7,862 4,112 — — 3,959 127,372 — Disposals* (21,359) — — (82) (1,825) — (23,266) (18,872) Effects of movement in exchange rates (143,357) (6,790) (3,072) (1,038) (877) (8,438) (163,572) (35,649) At December 31, 2021 2,829,528 245,263 56,268 22,198 23,458 146,353 3,323,068 650,504 Accumulated depreciation and impairment At January 1, 2019 918,520 — 880 10,842 14,597 — 944,839 — Charge for the year 313,320 — 296 2,145 1,869 — 317,630 38,130 Impairment 21,565 — — — — — 21,565 — Disposals* (101,100) — — (173) (1,457) — (102,730) (735) Effects of movement in exchange rates (17,821) — (13) (136) (357) — (18,327) (360) At December 31, 2019 1,134,484 — 1,163 12,678 14,652 — 1,162,977 37,035 At January 1, 2020 1,134,484 — 1,163 12,678 14,652 — 1,162,977 37,035 Charge for the year 315,131 — 331 2,547 1,959 — 319,968 54,089 Impairment 26,824 — 421 — — — 27,245 — Disposals* (21,435) — — (41) (1,294) — (22,770) (5,594) Effects of movement in exchange rates (102,812) — (187) (893) (1,049) — (104,941) (4,066) At December 31, 2020 1,352,192 — 1,728 14,291 14,268 — 1,382,479 81,464 At January 1, 2021 1,352,192 — 1,728 14,291 14,268 — 1,382,479 81,464 Charge for the year** 272,068 5,366 296 3,806 2,902 — 284,438 60,685 Impairment/(reversal of impairment) 48,391 — (318) — — — 48,073 2,797 Disposals* (14,660) — — (73) (1,816) — (16,549) (8,634) Effects of movement in exchange rates (82,676) (12) (69) (867) (583) — (84,207) (6,459) At December 31, 2021 1,575,315 5,354 1,637 17,157 14,771 — 1,614,234 129,853 Net book value At December 31, 2019 1,393,153 — 50,571 3,199 5,172 85,060 1,537,155 369,862 At December 31, 2020 1,307,928 — 45,708 3,878 5,880 74,646 1,438,040 468,130 At December 31, 2021 1,254,213 239,909 54,631 5,041 8,687 146,353 1,708,834 520,651 * The disposals value of right-of-use assets represents disposals due to terminated leases and the impact of remeasurement of lease assets as a result of changes in lease terms. ** The charge for the period does not agree to the charge in the consolidated statement of income/(loss) and other comprehensive income/(loss) due to the indirect taxes benefit of $0.4 million (2020: $0.8 million, 2019: $nil) in IHS Brasil Cessão de Infraestruturas S.A. claimed through depreciation over the useful life of the asset. *** Includes subsequent asset acquisitions on business combination transactions. Capital work-in-progress comprises mainly of tower and tower equipment still under construction and not yet available for use. The Group transfers such assets to the appropriate class once they are available for use. There were no qualifying borrowing costs capitalized during the year. The impairment in the year ended December 31, 2021 is primarily driven by the rationalization program agreed with a Key Customer which resulted in the impairment of the related Towers. It was determined that the recoverable amounts were nil and therefore their carrying amounts were written down to the recoverable amount. The impairment losses have been recognized in cost of sales in the consolidated statement of income/(loss) and other comprehensive income/(loss). The impairment in the year ended December 31, 2020 relates to towers on certain sites made dormant following the consolidation of customer equipment between sites, such towers being no longer in use and with no installed customer equipment, and to a $5.7 million impairment in Cameroon following a fire at a warehouse site. The impairment in the year ended December 31, 2019 relates to towers on certain sites made dormant following the consolidation of customer equipment between sites and to certain sites in Cameroon that were vandalized and inaccessible and are thus not in use. The carrying value of the “ ” (i) Depreciation expense has been included in cost of sales and administrative expenses in the statement of income and other comprehensive income as below: 2021 2020 2019 $'000 $'000 $'000 Cost of sales (note 7) 330,799 367,007 353,368 Administrative expense (note 8) 13,917 6,240 2,392 344,716 373,247 355,760 (ii) Analysis of additions to property, plant and equipment 2021 2020 2019 $'000 $'000 $'000 Additions through cash - capital work in progress 224,479 87,014 91,004 Additions through decommissioning estimates 7,212 8,315 405 Additions through right of use assets 113,722 72,888 47,470 Additions through cash – others 13,666 7,786 21,648 Additions through non-cash – others 12,010 — — 371,089 176,003 160,527 (iii) Analysis of right of use assets The carrying value of right of use assets at December 31, 2021 are comprised of vehicles of $1.8 million (2020: $1.3 million, 2019: $0.3 million) and land and building assets, the majority being leased land on which our towers are situated. |
Goodwill and other intangible a
Goodwill and other intangible assets | 12 Months Ended |
Dec. 31, 2021 | |
Goodwill and other intangible assets | |
Goodwill and other intangible assets | 15. Customer- Network - related related intangible intangible Goodwill assets assets Licenses Software Total $’000 $’000 $’000 $’000 $’000 $’000 Cost At January 1, 2019 530,910 503,442 43,841 14,876 15,639 1,108,708 Additions during the year — — — 19 5,267 5,286 Exchange difference (12,518) (6,452) (285) (303) (4) (19,562) At December 31, 2019 518,392 496,990 43,556 14,592 20,902 1,094,432 At January 1, 2020 518,392 496,990 43,556 14,592 20,902 1,094,432 Additions during the year — — — 4 2,460 2,464 Additions through business combinations (note 31) 232,030 324,290 36,831 — 33 593,184 Disposals — — — (1) (475) (476) Exchange difference (93,915) (88,846) (6,835) 1,201 (829) (189,224) At December 31, 2020 656,507 732,434 73,552 15,796 22,091 1,500,380 At January 1, 2021 656,507 732,434 73,552 15,796 22,091 1,500,380 Additions during the year — — — 3,145 1,909 5,054 Additions through business combinations (note 31) 248,869 78,173 2,792 — 1,035 330,869 Disposals — — — (18) (723) (741) Exchange difference (35,806) (42,751) (3,538) (1,217) (514) (83,826) At December 31, 2021 869,570 767,856 72,806 17,706 23,798 1,751,736 Accumulated amortization and impairment At January 1, 2019 251 71,501 13,106 4,284 10,061 99,203 Charge for the year — 19,468 2,950 877 5,452 28,747 Exchange difference — (1,084) (101) (94) (12) (1,291) At December 31, 2019 251 89,885 15,955 5,067 15,501 126,659 At January 1, 2020 251 89,885 15,955 5,067 15,501 126,659 Charge for the year — 26,921 4,070 871 3,553 35,415 Disposals — — — — (475) (475) Exchange difference — (7,091) (1,003) 518 (740) (8,316) At December 31, 2020 251 109,715 19,022 6,456 17,839 153,283 At January 1, 2021 251 109,715 19,022 6,456 17,839 153,283 Charge for the year — 29,037 4,237 978 3,914 38,166 Disposals — — — (15) (726) (741) Exchange difference — (7,184) (1,374) (542) (616) (9,716) At December 31, 2021 251 131,568 21,885 6,877 20,411 180,992 Net book value At December 31, 2019 518,141 407,105 27,601 9,525 5,401 967,773 At December 31, 2020 656,256 622,719 54,530 9,340 4,252 1,347,097 At December 31, 2021 869,319 636,288 50,921 10,829 3,387 1,570,744 Network related intangible assets represent future income from leasing excess tower capacity to new tenants. Customer related intangible assets represent customer contracts and relationships. Amortization expense has been included in cost of sales and administrative expenses in the statement of income and other comprehensive income: 2021 2020 2019 $’000 $'000 $'000 Cost of sales (note 7) 34,051 32,503 24,549 Administrative expenses (note 8) 4,115 2,912 4,198 38,166 35,415 28,747 15.1 Management reviews the business performance based on the geographical location of business. It has identified IHS Nigeria Limited, INT Towers Limited, IHS Towers NG Limited, IHS Cameroon S.A., IHS Côte d’Ivoire S.A., IHS Rwanda Group, IHS Zambia Group, IHS Kuwait Limited, the IHS Latam tower businesses and FiberCo Soluções de Infraestrutura S.A. (“I-Systems”) as the main CGUs/Group of CGUs relevant for the allocation of goodwill. IHS Nigeria Limited, INT Towers Limited and IHS Towers NG Limited CGUs related to the Nigeria operating segment, IHS Cameroon S.A, IHS Côte d’Ivoire S.A, IHS Zambia Group and IHS Rwanda Group CGUs related to the SSA operating segment, IHS Kuwait Limited CGU related to the MENA operating segment, and the IHS Latam tower businesses and I-Systems relate to the Latam operating segment. Goodwill is monitored by management at a CGU/group of CGU level as noted above. The following is a summary of goodwill allocation for each CGU. Effects of Additions through movements in Opening business combinations exchange rates Closing balance (note 31) and other movements balance $'000 $'000 $'000 $'000 2021 IHS Nigeria Limited 63,374 — (3,606) 59,768 INT Towers Limited 227,715 — (12,940) 214,775 IHS Towers NG Limited 45,741 — (2,603) 43,138 IHS Cameroon S.A. 48,170 — (3,782) 44,388 IHS Côte d’Ivoire S.A. 23,888 — (1,876) 22,012 IHS Zambia Group 39,907 — 10,802 50,709 IHS Rwanda Group 12,319 — (452) 11,867 IHS Kuwait Limited 13,142 — (773) 12,369 IHS Latam tower businesses 182,000 75,034 (15,583) 241,451 I-Systems — 173,835 (4,993) 168,842 656,256 248,869 (35,806) 869,319 2020 IHS Nigeria Limited 71,297 — (7,923) 63,374 INT Towers Limited 256,149 — (28,434) 227,715 IHS Towers NG Limited 51,460 — (5,719) 45,741 IHS Cameroon S.A. 43,933 — 4,237 48,170 IHS Côte d’Ivoire S.A. 21,787 — 2,101 23,888 IHS Zambia Group 60,529 — (20,622) 39,907 IHS Rwanda Group 12,986 — (667) 12,319 IHS Kuwait Limited — 13,143 (1) 13,142 IHS Latam tower businesses — 218,887 (36,887) 182,000 518,141 232,030 (93,915) 656,256 2019 IHS Nigeria Limited 71,328 — (31) 71,297 INT Towers Limited 256,261 — (112) 256,149 IHS Towers NG Limited 51,483 — (23) 51,460 IHS Cameroon S.A. 44,910 — (977) 43,933 IHS Côte d’Ivoire S.A. 22,272 — (485) 21,787 IHS Zambia Group 70,780 — (10,251) 60,529 IHS Rwanda Group 13,625 — (639) 12,986 530,659 — (12,518) 518,141 The recoverable amount of each CGU, except for the IHS Latam tower businesses group of CGUs, was determined based on value in use calculations. The recoverable amount of the IHS Latam tower businesses group of CGUs was determined based on fair value less costs of disposal. (a) These calculations used pre-tax cash flow projections based on the financial budgets approved by management covering a five-year period. Within the five-year period, revenue growth rates are based on past experience and expected future developments in the Group’s CGUs. The weighted average growth rates used are consistent with the forecasts included in industry reports. Cash flows beyond the five-year period were valued using the estimated terminal growth rates stated below. The terminal growth rates did not exceed the long-term average growth rate for the infrastructure business in which each CGU operates. The key assumptions to which the value-in-use calculations are most sensitive are: ● revenue assumptions (taking into account tenancy rates), and the direct effect these have on gross profit margins in the five year forecast period; ● discount rates; ● gross margins; and ● terminal growth rates. Discount Terminal Tenancy Gross margins excluding depreciation & rate growth rate Ratio* amortization* 2021 IHS Nigeria Limited 16.1 % 2.7 % 3.32 x - 5.18 x 64.2 % - 79.7 % INT Towers Limited 16.0 % 2.7 % 3.56 x - 4.98 x 67.4 % - 74.9 % IHS Towers NG Limited 16.5 % 2.7 % 3.63 x - 4.44 x 52.3 % - 63.1 % IHS Cameroon S.A. 12.1 % 3.2 % 2.37 x - 2.89 x 57.8 % - 64.6 % IHS Côte d’Ivoire S.A. 9.8 % 3.2 % 3.45 x - 4.46 x 53.8 % - 63.5 % IHS Zambia Group 24.1 % 2.0 % 2.40 x - 3.30 x 65.2 % - 74.6 % IHS Rwanda Group 15.5 % 3.2 % 2.04 x - 2.97 x 67.0 % - 73.3 % IHS Kuwait Limited 6.0 % 2.9 % 1.00 x - 1.46 x 52.4 % - 64.9 % 2020 IHS Nigeria Limited 22.6 % 2.7 % 2.59 x - 4.55 x 67.8 % - 82.1 % INT Towers Limited 22.5 % 2.7 % 2.87 x - 5.22 x 73.7 % - 79.9 % IHS Towers NG Limited 23.2 % 2.7 % 2.80 x - 3.02 x 64.4 % - 69.9 % IHS Cameroon S.A. 13.8 % 3.2 % 2.61 x - 3.16 x 55.9 % - 61.0 % IHS Côte d’Ivoire S.A. 10.0 % 3.2 % 3.44 x - 4.56 x 57.5 % - 61.6 % IHS Zambia Group 32.2 % 3.2 % 2.21 x - 2.93 x 68.4 % - 75.8 % IHS Rwanda Group 17.0 % 3.2 % 2.13 x - 2.60 x 65.9 % - 69.8 % IHS Kuwait Limited 5.0 % 2.8 % 1.00 x - 1.46 x 45.3 % - 59.2 % 2019 IHS Nigeria Limited 15.8 % 3.2 % 2.35 x - 3.90 x 69.8 % - 77.1 % INT Towers Limited 16.5 % 3.2 % 2.46 x - 3.90 x 60.8 % - 71.9 % IHS Towers NG Limited 16.2 % 3.2 % 3.29 x - 3.80 x 60.9 % - 65.4 % IHS Cameroon S.A. 13.2 % 3.2 % 3.33 x - 4.22 x 53.8 % - 57.9 % IHS Côte d’Ivoire S.A. 10.3 % 3.2 % 2.39 x - 3.49 x 56.1 % - 59.9 % IHS Zambia Group 21.8 % 3.2 % 2.05 x - 2.58 x 62.6 % - 73.0 % IHS Rwanda Group 16.3 % 3.2 % 2.05 x - 2.37 x 68.6 % - 70.0 % * In 2021, the Group applied various terminal growth rates between 2.0% and 3.2%. The rates applied represent the median rate from three different sources and represent a conservative growth rate across the regions. Management have considered and assessed reasonably possible changes for key assumptions and concluded that none would give rise to an impairment. The changes that would cause the carrying amount to exceed the recoverable amount resulting in an impairment are set out below: Sensitivity analysis IHS IHS Nigeria INT Towers IHS Towers Cameroon IHS Côte IHS Zambia IHS Rwanda IHS Kuwait Limited Limited NG Limited S.A. d’Ivoire S.A. Group Group Limited % Rise in discount rate Increase by 36.2 pp Increase by 83.7 pp Increase by 11.0 pp Increase by 4.0 pp Increase by 6.8 pp Increase by 10.5 pp Increase by 7.2 pp Increase by 4.6 pp Decrease in tenancy ratio Decrease by an average of 2.51x over 4 years Decrease by an average of 3.06x over 4 years Decrease by an average of 1.44 x over 4 years Decrease by an average of 0.52 x over 4 years Decrease by an average of 1.76 x over 4 years Decrease by an average of 0.65 x over 4 years Decrease by an average of 0.72 x over 4 years Decrease by an average of 0.43 x over 4 years Gross margin (excluding depreciation and amortization) Decrease by an average of 49.3 pp over 4 years Decrease by an average of 57.0 pp over 4 years Decrease by an average 24.0 pp over 4 years Decrease by an average of 16.7 pp over 4 years Decrease by an average of 37.2 pp over 4 years Decrease by an average of 19.2 pp over 4 years Decrease by an average of 22.7 pp over 4 years Decrease by an average of 34.1 pp over 4 years Decrease in terminal growth rate Decrease to less than 0 % Decrease to less than 0 % Decrease to less than 0 % Decrease to less than 0 % Decrease to less than 0 % Decrease to less than 0 % Decrease to less than 0 % Decrease to less than 0 % (b) The recoverable amounts of the IHS Latam tower business group of CGUs and I-Systems were based on fair value less costs of disposal. Fair value less costs of disposal is determined on the basis of information observed or derived from recent comparable transactions, including in respect of the IHS Latam tower businesses, tower cash flow multiples. The key assumptions to which the fair value less costs of disposal calculation for the Latam tower businesses is most sensitive are: ● monthly tower cash flow for the Latam Group CGU determined on the basis of contractual revenues and gross margin percentage for existing towers at December 31, 2021; ● tower cash flow multiples determined from analysis of information available relating to recent comparable transactions; and ● estimated costs of disposal based on management’s experience of previously completed business combinations. The fair value measurement was categorized as a Level 3 fair value based on the inputs in the valuation technique used. Valuation technique Significant unobservable inputs Sensitivity of the input to fair value Recent transactions, Tower cash flow market multiples · Monthly tower cash flow: $2.6 million (2020: $1.6 million) · Multiple: 22.0 x (2020: 22.0 x) · Costs of disposal: 0.82% of enterprise value (2020: 1.2% ) · Decrease by $327,000 · Decrease by 2.63 x · Increase by 11.95% of enterprise value As can be seen from the analysis above, the valuation derived from the fair value calculation exceeds the carrying amount by a very small margin. Should market participant sentiment alter in future such that the market is viewed as less attractive, it is likely that the comparable transaction multiple would fall and that would result in an impairment. I-Systems was purchased on November 16, 2021. The post-acquisition performance of the business (including key non-financial metrics such as homes passed and homes connected) is in line with management’s forecasts such that the purchase price paid for the business is considered to remain the best estimate of fair value at December 31, 2021. |
Deferred income tax
Deferred income tax | 12 Months Ended |
Dec. 31, 2021 | |
Deferred income tax | |
Deferred income tax | 16. 2021 2020 $’000 $'000 Deferred income tax assets 11,064 13,443 Deferred income tax liabilities (118,210) (177,184) Net deferred tax liabilities (107,146) (163,741) Deferred tax assets and liabilities are offset when there is a legally enforceable right to set off current tax assets against current tax liabilities and when the deferred income taxes related to the same fiscal authority and are classified on a net basis within either deferred tax assets or deferred tax liabilities. These net country amounts are aggregated according to their asset or liability position and presented as then aggregated in the statement of financial position: 2021 2020 $’000 $'000 Deferred income tax assets Property, plant and equipment 1,678 2,117 Intangible assets (6,231) (8,486) Provisions 13,064 13,665 Tax losses 240 3,203 Other 2,313 2,944 Total 11,064 13,443 2021 2020 $'000 $'000 Deferred income tax liabilities Property, plant and equipment (145,888) (155,198) Intangible assets (110,843) (183,401) Provisions 36,397 52,478 Unrealized derivative income (48,077) (58,461) Timing differences on loans 33,192 32,407 Unrealized foreign exchange 21,010 25,948 Tax losses 3,450 9,150 Unutilized capital allowances 89,157 97,220 Other 3,392 2,673 Total (118,210) (177,184) The Group has recognized deferred tax with respect to losses of $3.7 million. Of this amount, $0.2 million will expire on December 31, 2024. Deferred tax is measured at the tax rates that are expected to be applied to temporary differences when they reverse, using tax rates enacted or substantively enacted at the reporting date, and reflects uncertainty related to income taxes, if any. Provisions/ Unrealized Property, share ‑ based exchange plant and payments Intangible Loans and differences equipment obligation assets derivatives /tax losses Total Net deferred income tax $'000 $'000 $'000 $'000 $'000 $'000 At January 1, 2019 (106,538) 43,389 (129,777) (2,150) 187,640 (7,436) Tax (charge)/income (2,692) (12,375) 5,719 (9,547) 8,681 (10,214) Effects of movement in exchange rates 3,170 (1,735) 2,337 — (1,059) 2,713 At December 31, 2019 (106,060) 29,279 (121,721) (11,697) 195,262 (14,937) At January 1, 2020 (106,060) 29,279 (121,721) (11,697) 195,262 (14,937) Additions through business combinations (note 31) (3,378) 2,182 (103,638) — 6,165 (98,669) Tax (charge)/income (46,364) 35,089 11,030 (16,444) (58,033) (74,722) Effects of movement in exchange rates 2,721 (407) 22,442 2,087 (2,256) 24,587 At December 31, 2020 (153,081) 66,143 (191,887) (26,054) 141,138 (163,741) At January 1, 2021 (153,081) 66,143 (191,887) (26,054) 141,138 (163,741) Additions through business combinations (note 31) (4,220) — (24,266) — — (28,486) Tax (charge)/income 2,078 (11,922) 85,254 9,295 (10,989) 73,716 Effects of movement in exchange rates 11,014 (4,759) 13,806 1,874 (10,570) 11,365 At December 31, 2021 (144,209) 49,462 (117,093) (14,885) 119,579 (107,146) Deferred income tax assets are recognized for deductible temporary differences and tax losses carried forward only to the extent that the realization of the related tax benefits are expected to be met through the reversal of taxable temporary differences and future taxable profits. The Group has $1.8 billion (2020: $1.6 billion, 2019: $1.3 billion) in deductible temporary differences for which no deferred tax is recognized. Of this amount, $230.9 million (2020: $383.8 million, 2019: $nil), $191.0 million (2020: $195.6 million, 2019: $nil) and $298.1 million (2020: $nil, 2019: $nil) will expire on December 31, 2024, December 31, 2025 and December 31, 2026 respectively. At the end of the reporting period, there were no material temporary differences associated with undistributed earnings of subsidiaries, and accordingly no deferred tax liabilities have been recognized. |
Inventories
Inventories | 12 Months Ended |
Dec. 31, 2021 | |
Inventories | |
Inventories | 17. 2021 2020 $'000 $'000 Stock of materials 42,022 49,222 Inventories are measured at lower of cost and net realizable value. Inventory consumables are held at cost less provision for impairment. During the year, an inventory write-down expense of $0.1 million was recognized (2020: $4.7 million). The value of inventory recognized as an expense during the year is $267.5 million (2020: $216.3 million). |
Derivative financial instrument
Derivative financial instruments | 12 Months Ended |
Dec. 31, 2021 | |
Derivative financial instruments | |
Derivative financial instruments | 18. The derivative instruments have been classified as fair value through profit or loss. The instruments are measured at fair value with the resultant gains or losses recognized in the statement of income and other comprehensive income. The related net foreign exchange gain/(loss) is included in finance income (note 10) and finance costs (note 11). The underlying contractual notional amount for the derivative instruments is as follows, as of December 31, of each of the following years: 2021 2020 $'000 $'000 Derivative instruments Non ‑ 124,023 652,088 Embedded options within listed bonds 1,940,000 1,450,000 2,064,023 2,102,088 The fair value balances are as follows: 2021 2020 $'000 $'000 Derivative instruments Non ‑ (3,771) 27,495 Embedded options within listed bonds 165,100 155,196 Embedded options within revenue contracts — (7,285) 161,329 175,406 The change in fair value of the derivative instruments has been recorded in the statement of income and other comprehensive income as follows: 2021 2020 2019 $'000 $'000 $'000 Derivative instruments Non ‑ (3,897) 29,151 53 Embedded options within listed bonds 604 110,655 17,245 Embedded options within revenue contracts 7,231 (169) — 3,938 139,637 17,298 The credit ratings of the Group’s derivative financial instrument assets at December 31, 2021, 2020 and 2019 based on publicly reported Fitch ratings were: 2021 2020 $'000 $'000 Derivative financial instrument assets AA+ — 7,500 B+ — — B — 3,590 B- — 10,938 BB- — 5,467 Not rated 165,100 155,196 165,100 182,691 Refer to note 4(a) for further information on the derivative financial instruments. Reconciliation of movements 2021 $'000 Non-deliverable forwards Opening balance 27,495 Fair value loss (unrealized foreign exchange on open contracts) (3,897) Foreign exchange gain 10,342 Cash flow on settlement (37,711) (3,771) |
Trade and other receivables
Trade and other receivables | 12 Months Ended |
Dec. 31, 2021 | |
Trade and other receivables | |
Trade and other receivables | 19. 2021 2020 $’000 $'000 Current Trade receivables 253,852 334,452 Less: impairment provisions (31,063) (133,800) Net trade receivables* 222,789 200,652 Other receivables** 199,136 85,011 Prepaid land rent 1,069 1,588 Other prepaid expenses 25,080 16,538 Advance payments 14,663 18,766 Withholding tax receivables 992 800 VAT receivables 5,401 3,832 469,130 327,187 Non-current Accrued income and lease incentive 21,408 15,481 Payment in advance for property, plant and equipment 48,071 20,928 69,479 36,409 * The fair value is equal to their carrying amount. ** Other receivables are margins on non-deliverable forward contracts and short-term fixed deposits which are not classified as cash and cash equivalents as it exceeds the three-month maturity period. Included in trade receivables is $103.4 million (2020: $90.0 million) relating to accrued revenue of which $22.2 million (2020: $23.2 million) relates to contract assets, with the remainder being accrued lease rental income. Payment in advance for property, plant and equipment relates to the future supply of tower and tower equipment. All non-current receivables are due within twenty years from the end of the reporting period. All current trade and other receivables are due within 12 months from the end of the reporting period. The Group does not secure any collateral for its trade receivables. Refer to note 4 (c) for further information on trade and other receivables. Prepaid land rent is capitalized to the right of use asset insofar as it relates to leases accounted for under IFRS 16. The prepaid land rent for leases that are exempt from being accounted for under IFRS 16 under the Group’s accounting policy are accounted for as short-term prepayments. |
Cash and cash equivalents
Cash and cash equivalents | 12 Months Ended |
Dec. 31, 2021 | |
Cash and cash equivalents. | |
Cash and cash equivalents | 20. 2021 2020 $’000 $'000 Cash at bank 916,488 585,416 Cash and cash equivalents 916,488 585,416 The credit ratings of the Group’s principal banking partners at December 31, 2021 and 2020 based on publicly reported Fitch ratings as shown below. The Group regularly monitors its credit risk with banking partners and did not incur any losses during 2021 and 2020 as a result of bank failures. 2021 2020 $’000 $'000 Cash and cash equivalents AAA (F1+) 127,781 15,413 AA+ — 9,407 AA — 115,810 A+ — 30,576 A (F1) 628,033 216,700 A- — 25,559 BBB+ — 6,349 BBB 3,143 — BBB- 162 25 BB — 6,663 BB- — 18,469 B+ — 2,809 B 157,277 46,757 B- — 90,564 C 67 — Not rated 25 315 916,488 585,416 |
Trade and other payables
Trade and other payables | 12 Months Ended |
Dec. 31, 2021 | |
Trade and other payables. | |
Trade and other payables | 21. 2021 2020 $’000 $'000 Current Trade payables 342,841 301,813 Deferred revenue* 20,435 2,224 Withholding tax payables 4,517 5,694 Payroll and other related statutory liabilities 53,446 27,476 Other payables 78,193 72,286 499,432 409,493 Non-current Other payables 312 9,565 312 9,565 * Included in deferred revenue is $2.8 million (2020: $0.6 million) which relates to contract liabilities. The contract liabilities relating to December 31, 2020 were fully recognized in revenue during the year end December 31, 2021. The non-current other payables for the year ended December 31, 2020 relate to the contingent consideration due in February 2022 as a result of the IHS Kuwait Limited business combination in February 2020. For the year ended December 31, 2021 this was remeasured, refer to note 9. |
Borrowings
Borrowings | 12 Months Ended |
Dec. 31, 2021 | |
Borrowings. | |
Borrowings | 22. 2021 2020 $’000 $'000 Non-current Senior Notes 1,916,062 1,428,398 Bank borrowings 485,409 588,692 External debt 2,401,471 2,017,090 Current Senior Notes 27,195 32,352 Bank overdraft 3,208 — Bank borrowings 177,216 153,767 External debt 207,619 186,119 Total borrowings 2,609,090 2,203,209 Reconciliation of cash and non-cash changes 2021 2020 2019 $’000 $’000 $’000 Opening balance – January 1 2,203,209 2,055,878 1,897,774 Additions through business combination (note 31) 6,457 46,356 — Interest expense (note 11) 179,280 182,246 193,829 Interest paid (168,285) (167,938) (171,883) Bank loans and bond proceeds received 1,076,063 232,219 1,800,000 Bank loans and bonds repaid (653,504) (99,903) (1,622,317) Bank overdraft 3,208 — — Transaction costs (38,597) (5,561) (58,044) Foreign exchange 1,259 (40,088) 16,519 Closing balance – December 31 2,609,090 2,203,209 2,055,878 22.1 External debt is made up of the following: Maturity 2021 2020 Currency date Interest rate $’000 $’000 Senior notes IHS Holding Limited US Dollar 2026 5.63 % 496,850 — IHS Holding Limited US Dollar 2028 6.25 % 497,366 — IHS Netherlands Holdco B.V. US Dollar 2027 8.00 % 949,041 946,352 IHS Netherlands Holdco B.V. US Dollar 2025 7.125 % — 514,398 Bank borrowings INT Towers Limited Nigeria Naira 2024 2.5 %+ 3M NIBOR 284,882 342,995 INT Towers Limited US Dollar 2024 3.75 %+ 3M LIBOR 92,769 104,532 IHS Cameroon S.A. CFA Franc 2020 6.5 % — — IHS Cameroon S.A. Euro 2020 3.75 %+ 3M EURIBOR — — IHS Côte d’Ivoire S.A. CFA Franc 2022 6 % 31,627 54,266 IHS Côte d’Ivoire S.A. Euro 2022 3.75 %+ 3M EURIBOR 24,156 41,172 IHS Zambia Limited US Dollar 2027 5-5.5 % + 3M LIBOR 93,164 96,287 IHS Rwanda Limited Rwandan Franc 2021 16 % — 650 IHS Rwanda Limited US Dollar 2022 6.5 % + 3M LIBOR — 13,804 IHS Brasil - Cessao De Infraestruturas S.A. Brazil Real 2021 3.85 %+CDI — 38,613 IHS Brasil - Cessao De Infraestruturas S.A. Brazil Real 2029 3.65 %+CDI 69,768 — IHS Kuwait Limited Kuwaiti Dinar 2029 2 % + 3M KIBOR 66,257 50,140 Bank Overdraft Global Independent Connect Limited Yen 2022 10.3 % 3,208 — i. IHS Holding Limited At December 31, 2021, the Company is the “issuer” of the $500 million 5.625% Senior Notes due 2026 (the “2026 Notes”) and $500 million 6.250% Senior Notes due 2028 (the “2028 Notes”) (together the “Notes”) which are listed on Official List of the Exchange. These notes were originally issued on November 29, 2021 and are guaranteed by certain other members of the group. The 2026 Notes and 2028 Notes have a tenor of five years and seven years respectively, from November 29, 2021, interest is payable semi-annually in arrears on May 29 and November 29 of each year, beginning on May 18, 2022 and the principal is repayable in full on maturity. The 2026 Notes and 2028 Notes have early redemption features whereby IHS Holding Limited has the right to redeem the relevant notes before the maturity date, and the holders hold a right to request the early settlement of the Notes, in certain circumstances. The value of these options are disclosed in note 18. The proceeds raised from the issue of these new notes was used in part to redeem the 2025 Notes, see below, in an early settlement that took place on the November 30, 2021. This settlement was subjected to the customary conditions and terms as set out in their bond prospectus. IHS Netherlands Holdco B.V. At December 31, 2021, the Company is the “issuer” of the $940 million 8.0% Senior Notes due 2027 (the “2027 Notes”) which are listed on The International Stock Exchange (TISE). IHS Netherlands Holdco B.V. initially issued $500 million in aggregate principal amount of the 2025 Notes and $800 million in aggregate principal amount of the 2027 Notes pursuant to a Senior Notes Indenture dated September 18, 2019 between, inter alios, Limited, IHS Netherlands NG2 B.V., IHS Towers NG Limited, INT Towers Limited and Nigeria Tower Interco B.V.) and the Trustee (Citibank N.A., London branch). On July 31, 2020 the Company issued an additional $150 million in aggregate principal amount across its 2025 Notes and 2027 Notes, split as $10 million in aggregate principal amount of its 2025 Notes and $140 million in aggregate principal amount of its 2027 Notes. The 2025 notes were redeemed on the November 29, 2021. This redemption was funded by the issuance of the 2026 & 2028 Notes. The redemption included amounts related to principal of $510 million, accrued interest of $7.3 million and an early redemption premium of $18.2 million. Tower Infrastructure Company Limited, which is an immaterial subsidiary, was not a Guarantor under the 2025 Notes or 2027 Notes. The 2027 Notes are the senior obligations of the Issuer and rank equal in right of payment with all of the issuer’s existing and future indebtedness that is not subordinated in right of payment to the Notes. The 2027 Notes have a tenor of eight years from September 18, 2019, with interest payable semi-annually in arrears on March 18 and September 18 of each year, beginning on March 18, 2020 and principal repayable in full on maturity. Negative covenants of the 2027 Notes, among other things, restrict the ability of IHS Holding Limited and its subsidiaries to: ● incur or guarantee additional indebtedness and issue certain preferred stock; ● make certain restricted payments and investments, including dividends or other distributions; ● create or incur certain liens; ● enter into agreements that restrict the ability of restricted subsidiaries to pay dividends; ● transfer or sell certain assets; ● merge or consolidate with other entities; and ● enter into certain transactions with affiliates. In addition, IHS Netherlands Holdco B.V. must provide to the Trustee, and to holders of the 2027 Notes, certain annual and quarterly reports. The 2027 Notes have early redemption features whereby IHS Netherlands Holdco B.V. has the right to redeem the relevant notes before the maturity date, and the holders hold a right to request the early settlement of the Notes, in certain circumstances. The value of these options are disclosed in note 18. ii. Bank borrowings is made up of the following: Senior Credit Facilities On September 29, 2021 IHS Netherlands Holdco B.V, IHS Nigeria Limited, IHS Towers NG Limited and IHS Holding Limited entered into an amendment and restatement agreement with Ecobank Nigeria Limited as agent, or the Senior Credit Facilities Amendment and Restatement Agreement, which amended and restated the facilities agreement dated September 3, 2019, or the Original Senior Credit Facilities, and, as amended and restated under the Senior Credit Facilities Amendment and Restatement Agreement, the Restated Senior Credit Facilities, between, among others, IHS Netherlands Holdco B.V. as intermediate holding company and guarantor, and, IHS Nigeria, IHS Towers NG Limited and INT Towers as borrowers and guarantors, each of IHS Holding Limited, IHS Netherlands NG1 B.V., IHS Nigeria, IHS Netherlands NG2 B.V., IHS Towers NG Limited, Nigeria Tower Interco B.V. and INT Towers as guarantors, Absa Bank Limited (acting through its Corporate and Investment Banking division), Citibank, N.A., London Branch, Goldman Sachs Bank USA, J.P. Morgan Securities plc, FirstRand Bank Limited (London Branch) (acting through its Merchant Bank division) and Standard Chartered Bank, as mandated lead arrangers, Ecobank Nigeria Limited as agent and the financial institutions listed therein as the original lenders. The Restated Senior Credit Facilities was amended and restated to align with the amendments to the indenture governing the Notes issued by IHS Netherlands Holdco B.V., as set forth in a consent solicitation statement dated June 14, 2021, and to add IHS Holding Limited as a guarantor. The Restated Senior Credit Facilities also include customary negative and financial covenants that limit certain activities of IHS Netherlands Holdco B.V., IHS Nigeria, IHS Towers NG Limited and INT Towers. This facility was fully drawn down in 2019. The interest rate per annum applicable to loans made under the Restated Senior Credit Facilities is equal to: (a) in relation to the US dollar facility, prior to a rate switch date, LIBOR (subject to a zero floor) plus a margin of 4.25% per annum (subject to a margin ratchet where the level of margin may be increased (up to a maximum of 4.50 )% or decreased (limited to a floor of 3.50 )% subject to certain tests, including the relevant leverage ratio of the IHS Holding Limited group) and, after a rate switch date for US dollars, is equal to a compounded reference rate based on SOFR (calculated on a five day RFR banking day lookback) and a credit adjustment spread plus the margin; and (b) in relation to the Naira facility, NIBOR (subject to a zero floor) plus a margin of 2.50% per annum. IHS Netherlands Holdco B.V. also pays certain other fees and costs, including fees for undrawn commitments, management fees, participation fees and fees to the agent. The US Dollar facility had an original principal amount of $110.0 million, and the Naira facility had an original principal amount of ₦ 141.3 billion (approximately $325 million). Each facility under the Restated Senior Credit Facilities will terminate on the date falling 60 months after the date of the first utilization of that facility. The Restated Senior Credit Facilities are repayable in instalments. Subject to certain conditions, IHS Netherlands Holdco B.V. and the borrowers may voluntarily prepay utilizations and/or permanently cancel all or part of the available commitments under the Restated Senior Credit Facilities by giving five business days’ prior notice (or such shorter period as the majority lenders may agree). In addition to voluntary prepayments, the Restated Senior Credit Facilities requires mandatory cancellation, and if applicable, prepayment in full or in part in certain circumstances. IHS Côte d’Ivoire S.A. IHS Côte d’Ivoire S.A. had a FCFA 18.3 billion (2020: FCFA 44.6 billion) and €52 million (2020: €52 million) loan facility as at December 31, 2021. The facility will expire in August 2022 and was fully drawn down in 2017. IHS Zambia Limited On March 4, 2021 IHS Zambia Limited made a one-off payment of $0.6 million and extended the term of the remaining fully drawn down loan facility of $95.0 million. The lenders were replaced with the development finance institution (“IFC”) and commercial bank (“SCB”). The maturity was extended to December 2027 for both lenders and the principal payments were also deferred by 24 months . IHS Rwanda Limited On March 30, 2021 and July 20, 2021 IHS Rwanda Limited fully repaid the Rwandan Franc (RWF) and U.S. Dollar loan facilities respectively. No new loan facilities were obtained and no amounts remain outstanding under any third party loan facilities in Rwanda. IHS Brasil Participações Ltda On May 21, 2021 and June 28, 2021 IHS Brasil Participações Ltda. obtained loan facilities for R$ 300 million (approximately $53.8 million) with Itaú bank and R$ 100 million (approximately $17.9 million) from Banco do Brasil respectively. The loan facilities have an annual interest rate of CDI + 3.65% and are repayable in May 2029. Interest payments are due monthly and principal payments have a grace period of 1 year from inception of the loan facilities. IHS Brasil – Cessão de Infraestruturas S.A. is a guarantor to the loan facilities. In December 2021, this loan was assigned to IHS Brasil – Cessão de Infraestruturas S.A. following an internal corporate reorganization pursuant to which IHS Brasil Participações Ltda. and Skysites Holding S.A. were merged into IHS Brasil – Cessão de Infraestruturas S.A. (which remained the surviving entity). IHS Brasil – IHS Brasil - Cessão De Infraestruturas S.A. had fully drawn down R$ 30 million (approximately $5.4 million) and R$ 170 million (approximately $30.5 million) of the loan facilities with Banco Safra and Itau BBA respectively, at December 31, 2020. Both loan facilities were fully repaid in May 2021. No new loan facilities were obtained directly by this entity. IHS Kuwait Limited On April 19, 2020 IHS Kuwait Limited obtained a loan facility for KWD 26 million which matures in April 2029 and has an annual interest rate of 2.00% + 3M KIBOR. On December 31, 2021 IHS Kuwait had drawn down KWD21 million ($69 million) of the total facility and as at December 31, 2020 KWD15.8 million ($ 52.1 million). Except for facilities in IHS Nigeria Limited, INT Towers Limited, IHS Towers Nigeria Limited and IHS Brasil Cessão de Infraestruturas Limitada the Group has pledged all assets as collateral for the bank borrowings in each relevant jurisdiction. The Group is in compliance with the restrictive debt covenants related to the listed bonds and covenants related to external borrowings as at the year end. iii. Global Independent Connect Limited Global Independent Connect Limited utilised an overdraft facility of ¥21.6 million ($3.2 million) from Ecobank to support the Letters of credit used for equipment importation from overseas vendors. This facility is for a period of 90 days from the date payment is made to the vendor. The repayment represents utilisation of cash cover of ¥ 0.6 million ($0.1 million) against the total LC amount presented of ¥ 22.2 million ($3.3 million ). |
Lease liabilities
Lease liabilities | 12 Months Ended |
Dec. 31, 2021 | |
Lease liabilities. | |
Lease liabilities | 23. See accounting policy in note 2.7 Leases 2021 2020 $’000 $’000 Current 50,560 28,246 Non-current 325,541 286,501 Total lease liabilities 376,101 314,747 Lease liabilities represent the net present value of future payments due under long term land leases for leasehold land on which our towers are located and for other leasehold assets such as warehouses and offices. During the period, payments to the value of $96.2 million (2020: $58.4 million) were made in respect of recognized lease liabilities. These lease liabilities are unwound using incremental borrowing rates which represent the credit risk of the lessee entity and the length of the lease agreement. Reconciliation of cash and non-cash changes 2021 2020 2019 $’000 $’000 $’000 At January 1 314,747 184,494 204,065 Additions through business combinations (note 31) 44,557 131,651 — Additions through new leases or remeasurements 131,438 65,070 47,469 Interest and finance charges for lease liabilities (note 11) 32,826 27,384 16,024 Payments for the principal of lease liabilities (63,324) (39,153) (58,330) Interest paid for lease liabilities (32,923) (19,239) (11,634) Remeasurements or terminations* (30,978) (15,380) (8,018) Effects of movement in exchange rates (20,242) (20,080) (5,082) Closing balance – December 31 376,101 314,747 184,494 * Amount recognized in the statement of income 2021 2020 2019 $'000 $'000 $'000 Interest on lease liabilities (note 11) 32,826 27,384 16,024 Expenses relating to short term leases and low value assets (note 7) 11,165 7,543 3,547 Depreciation for right of use assets (note 14) 60,685 54,089 38,130 Total for the year ended 104,676 89,016 57,701 As at December 31 the contractual maturities of the lease liabilities were as follows: Total Carrying contractual Within 2 - 3 4 – 5 Over 5 value cash flows 1 year years years years $'000 $'000 $'000 $'000 $'000 $'000 2021 Lease liabilities 376,101 700,877 54,303 106,015 99,573 440,986 2020 Lease liabilities 314,747 453,590 39,677 152,386 44,294 217,233 Lease obligation contractual cash flows are disclosed with the same renewal expectation assumption assessed for lease accounting under IFRS 16. The average remaining lease term remaining at December 31, 2021 is 13.8 years |
Provisions for other liabilitie
Provisions for other liabilities and charges | 12 Months Ended |
Dec. 31, 2021 | |
Provisions for other liabilities and charges [Abstract] | |
Provisions for other liabilities and charges | 24. Decommissioning and site restoration provision 2021 2020 2019 $'000 $'000 $'000 At January 1 53,266 33,568 33,010 Additions through business combinations (refer to note 31) 8,347 15,437 — Increase in provisions 7,212 8,315 405 Payments for tower and tower equipment decommissioning (231) (65) — Reversal of decommissioning through profit and loss (2,671) — — Unwinding of discount 4,644 2,644 1,712 Effects of movement in exchange rates 1,374 (6,633) (1,559) At December 31 71,941 53,266 33,568 Analysis of total decommissioning and site restoration provisions : Non-current 71,598 49,469 29,801 Current 343 3,797 3,767 71,941 53,266 33,568 This provision relates to the probable obligation that the Group may incur to dismantle and remove assets from tower sites. The amount recognized initially is the present value of the estimated amount that will be required to decommission and restore the leased sites to their original states, discounted using the current borrowing rates of individual operations within the Group. The amount provided for each site has been discounted based on the respective lease terms attached to each site. The provisions have been created based on management’s decommissioning experience of the specific situations. Assumptions have been made based on the current economic environment, current construction requirements, technology, price levels and expected plans for remediation. Management believes that these assumptions are a reasonable basis upon which to estimate the future liability. These estimates are reviewed regularly to take into account any material changes to the assumptions. Actual decommissioning or restoration costs will however, ultimately depend upon future market prices for the necessary decommissioning works required that will reflect market conditions at the relevant time. Furthermore, the timing of decommissioning is likely to depend on when the lease term is terminated without renewal. This, in turn, will depend upon technological changes in the local and international telecommunication industries which are inherently uncertain. The discount rates applied have been in line with the weighted average borrowing rate for the respective operating entities in the periods the assets were constructed/acquired. Below is the discount rate applied by each operating entity: IHS IHS Côte IHS IHS Nigerian Cameroon d’Ivoire Zambia Rwanda Brazilian IHS Kuwait Discount entities S.A. S.A. Limited Limited entities Limited rates % % % % % % % 2021 11.2 5.5 8.0 5.1 16.0 6.8 3.4 2020 11.2 5.5 8.0 5.5 16.0 6.8 4.8 Based on the simulation performed, the impact on accumulated losses of a 1% (2020: 1%) shift in discount rate is given below: Increase/ (decrease) on accumulated losses 2021 2020 $’000 $’000 Effect of 1% increase in discount rate (1,571) (767) Effect of 1% decrease in discount rate 1,093 815 |
Stated capital
Stated capital | 12 Months Ended |
Dec. 31, 2021 | |
Stated capital | |
Stated capital | 25. Class A shares pre-IPO / Ordinary Shares post-IPO Class B shares pre-IPO Stated Stated capital net capital net Number of Stated of issue Number of Stated of issue shares capital costs shares capital costs 000’s $'000 $'000 000’s $'000 $'000 At January 1, 2019 130,147,167 4,220,967 4,219,488 16,558,927 299,405 299,014 Issued on exercise of warrants* 345,400 12,368 12,368 — — — December 31, 2019 130,492,567 4,233,335 4,231,856 16,558,927 299,405 299,014 At January 1, 2020 130,492,567 4,233,335 4,231,856 16,558,927 299,405 299,014 December 31, 2020 130,492,567 4,233,335 4,231,856 16,558,927 299,405 299,014 Reclassification of Class A and Class B shares to ordinary shares 16,558,927 299,405 299,014 (16,558,927) (299,405) (299,014) Impact of reverse share split (146,757,391) — — — — — Shares issued on IPO 18,000 378,000 378,000 — — — Share issue costs — — (28,154) — — — Shares issued on exercise of options 15,717 342,768 342,768 — — — At December 31, 2021** 327,820 5,253,508 5,223,484 * — — — * In September and November 2019, exercise notices for 345,400,314 out of the available 658,642,396 warrants were exercised for gross cash settlement. The remaining warrants, having then passed their term, lapsed. All warrant obligations were consequently derecognized. ** As at December 31, 2021 stated capital was made up of share capital of $98,346,125 and share premium of $5,125,138,448. For the year ended December 31, 2020 and 2019 the Company had Class C shares in addition to Class A and B shares. Class C shares would only be issued pursuant to an approved employee stock plan. Summarised below are the terms of the shares for the year end December 31, 2020 and 2019: ● Class A and B shares are at no par value. ● Class A and B shares rank pari passu in all respects except that Class B shares shall accrue no voting rights. ● Class C shares shall accrue no rights to vote. There was no limit over the number of equity shares that could be authorized for the year ended December 31, 2020 and 2019. All Class A and B shares issued were fully paid up as at December 31, 2020 and 2019. On October 14, 2021 the Company announced the pricing of its initial public offering (“IPO”) of 18,000,000 ordinary shares at a public offering price of $21 per share on the New York Stock Exchange (NYSE). All of the outstanding Class A and Class B shares of the Company were exchanged on a 500 to 1 basis for ordinary shares and the outstanding options granted pursuant to the Company’s existing Long Term Incentive Plan was converted into ordinary shares (other than 7,940,413 ordinary shares issuable upon the exercise of share options outstanding as of September 30, 2021 pursuant to the Long-Term Incentive Plan). Summarized below are the terms of the shares for the year end December 31, 2021: ● There is only one class of ordinary shares. ● Ordinary shares have a par value of $0.30 each. ● The holders of our ordinary shares are entitled to such dividends as may be declared by our board of directors subject to the Companies Act and our Articles. Dividends and other distributions on issued and outstanding ordinary shares may be paid out of the funds of the Company lawfully available for such purpose, subject to any preference of any outstanding preferred shares. Dividends and other distributions will be distributed among the holders of our ordinary shares on a pro rata basis. ● Voting at any shareholders’ meeting is by way of poll. On a poll every shareholder present in person or by proxy shall have one vote for each ordinary share on all matters upon which the ordinary shares are entitled to vote except that, for so long as the number of ordinary shares held by Mobile Telephone Networks (Netherlands) B.V. or an affiliate of it or MTN Group is greater than twenty percent ( 20% ) of the total number of ordinary shares in issue, each ordinary share held by MTN Group shall entitle MTN Group to the number of votes per ordinary share calculated by dividing 20% of the total number of ordinary shares in issue by the number of Shares held by MTN Group. ● Any of our shareholders may transfer all or any of his or her ordinary shares by an instrument of transfer in the usual or common form or any other form approved by our board of directors, subject to the applicable restrictions of our Articles, such as the suspension of transfers for a period immediately preceding a general meeting, or the determination that a proposed transfer is not eligible, as well as restrictions in our Shareholders’ Agreement and our Registration Rights Agreement. ● On a return of capital on winding up or otherwise (other than on conversion, redemption or purchase of ordinary shares), assets available for distribution among the holders of ordinary shares shall be distributed among the holders of the ordinary shares on a pro rata basis. The authorized share capital of the Company is 1,700,000,000 shares with par value of $0.30 each. All ordinary shares issued were fully paid up and non-assessable as at December 31, 2021. |
Other reserves
Other reserves | 12 Months Ended |
Dec. 31, 2021 | |
Other reserves. | |
Other reserves | 26. Fair value through other compre- Foreign hensive Restruct- Share- based Loss on exchange income uring payment transactions translation reserve reserve reserve between owners reserve Total $’000 $’000 $’000 $’000 $’000 $’000 At January 1, 2019 (7) 4,019 — (840,359) (260,176) (1,096,523) Other comprehensive income 1 — — — 5,036 5,037 Recognition of share-based payment expense — — 504,331 — — 504,331 At December 31, 2019 (6) 4,019 504,331 (840,359) (255,140) (587,155) At January 1, 2020 (6) 4,019 504,331 (840,359) (255,140) (587,155) Other comprehensive income — — — — 94,434 94,434 Recognition of share-based payment expense — — 7,216 — — 7,216 At December 31, 2020 (6) 4,019 511,547 (840,359) (160,706) (485,505) At January 1, 2021 (6) 4,019 511,547 (840,359) (160,706) (485,505) Other comprehensive income 3 — — — 40,079 40,082 Recognition of share-based payment expense — — 13,003 — — 13,003 SBP reserve converted to share capital — — (342,768) — — (342,768) Other reclassifications related to share based payment — — (5,084) — — (5,084) At December 31, 2021 (3) 4,019 176,698 (840,359) (120,627) (780,272) Fair value through other comprehensive income reserve This reserve holds accumulated gains and losses on fair value movements of fair value through other comprehensive income financial assets. This is a non-distributable reserve. Restructuring reserve This reserve is the excess of consideration over net assets acquired in business combinations under common control arising from Group restructuring. This is a non-distributable reserve. Share-based payment reserve This reserve represents the cumulative amounts charged in respect of unsettled options issued to employees of the Group. This is a non-distributable reserve. Loss on transactions between owners This reserve is the accumulated loss arising from transactions between parent and non-controlling interest shareholders. Foreign exchange translation reserve This reserve is the accumulated exchange gains and losses arising from the translation of foreign operations from those operations’ functional currencies to the Group’s reporting currency. It is a non-distributable reserve. |
Non-controlling interest
Non-controlling interest | 12 Months Ended |
Dec. 31, 2021 | |
Non-Controlling Interests [Abstract] | |
Non-controlling interest | 27. 2021 2020 2019 $’000 $’000 $’000 Balance at January 1 14,216 — — Non-controlling interest arising on business combinations ( refer to note 31) * 132,407 14,927 — Loss for the period (289) (688) — Other comprehensive loss (3,381) (23) — Balance at December 31 142,953 14,216 — * Includes non-controlling interest arising on subsequent asset acquisitions on business combination transactions. In November 2021, the Group completed a deal with TIM S.A. to acquire a controlling interest in FiberCo Soluções de Infraestrutura S.A. (“I-Systems”) incorporated and with it’s principal place of business in Brazil. The Group owns a 51% (same proportion voting rights) stake in I-Systems and TIM the remaining 49%. Refer to note 31 for further information on the business combination. Set out below is summarized financial information for the I-Systems subsidiary, being the only subsidiary that has non-controlling interest that is material to the group. The amounts disclosed are before inter-company eliminations. Summarized balance sheet and cash flows FiberCo Soluções de Infraestrutura S.A. 2021 ($’000) 2020 ($’000) Current assets 101,033 — Current liabilities 19,357 — Current net assets 81,676 — Non-current assets 237,030 — Non-current liabilities 480 — Non-current net assets 236,550 — Net assets 318,226 — Cash flows generated from operating activities 6,056 — Cash flows used in investing activities (18,771) — Cash flows generated from financing activities 41,965 — Net increase in cash and cash equivalents 29,250 — Loss allocated to non-controlling interest during the period (1,637) — Accumulated non-controlling interest at the end of the year 125,198 — In February 2020, the Group, via IHS GCC KW Holding Limited (“IHS GCC KW”) a subsidiary of the Group, entered into an agreement to purchase 1,620 towers from Mobile Telecommunications Company K.S.C.P. (“Zain”). As part of the agreement, Zain subscribed for shares in IHS GCC KW representing 30 per cent of the share capital of IHS GCC KW by issuing a loan note to IHS GCC KW. Refer to note 31 for further information on the business combination. |
Share-based payment obligations
Share-based payment obligations | 12 Months Ended |
Dec. 31, 2021 | |
Share-based payment obligations | |
Share-based payment obligations | 28. The terms of the IHS share-based payment plans for employees were amended on July 10, 2019. Prior to July 10, 2019, IHS maintained four share-based payment plans for employees. The long-term incentive plan 1 (the “LTIP1”), long-term incentive plan 2 (the “LTIP2”), long-term incentive plan 2B (“LTIP 2B”) and long-term incentive plan 3 (“LTIP3”) are granted in three tranches, each with a different exercise price, and provided for the grant of stock options exercisable for Class A or B ordinary shares. The exercise price represented the higher of two fixed per share amounts, one of which increased by a fixed percentage per number of years that had passed since the grant date. The options either vested in 25% portions, starting on the grant date (i.e. immediately) and every grant anniversary date thereafter until fully vested (i.e. every year until the end of the third year) or in 33% portions, starting on the first grant anniversary date and every grant anniversary date thereafter until fully vested (i.e. every year until the end of the third year). Once vested, the options were not exercisable until the occurrence of a liquidity event (i.e. sale or listing). However, terminated employees with vested options could be cash-settled as applicable. The options were valid for seven Prior to July 10, 2019, the Company’s LTIP1, LTIP2, LTIP2B and LTIP3 plans could be cash or equity settled, as applicable. However, the Company had a constructive obligation to settle in cash and thus the options were accounted for as cash-settled instruments pursuant to IFRS 2, and accordingly, a liability equal to the portion of the services received was recognized at its current fair value determined at each statement of financial position date. On July 10, 2019, the terms of the share option plans were amended such that the exercise prices of the share option were removed and the number of shares options an option holder will receive was reduced on a pro-rata basis (taking into account their relative values). The amended terms are: ● No exercise price. ● On a liquidity event (sale or IPO), the options will be converted and replaced with a fixed pool of shares. ● In the event of a Sale option holders will receive the entirety of their options in shares. ● In the event of an IPO: ● Option holders will be awarded two thirds ( 66.7% ) of their options as shares. ● Option holders will further be entitled to receive up to an additional 33.3% of their shares subject to achieving the performance conditions below: - 50% issued annually if the Group achieves 5% Adjusted EBITDA growth and Adjusted funds from operations (“AFFO”) growth compared to the prior 12 month period where AFFO is defined as the profit/(loss) for the period, before income tax expense/(benefit), finance costs and income, depreciation and amortization, impairment of property, plant and equipment and prepaid land rent, net (profit)/loss on sale of assets, share-based payment (credit)/expense, insurance claims, exceptional items income, exceptional items expense and other non-operating income and expenses, amortization of prepaid site rent, adjusted to take into account interest paid, interest income received, revenue withholding tax, income taxes paid, lease payments made, amortization of prepaid site rent, maintenance capital expenditures and corporate capital expenditures - 50% issued annually on a sliding scale basis for Adjusted EBITDA growth and AFFO growth between 5 and 10% compared to the prior 12 month period. The amendment also resulted in a change in classification from cash-settled to equity-settled. Accordingly, the liability that existed before July 10, 2019 was derecognized and the revised value of the vested share options recognized in equity. The value of the unvested portion will be recognized in the profit and loss over the vesting term with the corresponding credit being recognized in equity. No share options expired during the year. On October 14, 2021 the Company announced the pricing of its initial public offering on the New York Stock Exchange (NYSE). In accordance with the terms above option holders were awarded two thirds (66.7%) of their options as shares. 50% of the remaining third (33.3%) will be awarded in the year ended December 2022 as the performance conditions stated above have been met. The other 50% of the remaining third will be awarded in December 2023 if the performance conditions stated above are met. The total charge to the profit or loss in the year is analyzed as follows: 2021 2020 2019 $’000 $’000 $’000 Credit under cash settled classification to the date of amendment — — (25,922) Immediate charge on amendment for options vested at date of amendment — — 363,302 Expense under equity settled classification from date of amendment 11,780 8,342 13,674 11,780 8,342 351,054 (i) Movements in the number of share options outstanding 2021 Incentive Incentive Incentive Incentive plan 1 plan 2 plan 2B plan 3 000’s 000’s 000’s 000’s Authorized 3,800 15,360 4,600 56 Issued At January 1 3,749 15,350 4,595 56 Issued 94 10 55 — Forfeited (43) — (39) — Exercised during the period * (2,533) (10,240) (3,074) (37) At December 31 1,267 5,120 1,537 19 *Relates to the number of options converted to shares as a result of the IPO. 2020 Incentive Incentive Incentive Incentive plan 1 plan 2 plan 2B plan 3 000’s 000’s 000’s 000’s Authorized 3,800 15,360 4,600 56 Issued At January 1 3,659 15,360 4,612 51 Issued 149 — — 5 Forfeited (59) (10) (17) — At December 31 3,749 15,350 4,595 56 On October 13, 2021 all of the outstanding Class A and Class B shares of the Company were exchanged on a 500 to 1 basis for ordinary shares. The movements in the number of share options outstanding is based on the new number of shares. Refer to note 25 for further information. (ii) The share option plans have been valued using a Black Scholes model, an approach that is commonly used for similar IFRS 2 valuations. Valuation assumptions At the modification date of July 10, 2019, since the exercise price term was amended to $Nil and dividends were not expected to be paid in the near future, the options were deep in the money and the Black Scholes model returns the value of the share price for the value of the option. The share price assumption used was $22.04. A forfeiture rate of 10% and 5% was assumed for the LTIP1 and LTIP2 plans respectively and 0% for LTIP2B and LTIP3. No dividend was taken into account in performing the valuation since IHS Holding Limited has never paid dividends and there is very minimal likelihood that dividends will be paid in the near future. On March 9, 2020, 120,228 options were issued. They were valued at $2.2 million at issue using a share price assumption of $21.20. Forfeiture rates of 0%, 5% and 10% were assumed for the Group’s various long term incentive plans. No dividend was taken into account in performing the valuation since IHS Holding Limited has never paid dividends and there is very minimal likelihood that dividends will be paid in the near future. On July 14, 2020, 33,405 options were issued. They were valued at $0.7 million at issue using a share price assumption of $22.14. Forfeiture rates of 0%, 5% and 10% were assumed for the Group’s various long term incentive plans. No dividend was taken into account in performing the valuation since IHS Holding Limited has never paid dividends and there is very minimal likelihood that dividends will be paid in the near future. On July 1, 2021 159,369 options were issued. They were valued at $3.7 million at issue using a share price assumption of $23.19. Forfeiture rates of 0% were assumed for the Group’s various long term incentive plans. No dividend was taken into account in performing the valuation since IHS Holding Limited has never paid dividends and there is very minimal likelihood that dividends will be paid in the near future. The above information has been adjusted for the reverse share split that took place in October 2021. (iv) Share options were originally granted at dates between June 2014 and September 2018 with a contractual life of 12 years. The weighted-average remaining contractual life shown in the tables below is simply the period of time from the year end date to the expiry date of each of the options. At December 31, following the amendment to terms on July 10, 2019, all share options had a nil exercise price. 2021 2020 Weighted Number of Weighted Number of average options in force average options in force Year of remaining at year end remaining at year end grant contractual life* contractual life 2014 0.83 1,039,526 0.49 3,138,844 2015 0.83 5,077,624 6.18 15,232,873 2017 0.83 1,685,317 8.12 5,116,869 2018 0.83 35,737 9.2 107,212 2020 0.83 51,211 6.41 153,633 2021 0.83 53,123 — 7,942,538 23,749,430 * The current year contractual remaining life has been determined using vesting dates as all options are expected to be exercised on vesting date. On October 13, 2021 all of the outstanding Class A and Class B shares of the Company were exchanged on a 500 to 1 basis for ordinary shares. The movements in the number of options in force at year end is based on the new number of shares. Refer to note 25 for further information. |
Cash from operations
Cash from operations | 12 Months Ended |
Dec. 31, 2021 | |
Cash from operations | |
Cash from operations | 29. 2021 2020 2019 $’000 $'000 $'000 Reconciliation: Loss before income tax (8,141) (152,853) (409,974) Adjustments Depreciation of property, plant and equipment (note 7 and 8) 344,716 373,247 355,760 Amortization of intangible assets (note 15) 38,166 35,415 28,747 Impairment of property, plant and equipment and prepaid land rent (note 7) 51,113 27,594 21,604 (Reversal of loss allowance)/loss allowance on trade receivables (note 8.1) (34,031) 13,081 27,944 Impairment of withholding tax receivables (note 8) 61,810 31,533 44,586 Amortization of prepaid site rent 8,321 4,459 3,355 Net (gain)/loss on disposal of plant, property and equipment (note 8) (2,499) (764) 5,819 Insurance claim income (note 9) (6,861) (14,987) (3,607) Interest expense (note 11) 422,034 633,766 288,915 Interest income (note 10) (25,522) (148,968) (32,258) Fair value gain on warrants revaluation (note 10) — — (3,787) Share ‑ 11,780 8,342 351,054 (Reversal of impairment)/impairment of inventory (315) 4,599 — Reversal of decommissioning through profit and loss (2,671) — — Operating profit before working capital changes 857,900 814,464 678,158 Changes in working capital Decrease/(increase) in inventory 6,689 (8,482) (27,069) Increase in trade and other receivables (164,382) (130,265) (21,093) Increase/(decrease) in trade and other payables 87,866 (19,018) 30,029 Net movement in working capital (69,827) (157,765) (18,133) Cash from operations 788,073 656,699 660,025 |
Related parties
Related parties | 12 Months Ended |
Dec. 31, 2021 | |
Related parties. | |
Related parties | 30 30.1 IHS Holding Limited (‘the Parent’) is the ultimate parent of the following related parties at the year-end: Ownership interests Ownership held interests held Country of by the Group by the Group Entity name Principal activity incorporation 2021 2020 IHS Holding Limited (ultimate parent) Holding company Cayman Islands — — IHS Mauritius Cameroon Limited Holding company Mauritius 100 % 100 % IHS Mauritius Côte d’Ivoire Limited Holding company Mauritius 100 % 100 % IHS Mauritius Netherlands Limited Holding company Mauritius 100 % 100 % IHS Mauritius Zambia Limited Holding company Mauritius 100 % 100 % IHS Mauritius Rwanda Limited Holding company Mauritius 100 % 100 % IHS Africa (UK) Limited Provision of management services United Kingdom 100 % 100 % IHS Netherlands Cöoperatief U.A. Holding company Netherlands 100 % 100 % IHS Netherlands Holdco B.V. Provision of finance Netherlands 100 % 100 % IHS Netherlands NG1 B.V. Holding company Netherlands 100 % 100 % IHS Netherlands NG2 B.V. Holding company Netherlands 100 % 100 % IHS Nigeria Limited Operating* Nigeria 100 % 100 % INT Towers Limited Operating* Nigeria 100 % 100 % IHS Towers NG Limited Operating* Nigeria 100 % 100 % Tower infrastructure Company Limited Operating* Nigeria ** 100 % IHS Côte d’Ivoire S.A. Operating* Côte d’Ivoire 100 % 100 % IHS Cameroon S.A. Operating* Cameroon 100 % 100 % IHS Zambia Limited Operating* Zambia 100 % 100 % IHS Rwanda Limited Operating* Rwanda 100 % 100 % Rwanda Towers Limited Operating* Rwanda 100 % 100 % IHS Kuwait Limited Operating* Kuwait 100 % 100 % IHS Brasil Cessão de Infraestruturas S.A. Operating* Brazil 100 % 100 % IHS Towers Colombia S.A.S Operating* Colombia 100 % 100 % IHS Peru S.A.C. Operating* Peru 100 % 100 % San Gimignano Imoveis e Adminsitracao Limitada Provision of land management* Brazil 100 % 100 % Nigeria Tower Interco B.V. Holding company Netherlands 100 % 100 % IHS Netherlands GCC B.V. Holding company Netherlands 100 % 100 % IHS Netherlands KW B.V. Holding company Netherlands ** 100 % IHS Netherlands KSA B.V. Holding company Netherlands 100 % 100 % IHS GCC Limited Provision of management services United Arab Emirates 100 % 100 % IHS Netherlands Connect B.V. Holding company Netherlands 100 % 100 % IHS GCC KW Holding Limited Provision of management services United Arab Emirates 70 % 100 % IHS FinCo Management Limited Provision of finance United Arab Emirates 100 % 100 % Global Independent Connect Limited Operating* Nigeria 100 % 100 % IHS KSA Limited Operating* Kingdom of Saudi Arabia 100 % 100 % IHS SSC FZE Provision of management services United Arab Emirates 100 % 100 % IHS Netherlands RSA B.V Holding company Netherlands 100 % 100 % IHS Netherlands BR B.V Holding company Netherlands 100 % 100 % IHS South Africa Holding Proprietary Limited Holding company South Africa 100 % ** % IHS Towers South Africa Proprietary Limited Operating* South Africa 100 % ** % IHS Netherlands PHP B.V Holding company Netherlands 100 % 100 % IHS Towers Inc. Provision of management services United States of America 100 % ** % IHS Netherlands EGY B.V. Holding company Netherlands 100 % ** % IHS Telecom Tower Egypt S.A.E. Operating* Egypt 80 % ** % Skysites Americas Ltda Operating* Brazil 100 % ** % Wi-Fi Mundial Ltda. Operating* Brazil 100 % ** % Topázio Empreendimentos Imoliliarios Ltda. Operating* Brazil 100 % ** % IHS Fiber Brasil Participações Ltda. Operating* Brazil 100 % ** % IHS Fiber Brasil - Cessão de Infraestruturas Ltda. Operating* Brazil 100 % ** % Fiberco Soluções de Infraestrutura S.A. Operating* Brazil 51 % ** % Centennial Towers Colombia S.A.S. Operating* Colombia 100 % ** % Polar Breeze Colombia S.A.S Operating* Colombia 100 % ** % Ownership interests Ownership held interests held Country of by the Group by the Group Entity name Principal activity incorporation 2021 2020 Centennial Towers Brasil Cooperatief U.A. Holding company Brazil 100 % ** % Centennial Towers of Brasil B.V. Holding company Brazil 100 % ** % Centennial Towers of Colombia Ltd. Operating* Colombia 100 % ** % IHS Centennial Brasil Torres de Telecomunicacoes Ltda Operating* Brazil 100 % ** % Polar Breeze Empreendimentos Ltda. Operating* Brazil 100 % ** % * All operating subsidiaries provide telecommunication support services as their principal activity. ** IHS Towers Netherlands Finco NG B.V. was liquidated at December 31, 2020. The shares of the Parent are widely owned by various investors. No investor has the full controlling right over the Company. 30.2 The compensation paid or payable to key management for employee services is shown below: 2021 2020 2019 $’000 $’000 $’000 Key management compensation Short ‑ 25,537 13,671 20,154 Post ‑ 105 105 61 25,642 13,776 20,215 Share-based payments 9,795 6,029 343,285 35,437 19,805 363,500 Key management during in the year ended December 31, 2021 included members of the Executive team (Sam Darwish, William Saad, Adam Walker, Mustafa Tharoo, David Ordman, Mohamad Darwish, Ayotade Oyinlola and Steve Howden) and Non-Executive Directors. On January 4, 2022 and February 28, 2022 Bill Bates and Colby Synesael were appointed to the Executive Committee, respectively and will be included in key management in 2022. In the prior year, James Goodwin and Ted Manvitz also formed part of the Executive team for part of the year but left the Company during 2019 and termination benefits of $3.2 million (included in short term benefits above) were paid to them. 30.3 During the year ended December 31, 2021, DAR Telecom Consulting LLC (“DAR Telecom”) was paid $1,125,384 (2020 - Nil, 2019 - $ 2,588,087) for services provided by Mr Sam Darwish, the Chairman & Group Chief Executive Officer. DAR Telecom is controlled by Mr Darwish. These amounts are included in Key Management Compensation. During the year ended December 31, 2021, DAR Telecom invoiced the Group for medical insurance premiums it had paid on behalf of the Group for $85,163 (2020 - $85,338, 2019 - $111,136). Included in these amounts are $38,330 (2020 - $36,648, 2019 - $38,341) that relate to Mr Darwish and are included in Key Management Compensation. During the year ended December 31, 2021, the Group incurred costs on behalf of Mr Darwish of $551,574 (2020 - $196,340, 2019 - $23,556) which were subsequently repaid by DAR Telecom. At December 31, 2021, the Group had a receivable of $551,574 (2020 - Nil) from DAR Telecom which was repaid on February 24, 2022. During the year ended December 31, 2021 the Group was provided corporate administration services by CKLB International Management Limited (“CKLB”) and paid fees of $300,935 (2020 - $252,615, 2019 - $242,100). Mr Christian Li and Mrs Kathleen Lai, who served as directors of IHS Holding Limited until October 13, 2021, are directors of CKLB. There were no other material transactions or balances between the Group and its key management personnel or members of their close family. |
Business Combinations
Business Combinations | 12 Months Ended |
Dec. 31, 2021 | |
Business Combinations | |
Business Combinations | 31. For acquisitions that meet the definition of a business combination, the Group applies the acquisition method of accounting where assets acquired and liabilities assumed are recorded at fair value at the date of each acquisition, and the results of operations are included with those of the Group from the dates of the respective acquisitions. Where acquisitions are completed close to the end of the reporting period accounting for the business combination may be incomplete for valuation of assets and liabilities such that the amounts recognized in the financial statements for the business combination are determined only provisionally. There were three acquisitions during the year ended December 31, 2021. Had these businesses been acquired on January 1, 2021, the amount of revenue and loss after tax for the year ended December 31, 2021 for the Group would have been approximately $1,583 million and $24 million, respectively. Skysites Holdings S.A. IHS Holding Limited acquired 100% of the share capital of Skysites Holdings S.A. (“Skysites”), a telecommunications services provider, with related passive infrastructure and ground leases on January 6, 2021. The acquisition is consistent with the Group’s strategy to expand in selected geographic areas. The goodwill of $26.9 million arising from the acquisition is attributable to the enhanced market presence in Brazil, the complementary service offering and closer alignment to certain customers as it relates to their future deployments. The goodwill recognized is currently expected to be deductible for income tax purposes. The following table summarizes the consideration paid and the fair value of assets and liabilities acquired at the acquisition date, and the amounts of revenue and loss of the acquiree since the acquisition date included in the consolidated statement of income/(loss) and other comprehensive income/(loss). 2021 $’000 Gross consideration 40,611 Less: contingent consideration* (4,169) Less: cash in business at the date of acquisition (2,775) Net cash consideration 33,667 Identifiable assets acquired and liabilities assumed: Towers and tower equipment 11,276 Land 15 Furniture and office equipment 11 Capital work in progress 535 Customer related intangible asset 4,703 Right of use asset 9,675 Trade and other receivables 713 Trade and other payables (1,132) Provisions for other liabilities and charges (2,548) Lease liabilities (10,071) Deferred tax (2,205) Total identifiable net assets acquired 10,972 Goodwill 26,864 Revenue — post ‑ 4,041 Loss — post ‑ (142) * Centennial Towers Colombia, S.A.S. and Centennial Towers Brasil Cooperatief U.A. IHS Holding Limited acquired 100% of the share capital of Centennial Towers Colombia, S.A.S. and Centennial Towers Brasil Cooperatief U.A. (together “Centennial”), a telecommunications services provider, with related passive infrastructure and ground leases in two parts, on March 19, 2021 and on April 8, 2021, respectively. The acquisition is consistent with the Group’s strategy to expand in selected geographic areas. The goodwill of $11.7 million and $36.5 million arising from the Centennial Towers Colombia, S.A.S. and Centennial Towers Brasil Cooperatief U.A. acquisitions respectively, is attributable to the enhanced market presence in Brazil and Colombia and closer alignment to certain customers in those markets as it relates to their future deployments. None of the goodwill recognized is currently expected to be deductible for income tax purposes. The following table summarizes the consideration paid and the fair value of assets and liabilities acquired at the acquisition date, and the amounts of revenue and loss of the acquiree since the acquisition date included in the consolidated statement of income/(loss) and other comprehensive income/(loss). Brazil Colombia Total 2021 2021 2021 $’000 $’000 $’000 Gross consideration 93,900 47,051 140,951 Less: cash in business at the date of acquisition (260) (659) (919) Net cash consideration 93,640 46,392 140,032 Identifiable assets acquired and liabilities assumed: Towers and tower equipment 43,890 14,074 57,964 Land 407 546 953 Furniture and office equipment 65 17 82 Capital work in progress 628 500 1,128 Right of use asset 22,273 9,761 32,034 Customer related intangible asset 35,422 32,599 68,021 Network related intangible asset 594 321 915 Software 495 1 496 Trade and other receivables 2,363 3,023 5,386 Trade and other payables (1,471) (3,646) (5,117) Provisions for other liabilities and charges (5,272) (527) (5,799) Lease liabilities (24,028) (10,458) (34,486) Tax payable (2,809) (625) (3,434) Deferred tax (15,374) (10,907) (26,281) Total identifiable net assets acquired 57,183 34,679 91,862 Goodwill 36,457 11,713 48,170 Revenue — post ‑ 9,515 Loss — post ‑ (3,961) FiberCo Soluções de Infraestrutura S.A. IHS Netherlands BR B.V. (“IHS BR BV”), a subsidiary of IHS Holding Limited, completed a deal with TIM S.A to acquire a controlling interest in FiberCo Soluções de Infraestrutura S.A. (“I-Systems”) on November 16, 2021. This includes TIM secondary fiber network and assets as well as the provision of fiber optic infrastructure services as an Open Fiber Network Service Provider. FiberCo will operate under the name of I-Systems. The acquisition is consistent with the Group’s strategy to expand in selected geographic areas. IHS owns a 51% stake in I-Systems and TIM the remaining 49%. The initial asset base of I-Systems includes TIM’s secondary network infrastructure, covering 3.5 million Fiber-to-the-Home and 3.4 million Fiber-to-the-Cabinet households, resulting in a total of 6.4 million households covered (allowing for 570 thousand homes of overlapping coverage). I-Systems is responsible for the deployment of new secondary fiber infrastructure for TIM, and the operation and maintenance of all such fiber infrastructure. TIM continues as the anchor tenant across the network under a long-term master services agreement. Certain services will be provided to I-Systems by TIM under a Transition Services Arrangement. The accounting for the business combination is incomplete for valuation of all assets, liabilities and contingent consideration. The amounts recognized in the financial statements for the business combination thus have been determined only provisionally with no value attributed to separately identifiable acquired intangible assets and network assets recognized at the original depreciated cost to I-Systems as management’s current best estimate of fair value. The provisional goodwill of $173.8 million arising from the I-Systems acquisition is largely attributable to customer relationships and the entry into a new service offering for IHS. None of the goodwill recognized is currently expected to be deductible for income tax purposes. The following table summarizes the consideration paid and the fair value of assets and liabilities acquired at the acquisition date, and the amounts of revenue and loss of the acquiree since the acquisition date included in the consolidated statement of income/(loss) and other comprehensive income/(loss). 2021 $’000 Gross consideration* 266,739 Less: deferred consideration (64,474) Net cash consideration 202,265 Capital injection** 42,996 Identifiable assets acquired and liabilities assumed: Network assets 220,950 Cash 44,872 Capital work in progress 3,832 Software 539 Trade and other receivables 8,498 Trade and other payables (5,764) Loans payable (6,457) Total identifiable net assets acquired 266,470 Non-controlling interest 130,570 Goodwill 173,835 Revenue — post ‑ 5,426 Loss — post ‑ (3,341) * Excluding contingent consideration subject to completion of business combination accounting. ** The capital injection relates to a payment made to I-Systems for the issuance of new share capital as part of the acquisition agreement to achieve the agreed shareholding structure post acquisition. IHS Kuwait Limited In the 2020 financial year IHS GCC KW Holding Limited (‘IHS GCC KW’), a subsidiary of IHS Holding Limited completed the first two stages of the acquisition of 1,620 towers from Mobile Telecommunications Company K.S.C.P. (‘Zain Kuwait’) comprising 1,162 towers. During April and October 2021 IHS GCC KW completed the third and fourth stages of the acquisition of 1,620 towers from Zain Kuwait comprising 67 and 126 towers respectively. The remaining 265 towers are managed and operated under a Managed Services agreement until such time as these towers can legally be transferred. IHS GCC KW transferred the purchase right to IHS Kuwait Limited for the Construction, Erection and Maintenance of Wired and Wireless Communication and Radar Towers and Stations / With Limited Liability (‘IHS Kuwait’) who operates the towers as a standalone business. As part of the agreement, IHS Kuwait also assumed existing supplier contracts and land leases, allowing it to apply the Group business processes and deliver services immediately after the assignment of the towers. As part of the agreement, Zain Kuwait subscribed for shares in IHS GCC KW representing 30 per cent of the share capital of IHS GCC KW by issuing a loan note to IHS GCC KW. The acquisition is consistent with the Group’s strategy to expand in selected geographic areas. The initial transaction completed during 2020 met the definition of a business as defined, and was accounted for as a business combination. The towers acquired in the two stages during 2021 are accounted for as asset acquisitions. The goodwill of $13.1 million arising from the acquisition in 2020 is attributable to the entry into a new geographical market for IHS, the application of the Group’s expertise and processes which is anticipated to deliver additional value from the acquired assets through high service levels, and value in customer related intangible assets beyond their contractual life. The following table summarizes the consideration paid and the fair value of assets and liabilities acquired at the acquisition dates of the 1,162 towers acquired in 2020 and the 193 towers acquired in 2021, and the amounts of revenue and loss of the acquiree since the acquisition date included in the consolidated statement of loss and other comprehensive income. 2021 2020 $’000 $’000 Gross consideration 12,248 117,367 Less: consideration received in exchange for a retained 30% interest (by Zain Kuwait) in IHS GCC KW (1,837) (14,927) Net consideration for 70% controlling interest in the acquired towers 10,411 102,440 Less: contingent and deferred consideration (note payable to Zain)* — (25,202) Net cash consideration for 70% controlling interest 10,411 77,238 Identifiable assets acquired and liabilities assumed: Towers and tower equipment 7,902 33,061 Right of use assets — 10,372 Customer related assets 5,449 41,878 Network-related assets 1,877 14,424 Trade and other receivables 872 14,318 Trade and other payables (3,852) (1,249) Lease liabilities — (8,580) Total identifiable net assets acquired (at 100% ) 12,248 104,224 Goodwill — 13,143 Determination of non-controlling interest Total identifiable net assets acquired (at 100%) 12,248 104,224 Shareholder funding provided by the Group and external debt** (6,124) (48,730) Settlement for lease prepayment funded post acquisition — (5,738) Total identifiable net assets acquired for purposes of non-controlling interest 6,124 49,756 Non-controlling interest portion of above at 30% 1,837 14,927 Revenue — post ‑ n.a. 21,713 Loss — post ‑ n.a. (2,466) * Contingent and deferred consideration consists of $25.2 million of consideration due at a future date which is recognized at fair value on the date of acquisition. The deferred consideration was payable within 18 months from the completion of the transaction and was paid during 2021. The contingent consideration was potentially payable within 24 months from the completion of the transaction, or earlier, should the Group enter into other tower acquisitions in MENA. The contingencies were not met and the contingent consideration was released to the consolidated statement of loss and other comprehensive income in 2021, refer to note 9. **This was shareholder funding provided by the Group and recorded as short term liabilities in IHS GCC KW. These funds were loaned to IHS Kuwait to fund the acquisition of the towers from Zain. This short term liability was subsequently replaced by external debt (refer to note 22). IHS Brasil Cessão de Infraestruturas S.A. IHS Holding Limited acquired 100% of the share capital of IHS Brasil Cessão de Infraestruturas Limitada, a telecommunications infrastructure services provider, with related passive infrastructure and ground leases on February 18, 2020. The acquisition is consistent with the Group’s strategy to expand in selected geographic areas. The goodwill of $218.9 million arising from the acquisition is attributable to the entry into a new geographical market for IHS, and value in customer related intangible assets beyond their contractual life. None of the goodwill recognized is currently expected to be deductible for income tax purposes. The following table summarizes the consideration paid and the fair value of assets and liabilities acquired at the acquisition date, and the amounts of revenue and profit of the acquiree since the acquisition date included in the consolidated statement of income and other comprehensive income. 2020 $’000 Gross consideration 506,778 Less: cash in business at the date of acquisition (41,111) Net cash consideration 465,667 Identifiable assets acquired and liabilities assumed: Towers and tower equipment 111,327 Land and buildings 566 Furniture and office equipment 305 Capital work in progress 4,970 Right of use asset 119,339 Customer related intangible asset 282,412 Network-related assets 22,407 Other intangible assets 33 Deferred tax assets 8,347 Trade and other receivables 14,615 Trade and other payables (24,123) Income tax payable (1,538) Borrowings (46,356) Provisions for other liabilities and charges (15,437) Lease liabilities (123,071) Deferred tax liabilities (107,016) Total identifiable net assets acquired 246,780 Goodwill 218,887 Revenue — post ‑ 30,185 Loss — post ‑ (296) |
Acquisition of MTN telecom towe
Acquisition of MTN telecom towers in South Africa | 12 Months Ended |
Dec. 31, 2021 | |
Business Combinations | |
Disclosure of acquisition of MTN Telecom Towers in South Africa | 32. Acquisition of MTN telecom towers in South Africa On November 17, 2021, the Company signed an agreement with MTN South Africa (“MTN South Africa”) to acquire its tower portfolio comprising 5,709 towers and for the provision of power services to MTN South Africa at approximately 13,000 sites (including the acquired sites). The portfolio of 5,709 sites currently has a colocation rate of 1.2x. Under the terms of the agreement, MTN South Africa will also provide a multi-year commitment for a portion of its new towers to be built by the Company. The consideration is expected to be ZAR6.4 billion on a debt-free and cash-free basis subject to customary post-closing price adjustments. The transaction will be financed through a combination of cash on hand and / or drawing on available facilities. The Group expects to account for its acquisition as a business combination under IFRS 3. MTN is a subsidiary of MTN Group Limited (“MTN Group”). MTN Group is IHS’ largest shareholder by beneficial ownership, owning 26.0% of IHS via Mobile Telephone Networks (Netherlands) B.V. or affiliates of MTN Group. MTN Group does not receive non-public information and is not represented on our Board or any Board Committees. The transaction is expected to close in the first or second quarter of 2022 subject to customary regulatory approvals and closing conditions. |
Capital commitments and conting
Capital commitments and contingent liabilities | 12 Months Ended |
Dec. 31, 2021 | |
Capital commitments and contingent liabilities. | |
Capital commitments and contingent liabilities | 33 33.1 The Group was committed to the purchase of property, plant and equipment of about $206.7 million as at December 31, 2021 (2020: $109.9 million). 33.2 The Group has contingent liabilities in respect of legal claims arising in the ordinary course of business. The Group reviews these matters in consultation with internal and external legal counsel to determine on a case-by-case basis whether a loss from each of these matters is probable, possible or remote. The Group’s possible contingent liabilities in respect of litigations and claims amounted to $2.0 million at the end of the reporting period (2020: $2.6 million). Based on legal advice received, the Group’s liability is not considered probable, thus no provisions have been made in these financial statements. |
Events after the reporting peri
Events after the reporting period | 12 Months Ended |
Dec. 31, 2021 | |
Events after the reporting period | |
Events after the reporting period | 34. (a) Acquisition of São Paulo Cinco Locação de Torres Ltda. (“SP5”) On January 21, 2022, the Company (via its subsidiary IHS Brasil – Cessão The Group expects to account for this acquisition as a business combination under IFRS 3 The transaction is expected to close imminently. (b) New employee share-based payment scheme On February 4, 2022, a total of 1,147,500 options were issued as part of the new employee share-based payment plan. The plan will be deemed equity settled and comprise of: ◾ Restricted stock units, which do not include performance conditions and vest on a straight-line basis over three years ◾ Performance stock units, with a Recurring Leverage Free Cash Flow target and a cumulative total shareholder return target. Recurring Leverage Free Cash flow target is a non-market-based performance condition, assessed annually over a three-year period. A cumulative total shareholder return target is market-based, will be valued based on a Monte Carlo model for a three-year performance period, an approach that is commonly used for IFRS 2 valuations (c) Legacy employee share-based payment scheme The performance conditions relating to the 50% of the remaining third (33.3%) of the legacy employee share-based payment scheme (refer to note 28) have been met. 3.9 million shares will be issued in March and April 2022. |
Summary of significant accoun_2
Summary of significant accounting policies (Policies) | 12 Months Ended |
Dec. 31, 2021 | |
Summary of significant accounting policies | |
Basis of preparation | 2.1 The consolidated financial statements of IHS have been prepared in accordance with International Financial Reporting Standards (IFRS) as issued by the International Accounting Standards Board (IASB). The consolidated financial statements have been prepared under the historical cost convention, as modified by financial assets and liabilities (including derivative financial instruments) which are recognized at fair value. 2.1.1 (a) The Group has applied the following standards and amendments for the first time for its annual reporting period commencing January 1, 2021: ● Interest Rate Benchmark Reform – Phase 2 (Amendments to IFRS 9, IAS 39 and IFRS 7) ● Annual Improvements to IFRS Standards 2018-2020 Cycle The amendments to standards listed above did not have any material impact on the Group’s financial statements. (b) Certain new accounting standards, interpretations and amendments have been published that are not effective for December 31, 2021 reporting period and have not been early adopted by the Group. They are: ● Annual Improvements to IFRS Standards 2018–2020 (subsidiary as a first-time adopter) (Amendment to IFRS 1) ● Reference to the Conceptual Framework (Amendment to IFRS 3) ● IFRS Standards 2018–2020 (fees in the ‘10 per cent’ test for derecognition of financial liabilities) (Amendment to IFRS 9) ● Classification of liabilities (Amendment to IAS 1) ● Defer the effective date of the January 2020 amendments (Amendment to IAS 1) ● Disclosure of accounting policies (Amendment to IAS 1) ● Deferred tax on leases and decommissioning obligations (Amendment to IAS 12) ● Prohibiting a company from deducting from the cost of property, plant and equipment amounts received from selling items produced while the company is preparing the asset for its intended use (Amendment to IAS 16) ● Costs which should be included in the cost of fulfilling a contract when determining whether a contract is onerous (Amendment to IAS 37) None of the above amendments to standards are expected to have a material effect on the Group’s financial statements. |
Consolidation | 2.2. (a) The consolidated financial statements include the financial information and results of the Company and those entities in which it has a controlling interest. The Group controls an entity when the Group is exposed to, or has rights to, variable returns from its involvement with the entity and has the ability to affect those returns through its power over the entity. Subsidiaries are all entities (including structured entities) over which the Group has control. Subsidiaries are fully consolidated from the date on which control is transferred to the Group. They are deconsolidated from the date the control ceases. All intercompany balances and transactions have been eliminated. (b) For acquisitions that meet the definition of a business combination, the Group applies the acquisition method of accounting where assets acquired and liabilities assumed are recorded at fair value at the date of each acquisition, and the results of operations are included with those of the Group from the dates of the respective acquisitions. Any excess of the purchase price paid by the Group over the amounts recognized for assets acquired and liabilities assumed is recorded as goodwill and any acquisition related costs are expensed as incurred. The Group recognizes any non-controlling interest in the acquiree either at fair value or at the non-controlling interest’s proportionate share of the recognized amounts of acquiree’s identifiable net assets. The consideration transferred for the acquisition comprises the fair value of the assets transferred, liabilities incurred, equity interests issued by the Group and any contingent consideration. Where settlement of any part of cash consideration is deferred, the amounts payable in the future are discounted to their present value as at the date of exchange. The discount rate used is the entity’s incremental borrowing rate, being the rate at which a similar borrowing could be obtained from an independent financier under comparable terms and conditions. If the Group gains control in a business combination in stages, the acquisition date carrying value of the acquirer’s previously held equity interest in the acquiree is remeasured to fair value at the acquisition date; any gains or losses arising from such remeasurement are recognized in profit or loss. The Group has considered whether any of its business combinations represent a sale and leaseback transaction from a lessor perspective. It has been determined that since the space on towers and associated assets are able to be leased to multiple tenants without restriction, that no such arrangement of the entire tower site portfolio acquired exists. (c) The Group treats transactions with non-controlling interests as transactions with equity owners of the Company. A change in ownership interest results in an adjustment between the carrying amounts of the controlling and non-controlling interests to reflect their relative interests in the subsidiary. Any difference between the amount of the adjustment to non-controlling interests and any consideration paid or received is recognized in a separate reserve within equity attributable to owners of the Company. |
Segment reporting | 2.3 Operating segments are components of IHS’s business activities about which separate financial information is available and reported internally to the chief operating decision maker. The Group’s Executive Committee has been identified as the chief operating decision maker, responsible for allocating resources and assessing performance of the operating segments. The Group’s Executive Committee consists of: the Chief Executive Officer (“CEO”), the Chief Operating Officer (“COO”), the Chief Financial Officer (“CFO”), the General Counsel, both Deputy CFOs, the IHS Nigeria CEO, and the Chief Human Resource Officer. Latam and MENA are operating segments effective from February 2020 following the acquisition of IHS Brasil Cessão de Infraestruturas S.A. and IHS Kuwait Limited (refer to note 31). This reflects the way the Company’s chief operating decision maker (‘‘CODM’’) is provided with financial information which aligns to internal regional management organizational reporting lines and responsibilities. All reporting to the CODM analyzes performance in this way and resources are allocated on this basis. |
Foreign currency translation | 2.4 (a) Items included in the financial statements of each of the Group’s entities are measured using the currency of the primary economic environment in which the entity operates (the “functional currency”). The consolidated financial statements are presented in US Dollars. (b) During the year ended December 31, 2017, the Central Bank of Nigeria introduced a new foreign exchange window, which includes the NAFEX (Nigerian Autonomous Foreign Exchange Fixing). This resulted in a situation where there are several different official exchange rates in the market, thereby requiring the Company to monitor and evaluate which exchange rate is most appropriate to apply in translating foreign currency transactions in its Nigeria businesses and in translating Naira amounts for Group reporting purposes. Where multiple official exchange rates exist, the Group assesses the appropriate rate to use and takes into account relevant factors. In the case of translating foreign operations or foreign transactions, such factors include access to those rates in the future to meet payments or dividends. In determining whether it is appropriate to move from one official rate to another, the Group considers the available rates in official markets for settlement of transactions. Refer to note 3 for further information. (c) Foreign currency transactions are translated into the functional currency using the exchange rates prevailing at the dates of the transactions or valuation where items are remeasured. Foreign exchange gains and losses resulting from the settlement of such transactions and from the translation at year end exchange rates of monetary assets and liabilities denominated in foreign currencies are recognized in profit or loss. Foreign exchange gains and losses that relate to borrowings and cash and cash equivalents are presented in the statement of income and other comprehensive income within “finance income” or “finance cost.” Foreign exchange gains and losses that relate to other monetary items are presented in the statement of income and other comprehensive income within “cost of sales,” “administrative expense” and “other income” as appropriate. Non-monetary items that are measured at fair value in a foreign currency are translated using the exchange rates at the date when the fair value was determined. Translation differences on assets and liabilities carried at fair value are reported as part of the fair value gain or loss. For example, translation differences on non-monetary assets and liabilities such as equities designated as fair value through other comprehensive income are recognized in other comprehensive income. The subsidiaries based in Nigeria translated their foreign currency transactions into the functional currency, Nigerian Naira, at the Nigerian Autonomous Foreign Exchange Fixing (“NAFEX”) prevailing rate at the date of the transaction. Monetary items and liabilities denominated in foreign currencies were also translated at the NAFEX rate. The NAFEX rate was between 394.13 and 435.00 during 2021 (2020: 363.2 and 410.25, 2019: 360.4 and 364.7) and at December 31, 2021 was 435.00 (December 31, 2020: 410.25, December 31, 2019: 364.7). Both years experienced a spike in the month of December of that year, with the average rate for December 2021 being 415.6 (2020: 394.3). Refer to note 3 for further information on foreign exchange rate assessment. The results and financial position of all the Group entities (none of which has the currency of a hyper inflationary economy) that have a functional currency different from the presentation currency are translated into the presentation currency as follows: ● assets and liabilities for each statement of financial position presented are translated at the closing rate at the date of that statement of financial position, ● income and expenses for each statement of income and other comprehensive income are translated at the monthly average exchange rates (unless this average is not a reasonable approximation of the cumulative effect of the rates prevailing on the transaction dates, in which case income and expenses are translated at the rate on the dates of the transactions), and ● all resulting exchange differences are recognized in other comprehensive income. On consolidation, exchange differences arising from the translation of the net investment in foreign operations and of borrowings are taken to other comprehensive income. Goodwill and fair value adjustments arising on the acquisition of a foreign entity are treated as assets and liabilities of the foreign entity and translated at the closing rate. Exchange differences arising are recognized in other comprehensive income. The results of the subsidiaries based in Nigeria were translated into US Dollars at the NAFEX monthly average exchange rate for income and expenses and the assets and liabilities at the NAFEX closing rate at the date of the statement of financial position with rates as noted above. Refer to note 3 for further information. |
Revenue recognition | 2.5 Our revenue is derived from fees paid by our customers for services from our colocation business and its ancillary managed services. The colocation business involves the lease of space on IHS owned and leased towers, which are shared by various operators and data service providers. Revenue is generated on towers either from anchor tenants (original tenants on towers) or colocation tenants (subsequent tenants) when they install equipment on towers. A portion of colocation arrangements for the rental of space on the towers and other assets on tower sites, on which the use of space is dependent, is within the scope of IFRS 16 Leases. A portion of colocation arrangements for the provision of services and energy charges is within the scope of IFRS 15 ‘Revenue from contracts with customers’ as a provision of service. The Group also offers ancillary services to manage tenant operations of existing customers on a limited basis. Revenue from such managed services is within the scope of IFRS 15 ‘Revenue from contracts with customers’. In determining the amounts of colocation revenue from our contracts with customers that fall within the scope of IFRS 15 or IFRS 16, the Group considers whether there are separate performance obligations to which a portion of the transaction price needs to be allocated and revenue recognized separately. For colocation services the Group determines the transaction price (including lease and non-lease elements) at contract inception and considers the effects of: ● Variable consideration - The contractual price may be subject to service credits, price indexation, discounts provided on site consolidation and discounts associated with site occupancy. All of these items of variable consideration are considered to relate to individual service periods of series performance obligations, or represent contingent rentals, and are therefore recognized in the future periods in which they arise rather than when estimating the transaction price at contract inception. ● The existence of significant financing components - Financing components are not expected to be significant as services and payments are generally in line over the period of the contract. ● Consideration payable to the customer (if any) - Payments to customers (such as rebates and discounts refunded to the customer and payments for exit fees) are deducted from transaction price unless they are payments for a distinct good or service supplied to the Group in return for the payments. At the date of contract inception, the Group determines the stand-alone selling prices of the performance obligations (including the lease elements of the contract) using a combination of data on observable prices from comparable managed service arrangements, supplemented by the cost plus a margin approach. The Group allocates the transaction price to these non-lease elements of the contract and between performance obligations within the non-lease element of the contract on the basis of relative stand-alone selling price. Revenue is typically invoiced quarterly in advance except where a deferral of invoicing has been agreed with a customer such as where there is an ongoing dispute over pricing in which case revenue is accrued on the basis of the expected outcome for performance obligations satisfied in the period. Customer contracts typically require payment within 30 to 60 days. (a) For non-lease revenue, two separate performance obligations have typically been identified, one in respect of the operation of tower infrastructure and one in respect of the provision of maintenance services and power, with each being a series of performance obligations to stand ready to deliver the required services. The identification of these two performance obligations does not change the timing of revenue recognition of the non-lease component as both are typically satisfied over the same time period. In limited cases, contracts may provide the customer with a right to purchase additional services at a significant discount. In these cases, the material right is also identified as a performance obligation. On initial recognition of revenue, the Group assesses the recoverability of revenue and recognizes the revenue, in respect of satisfied performance obligations, which is expected to be recovered. Amounts not expected to be recovered at the point of initial recognition are considered to be variable consideration, contingent upon the receipt of funds from the customer and are therefore subject to measurement constraints as such payments are not wholly within the control of the Group. The assessment of amounts expected to be recovered, and indirectly the variable consideration component, are closely aligned with the assumed credit risk of the customer, determined as part of the assessment of expected credit losses made in accordance with the Group’s IFRS 9 expected credit loss policy as described in note 2.17.4. (b) The portion of colocation revenue, for which IHS is the lessor, is treated as a lease. Revenue from these operating lease arrangements, including fixed escalation clauses present in non-cancellable lease agreements is recognized on a straight line basis over the current lease term of the related lease agreements, when collectability is reasonably assured. The duration of these lease arrangements is typically between 5 and 10 years. Escalation clauses tied to the Consumer Price Index (“CPI”) or other inflation based indices, are excluded from the straight line calculation, however, any fixed increases are included. Revenue is recognized in the accounting period in which the rental income is earned and services are rendered. Amounts billed or received for services prior to being earned are deferred and reflected in deferred revenue until the criteria for recognition have been met. (c) Revenue from managed services contracts with customers is recognized when control of the services is transferred to the customer at an amount that reflects the consideration to which the Group expects to be entitled in exchange for those services. Revenue is recognized in the accounting period in which the services are rendered by reference to the stage of completion based on the terms of each contract. Services revenues are derived under contracts or arrangements with customers that provide for billings either on a fixed price basis or a variable price basis, which includes factors such as time and expenses. Revenues are recognized as services are performed. Amounts billed or received for services prior to being earned are deferred and reflected in deferred revenue in the accompanying statement of financial position until the criteria for recognition have been met. |
Embedded derivatives in revenue contracts | 2.6 Certain revenue contracts and subsequent amendments include fees that are priced in $ but are invoiced and settled in the relevant local currency of the operation using foreign exchange rates calculated in accordance with the contractual terms. Where the contractual foreign exchange rates are reset at regular intervals in arrears, management evaluates and determines at the date of inception, or at the date of material modification, of the contracts whether the reset features are closely related to the host contracts or not. In making the evaluation, management assessed that the $ is a commonly used currency in the local operation, and that the reset interval was sufficiently frequent to approximate the local currency spot exchange rate given economic conditions at that time. Management also considers whether, at the time of inception or material modification, contract rates reference a liquid market exchange rate. If reference rates are assessed as liquid the embedded derivative is assessed as closely related and no accounting bifurcation is made. Where such fees that are priced in $ are translated to local currency at the time of billing using a fixed, pre-determined exchange rate or an exchange rate which is not referenced to a liquid market exchange rate, this results in an embedded derivative which is not closely related to the host contract and is thus bifurcated, fair valued and disclosed separately. The fair values of these embedded derivatives are determined by reference to the discounted forecast billings under the contractual rates compared to those under the forecast liquid market rates. Upon initial recognition of the revenue embedded derivative asset or liability, the Group recognizes a contract liability or asset, respectively. The contract liability or asset is released to revenue over the shorter of the term of the contract or the term over which the conditions that result in the embedded derivative expire. The release to revenue is recognized on the same basis that those contractual conditions materialize, to match the release of the contract liability or asset to the recognition of revenue from the underlying contract. |
Leases | 2.7 The Group is a lessee of various assets, comprising land and building, towers, equipment and motor vehicles. The determination whether an arrangement is, or contains, a lease is based on whether the contract conveys a right to control the use of an identified asset for a period of time in exchange for consideration. The following sets out the Group’s lease accounting policy for all leases with the exception of leases with low-value (i.e. < $5,000) and short term of less than 12 months for which the Group has taken the exemption under the standard and are expensed to profit or loss as incurred. (a) The Group recognizes right of use assets at the commencement date of the lease (i.e., the date the underlying asset is available for use under the contract). Right of use assets are measured at cost, less any accumulated depreciation and impairment losses, and adjusted for any remeasurement of lease liabilities. The cost of right of use assets includes the amount of lease liabilities recognized, initial direct costs incurred, and lease payments made at or before the commencement date (which do not form part of the lease liability value at the commencement date). Right of use assets are depreciated on a straight-line basis over the shorter of their estimated useful life and the lease term. The right-of-use assets are tested for impairment in accordance with IAS 36 “Impairment of Assets”. (b) At the commencement date of the lease, the Group recognizes lease liabilities measured at the present value of all remaining lease payments to be made over the lease term. The lease payments include fixed payments (including in-substance fixed payments where the contracts specify fixed or minimum uplifts) and variable lease payments that depend on an index or a rate. The variable lease payments that do not depend on an index or a rate are recognized as an expense in the period in which the event or condition that triggers the payment occurs. Due to the nature of our leased assets the interest rate implicit in the lease is usually not readily determinable, the Group therefore uses the incremental borrowing rate in calculating the present value of lease payments at the lease commencement date. The incremental borrowing rate is calculated using a series of inputs, including: a local currency cost of debt for each country based on local borrowing (or where not available, an inflation adjusted US$ cost of debt which encompasses the country specific adjustment), an adjustment for the duration of the referenced borrowings to arrive at an interest rate for a one-year facility, and an adjustment for the lease term based on local government, US or Eurozone bond yields, as appropriate in the context of each country’s debt markets. The finance cost is charged to profit or loss over the lease period so as to produce a constant periodic rate of interest on the remaining balance of the liability for each period. In addition, the carrying amount of lease liabilities is remeasured if there is a modification, a change in the lease term or a change in the in-substance fixed lease payments. The Group determines the lease term as the non-cancellable term of the lease, together with any periods covered by an option to extend the lease if it is reasonably certain to be exercised and any periods covered by an option to terminate the lease, if it is reasonably certain that the termination options will not to be exercised. The Group has the option under some of its leases to lease the assets for additional periods of up to 10 years. The Group applies judgement in evaluating whether it has a unilateral option to renew the lease for a further period and is reasonably certain to exercise the option to renew (note 3). That is, it considers all relevant factors that create an economic incentive for it to exercise the renewal. After the commencement date, the Group reassesses the lease term if there is a significant event or change in circumstances that is within its control and affects its ability to exercise (or not to exercise) the option to renew. |
Cost of sales | 2.8 Cost of sales is mainly comprised of power generation costs, depreciation, tower repairs and maintenance costs, operational staff and costs, site rental costs. |
Administrative expenses | 2.9 Administrative expenses are costs not directly related to provision of services to customers, but which support our business as a whole. These overhead expenses primarily consist of administrative staff costs (including key management compensation), office rent and related property expenses, insurance, travel costs, professional fees, depreciation and amortization of administrative assets, net (gain)/loss on disposal of property, plant and equipment and other sundry costs. Administrative expenses also includes other corporate overhead expenses related to the Group’s acquisition efforts and costs associated with new business initiatives. |
Other income | 2.10 Other income includes proceeds from insurance claims and the remeasurement of contingent consideration arising from acquisitions. |
Interest income | 2.11 Interest income is recognized in profit or loss and is calculated using the effective interest method as set out in IFRS 9. |
Property, plant and equipment | 2.12 These are mainly towers and towers equipment, fiber telecommunications network cables and equipment, land and buildings, furniture and office equipment, motor vehicles and capital work in progress that are used directly by the Group in the provision of services to customers, or for administrative purposes. The assets are carried at historical cost less accumulated depreciation and accumulated impairment losses. Historical cost includes expenditure that is directly attributable to the acquisition of the assets including amounts related to the cost of future decommissioning and site restoration obligations. Subsequent costs are included in the asset’s carrying amount or recognized as a separate asset, as appropriate, only when it is probable that future economic benefits associated with the asset will flow to the Group and the cost can be measured reliably. The carrying amount of the replaced asset is derecognized. All other repairs and maintenance are charged to profit or loss during the financial period in which they are incurred. Freehold land is not depreciated. Depreciation on other assets is calculated using the straight-line method to allocate their cost to their residual values over their estimated useful lives, as follows: Towers and tower equipment • Base station equipment (including civil costs and overheads) 10 - 20 years • Base station equipment (other equipment) 15 years • Base station equipment (rectifier and solar power) 10 years • Base station equipment (alarm and battery) 3 - 5 years • Base station equipment (generator & generator overhaul) 1 - 3 years Fiber assets • Fixed line network equipment (including civil works, duct system, cable system and survey costs) 25 years • Outdoor cabinet 10 years Land and buildings, furniture and office equipment, and motor vehicles • Office complex 40 years • Furniture and office equipment 3 years • Motor vehicles 4 years Asset residual values and useful lives are reviewed and adjusted if appropriate, at the end of each reporting period. Where an indication of impairment exists, an asset’s carrying amount is written down immediately to its recoverable amount if the asset’s carrying amount is greater than its estimated recoverable amount. The gain or loss arising on the disposal or retirement of an asset is determined as the difference between the sales proceeds and the carrying amount of the asset and is recognized in profit or loss for the period. The Group assesses its property, plant and equipment for possible impairment if there are events or changes in circumstances that indicate that carrying values of the assets may not be recoverable, or at least at the end of every reporting period. Such indicators include changes in the Group’s business plans, changes in diesel prices, evidence of physical damage and technological changes and impacts of obsolescence including those driven by climate change. |
Intangible assets and goodwill | 2.13 Goodwill arises on the acquisition of businesses and represents the excess of the consideration transferred, the amount of any non-controlling interest in the acquiree and the acquisition-date fair value of any previous equity interest in the acquiree over the fair value of the identifiable net assets acquired. If the total of consideration transferred, non-controlling interest recognized and previously held interest measured at fair value is less than the fair value of the net assets of the subsidiary acquired, in the case of a bargain purchase, the difference is recognized directly in profit or loss. For the purpose of impairment testing, goodwill acquired in a business combination is allocated to each of the cash-generating units (“CGUs”), or groups of CGUs, that is expected to benefit from the synergies of the combination. Each unit or group of units to which the goodwill is allocated represents the lowest level within the entity at which the goodwill is monitored for internal management purposes. Goodwill is monitored at or below the operating segment level. Goodwill impairment reviews are undertaken annually or more frequently if events or changes in circumstances indicate a potential impairment. The carrying value of the CGU containing the goodwill is compared to the recoverable amount, which is the higher of value in use and the fair value less costs of disposal. Any impairment is recognized immediately as an expense and is not subsequently reversed. (a) Network related intangible assets represent future income from leasing excess tower capacity to new tenants. Customer related intangible assets represent customer contracts and relationships. Network and customer-related intangible assets acquired in a business combination are recognized at fair value at the acquisition date. Network and customer-related intangible assets have a finite useful life and are carried at cost less accumulated amortization. Amortization is calculated using the straight-line method to allocate the cost of network and customer related intangible assets over their estimated useful lives of 14-26 years (2020: 14-20 years, 2019: 14-16 years) and 5-37 years (2020: 5-30 years, 2019: 5-30 years) respectively. The remaining amortization period for network and customer related assets are between 5-26 years (2020: 6-26 years, 2019: 7-10 years) and 21-36 years (2020: 1-27 years, 2019: 1-26 years) respectively. (b) Separately acquired licenses are shown at historical cost. Licenses acquired in a business combination are recognized at fair value at the acquisition date. Licenses have a finite useful life and are carried at cost less accumulated amortization. Amortization is calculated using the straight-line method over their estimated useful lives of 3-15 years (2020: 3-15 years, 2019: 3-15 years). (c) Costs associated with maintaining computer software programs are recognized as expenses as incurred. Acquired computer software licenses are capitalized at the cost incurred to acquire and bring into use the software. Amortization is calculated using the straight-line method over their estimated useful lives of three |
Impairment of nonfinancial assets | 2.14 Goodwill and intangible assets that have an indefinite useful life are not subject to amortization and are tested annually for impairment, or more frequently if events or changes in circumstances indicate that they might be impaired (note 3). Other assets are tested for impairment whenever events or changes in circumstances indicate that the carrying amount may not be recoverable. An impairment loss is recognized for the amount by which the asset’s carrying amount exceeds its recoverable amount. The recoverable amount is the higher of an asset’s fair value less costs of disposal and its value in use. For the purposes of assessing impairment, assets are grouped at the lowest levels for which there are separately identifiable cash inflows which are largely independent of the cash inflows from other assets or groups of assets (cash-generating units). Non-financial assets other than goodwill that suffered an impairment are reviewed for possible reversal of the impairment at the end of each reporting period. |
Inventories | 2.15 Inventories are stated at the lower of cost and estimated net realizable value. Cost comprises direct materials costs and where applicable, direct labor costs and those overheads that have been incurred in bringing the inventories to their present location and condition. Cost is calculated using the first-in, first-out method. Net realizable value represents the estimated selling price less all estimated costs of completion and costs to be incurred in marketing, selling and distribution. If the carrying value exceeds net realizable amount, a write down is recognized. The write-down may be reversed in a subsequent period if the circumstances which caused it no longer exist. In other instances, where the net realizable value of an inventory item is not readily determinable, management assesses the age and the risk of obsolescence of such items in determining net realizable value of such items using an appropriate age/obsolescence factor model. |
Financial assets | 2.16 2.16.1 The Group classifies its financial assets in the following measurement categories: ● those to be measured subsequently at fair value (either through other comprehensive income (OCI) or through profit or loss), and ● those to be measured at amortized cost. The classification depends on the entity’s business model for managing the financial assets and the contractual terms of the cash flows. The Group reclassifies debt investments when and only when its business model for managing those assets changes. 2.16.2 Regular way purchases and sales of financial assets are recognized on trade-date, the date on which the Group commits to purchase or sell the asset. Financial assets are derecognized when the rights to receive cash flows from the financial assets have expired or have been transferred and the Group has transferred substantially all the risks and rewards of ownership. 2.16.3 At initial recognition, the Group measures a financial asset at its fair value plus, in the case of a financial asset not at fair value through profit or loss (FVPL), transaction costs that are directly attributable to the acquisition of the financial asset. Transaction costs of financial assets carried at FVPL are expensed in profit or loss. a) Subsequent measurement of debt instruments depends on the Group’s business model for managing the asset and the cash flow characteristics of the asset. The Group measures its debt instruments at amortized cost as assets are held for collection of contractual cash flows where those cash flows represent solely payments of principal and interest. Interest income from these financial assets is included in finance income using the effective interest rate method. Any gain or loss arising on derecognition is recognized directly in profit or loss and presented in other gains/(losses) together with foreign exchange gains and losses. Impairment losses are presented as separate line item in the statement of income and other comprehensive income. For the purpose of presentation in the statement of cash flows, cash and cash equivalents includes cash on hand, deposits held at call with financial institutions, other short term, highly liquid investments with original maturities of three months or less that are readily convertible to known amounts of cash and which are subject to an insignificant risk of changes in value, and bank overdrafts. Bank overdrafts are reflected within borrowings in current liabilities in the statement of financial position. b) The Group subsequently measures all equity investments at fair value. The Group has elected to present fair value gains and losses on equity investments in OCI. There is no subsequent reclassification of fair value gains and losses to profit or loss following the derecognition of the investment. 2.16.4 The Group evaluates each customer individually for the purpose of estimating the impairment at the reporting date rather than using a portfolio approach. The Group has limited history of losses and given the short duration of receivables, the Group uses the experienced credit judgement (ECJ) approach to estimate the impairment of trade receivables in accordance with the expected credit loss (ECL) requirement of IFRS 9. The ECJ approach assesses the credit risk of the customer at the reporting date to evaluate the customer’s capacity to meet its contractual cash flow obligations in the near term and combines this with an evaluation of the impact of changes in economic and business conditions on the customer’s ability to pay. |
Financial liabilities | 2.17 2.17.1 Classification The Group’s financial liabilities are classified at amortized cost. Financial liabilities are recognized initially at fair value and inclusive of directly attributable transaction costs. The Group’s financial liabilities are borrowings and trade and other payables. (a) Borrowings are initially recognized at fair value, net of transaction costs incurred. Borrowings are subsequently measured at amortized cost. Any difference between the proceeds (net of transaction costs) and the redemption amount is recognized in the statement of income and other comprehensive income over the period of the borrowings using the effective interest method. Fees paid on the establishment of loan facilities are recognized as transaction costs of the loan to the extent that it is probable that some or all of the facility will be drawn down. In this case, the fee is deferred until the draw down occurs. To the extent there is no evidence that it is probable that some or all of the facility will be drawn down, the fee is capitalized as a prepayment for liquidity services and amortized over the period of the facility to which it relates. A day one gain or loss on a related party loan at a non-market interest rate is included in investments. Borrowings are removed from the statement of financial position when the obligation specified in the contract is discharged, cancelled or expired. The difference between the carrying amount of a financial liability that has been extinguished or transferred to another party and the consideration paid, including any non-cash assets transferred or liabilities assumed, is recognized in the statement of income and other comprehensive income as other income or finance costs. Where the terms of a financial liability are renegotiated and the entity issues equity instruments to a creditor to extinguish all or part of the liability (debt for equity swap), a gain or loss is recognized in the statement of income and other comprehensive income, which is measured as the difference between the carrying amount of the financial liability and the fair value of the equity instruments issued. Borrowings are classified as current liabilities unless the Group has an unconditional right to defer settlement of the liability for at least 12 months after the reporting period. (b) Trade payables are obligations to pay for goods or services that have been acquired in the ordinary course of business from suppliers. Accounts payable are classified as current liabilities if payment is due within one year or less. If not, they are presented as non-current liabilities. Trade payables are recognized initially at fair value and subsequently measured at amortized cost using the effective interest method. |
Derivative financial instruments | 2.18 Derivatives are financial instruments that derive their value from an underlying price or index. A derivative instrument gives one party a contractual right to exchange financial assets and financial liabilities with another party under conditions that are potentially favorable or financial liabilities with another party under conditions that are potentially unfavorable. Derivatives are initially recognized at fair value on the date a derivative contract is entered into and are subsequently remeasured to their fair value at the end of each reporting period. Where we have an obligation to purchase non-controlling interest that will be settled for a variable number of own shares, rather than cash, another financial asset, or a fixed number of shares, our policy is to treat this as a derivative transaction and measure it at fair value in the statement of income. |
Embedded derivatives | 2.19 An embedded derivative is a component of a hybrid (combined) instrument that also includes a non-derivative host contract. An embedded derivative causes some or all of the cash flows that otherwise would be required by the contract to be modified according to a specified interest rate, financial instrument price, commodity price, foreign exchange rate, index of prices or rates or other variable (provided in the case of a non-financial variable that the variable is not specific to a party to the contract). An embedded derivative is only separated and reported at fair value with gains and losses being recognized in the statement of income and other comprehensive income when the following requirements are met: ● where the economic characteristics and risks of the embedded derivative are not clearly and closely related to those of the host contract; ● the terms of the embedded derivative are the same as those of a stand-alone derivative; and ● the combined contract is not held for trading or designated at fair value through profit or loss. The Group’s listed bonds include embedded put and call features which are bifurcated at the time of issuance of the bonds. The Group has analyzed the 2027 Notes issued in September 2019 along with the 2026 and 2027 notes issued in November 2021 and has identified free standing call and put options embedded in the listed bonds that required separate valuation. The Group employed valuation techniques commonly used by market participants to evaluate bonds with embedded options, including discounted cash flow and option pricing models, and makes maximum reference to market inputs. The techniques adopted include the major factors that market participants would consider in setting a price and are consistent with accepted economic methodologies for pricing financial instruments. The options are valued equivalent to an American Receiver Swaption under the Hull & White Model. A significant portion of the Group’s contracted revenue pricing is denominated in US Dollars and the amount of local currency due is determined by reference to the US Dollar amount invoiced, translated at the spot rate or an average rate to the respective subsidiary. This represents an embedded foreign currency derivative in a host contract. Management’s judgement is that where fees that are priced in US$ are translated to local currency at the time of billing using a liquid market exchange rate, derivatives are not bifurcated as at the time the contracts are entered into. They are considered closely related to the host contract since they are denominated in a currency that is commonly used in the regions that the Group operates in (US Dollar being a relatively stable and liquid currency that is commonly used for pricing in local business transactions and trade). Where fees priced in US$ are translated to local currency at the time of billing using a fixed, pre-determined exchange rate, or an exchange rate which is not referenced to a liquid market exchange rate, derivatives are bifurcated at the time the contracts are entered into. |
Current and deferred income tax | 2.20 (a) Deferred income tax is recognized in full, using the liability method, on all temporary differences arising between the tax bases of assets and liabilities and their carrying amounts in the financial statements. Deferred income tax is determined using tax rates (and laws) that have been enacted or substantively enacted by the end of the reporting period and are expected to apply when the related deferred income tax asset is realized or the deferred income tax liability is settled. Deferred income tax liabilities are not recognized if they arise from initial recognition of goodwill and deferred income tax is not accounted for if it arises from initial recognition of an asset or liability, in a transaction other than a business combination that at the time of the transaction affects neither accounting nor taxable profit or loss. Deferred income tax assets and liabilities are offset when there is a legally enforceable right to offset current tax assets against current tax liabilities and when the deferred income taxes assets and liabilities relate to income taxes levied by the same taxation authority on either the same taxable entity or different taxable entities where there is an intention to settle the balances on a net basis. Deferred income tax assets are recognized only to the extent that it is probable that future taxable profit will be available against which the temporary differences can be utilized. (b) Current income tax is recognized in profit or loss, except to the extent that it relates to items recognized in other comprehensive income or directly in equity. In this case, the tax is also recognized in other comprehensive income or directly in equity, respectively. The current income tax charge is calculated on the basis of the tax laws enacted or substantively enacted by the end of the reporting period in the countries where the Company and its subsidiaries operate and generate taxable income. Management periodically evaluates positions taken in tax returns with respect to situations in which applicable tax regulation is subject to interpretation and considers whether it is probable that a taxation authority will accept an uncertain tax treatment. The Group measures its tax balances either based on the most likely amount or the expected value, depending on which method provides a better prediction of the resolution of the uncertainty. |
Employee benefits | 2.21 (a) The Group operates a number of defined contribution plans which are funded by contributions from the Group and the employees based on the law ruling in each country. The amounts contributed by the Group is recognized as employee benefit expenses and are charged to profit or loss in the period to which the contributions relate. The Group has no further payment obligation once the contributions have been paid. Prepaid contributions are recognized as an asset to the extent that a cash refund or a reduction in the future payment is available. (b) Short term employee benefit obligations are measured on an undiscounted basis and are expensed as the related service is provided. A liability is recognized for the amount expected to be paid if the Group has a present legal or constructive obligation to pay this amount as a result of past service provided by the employee, and the obligation can be estimated reliably. (c) The Group’s net obligation in respect of long-term employee benefits is the amount of future benefit that employees have earned in return for their service in the current and prior periods. That benefit is discounted to determine its present value. Remeasurements are recognized in the statement of income and other comprehensive income in the period in which they arise. |
Share-based payments | 2.22 The Group operates a number of equity settled, share-based compensation plans, under which the entity receives services from employees as consideration for equity instruments (options) of the Company. Equity settled share-based payment obligations granted to employees are measured at their fair value (at the date of grant or the date of amendment in the case of modification of terms) and the fair value is recognized as an expense in profit or loss, with a corresponding increase in equity, over the vesting period of the awards. The amount recognized as an expense is adjusted to reflect the number of awards for which the related service and non-market performance conditions (for example, profitability, sales growth targets are expected to be met), such that the amount ultimately recognized is based on the number of awards that meet the related service and non-market performance conditions at the vesting date (note 3). In the event of a modification of the terms of the share-based instruments, if the fair value of the new amended instruments is greater than the fair value of the original instruments as at the modification date, then for options vested at the modification date, the incremental fair value is recognized in profit or loss immediately and for unvested options, the incremental amount is recognized in profit or loss over the remaining vesting period. In prior periods, and up to the 10 July 2019, the share-based compensation plans operated by the Group were classified and accounted for as cash-settled instruments. Options were measured at their fair value (at the date of grant) and the fair value was recognized as an expense in profit or loss with a corresponding liability recognized. Cash settled share-based payment liabilities were remeasured at the end of each reporting period up to the date of settlement, with any changes in fair value recognized in profit or loss. At the end of each reporting period and up to 10 July 2019, the Group revised its estimates of the number of options that were expected to vest based on the non-market vesting conditions and service conditions and recognized the impact of the revision to original estimates, if any, in profit or loss, with a corresponding adjustment to liability. Refer to note 28 for further information. |
Decommissioning and site restoration obligations | 2.23 The Group makes provision for any future cost of decommissioning of its telecommunication towers where required by regulation or land lease terms. These costs are expected to be incurred within a period of up to 20 years depending on the term of the leasehold. The Group estimates this provision using existing technology at current prices as quoted by decommissioning experts, escalated at the relevant inflation factor. The inflated decommissioning provision is subsequently discounted to present value using the Group’s incremental borrowing rate for borrowings over the expected term of the leasehold. The timing of each decommissioning will depend on the term of the lease and whether or not the lessor intends to renew the rental contract. A corresponding amount is recognized as part of property, plant and equipment. This is subsequently depreciated as part of the tower. Other than the unwinding discount on the provision, any change in the present value of the estimated expenditure is reflected as an adjustment to the provision and the corresponding item of property, plant and equipment. |
Summary of significant accoun_3
Summary of significant accounting policies (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Summary of significant accounting policies | |
Schedule of property and equipment useful life | Towers and tower equipment • Base station equipment (including civil costs and overheads) 10 - 20 years • Base station equipment (other equipment) 15 years • Base station equipment (rectifier and solar power) 10 years • Base station equipment (alarm and battery) 3 - 5 years • Base station equipment (generator & generator overhaul) 1 - 3 years Fiber assets • Fixed line network equipment (including civil works, duct system, cable system and survey costs) 25 years • Outdoor cabinet 10 years Land and buildings, furniture and office equipment, and motor vehicles • Office complex 40 years • Furniture and office equipment 3 years • Motor vehicles 4 years |
Critical accounting estimates_2
Critical accounting estimates and judgements (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Critical accounting estimates and judgements | |
Schedule of of going concern related accounting estimates and judgements | Assessment Risk discussion and response Revenue and profitability · Limited impact on revenue collections thus far. · Customers continue to perform, and we have not experienced significant deterioration in payments. · The Group has long-term revenue contracts with its customers amounting to $10.0 billion in contracted revenue. · Our ability to collect revenue from our customers is impacted by our customers’ ability to generate and collect revenues from their operations. Our customers have, in the main, seen an increased demand for their services. · The impact on collections has thus far been limited and the Group remains in constant conversation with customers regarding their liquidity and ability to meet their obligations. · The Group regularly reviews measures for cost savings whilst maintaining its ability to operate effectively and towards strategic goals. · The Group has continued to invest in capital expenditure which supports revenue growth, albeit at lower levels than initially planned for the year ended December 31, 2021, largely affected by a slow down in supply chain. The Group will continue to invest in capital expenditure relating to revenue growth during 2022. Liquidity · Sufficient liquidity is available. · No current impact on going concern. · The Group has cash and cash equivalents of $916 million as at December 31, 2021. · Management has assessed current cash reserves and the availability of undrawn facilities and continues to monitor available liquidity in the context of ongoing operational requirements and planned capital expenditure. · In the context of current commitments and available liquidity, management believes that the going concern assumption remains appropriate. · All of the Group’s operations are cash generative. Assessment Risk discussion and response Access to USD · Moderate risk due to decreased availability. · While there has been a reduction in US Dollar liquidity in the Nigerian market, we were still able to source US Dollars locally to fund our semi-annual coupons during the year, and management remain confident that we will be able to do so for the foreseeable future. Workforce and internal controls · Minimal impact to date. · Employees have returned to office following guidance by local regulations. The periods of remote working have had limited impact on the operation of and management oversight over internal controls which continue to operate effectively. · Operational employees continue to operate in the field while observing strict safety guidelines. · Our IT team monitors the increased risk of fraud, data or security breaches, loss of data and the potential for other cyber-related attacks and utilises security measures to mitigate such risks. Supply chain · Moderate risk due to delays. · The Group works closely with suppliers and contractors to ensure availability of supplies on site, especially diesel supplies which are critical to many of our operations. · Regular maintenance of our towers continues while observing strict safety guidelines for our employees and our suppliers and contractors. |
Introduction and overview of _2
Introduction and overview of Groups risk management (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Introduction and overview of Group's risk management | |
Schedule of sensitivity analysis of exchange rates | Effect on Effect on Effect on Effect on Effect on Effect on Rwandan Nigerian Zambian Brazilian Kuwaiti Euro Franc Naira Kwacha Real Dinar $’000 $’000 $’000 $’000 $’000 $’000 2021 Rate of change 5 % 5 % 5 % 5 % 5 % 5 % Effect of US Dollar weakening on loss (15,726) (3,284) (106,595) (11,078) (15,502) (424) Effect of US Dollar strengthening on loss 15,726 3,284 106,595 11,078 15,502 424 2020 Rate of change 5 % 5 % 5 % 5 % 5 % 5 % Effect of US Dollar weakening on loss (18,652) (3,522) (114,799) (10,808) (14,302) (250) Effect of US Dollar strengthening on loss 18,652 3,522 114,799 10,808 14,302 250 2019 Rate of change 5 % 5 % 5 % 5 % 5 % 5 % Effect of US Dollar weakening on loss (11,740) (6,308) (104,540) (9,807) n.a n.a Effect of US Dollar strengthening on loss 11,740 6,308 104,540 9,807 n.a n.a |
Schedule of foreign exchange exposure on inter company loans | Nigerian Rwandan Zambian Brazilian Kuwaiti Naira Franc Kwacha Real Dinar US Dollar $’000 $’000 $’000 $’000 $’000 $’000 2021 US Dollar loan 2,037,580 65,679 128,084 310,047 8,476 — Euro loan — — — — — 290,346 2020 US Dollar loan 2,189,385 56,449 119,245 286,032 5,007 — Euro loan — — — — — 331,668 |
Schedule of foreign exchange risk | 2021 2020 $’000 $’000 Trade receivables 36,629 18,596 Cash and cash equivalents 43,928 52,569 Trade payables (28,707) (34,351) Borrowings (211,961) (258,859) Net exposure (160,111) (222,045) |
Schedule of interest rate risk | 2021 2020 2019 $'000 $'000 $'000 Effect of 1% (2020 and 2019: 1%) increase on post tax loss 6,343 5,850 3,041 Effect of 1% (2020 and 2019: 1%) decrease on post tax loss (6,079) (6,035) (2,681) |
Schedule of maximum credit exposure | 2021 2020 $’000 $'000 Other receivables (note 19) 199,136 85,011 Derivative financial instrument assets (note 18) 165,100 182,691 Trade receivables (net) (note 19) 222,789 200,652 Cash and cash equivalents (note 20) 916,488 585,416 1,503,513 1,053,770 |
Schedule of credit risk with banking partners | 2021 2020 $’000 $'000 Cash and cash equivalents AAA (F1+) 127,781 15,413 AA+ — 9,407 AA — 115,810 A+ — 30,576 A (F1) 628,033 216,700 A- — 25,559 BBB+ — 6,349 BBB 3,143 — BBB- 162 25 BB — 6,663 BB- — 18,469 B+ — 2,809 B 157,277 46,757 B- — 90,564 C 67 — Not rated 25 315 916,488 585,416 |
Fitch credit ratings | 2021 2020 $’000 $'000 Other receivables AA+ — 4,650 B 145,300 4,881 B- 7,418 14,273 BB- 6,665 7,045 Not rated 39,753 54,162 199,136 85,011 |
Internal credit ratings | Internal Credit rating 2021 First tier Second tier Total $'000 $'000 $'000 Accrued Revenue 102,931 438 103,369 Not due 37,238 2,712 39,950 0-30 days 15,113 1,419 16,532 31-60 days 25,585 2,824 28,409 61-90 days 8,024 1,964 9,988 Over 90 days 28,941 46,585 75,526 Gross trade receivables 217,832 55,942 273,774 Impairment allowance (6,682) (44,304) (50,986) Net trade receivables 211,150 11,638 222,788 Internal Credit rating 2020 First tier Second tier Total $'000 $'000 $'000 Accrued Revenue 89,138 822 89,960 Not due 18,772 181 18,953 0-30 days 3,616 204 3,820 31-60 days 26,393 883 27,276 61-90 days 2,588 2,254 4,842 Over 90 days 129,056 60,545 189,601 Gross trade receivables 269,563 64,889 334,452 Impairment allowance (84,219) (49,581) (133,800) Net trade receivables 185,344 15,308 200,652 |
Schedule of movement in allowance for impairment in respect of trade receivables | 2021 2020 2019 $'000 $'000 $'000 Opening balance 133,800 133,889 110,615 (Decrease)/Increase in impairment provision (34,117) 13,081 27,944 Written-off during the year (67,053) (2,106) (5,591) Foreign exchange (1,567) (11,064) 921 31,063 133,800 133,889 |
Schedule of contractual undiscounted cash flows of financial liabilities | Within 1 year 2 - 3 years 4 - 5 years Over 5 years Total $'000 $'000 $'000 $'000 $'000 2021 Trade payables (note 21) 342,841 — — — 342,841 Other payables (note 21) 78,193 312 — — 78,505 Payroll and other related statutory liabilities (note 21) 53,446 — — — 53,446 Lease liabilities (note 23) 54,303 106,015 99,573 440,986 700,877 Bank and bond borrowings 363,345 657,292 1,008,212 1,515,659 3,544,508 892,128 763,619 1,107,785 1,956,645 4,720,177 2020 Trade payables (note 21) 301,813 — — — 301,813 Other payables (note 21) 72,286 9,565 — — 81,851 Payroll and other related statutory liabilities (note 21) 27,476 — — — 27,476 Lease liabilities (note 23) 39,677 152,386 44,294 217,233 453,590 Bank and bond borrowings 292,945 601,981 949,481 1,116,712 2,961,119 734,197 763,932 993,775 1,333,945 3,825,849 |
Schedule of net leverage ratios | 2021 2020 $’000 $'000 Bank and bond borrowings (note 22) 2,609,090 2,203,209 Lease liabilities (note 23) 376,101 314,747 Less: Cash and cash equivalents (note 20) (916,488) (585,416) Net debt 2,068,703 1,932,540 Segment Adjusted EBITDA 926,396 819,014 Management net leverage ratio 2.2x 2.4x |
Schedule of financial instruments measured at fair value | Level 1 Level 2 Level 3 Total 2021 $'000 $'000 $'000 $'000 Fair value through other comprehensive income financial assets 11 — — 11 Embedded options within listed bonds (note 18) — 165,100 — 165,100 Non-deliverable forwards (NDF) (note 18) — (3,771) — (3,771) 11 161,329 — 161,340 Level 1 Level 2 Level 3 Total 2020 $'000 $'000 $'000 $'000 Fair value through other comprehensive income financial assets 8 — — 8 Embedded options within listed bonds (note 18) — 155,196 — 155,196 Non-deliverable forwards (NDF) (note 18) — 27,495 — 27,495 Embedded derivatives within revenue contracts (note 18) — — (7,285) (7,285) 8 182,691 (7,285) 175,414 |
Schedule of fair value estimation | 2021 2020 Carrying Carrying value Fair value value Fair value Financial liabilities $'000 $'000 $'000 $'000 Bank and bond borrowings (note 22) 2,609,090 2,668,792 2,203,209 2,230,846 2,609,090 2,668,792 2,203,209 2,230,846 |
Schedule of financial instruments by category - Assets | Financial assets Fair value through other Fair value Amortized comprehensive through profit cost income or loss Total $'000 $'000 $'000 $'000 2021 Trade receivables (note 19) 222,789 — — 222,789 Other receivables (note 19) 199,136 — — 199,136 Cash and cash equivalents (note 20) 916,488 — — 916,488 Fair value through other comprehensive income financial assets — 11 — 11 Derivative financial instruments assets (note 18) — — 165,100 165,100 1,338,413 11 165,100 1,503,524 2020 Trade receivables (note 19) 200,652 — — 200,652 Other receivables (note 19) 85,011 — — 85,011 Cash and cash equivalents (note 20) 585,416 — — 585,416 Fair value through other comprehensive income financial assets — 8 — 8 Derivative financial instruments assets (note 18) — — 182,691 182,691 871,079 8 182,691 1,053,778 |
Schedule of financial instruments by category - Liabilities | Financial liabilities Fair value through profit Amortized cost or loss Total $'000 $'000 $'000 2021 Bank and bond borrowings (note 22) 2,609,090 — 2,609,090 Trade payables (note 21) 342,841 — 342,841 Other payables (note 21) 78,505 — 78,505 Derivative financial instruments liabilities (note 18) — 3,771 3,771 Lease liabilities (note 23) 376,101 — 376,101 3,406,537 3,771 3,410,308 2020 Bank and bond borrowings (note 22) 2,203,209 — 2,203,209 Trade payables (note 21) 301,813 — 301,813 Other payables (note 21) 72,286 — 72,286 Derivative financial instruments liabilities (note 18) — 7,285 7,285 Lease liabilities (note 23) 314,747 — 314,747 2,892,055 7,285 2,899,340 |
Schedule of reconciliation of Level 3 fair value measurements of financial instruments | 2021 2020 $'000 $'000 Opening balance at January 1 7,285 — Recognition of embedded derivatives within revenue contracts — 7,575 Change in fair value (7,231) (169) Foreign exchange translation impact (54) (121) Closing balance at December 31 — 7,285 |
Segment reporting (Tables)
Segment reporting (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Segment reporting | |
Schedule of summarized financial information | Summarized financial information for the year ended December 31, 2021 is as follows: 2021 Nigeria SSA Latam MENA Other Total $’000 $’000 $’000 $’000 $’000 $’000 Revenues from external customers 1,146,732 343,945 59,706 29,347 — 1,579,730 Segment Adjusted EBITDA (note 4(e)) 783,544 190,654 42,688 13,085 (103,575) 926,396 Depreciation and amortization (note 7 and 8) (382,882) Net gain on disposal of property, plant and equipment (note 8) 2,499 Insurance claims (note 9) 6,861 Impairment of withholding tax receivables in Nigeria (61,810) Business combination costs (15,779) Impairment of property, plant and equipment and prepaid rental (note 7) (51,113) Reversal of provision for decommissioning costs 2,671 Listing costs (22,153) Other costs (a) (15,752) Share ‑ (11,780) Finance income (note 10) 25,522 Finance costs (note 11) (422,034) Other non-operating income 11,213 Loss before income tax (8,141) Additions of property, plant and equipment and intangible assets: - through business combinations — — 677,226 — - In the normal course of business 318,971 56,291 103,338 20,725 Segment assets 2,038,376 1,024,347 1,385,224 173,888 Segment liabilities 745,944 494,236 342,181 100,947 (a) Other costs for the year ended December 31, 2021 included non-recurring professional costs related to financing of $15.1 million and aborted transaction costs of $0.7 million. Summarized financial information for the year ended December 31, 2020 is as follows: 2020 Nigeria SSA Latam MENA Other Total $’000 $’000 $’000 $’000 $’000 $’000 Revenues from external customers 1,037,836 313,416 30,185 21,712 — 1,403,149 Segment Adjusted EBITDA (note 4(e)) 701,273 170,784 22,696 9,937 (85,676) 819,014 Depreciation and amortization (note 7 and 8) (408,662) Net gain on disposal of property, plant and equipment (note 8) 764 Insurance claims (note 9) 14,987 Impairment of withholding tax receivables in Nigeria (31,533) Business combination costs (13,727) Impairment of property, plant and equipment and prepaid rental (note 7) (27,594) Listing costs (12,652) Other costs (a) (310) Share ‑ (8,342) Finance income (note 10) 148,968 Finance costs (note 11) (633,766) Loss before income tax (152,853) Additions of property, plant and equipment and intangible assets: - through business combinations — — 760,246 112,878 - In the normal course of business 195,692 61,147 31,703 8,465 Segment assets 2,040,911 1,043,669 682,813 142,210 Segment liabilities 747,428 532,801 266,596 92,917 (a) Other costs for the year ended December 31, 2020 related to aborted transaction costs. 2019 Nigeria SSA Other Total $’000 $’000 $’000 $’000 Revenues from external customers 925,704 305,352 — 1,231,056 Segment Adjusted EBITDA (note 4(e)) 559,049 165,626 (56,061) 668,614 Depreciation and amortization (note 7 and 8) (384,507) Net loss on disposal of property, plant and equipment (note 8) (5,819) Insurance claims (note 9) 3,607 Impairment of withholding tax receivables in Nigeria (44,586) Business combination costs (3,745) Impairment of property, plant and equipment and prepaid rental (note 7) (21,604) Listing costs (1,078) Other costs (a) (16,932) Share ‑ (351,054) Finance income (note 10) 36,045 Finance costs (note 11) (288,915) Loss before income tax (409,974) Additions of property, plant and equipment and intangible assets: - through business combinations — — - In the normal course of business 363,501 49,704 Segment assets 2,349,699 1,056,982 Segment liabilities 768,206 552,343 (a) Other costs for the year ended December 31, 2019 included redundancy costs of $3.2 million, aborted transaction costs of $ 0.6 million, $ 9.6 million of consultancy, facility set up, and other related expenses for the Group's finance transformation program and $3.4 million related to MENA start-up costs. |
Schedule of countries contributing material revenue and/or have material non current assets | 2021 2020 2019 $’000 $'000 $'000 Revenue Nigeria 1,146,732 1,037,836 925,704 Rest of world 432,998 365,313 305,352 1,579,730 1,403,149 1,231,056 Non ‑ current assets* Nigeria 1,572,774 1,654,318 1,991,553 Côte d’Ivoire n.a as less than 10% 330,705 317,597 Cameroon n.a as less than 10% n.a as less than 10% 288,773 Brazil 812,100 641,253 — Rest of world 1,415,355 626,991 276,867 3,800,229 3,253,267 2,874,790 * Non-current assets exclude available for sale financial assets, non-current trade and other receivables and deferred tax assets. |
Schedule of revenue from tier one customers | 2021 2020 2019 $’000 $'000 $'000 Customer A 66 % 66 % 63 % Customer B 14 % n.a as less than 10% 13 % Customer C n.a as less than 10% 14 % 14 % |
Revenue (Tables)
Revenue (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Revenue. | |
Schedule of revenue | 2021 2020 2019 $’000 $'000 $'000 Lease component 1,233,816 1,026,103 889,909 Services component 345,914 377,046 341,147 1,579,730 1,403,149 1,231,056 |
Schedule of unsatisfied performance obligation | 2021 2020 2019 $’000 $'000 $'000 Within one year 351,071 343,209 290,645 1-2 years 309,861 331,608 263,298 2-3 years 255,791 291,891 250,167 3-4 years 211,615 258,129 218,380 4-5 years 190,018 214,223 196,753 After 5 years 858,912 879,294 894,086 2,177,268 2,318,354 2,113,329 |
Schedule of future minimum receipts of lease component | 2021 2020 2019 $’000 $'000 $'000 Within one year 1,284,692 1,011,501 791,654 1-2 years 1,177,665 981,778 704,054 2-3 years 1,083,942 880,316 678,734 3-4 years 847,224 801,452 572,273 4-5 years 749,839 625,352 520,933 After 5 years 2,703,888 2,594,074 2,108,418 7,847,250 6,894,473 5,376,066 |
Cost of sales (Tables)
Cost of sales (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Cost of sales.. | |
Schedule of cost of sales | 2021 2020 2019 $'000 $'000 $'000 Tower repairs and maintenance 74,523 75,931 69,304 Power generation 267,044 216,030 237,640 Short term site rental** 11,165 7,543 3,547 Short term other rent 3,419 3,085 2,289 Vehicle maintenance and repairs 2,754 2,754 2,108 Site regulatory permits 41,165 27,313 19,360 Security services 36,132 32,719 33,027 Insurance 4,156 4,695 5,958 Staff costs (note 8.3) 26,323 24,588 20,561 Travel costs 7,155 4,313 4,719 Professional fees 3,385 2,457 2,122 Depreciation (note 14)* 330,799 367,007 353,368 Amortization (note 15) 34,051 32,503 24,549 Impairment of property, plant and equipment and prepaid land rent (note 30) 51,113 27,594 21,604 Other 14,204 9,891 10,811 907,388 838,423 810,967 Foreign exchange gains and losses on cost of sales are included in Other. * ** In 2019, site rental relates to short term leases and low value assets (note 23). |
Administrative expenses (Tables
Administrative expenses (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Administrative expenses. | |
Schedule of administrative expenses | 2021 2020 2019 $’000 $'000 $'000 Facilities, short term rental and upkeep 23,210 12,872 12,881 Depreciation (note 14) 13,917 6,240 2,392 Amortization (note 15) 4,115 2,912 4,198 Travel costs 8,654 6,815 13,475 Staff costs (note 8.3) 101,567 78,376 45,523 Key management compensation (note 30.2) 25,642 13,776 20,215 Share-based payment expense (note 28) 11,780 8,342 351,054 Professional fees 49,685 38,200 15,275 Business combination transaction costs 15,779 13,727 3,745 Impairment of withholding tax receivables* 61,810 31,533 44,586 Net (gain)/loss on disposal of property, plant and equipment (2,499) (764) 5,819 Operating taxes 1,561 2,239 505 Other 21,290 21,844 36,617 336,511 236,112 556,285 2021 2020 2019 $’000 $'000 $'000 Salaries and wages 106,754 85,690 54,632 Pension contribution – employer 4,854 3,780 2,474 Other benefits 16,282 13,494 8,978 Share-based payment expense (note 28) 11,780 8,342 351,054 139,670 111,306 417,138 2021 2020 2019 $’000 $'000 $'000 Cost of sales 26,323 24,588 20,561 Administrative expenses 113,347 86,718 396,577 139,670 111,306 417,138 |
Other income (Tables)
Other income (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Other income. | |
Schedule of other income | 2021 2020 2019 $’000 $'000 $'000 Insurance claims 6,861 14,987 3,607 Other income 11,648 1,425 3,429 18,509 16,412 7,036 |
Finance Income (Tables)
Finance Income (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Finance income. | |
Schedule of Finance income | 2021 2020 2019 $’000 $'000 $'000 Interest income - bank deposits 7,798 5,101 14,732 Net foreign exchange gain arising from derivative instruments - unrealized — 29,151 53 Net foreign exchange gain arising from derivative instruments - realized 9,889 4,061 228 Fair value gain on embedded options 604 110,655 17,245 Fair value gain on embedded derivative in revenue contract 7,231 — 3,787 25,522 148,968 36,045 |
Finance Costs (Tables)
Finance Costs (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Finance costs. | |
Schedule of finance costs | 2021 2020 2019 $’000 $'000 $'000 Interest expenses – third party loans 179,280 182,246 193,829 Unwinding of discount on decommissioning liability 4,644 2,644 1,712 Interest and finance charges paid/payable for lease liabilities 32,826 27,384 16,024 Net foreign exchange loss arising from financing - unrealized 126,131 363,953 47,291 Net foreign exchange loss arising from financing – realized 43,422 49,564 — Net foreign exchange loss on derivative instruments – realized — — 1,594 Costs paid on early loan and bond settlement 18,171 — 22,153 Fees on loans and financial derivatives 13,663 7,806 6,312 Fair value loss on embedded derivative within revenue contract — 169 — Net foreign exchange loss on derivative instruments—unrealized 3,897 — — 422,034 633,766 288,915 |
Income Tax Expense (Tables)
Income Tax Expense (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Income Tax Expense | |
Schedule of Reconciliation of effective tax charge | 2021 2020 2019 $’000 $'000 $'000 Current taxes on income 91,692 95,107 3,304 Deferred income taxes (note 16) (73,712) 74,722 10,214 Total taxes 17,980 169,829 13,518 Reconciliation of effective tax charge Loss before income tax (8,141) (152,853) (409,974) Tax calculated at domestic tax rates applicable to profits in respective countries (4,433) (66,049) (71,224) Tax effects of: Tax incentives and income not subject to taxation (46,175) (34,932) (39,725) Expenses not deductible for tax purposes 76,059 82,662 88,792 Movement in deferred tax assets not recognized 74,084 181,403 20,475 Change in tax base* (86,184) — — Prior year under provision 6,636 478 (43,280) Other profit ‑ 5,239 876 5,813 Foreign tax credit — (3,570) (8,406) Effects of changes in tax rates** (5,272) — — Non-deductible share-based payment expense 1,441 1,082 52,136 Foreign exchange effects and other differences (3,415) 7,879 8,937 Total taxes 17,980 169,829 13,518 |
Schedule of Current Income Tax | Current income tax receivables 128 — 233 Current income tax payables (68,834) (48,703) (30,373) (68,706) (48,703) (30,140) |
Schedule of movement in the current income tax | The movement in the current income tax is as follows: At beginning of year (48,703) (30,140) (26,415) Additions through business combination (note 31) (3,434) (1,538) — Charged to profit or loss (91,692) (95,107) (3,304) Paid during the year 29,147 14,540 13,396 Withholding tax netting off 45,849 59,986 — Exchange difference 127 3,556 (13,817) At end of year (68,706) (48,703) (30,140) |
Loss per share (Tables)
Loss per share (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Loss per share | |
Schedule of basic and diluted net income per common share | 2021 2020 2019 Loss attributable to equity holders ($'000) (26,121) (322,682) (423,492) Less: allocation of loss to non-controlling interest ($'000) (289) (688) — Loss attributable to IHS common shareholders ($'000) (25,832) (321,994) (423,492) Basic weighted average shares outstanding (‘000)* 301,185 294,103 293,570 Potentially dilutive securities (‘000)* 20,323 23,246 22,911 Potentially dilutive weighted average common shares outstanding (‘000)* 321,508 317,349 316,481 Loss per share: Basic loss per share ($) (0.09) (1.09) (1.44) Diluted loss per share ($) (0.09) (1.09) (1.44) * On October 13, 2021 all of the outstanding Class A and Class B shares of the Company were exchanged on a 500 to 1 basis for ordinary shares. The loss per share is based on the new number of shares. The comparatives have also been adjusted. Refer to note 25 for further information. |
Property, plant and equipment (
Property, plant and equipment (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Property, plant and equipment. | |
Schedule of property, plant and equipment | Total Towers Furniture and Capital (excluding Right- and tower Fiber Land and office Motor work in right-of-use of-use equipment assets buildings equipment vehicles progress asset) asset $’000 $’000 $’000 $’000 $’000 $’000 $’000 $’000 Cost At January 1, 2019 2,257,701 — 48,679 13,500 18,708 138,227 2,476,815 372,000 Additions during the year 15,135 — 859 2,732 3,327 91,004 113,057 47,470 Reclassification 129,420 — 1,825 — — (131,245) — — Transfer from advance payments 272,298 — 672 — — (10,873) 262,097 — Disposals* (106,757) — — (187) (1,689) — (108,633) (6,307) Effects of movement in exchange rates (40,160) — (301) (168) (522) (2,053) (43,204) (6,266) At December 31, 2019 2,527,637 — 51,734 15,877 19,824 85,060 2,700,132 406,897 At January 1, 2020 2,527,637 — 51,734 15,877 19,824 85,060 2,700,132 406,897 Additions during the year 10,287 — 768 2,470 2,576 87,014 103,115 72,888 Additions through business combinations (note 31) 144,388 — 566 305 — 4,970 150,229 129,711 Reclassification 91,165 — 887 808 658 (93,518) — — Transfer from advance payments 124,272 — 620 91 — (2,997) 121,986 — Disposals* (23,591) — (1,203) (95) (1,310) — (26,199) (15,721) Effects of movement in exchange rates (214,038) — (5,936) (1,287) (1,600) (5,883) (228,744) (44,181) At December 31, 2020 2,660,120 — 47,436 18,169 20,148 74,646 2,820,519 549,594 At January 1, 2021 2,660,120 — 47,436 18,169 20,148 74,646 2,820,519 549,594 Additions during the year 20,995 — 825 5,056 6,012 224,479 257,367 113,722 Additions through business combinations (note 31) *** 77,142 220,950 968 93 — 5,495 304,648 41,709 Reclassification 124,548 23,241 5,999 — — (153,788) — — Transfer from advance payments 111,439 7,862 4,112 — — 3,959 127,372 — Disposals* (21,359) — — (82) (1,825) — (23,266) (18,872) Effects of movement in exchange rates (143,357) (6,790) (3,072) (1,038) (877) (8,438) (163,572) (35,649) At December 31, 2021 2,829,528 245,263 56,268 22,198 23,458 146,353 3,323,068 650,504 Accumulated depreciation and impairment At January 1, 2019 918,520 — 880 10,842 14,597 — 944,839 — Charge for the year 313,320 — 296 2,145 1,869 — 317,630 38,130 Impairment 21,565 — — — — — 21,565 — Disposals* (101,100) — — (173) (1,457) — (102,730) (735) Effects of movement in exchange rates (17,821) — (13) (136) (357) — (18,327) (360) At December 31, 2019 1,134,484 — 1,163 12,678 14,652 — 1,162,977 37,035 At January 1, 2020 1,134,484 — 1,163 12,678 14,652 — 1,162,977 37,035 Charge for the year 315,131 — 331 2,547 1,959 — 319,968 54,089 Impairment 26,824 — 421 — — — 27,245 — Disposals* (21,435) — — (41) (1,294) — (22,770) (5,594) Effects of movement in exchange rates (102,812) — (187) (893) (1,049) — (104,941) (4,066) At December 31, 2020 1,352,192 — 1,728 14,291 14,268 — 1,382,479 81,464 At January 1, 2021 1,352,192 — 1,728 14,291 14,268 — 1,382,479 81,464 Charge for the year** 272,068 5,366 296 3,806 2,902 — 284,438 60,685 Impairment/(reversal of impairment) 48,391 — (318) — — — 48,073 2,797 Disposals* (14,660) — — (73) (1,816) — (16,549) (8,634) Effects of movement in exchange rates (82,676) (12) (69) (867) (583) — (84,207) (6,459) At December 31, 2021 1,575,315 5,354 1,637 17,157 14,771 — 1,614,234 129,853 Net book value At December 31, 2019 1,393,153 — 50,571 3,199 5,172 85,060 1,537,155 369,862 At December 31, 2020 1,307,928 — 45,708 3,878 5,880 74,646 1,438,040 468,130 At December 31, 2021 1,254,213 239,909 54,631 5,041 8,687 146,353 1,708,834 520,651 * The disposals value of right-of-use assets represents disposals due to terminated leases and the impact of remeasurement of lease assets as a result of changes in lease terms. ** The charge for the period does not agree to the charge in the consolidated statement of income/(loss) and other comprehensive income/(loss) due to the indirect taxes benefit of $0.4 million (2020: $0.8 million, 2019: $nil) in IHS Brasil Cessão de Infraestruturas S.A. claimed through depreciation over the useful life of the asset. |
Schedule of depreciation expense | 2021 2020 2019 $'000 $'000 $'000 Cost of sales (note 7) 330,799 367,007 353,368 Administrative expense (note 8) 13,917 6,240 2,392 344,716 373,247 355,760 |
Schedule of additions to property, plant and equipment | 2021 2020 2019 $'000 $'000 $'000 Additions through cash - capital work in progress 224,479 87,014 91,004 Additions through decommissioning estimates 7,212 8,315 405 Additions through right of use assets 113,722 72,888 47,470 Additions through cash – others 13,666 7,786 21,648 Additions through non-cash – others 12,010 — — 371,089 176,003 160,527 |
Goodwill and other intangible_2
Goodwill and other intangible assets (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Goodwill and other intangible assets | |
Summary of goodwill and intangible asset | Customer- Network - related related intangible intangible Goodwill assets assets Licenses Software Total $’000 $’000 $’000 $’000 $’000 $’000 Cost At January 1, 2019 530,910 503,442 43,841 14,876 15,639 1,108,708 Additions during the year — — — 19 5,267 5,286 Exchange difference (12,518) (6,452) (285) (303) (4) (19,562) At December 31, 2019 518,392 496,990 43,556 14,592 20,902 1,094,432 At January 1, 2020 518,392 496,990 43,556 14,592 20,902 1,094,432 Additions during the year — — — 4 2,460 2,464 Additions through business combinations (note 31) 232,030 324,290 36,831 — 33 593,184 Disposals — — — (1) (475) (476) Exchange difference (93,915) (88,846) (6,835) 1,201 (829) (189,224) At December 31, 2020 656,507 732,434 73,552 15,796 22,091 1,500,380 At January 1, 2021 656,507 732,434 73,552 15,796 22,091 1,500,380 Additions during the year — — — 3,145 1,909 5,054 Additions through business combinations (note 31) 248,869 78,173 2,792 — 1,035 330,869 Disposals — — — (18) (723) (741) Exchange difference (35,806) (42,751) (3,538) (1,217) (514) (83,826) At December 31, 2021 869,570 767,856 72,806 17,706 23,798 1,751,736 Accumulated amortization and impairment At January 1, 2019 251 71,501 13,106 4,284 10,061 99,203 Charge for the year — 19,468 2,950 877 5,452 28,747 Exchange difference — (1,084) (101) (94) (12) (1,291) At December 31, 2019 251 89,885 15,955 5,067 15,501 126,659 At January 1, 2020 251 89,885 15,955 5,067 15,501 126,659 Charge for the year — 26,921 4,070 871 3,553 35,415 Disposals — — — — (475) (475) Exchange difference — (7,091) (1,003) 518 (740) (8,316) At December 31, 2020 251 109,715 19,022 6,456 17,839 153,283 At January 1, 2021 251 109,715 19,022 6,456 17,839 153,283 Charge for the year — 29,037 4,237 978 3,914 38,166 Disposals — — — (15) (726) (741) Exchange difference — (7,184) (1,374) (542) (616) (9,716) At December 31, 2021 251 131,568 21,885 6,877 20,411 180,992 Net book value At December 31, 2019 518,141 407,105 27,601 9,525 5,401 967,773 At December 31, 2020 656,256 622,719 54,530 9,340 4,252 1,347,097 At December 31, 2021 869,319 636,288 50,921 10,829 3,387 1,570,744 |
Schedule of classification of intangible asset amortization expenses | 2021 2020 2019 $’000 $'000 $'000 Cost of sales (note 7) 34,051 32,503 24,549 Administrative expenses (note 8) 4,115 2,912 4,198 38,166 35,415 28,747 |
Summary of goodwill allocation for each CGU | Effects of Additions through movements in Opening business combinations exchange rates Closing balance (note 31) and other movements balance $'000 $'000 $'000 $'000 2021 IHS Nigeria Limited 63,374 — (3,606) 59,768 INT Towers Limited 227,715 — (12,940) 214,775 IHS Towers NG Limited 45,741 — (2,603) 43,138 IHS Cameroon S.A. 48,170 — (3,782) 44,388 IHS Côte d’Ivoire S.A. 23,888 — (1,876) 22,012 IHS Zambia Group 39,907 — 10,802 50,709 IHS Rwanda Group 12,319 — (452) 11,867 IHS Kuwait Limited 13,142 — (773) 12,369 IHS Latam tower businesses 182,000 75,034 (15,583) 241,451 I-Systems — 173,835 (4,993) 168,842 656,256 248,869 (35,806) 869,319 2020 IHS Nigeria Limited 71,297 — (7,923) 63,374 INT Towers Limited 256,149 — (28,434) 227,715 IHS Towers NG Limited 51,460 — (5,719) 45,741 IHS Cameroon S.A. 43,933 — 4,237 48,170 IHS Côte d’Ivoire S.A. 21,787 — 2,101 23,888 IHS Zambia Group 60,529 — (20,622) 39,907 IHS Rwanda Group 12,986 — (667) 12,319 IHS Kuwait Limited — 13,143 (1) 13,142 IHS Latam tower businesses — 218,887 (36,887) 182,000 518,141 232,030 (93,915) 656,256 2019 IHS Nigeria Limited 71,328 — (31) 71,297 INT Towers Limited 256,261 — (112) 256,149 IHS Towers NG Limited 51,483 — (23) 51,460 IHS Cameroon S.A. 44,910 — (977) 43,933 IHS Côte d’Ivoire S.A. 22,272 — (485) 21,787 IHS Zambia Group 70,780 — (10,251) 60,529 IHS Rwanda Group 13,625 — (639) 12,986 530,659 — (12,518) 518,141 |
Schedule of key assumptions to which the value-in-use calculations are most sensitive | Discount Terminal Tenancy Gross margins excluding depreciation & rate growth rate Ratio* amortization* 2021 IHS Nigeria Limited 16.1 % 2.7 % 3.32 x - 5.18 x 64.2 % - 79.7 % INT Towers Limited 16.0 % 2.7 % 3.56 x - 4.98 x 67.4 % - 74.9 % IHS Towers NG Limited 16.5 % 2.7 % 3.63 x - 4.44 x 52.3 % - 63.1 % IHS Cameroon S.A. 12.1 % 3.2 % 2.37 x - 2.89 x 57.8 % - 64.6 % IHS Côte d’Ivoire S.A. 9.8 % 3.2 % 3.45 x - 4.46 x 53.8 % - 63.5 % IHS Zambia Group 24.1 % 2.0 % 2.40 x - 3.30 x 65.2 % - 74.6 % IHS Rwanda Group 15.5 % 3.2 % 2.04 x - 2.97 x 67.0 % - 73.3 % IHS Kuwait Limited 6.0 % 2.9 % 1.00 x - 1.46 x 52.4 % - 64.9 % 2020 IHS Nigeria Limited 22.6 % 2.7 % 2.59 x - 4.55 x 67.8 % - 82.1 % INT Towers Limited 22.5 % 2.7 % 2.87 x - 5.22 x 73.7 % - 79.9 % IHS Towers NG Limited 23.2 % 2.7 % 2.80 x - 3.02 x 64.4 % - 69.9 % IHS Cameroon S.A. 13.8 % 3.2 % 2.61 x - 3.16 x 55.9 % - 61.0 % IHS Côte d’Ivoire S.A. 10.0 % 3.2 % 3.44 x - 4.56 x 57.5 % - 61.6 % IHS Zambia Group 32.2 % 3.2 % 2.21 x - 2.93 x 68.4 % - 75.8 % IHS Rwanda Group 17.0 % 3.2 % 2.13 x - 2.60 x 65.9 % - 69.8 % IHS Kuwait Limited 5.0 % 2.8 % 1.00 x - 1.46 x 45.3 % - 59.2 % 2019 IHS Nigeria Limited 15.8 % 3.2 % 2.35 x - 3.90 x 69.8 % - 77.1 % INT Towers Limited 16.5 % 3.2 % 2.46 x - 3.90 x 60.8 % - 71.9 % IHS Towers NG Limited 16.2 % 3.2 % 3.29 x - 3.80 x 60.9 % - 65.4 % IHS Cameroon S.A. 13.2 % 3.2 % 3.33 x - 4.22 x 53.8 % - 57.9 % IHS Côte d’Ivoire S.A. 10.3 % 3.2 % 2.39 x - 3.49 x 56.1 % - 59.9 % IHS Zambia Group 21.8 % 3.2 % 2.05 x - 2.58 x 62.6 % - 73.0 % IHS Rwanda Group 16.3 % 3.2 % 2.05 x - 2.37 x 68.6 % - 70.0 % * |
Schedule of possible changes for key assumptions, that would cause the carrying amount to exceed the recoverable amount resulting in an impairment | IHS IHS Nigeria INT Towers IHS Towers Cameroon IHS Côte IHS Zambia IHS Rwanda IHS Kuwait Limited Limited NG Limited S.A. d’Ivoire S.A. Group Group Limited % Rise in discount rate Increase by 36.2 pp Increase by 83.7 pp Increase by 11.0 pp Increase by 4.0 pp Increase by 6.8 pp Increase by 10.5 pp Increase by 7.2 pp Increase by 4.6 pp Decrease in tenancy ratio Decrease by an average of 2.51x over 4 years Decrease by an average of 3.06x over 4 years Decrease by an average of 1.44 x over 4 years Decrease by an average of 0.52 x over 4 years Decrease by an average of 1.76 x over 4 years Decrease by an average of 0.65 x over 4 years Decrease by an average of 0.72 x over 4 years Decrease by an average of 0.43 x over 4 years Gross margin (excluding depreciation and amortization) Decrease by an average of 49.3 pp over 4 years Decrease by an average of 57.0 pp over 4 years Decrease by an average 24.0 pp over 4 years Decrease by an average of 16.7 pp over 4 years Decrease by an average of 37.2 pp over 4 years Decrease by an average of 19.2 pp over 4 years Decrease by an average of 22.7 pp over 4 years Decrease by an average of 34.1 pp over 4 years Decrease in terminal growth rate Decrease to less than 0 % Decrease to less than 0 % Decrease to less than 0 % Decrease to less than 0 % Decrease to less than 0 % Decrease to less than 0 % Decrease to less than 0 % Decrease to less than 0 % |
Schedule of fair value measurement categorized as a Level 3 fair value based on the inputs in the valuation technique | Valuation technique Significant unobservable inputs Sensitivity of the input to fair value Recent transactions, Tower cash flow market multiples · Monthly tower cash flow: $2.6 million (2020: $1.6 million) · Multiple: 22.0 x (2020: 22.0 x) · Costs of disposal: 0.82% of enterprise value (2020: 1.2% ) · Decrease by $327,000 · Decrease by 2.63 x · Increase by 11.95% of enterprise value |
Deferred income tax (Tables)
Deferred income tax (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Deferred income tax | |
Summary of deferred tax asset and liability | 2021 2020 $’000 $'000 Deferred income tax assets 11,064 13,443 Deferred income tax liabilities (118,210) (177,184) Net deferred tax liabilities (107,146) (163,741) |
Summary of deferred tax asset and liability offset | 2021 2020 $’000 $'000 Deferred income tax assets Property, plant and equipment 1,678 2,117 Intangible assets (6,231) (8,486) Provisions 13,064 13,665 Tax losses 240 3,203 Other 2,313 2,944 Total 11,064 13,443 2021 2020 $'000 $'000 Deferred income tax liabilities Property, plant and equipment (145,888) (155,198) Intangible assets (110,843) (183,401) Provisions 36,397 52,478 Unrealized derivative income (48,077) (58,461) Timing differences on loans 33,192 32,407 Unrealized foreign exchange 21,010 25,948 Tax losses 3,450 9,150 Unutilized capital allowances 89,157 97,220 Other 3,392 2,673 Total (118,210) (177,184) |
Summary of deferred tax reconciliation | Provisions/ Unrealized Property, share ‑ based exchange plant and payments Intangible Loans and differences equipment obligation assets derivatives /tax losses Total Net deferred income tax $'000 $'000 $'000 $'000 $'000 $'000 At January 1, 2019 (106,538) 43,389 (129,777) (2,150) 187,640 (7,436) Tax (charge)/income (2,692) (12,375) 5,719 (9,547) 8,681 (10,214) Effects of movement in exchange rates 3,170 (1,735) 2,337 — (1,059) 2,713 At December 31, 2019 (106,060) 29,279 (121,721) (11,697) 195,262 (14,937) At January 1, 2020 (106,060) 29,279 (121,721) (11,697) 195,262 (14,937) Additions through business combinations (note 31) (3,378) 2,182 (103,638) — 6,165 (98,669) Tax (charge)/income (46,364) 35,089 11,030 (16,444) (58,033) (74,722) Effects of movement in exchange rates 2,721 (407) 22,442 2,087 (2,256) 24,587 At December 31, 2020 (153,081) 66,143 (191,887) (26,054) 141,138 (163,741) At January 1, 2021 (153,081) 66,143 (191,887) (26,054) 141,138 (163,741) Additions through business combinations (note 31) (4,220) — (24,266) — — (28,486) Tax (charge)/income 2,078 (11,922) 85,254 9,295 (10,989) 73,716 Effects of movement in exchange rates 11,014 (4,759) 13,806 1,874 (10,570) 11,365 At December 31, 2021 (144,209) 49,462 (117,093) (14,885) 119,579 (107,146) |
Inventories (Tables)
Inventories (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Inventories | |
Schedule of inventories | 2021 2020 $'000 $'000 Stock of materials 42,022 49,222 |
Derivative financial instrume_2
Derivative financial instruments (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Derivative financial instruments | |
Schedule of contractual notional amount for the derivative instruments | 2021 2020 $'000 $'000 Derivative instruments Non ‑ 124,023 652,088 Embedded options within listed bonds 1,940,000 1,450,000 2,064,023 2,102,088 |
Schedule of fair value of derivative instruments | 2021 2020 $'000 $'000 Derivative instruments Non ‑ (3,771) 27,495 Embedded options within listed bonds 165,100 155,196 Embedded options within revenue contracts — (7,285) 161,329 175,406 |
Schedule of changes in fair value of derivative instruments | 2021 2020 2019 $'000 $'000 $'000 Derivative instruments Non ‑ (3,897) 29,151 53 Embedded options within listed bonds 604 110,655 17,245 Embedded options within revenue contracts 7,231 (169) — 3,938 139,637 17,298 |
Schedule of credit ratings of derivative instruments | 2021 2020 $'000 $'000 Derivative financial instrument assets AA+ — 7,500 B+ — — B — 3,590 B- — 10,938 BB- — 5,467 Not rated 165,100 155,196 165,100 182,691 |
Schedule of reconciliation of movements of derivative financial instruments | 2021 $'000 Non-deliverable forwards Opening balance 27,495 Fair value loss (unrealized foreign exchange on open contracts) (3,897) Foreign exchange gain 10,342 Cash flow on settlement (37,711) (3,771) |
Trade and other receivables (Ta
Trade and other receivables (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Trade and other receivables | |
Trade and other receivables | 2021 2020 $’000 $'000 Current Trade receivables 253,852 334,452 Less: impairment provisions (31,063) (133,800) Net trade receivables* 222,789 200,652 Other receivables** 199,136 85,011 Prepaid land rent 1,069 1,588 Other prepaid expenses 25,080 16,538 Advance payments 14,663 18,766 Withholding tax receivables 992 800 VAT receivables 5,401 3,832 469,130 327,187 Non-current Accrued income and lease incentive 21,408 15,481 Payment in advance for property, plant and equipment 48,071 20,928 69,479 36,409 * The fair value is equal to their carrying amount. ** Other receivables are margins on non-deliverable forward contracts and short-term fixed deposits which are not classified as cash and cash equivalents as it exceeds the three-month maturity period. |
Cash and cash equivalents (Tabl
Cash and cash equivalents (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Cash and cash equivalents. | |
Schedule of cash and cash equivalents | 2021 2020 $’000 $'000 Cash at bank 916,488 585,416 Cash and cash equivalents 916,488 585,416 |
Schedule of credit risk with banking partners | 2021 2020 $’000 $'000 Cash and cash equivalents AAA (F1+) 127,781 15,413 AA+ — 9,407 AA — 115,810 A+ — 30,576 A (F1) 628,033 216,700 A- — 25,559 BBB+ — 6,349 BBB 3,143 — BBB- 162 25 BB — 6,663 BB- — 18,469 B+ — 2,809 B 157,277 46,757 B- — 90,564 C 67 — Not rated 25 315 916,488 585,416 |
Trade and other payables (Table
Trade and other payables (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Trade and other payables. | |
Schedule of trade and other payables | 2021 2020 $’000 $'000 Current Trade payables 342,841 301,813 Deferred revenue* 20,435 2,224 Withholding tax payables 4,517 5,694 Payroll and other related statutory liabilities 53,446 27,476 Other payables 78,193 72,286 499,432 409,493 Non-current Other payables 312 9,565 312 9,565 * Included in deferred revenue is $2.8 million (2020: $0.6 million) which relates to contract liabilities. The contract liabilities relating to December 31, 2020 were fully recognized in revenue during the year end December 31, 2021. |
Borrowings (Tables)
Borrowings (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Borrowings. | |
Schedule of external debt classification | 2021 2020 $’000 $'000 Non-current Senior Notes 1,916,062 1,428,398 Bank borrowings 485,409 588,692 External debt 2,401,471 2,017,090 Current Senior Notes 27,195 32,352 Bank overdraft 3,208 — Bank borrowings 177,216 153,767 External debt 207,619 186,119 Total borrowings 2,609,090 2,203,209 |
Schedule of reconciliation of debt | 2021 2020 2019 $’000 $’000 $’000 Opening balance – January 1 2,203,209 2,055,878 1,897,774 Additions through business combination (note 31) 6,457 46,356 — Interest expense (note 11) 179,280 182,246 193,829 Interest paid (168,285) (167,938) (171,883) Bank loans and bond proceeds received 1,076,063 232,219 1,800,000 Bank loans and bonds repaid (653,504) (99,903) (1,622,317) Bank overdraft 3,208 — — Transaction costs (38,597) (5,561) (58,044) Foreign exchange 1,259 (40,088) 16,519 Closing balance – December 31 2,609,090 2,203,209 2,055,878 |
Schedule of debt by debt instrument | Maturity 2021 2020 Currency date Interest rate $’000 $’000 Senior notes IHS Holding Limited US Dollar 2026 5.63 % 496,850 — IHS Holding Limited US Dollar 2028 6.25 % 497,366 — IHS Netherlands Holdco B.V. US Dollar 2027 8.00 % 949,041 946,352 IHS Netherlands Holdco B.V. US Dollar 2025 7.125 % — 514,398 Bank borrowings INT Towers Limited Nigeria Naira 2024 2.5 %+ 3M NIBOR 284,882 342,995 INT Towers Limited US Dollar 2024 3.75 %+ 3M LIBOR 92,769 104,532 IHS Cameroon S.A. CFA Franc 2020 6.5 % — — IHS Cameroon S.A. Euro 2020 3.75 %+ 3M EURIBOR — — IHS Côte d’Ivoire S.A. CFA Franc 2022 6 % 31,627 54,266 IHS Côte d’Ivoire S.A. Euro 2022 3.75 %+ 3M EURIBOR 24,156 41,172 IHS Zambia Limited US Dollar 2027 5-5.5 % + 3M LIBOR 93,164 96,287 IHS Rwanda Limited Rwandan Franc 2021 16 % — 650 IHS Rwanda Limited US Dollar 2022 6.5 % + 3M LIBOR — 13,804 IHS Brasil - Cessao De Infraestruturas S.A. Brazil Real 2021 3.85 %+CDI — 38,613 IHS Brasil - Cessao De Infraestruturas S.A. Brazil Real 2029 3.65 %+CDI 69,768 — IHS Kuwait Limited Kuwaiti Dinar 2029 2 % + 3M KIBOR 66,257 50,140 Bank Overdraft Global Independent Connect Limited Yen 2022 10.3 % 3,208 — |
Lease liabilities (Tables)
Lease liabilities (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Lease liabilities. | |
Schedule of current and non current lease liabilities | 2021 2020 $’000 $’000 Current 50,560 28,246 Non-current 325,541 286,501 Total lease liabilities 376,101 314,747 |
Schedule of reconciliation of cash and non-cash changes | 2021 2020 2019 $’000 $’000 $’000 At January 1 314,747 184,494 204,065 Additions through business combinations (note 31) 44,557 131,651 — Additions through new leases or remeasurements 131,438 65,070 47,469 Interest and finance charges for lease liabilities (note 11) 32,826 27,384 16,024 Payments for the principal of lease liabilities (63,324) (39,153) (58,330) Interest paid for lease liabilities (32,923) (19,239) (11,634) Remeasurements or terminations* (30,978) (15,380) (8,018) Effects of movement in exchange rates (20,242) (20,080) (5,082) Closing balance – December 31 376,101 314,747 184,494 |
Schedule of amount recognized in the statement of income | 2021 2020 2019 $'000 $'000 $'000 Interest on lease liabilities (note 11) 32,826 27,384 16,024 Expenses relating to short term leases and low value assets (note 7) 11,165 7,543 3,547 Depreciation for right of use assets (note 14) 60,685 54,089 38,130 Total for the year ended 104,676 89,016 57,701 |
Schedule of contractual maturities of the lease liabilities | Total Carrying contractual Within 2 - 3 4 – 5 Over 5 value cash flows 1 year years years years $'000 $'000 $'000 $'000 $'000 $'000 2021 Lease liabilities 376,101 700,877 54,303 106,015 99,573 440,986 2020 Lease liabilities 314,747 453,590 39,677 152,386 44,294 217,233 |
Provisions for other liabilit_2
Provisions for other liabilities and charges (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Provisions for other liabilities and charges [Abstract] | |
Schedule of decommissioning and site restoration provision | 2021 2020 2019 $'000 $'000 $'000 At January 1 53,266 33,568 33,010 Additions through business combinations (refer to note 31) 8,347 15,437 — Increase in provisions 7,212 8,315 405 Payments for tower and tower equipment decommissioning (231) (65) — Reversal of decommissioning through profit and loss (2,671) — — Unwinding of discount 4,644 2,644 1,712 Effects of movement in exchange rates 1,374 (6,633) (1,559) At December 31 71,941 53,266 33,568 Analysis of total decommissioning and site restoration provisions : Non-current 71,598 49,469 29,801 Current 343 3,797 3,767 71,941 53,266 33,568 |
Schedule of discount rate applied by each operating entity | IHS IHS Côte IHS IHS Nigerian Cameroon d’Ivoire Zambia Rwanda Brazilian IHS Kuwait Discount entities S.A. S.A. Limited Limited entities Limited rates % % % % % % % 2021 11.2 5.5 8.0 5.1 16.0 6.8 3.4 2020 11.2 5.5 8.0 5.5 16.0 6.8 4.8 |
Schedule of impact on accumulated losses of 1% shift in discount rate | Increase/ (decrease) on accumulated losses 2021 2020 $’000 $’000 Effect of 1% increase in discount rate (1,571) (767) Effect of 1% decrease in discount rate 1,093 815 |
Stated capital (Tables)
Stated capital (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Stated capital | |
Schedule of share capital | Class A shares pre-IPO / Ordinary Shares post-IPO Class B shares pre-IPO Stated Stated capital net capital net Number of Stated of issue Number of Stated of issue shares capital costs shares capital costs 000’s $'000 $'000 000’s $'000 $'000 At January 1, 2019 130,147,167 4,220,967 4,219,488 16,558,927 299,405 299,014 Issued on exercise of warrants* 345,400 12,368 12,368 — — — December 31, 2019 130,492,567 4,233,335 4,231,856 16,558,927 299,405 299,014 At January 1, 2020 130,492,567 4,233,335 4,231,856 16,558,927 299,405 299,014 December 31, 2020 130,492,567 4,233,335 4,231,856 16,558,927 299,405 299,014 Reclassification of Class A and Class B shares to ordinary shares 16,558,927 299,405 299,014 (16,558,927) (299,405) (299,014) Impact of reverse share split (146,757,391) — — — — — Shares issued on IPO 18,000 378,000 378,000 — — — Share issue costs — — (28,154) — — — Shares issued on exercise of options 15,717 342,768 342,768 — — — At December 31, 2021** 327,820 5,253,508 5,223,484 * — — — |
Other reserves (Tables)
Other reserves (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Other reserves. | |
Schedule of other reserves | Fair value through other compre- Foreign hensive Restruct- Share- based Loss on exchange income uring payment transactions translation reserve reserve reserve between owners reserve Total $’000 $’000 $’000 $’000 $’000 $’000 At January 1, 2019 (7) 4,019 — (840,359) (260,176) (1,096,523) Other comprehensive income 1 — — — 5,036 5,037 Recognition of share-based payment expense — — 504,331 — — 504,331 At December 31, 2019 (6) 4,019 504,331 (840,359) (255,140) (587,155) At January 1, 2020 (6) 4,019 504,331 (840,359) (255,140) (587,155) Other comprehensive income — — — — 94,434 94,434 Recognition of share-based payment expense — — 7,216 — — 7,216 At December 31, 2020 (6) 4,019 511,547 (840,359) (160,706) (485,505) At January 1, 2021 (6) 4,019 511,547 (840,359) (160,706) (485,505) Other comprehensive income 3 — — — 40,079 40,082 Recognition of share-based payment expense — — 13,003 — — 13,003 SBP reserve converted to share capital — — (342,768) — — (342,768) Other reclassifications related to share based payment — — (5,084) — — (5,084) At December 31, 2021 (3) 4,019 176,698 (840,359) (120,627) (780,272) |
Non-controlling interest (Table
Non-controlling interest (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Non-controlling interest | |
Schedule of non controlling interests | 2021 2020 2019 $’000 $’000 $’000 Balance at January 1 14,216 — — Non-controlling interest arising on business combinations ( refer to note 31) * 132,407 14,927 — Loss for the period (289) (688) — Other comprehensive loss (3,381) (23) — Balance at December 31 142,953 14,216 — |
Schedule of summarized financial information of subsidiary | Summarized balance sheet and cash flows FiberCo Soluções de Infraestrutura S.A. 2021 ($’000) 2020 ($’000) Current assets 101,033 — Current liabilities 19,357 — Current net assets 81,676 — Non-current assets 237,030 — Non-current liabilities 480 — Non-current net assets 236,550 — Net assets 318,226 — Cash flows generated from operating activities 6,056 — Cash flows used in investing activities (18,771) — Cash flows generated from financing activities 41,965 — Net increase in cash and cash equivalents 29,250 — Loss allocated to non-controlling interest during the period (1,637) — Accumulated non-controlling interest at the end of the year 125,198 — |
Share-based payment obligatio_2
Share-based payment obligations (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Share-based payment obligations | |
Schedule of total charge to the profit or loss | 2021 2020 2019 $’000 $’000 $’000 Credit under cash settled classification to the date of amendment — — (25,922) Immediate charge on amendment for options vested at date of amendment — — 363,302 Expense under equity settled classification from date of amendment 11,780 8,342 13,674 11,780 8,342 351,054 |
Schedule of movements in the number of share options outstanding | 2021 Incentive Incentive Incentive Incentive plan 1 plan 2 plan 2B plan 3 000’s 000’s 000’s 000’s Authorized 3,800 15,360 4,600 56 Issued At January 1 3,749 15,350 4,595 56 Issued 94 10 55 — Forfeited (43) — (39) — Exercised during the period * (2,533) (10,240) (3,074) (37) At December 31 1,267 5,120 1,537 19 *Relates to the number of options converted to shares as a result of the IPO. 2020 Incentive Incentive Incentive Incentive plan 1 plan 2 plan 2B plan 3 000’s 000’s 000’s 000’s Authorized 3,800 15,360 4,600 56 Issued At January 1 3,659 15,360 4,612 51 Issued 149 — — 5 Forfeited (59) (10) (17) — At December 31 3,749 15,350 4,595 56 |
Schedule of weightedaverage remaining contractual life | 2021 2020 Weighted Number of Weighted Number of average options in force average options in force Year of remaining at year end remaining at year end grant contractual life* contractual life 2014 0.83 1,039,526 0.49 3,138,844 2015 0.83 5,077,624 6.18 15,232,873 2017 0.83 1,685,317 8.12 5,116,869 2018 0.83 35,737 9.2 107,212 2020 0.83 51,211 6.41 153,633 2021 0.83 53,123 — 7,942,538 23,749,430 |
Cash from operations (Tables)
Cash from operations (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Cash from operations | |
Schedule of cash flow from operation | 2021 2020 2019 $’000 $'000 $'000 Reconciliation: Loss before income tax (8,141) (152,853) (409,974) Adjustments Depreciation of property, plant and equipment (note 7 and 8) 344,716 373,247 355,760 Amortization of intangible assets (note 15) 38,166 35,415 28,747 Impairment of property, plant and equipment and prepaid land rent (note 7) 51,113 27,594 21,604 (Reversal of loss allowance)/loss allowance on trade receivables (note 8.1) (34,031) 13,081 27,944 Impairment of withholding tax receivables (note 8) 61,810 31,533 44,586 Amortization of prepaid site rent 8,321 4,459 3,355 Net (gain)/loss on disposal of plant, property and equipment (note 8) (2,499) (764) 5,819 Insurance claim income (note 9) (6,861) (14,987) (3,607) Interest expense (note 11) 422,034 633,766 288,915 Interest income (note 10) (25,522) (148,968) (32,258) Fair value gain on warrants revaluation (note 10) — — (3,787) Share ‑ 11,780 8,342 351,054 (Reversal of impairment)/impairment of inventory (315) 4,599 — Reversal of decommissioning through profit and loss (2,671) — — Operating profit before working capital changes 857,900 814,464 678,158 Changes in working capital Decrease/(increase) in inventory 6,689 (8,482) (27,069) Increase in trade and other receivables (164,382) (130,265) (21,093) Increase/(decrease) in trade and other payables 87,866 (19,018) 30,029 Net movement in working capital (69,827) (157,765) (18,133) Cash from operations 788,073 656,699 660,025 |
Related parties (Tables)
Related parties (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Related parties. | |
Schedule of ownership percentage held by holding companies | Ownership interests Ownership held interests held Country of by the Group by the Group Entity name Principal activity incorporation 2021 2020 IHS Holding Limited (ultimate parent) Holding company Cayman Islands — — IHS Mauritius Cameroon Limited Holding company Mauritius 100 % 100 % IHS Mauritius Côte d’Ivoire Limited Holding company Mauritius 100 % 100 % IHS Mauritius Netherlands Limited Holding company Mauritius 100 % 100 % IHS Mauritius Zambia Limited Holding company Mauritius 100 % 100 % IHS Mauritius Rwanda Limited Holding company Mauritius 100 % 100 % IHS Africa (UK) Limited Provision of management services United Kingdom 100 % 100 % IHS Netherlands Cöoperatief U.A. Holding company Netherlands 100 % 100 % IHS Netherlands Holdco B.V. Provision of finance Netherlands 100 % 100 % IHS Netherlands NG1 B.V. Holding company Netherlands 100 % 100 % IHS Netherlands NG2 B.V. Holding company Netherlands 100 % 100 % IHS Nigeria Limited Operating* Nigeria 100 % 100 % INT Towers Limited Operating* Nigeria 100 % 100 % IHS Towers NG Limited Operating* Nigeria 100 % 100 % Tower infrastructure Company Limited Operating* Nigeria ** 100 % IHS Côte d’Ivoire S.A. Operating* Côte d’Ivoire 100 % 100 % IHS Cameroon S.A. Operating* Cameroon 100 % 100 % IHS Zambia Limited Operating* Zambia 100 % 100 % IHS Rwanda Limited Operating* Rwanda 100 % 100 % Rwanda Towers Limited Operating* Rwanda 100 % 100 % IHS Kuwait Limited Operating* Kuwait 100 % 100 % IHS Brasil Cessão de Infraestruturas S.A. Operating* Brazil 100 % 100 % IHS Towers Colombia S.A.S Operating* Colombia 100 % 100 % IHS Peru S.A.C. Operating* Peru 100 % 100 % San Gimignano Imoveis e Adminsitracao Limitada Provision of land management* Brazil 100 % 100 % Nigeria Tower Interco B.V. Holding company Netherlands 100 % 100 % IHS Netherlands GCC B.V. Holding company Netherlands 100 % 100 % IHS Netherlands KW B.V. Holding company Netherlands ** 100 % IHS Netherlands KSA B.V. Holding company Netherlands 100 % 100 % IHS GCC Limited Provision of management services United Arab Emirates 100 % 100 % IHS Netherlands Connect B.V. Holding company Netherlands 100 % 100 % IHS GCC KW Holding Limited Provision of management services United Arab Emirates 70 % 100 % IHS FinCo Management Limited Provision of finance United Arab Emirates 100 % 100 % Global Independent Connect Limited Operating* Nigeria 100 % 100 % IHS KSA Limited Operating* Kingdom of Saudi Arabia 100 % 100 % IHS SSC FZE Provision of management services United Arab Emirates 100 % 100 % IHS Netherlands RSA B.V Holding company Netherlands 100 % 100 % IHS Netherlands BR B.V Holding company Netherlands 100 % 100 % IHS South Africa Holding Proprietary Limited Holding company South Africa 100 % ** % IHS Towers South Africa Proprietary Limited Operating* South Africa 100 % ** % IHS Netherlands PHP B.V Holding company Netherlands 100 % 100 % IHS Towers Inc. Provision of management services United States of America 100 % ** % IHS Netherlands EGY B.V. Holding company Netherlands 100 % ** % IHS Telecom Tower Egypt S.A.E. Operating* Egypt 80 % ** % Skysites Americas Ltda Operating* Brazil 100 % ** % Wi-Fi Mundial Ltda. Operating* Brazil 100 % ** % Topázio Empreendimentos Imoliliarios Ltda. Operating* Brazil 100 % ** % IHS Fiber Brasil Participações Ltda. Operating* Brazil 100 % ** % IHS Fiber Brasil - Cessão de Infraestruturas Ltda. Operating* Brazil 100 % ** % Fiberco Soluções de Infraestrutura S.A. Operating* Brazil 51 % ** % Centennial Towers Colombia S.A.S. Operating* Colombia 100 % ** % Polar Breeze Colombia S.A.S Operating* Colombia 100 % ** % Ownership interests Ownership held interests held Country of by the Group by the Group Entity name Principal activity incorporation 2021 2020 Centennial Towers Brasil Cooperatief U.A. Holding company Brazil 100 % ** % Centennial Towers of Brasil B.V. Holding company Brazil 100 % ** % Centennial Towers of Colombia Ltd. Operating* Colombia 100 % ** % IHS Centennial Brasil Torres de Telecomunicacoes Ltda Operating* Brazil 100 % ** % Polar Breeze Empreendimentos Ltda. Operating* Brazil 100 % ** % |
Summary of compensation paid or payable to key management for employee services. | 2021 2020 2019 $’000 $’000 $’000 Key management compensation Short ‑ 25,537 13,671 20,154 Post ‑ 105 105 61 25,642 13,776 20,215 Share-based payments 9,795 6,029 343,285 35,437 19,805 363,500 |
Business Combinations (Tables)
Business Combinations (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Skysites Holdings S.A. | |
Business Combinations | |
Summary of consideration paid and the fair value of assets and liabilities acquired at the acquisition date | 2021 $’000 Gross consideration 40,611 Less: contingent consideration* (4,169) Less: cash in business at the date of acquisition (2,775) Net cash consideration 33,667 Identifiable assets acquired and liabilities assumed: Towers and tower equipment 11,276 Land 15 Furniture and office equipment 11 Capital work in progress 535 Customer related intangible asset 4,703 Right of use asset 9,675 Trade and other receivables 713 Trade and other payables (1,132) Provisions for other liabilities and charges (2,548) Lease liabilities (10,071) Deferred tax (2,205) Total identifiable net assets acquired 10,972 Goodwill 26,864 Revenue — post ‑ 4,041 Loss — post ‑ (142) |
Centennial Towers Colombia, S.A.S. and Centennial Towers Brasil Cooperatief U.A. | |
Business Combinations | |
Summary of consideration paid and the fair value of assets and liabilities acquired at the acquisition date | Brazil Colombia Total 2021 2021 2021 $’000 $’000 $’000 Gross consideration 93,900 47,051 140,951 Less: cash in business at the date of acquisition (260) (659) (919) Net cash consideration 93,640 46,392 140,032 Identifiable assets acquired and liabilities assumed: Towers and tower equipment 43,890 14,074 57,964 Land 407 546 953 Furniture and office equipment 65 17 82 Capital work in progress 628 500 1,128 Right of use asset 22,273 9,761 32,034 Customer related intangible asset 35,422 32,599 68,021 Network related intangible asset 594 321 915 Software 495 1 496 Trade and other receivables 2,363 3,023 5,386 Trade and other payables (1,471) (3,646) (5,117) Provisions for other liabilities and charges (5,272) (527) (5,799) Lease liabilities (24,028) (10,458) (34,486) Tax payable (2,809) (625) (3,434) Deferred tax (15,374) (10,907) (26,281) Total identifiable net assets acquired 57,183 34,679 91,862 Goodwill 36,457 11,713 48,170 Revenue — post ‑ 9,515 Loss — post ‑ (3,961) |
FiberCo Solues de Infraestrutura S.A. | |
Business Combinations | |
Summary of consideration paid and the fair value of assets and liabilities acquired at the acquisition date | 2021 $’000 Gross consideration* 266,739 Less: deferred consideration (64,474) Net cash consideration 202,265 Capital injection** 42,996 Identifiable assets acquired and liabilities assumed: Network assets 220,950 Cash 44,872 Capital work in progress 3,832 Software 539 Trade and other receivables 8,498 Trade and other payables (5,764) Loans payable (6,457) Total identifiable net assets acquired 266,470 Non-controlling interest 130,570 Goodwill 173,835 Revenue — post ‑ 5,426 Loss — post ‑ (3,341) |
IHS Kuwait Limited | |
Business Combinations | |
Summary of consideration paid and the fair value of assets and liabilities acquired at the acquisition date | 2021 2020 $’000 $’000 Gross consideration 12,248 117,367 Less: consideration received in exchange for a retained 30% interest (by Zain Kuwait) in IHS GCC KW (1,837) (14,927) Net consideration for 70% controlling interest in the acquired towers 10,411 102,440 Less: contingent and deferred consideration (note payable to Zain)* — (25,202) Net cash consideration for 70% controlling interest 10,411 77,238 Identifiable assets acquired and liabilities assumed: Towers and tower equipment 7,902 33,061 Right of use assets — 10,372 Customer related assets 5,449 41,878 Network-related assets 1,877 14,424 Trade and other receivables 872 14,318 Trade and other payables (3,852) (1,249) Lease liabilities — (8,580) Total identifiable net assets acquired (at 100% ) 12,248 104,224 Goodwill — 13,143 Determination of non-controlling interest Total identifiable net assets acquired (at 100%) 12,248 104,224 Shareholder funding provided by the Group and external debt** (6,124) (48,730) Settlement for lease prepayment funded post acquisition — (5,738) Total identifiable net assets acquired for purposes of non-controlling interest 6,124 49,756 Non-controlling interest portion of above at 30% 1,837 14,927 Revenue — post ‑ n.a. 21,713 Loss — post ‑ n.a. (2,466) * Contingent and deferred consideration consists of $25.2 million of consideration due at a future date which is recognized at fair value on the date of acquisition. The deferred consideration was payable within 18 months from the completion of the transaction and was paid during 2021. The contingent consideration was potentially payable within 24 months from the completion of the transaction, or earlier, should the Group enter into other tower acquisitions in MENA. The contingencies were not met and the contingent consideration was released to the consolidated statement of loss and other comprehensive income in 2021, refer to note 9. **This was shareholder funding provided by the Group and recorded as short term liabilities in IHS GCC KW. These funds were loaned to IHS Kuwait to fund the acquisition of the towers from Zain. This short term liability was subsequently replaced by external debt (refer to note 22). |
IHS Brasil Cesso de Infraestruturas S.A. | |
Business Combinations | |
Summary of consideration paid and the fair value of assets and liabilities acquired at the acquisition date | 2020 $’000 Gross consideration 506,778 Less: cash in business at the date of acquisition (41,111) Net cash consideration 465,667 Identifiable assets acquired and liabilities assumed: Towers and tower equipment 111,327 Land and buildings 566 Furniture and office equipment 305 Capital work in progress 4,970 Right of use asset 119,339 Customer related intangible asset 282,412 Network-related assets 22,407 Other intangible assets 33 Deferred tax assets 8,347 Trade and other receivables 14,615 Trade and other payables (24,123) Income tax payable (1,538) Borrowings (46,356) Provisions for other liabilities and charges (15,437) Lease liabilities (123,071) Deferred tax liabilities (107,016) Total identifiable net assets acquired 246,780 Goodwill 218,887 Revenue — post ‑ 30,185 Loss — post ‑ (296) |
Summary of significant accoun_4
Summary of significant accounting policies (Details) | 12 Months Ended | ||
Dec. 31, 2021item₦ / $ | Dec. 31, 2020₦ / $ | Dec. 31, 2019₦ / $ | |
Disclosure of detailed information about property, plant and equipment [line items] | |||
Foreign exchange rate | 435 | 410.25 | 364.7 |
Average foreign exchange rate | 415.6 | 394.3 | |
Typical number of performance obligations in non-lease revenue contracts | 2 | ||
Lease additional periods | 10 years | ||
Bottom of range | |||
Disclosure of detailed information about property, plant and equipment [line items] | |||
Foreign exchange rate | 394.13 | 363.2 | 360.4 |
Bottom of range | Leasing contracts in which reporting entity is lessor | |||
Disclosure of detailed information about property, plant and equipment [line items] | |||
Lease term | 5 years | ||
Top of range | |||
Disclosure of detailed information about property, plant and equipment [line items] | |||
Foreign exchange rate | 435 | 410.25 | 364.7 |
Top of range | Leasing contracts in which reporting entity is lessor | |||
Disclosure of detailed information about property, plant and equipment [line items] | |||
Lease term | 10 years | ||
Base station equipment (including civil costs and overheads) | Bottom of range | |||
Disclosure of detailed information about property, plant and equipment [line items] | |||
Property and equipment estimated useful lives | 10 years | ||
Base station equipment (including civil costs and overheads) | Top of range | |||
Disclosure of detailed information about property, plant and equipment [line items] | |||
Property and equipment estimated useful lives | 20 years | ||
Base station equipment (other equipment) | |||
Disclosure of detailed information about property, plant and equipment [line items] | |||
Property and equipment estimated useful lives | 15 years | ||
Base station equipment (rectifier and solar power) | |||
Disclosure of detailed information about property, plant and equipment [line items] | |||
Property and equipment estimated useful lives | 10 years | ||
Base station equipment (alarm and battery) | Bottom of range | |||
Disclosure of detailed information about property, plant and equipment [line items] | |||
Property and equipment estimated useful lives | 3 years | ||
Base station equipment (alarm and battery) | Top of range | |||
Disclosure of detailed information about property, plant and equipment [line items] | |||
Property and equipment estimated useful lives | 5 years | ||
Base station equipment (generator) | Bottom of range | |||
Disclosure of detailed information about property, plant and equipment [line items] | |||
Property and equipment estimated useful lives | 1 year | ||
Base station equipment (generator) | Top of range | |||
Disclosure of detailed information about property, plant and equipment [line items] | |||
Property and equipment estimated useful lives | 3 years | ||
Fixed line network equipment | |||
Disclosure of detailed information about property, plant and equipment [line items] | |||
Property and equipment estimated useful lives | 25 years | ||
Outdoor cabinet | |||
Disclosure of detailed information about property, plant and equipment [line items] | |||
Property and equipment estimated useful lives | 10 years | ||
Office complex | |||
Disclosure of detailed information about property, plant and equipment [line items] | |||
Property and equipment estimated useful lives | 40 years | ||
Furniture and office equipment | |||
Disclosure of detailed information about property, plant and equipment [line items] | |||
Property and equipment estimated useful lives | 3 years | ||
Motor vehicles | |||
Disclosure of detailed information about property, plant and equipment [line items] | |||
Property and equipment estimated useful lives | 4 years |
Summary of significant accoun_5
Summary of significant accounting policies - Intangible Assets (Details) | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Disclosure of detailed information about intangible assets [line items] | |||
Period over which cost of decommissioning of telecommunication towers incurred | 20 years | ||
Network | Bottom of range | |||
Disclosure of detailed information about intangible assets [line items] | |||
Intangible assets estimated useful lives | 14 years | 14 years | 14 years |
Remaining amortization period of intangible assets | 5 years | 6 years | 7 years |
Network | Top of range | |||
Disclosure of detailed information about intangible assets [line items] | |||
Intangible assets estimated useful lives | 26 years | 20 years | 16 years |
Remaining amortization period of intangible assets | 26 years | 26 years | 10 years |
Customerrelated intangible assets | Bottom of range | |||
Disclosure of detailed information about intangible assets [line items] | |||
Intangible assets estimated useful lives | 5 years | 5 years | 5 years |
Remaining amortization period of intangible assets | 21 years | 1 year | 1 year |
Customerrelated intangible assets | Top of range | |||
Disclosure of detailed information about intangible assets [line items] | |||
Intangible assets estimated useful lives | 37 years | 30 years | 30 years |
Remaining amortization period of intangible assets | 36 years | 27 years | 26 years |
Licenses | Bottom of range | |||
Disclosure of detailed information about intangible assets [line items] | |||
Intangible assets estimated useful lives | 3 years | 3 years | 3 years |
Licenses | Top of range | |||
Disclosure of detailed information about intangible assets [line items] | |||
Intangible assets estimated useful lives | 15 years | 15 years | 15 years |
Computer software | Bottom of range | |||
Disclosure of detailed information about intangible assets [line items] | |||
Intangible assets estimated useful lives | 3 years | ||
Computer software | Top of range | |||
Disclosure of detailed information about intangible assets [line items] | |||
Intangible assets estimated useful lives | 5 years |
Critical accounting estimates_3
Critical accounting estimates and judgements (Details) - USD ($) $ in Thousands | 12 Months Ended | |||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Critical Accounting Estimates and Judgements [Line Items] | ||||
Value of contracted revenue | $ 10,000,000 | |||
Cash and cash equivalents | $ 916,488 | $ 585,416 | $ 898,802 | $ 633,450 |
Lease renewal term | 10 years | |||
Percentage of unpaid regular claims accrued | 100.00% | |||
Percentage of unpaid regular claims accrual over certain years | 0.00% | |||
Percentage of change in management estimate of regulatory payables | 10.00% | |||
Increase (decrease ) in unbilled regulatory payables due to change in management estimate | $ 3,200 | 2,900 | 3,500 | |
Nigeria | ||||
Critical Accounting Estimates and Judgements [Line Items] | ||||
Unbilled regulatory accruals | $ 31,900 | $ 28,300 | $ 43,800 |
Critical accounting estimates_4
Critical accounting estimates and judgements - Revenue recognition (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Critical accounting estimates and judgements | |||
Percentage Of Reasonably Possible Increase (Decrease) In Management's Estimate of Variable Consideration | 10.00% | ||
Increase (decrease) in revenue as a result of reasonably possible increase (decrease) in management's estimate of variable consideration | $ 16.8 | $ 14.2 | $ 0 |
Percentage Of Reasonably Possible Increase (Decrease) In Management's Estimate of Amount of Accrued Revenue | 20.00% | ||
Increase (decrease) in revenue as a result of reasonably possible increase (decrease) in management's estimate amount of accrued revenue | $ 5 | $ 3.3 | $ 0.8 |
Introduction and overview of _3
Introduction and overview of Groups risk management - Sensitivity analysis (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Introduction and overview of Group's risk management | |||
Export sales | $ 0 | ||
Foreign exchange risk | Euro | |||
Introduction and overview of Group's risk management | |||
Rate of change | 5.00% | 5.00% | 5.00% |
Effect of US Dollar weakening on loss | $ (15,726) | $ (18,652) | $ (11,740) |
Effect of US Dollar strengthening on loss | $ 15,726 | $ 18,652 | $ 11,740 |
Foreign exchange risk | Rwandan Franc | |||
Introduction and overview of Group's risk management | |||
Rate of change | 5.00% | 5.00% | 5.00% |
Effect of US Dollar weakening on loss | $ (3,284) | $ (3,522) | $ (6,308) |
Effect of US Dollar strengthening on loss | $ 3,284 | $ 3,522 | $ 6,308 |
Foreign exchange risk | Nigeria Naira | |||
Introduction and overview of Group's risk management | |||
Rate of change | 5.00% | 5.00% | 5.00% |
Effect of US Dollar weakening on loss | $ (106,595) | $ (114,799) | $ (104,540) |
Effect of US Dollar strengthening on loss | $ 106,595 | $ 114,799 | $ 104,540 |
Foreign exchange risk | Zambian Kwacha | |||
Introduction and overview of Group's risk management | |||
Rate of change | 5.00% | 5.00% | 5.00% |
Effect of US Dollar weakening on loss | $ (11,078) | $ (10,808) | $ (9,807) |
Effect of US Dollar strengthening on loss | $ 11,078 | $ 10,808 | $ 9,807 |
Foreign exchange risk | Brazil Real | |||
Introduction and overview of Group's risk management | |||
Rate of change | 5.00% | 5.00% | 5.00% |
Effect of US Dollar weakening on loss | $ (15,502) | $ (14,302) | |
Effect of US Dollar strengthening on loss | $ 15,502 | $ 14,302 | |
Foreign exchange risk | Kuwaiti Dinar | |||
Introduction and overview of Group's risk management | |||
Rate of change | 5.00% | 5.00% | 5.00% |
Effect of US Dollar weakening on loss | $ (424) | $ (250) | |
Effect of US Dollar strengthening on loss | $ 424 | $ 250 |
Introduction and overview of _4
Introduction and overview of Group's risk management - Foreign exchange loans (Details) - Currency risk [member] - USD ($) $ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 |
Introduction and overview of Group's risk management | ||
Payable to related parties | $ (160,111) | $ (222,045) |
Nigeria, Nairas | Inter Company Loans [Member] | ||
Introduction and overview of Group's risk management | ||
Payable to related parties | 2,037,580 | 2,189,385 |
Rwanda, Rwanda Francs | Inter Company Loans [Member] | ||
Introduction and overview of Group's risk management | ||
Payable to related parties | 65,679 | 56,449 |
Zambia, Kwacha | Inter Company Loans [Member] | ||
Introduction and overview of Group's risk management | ||
Payable to related parties | 128,084 | 119,245 |
Brazil, Brazil Real | Inter Company Loans [Member] | ||
Introduction and overview of Group's risk management | ||
Payable to related parties | 310,047 | 286,032 |
Kuwait, Dinars | Inter Company Loans [Member] | ||
Introduction and overview of Group's risk management | ||
Payable to related parties | 8,476 | 5,007 |
United States of America, Dollars | Inter Company Loans [Member] | ||
Introduction and overview of Group's risk management | ||
Payable to related parties | $ 290,346 | $ 331,668 |
Introduction and overview of _5
Introduction and overview of Group's risk management - Exposure to foreign exchange risk (Details) - Foreign exchange risk - USD ($) $ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 |
Introduction and overview of Group's risk management | ||
Exposure | $ (160,111) | $ (222,045) |
Trade receivables | ||
Introduction and overview of Group's risk management | ||
Exposure | 36,629 | 18,596 |
Cash and cash equivalents | ||
Introduction and overview of Group's risk management | ||
Exposure | 43,928 | 52,569 |
Trade payables | ||
Introduction and overview of Group's risk management | ||
Exposure | (28,707) | (34,351) |
Borrowings | ||
Introduction and overview of Group's risk management | ||
Exposure | $ (211,961) | $ (258,859) |
Introduction and overview of _6
Introduction and overview of Group's risk management - Interest rate risk (Details) - Interest rate risk [member] - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Disclosure of nature and extent of risks arising from financial instruments [line items] | |||
Percentage of increase decrease in interest rate | 1.00% | 1.00% | 1.00% |
Effect of 1% (2020: 1%) increase on post tax loss | $ 6,343 | $ 5,850 | $ 3,041 |
Effect of 1% (2020: 1%) increase on post tax loss | $ (6,079) | $ (6,035) | $ (2,681) |
Introduction and overview of _7
Introduction and overview of Group's risk management - Credit risk (Details) - USD ($) $ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 |
Credit risk [member] | ||||
Disclosure of nature and extent of risks arising from financial instruments [line items] | ||||
Maximum exposure to credit risk | $ 1,503,513 | $ 1,053,770 | ||
Derivative financial instrument assets (note 18) | Credit risk [member] | ||||
Disclosure of nature and extent of risks arising from financial instruments [line items] | ||||
Maximum exposure to credit risk | 165,100 | 182,691 | ||
Trade receivables [member] | ||||
Disclosure of nature and extent of risks arising from financial instruments [line items] | ||||
Impairment allowance | 31,063 | 133,800 | $ 133,889 | $ 110,615 |
Trade receivables [member] | Credit risk [member] | ||||
Disclosure of nature and extent of risks arising from financial instruments [line items] | ||||
Maximum exposure to credit risk | 222,789 | 200,652 | ||
Cash and cash equivalents and other receivables [member] | ||||
Disclosure of nature and extent of risks arising from financial instruments [line items] | ||||
Impairment allowance | 0 | 0 | ||
Other receivables | Credit risk [member] | ||||
Disclosure of nature and extent of risks arising from financial instruments [line items] | ||||
Maximum exposure to credit risk | 199,136 | 85,011 | ||
Cash and Cash Equivalents | Credit risk [member] | ||||
Disclosure of nature and extent of risks arising from financial instruments [line items] | ||||
Maximum exposure to credit risk | $ 916,488 | $ 585,416 |
Introduction and overview of _8
Introduction and overview of Group's risk management - Fitch Credit ratings (Details) - USD ($) $ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 |
Disclosure of nature and extent of risks arising from financial instruments [line items] | ||
Other receivables credit exposure | $ 199,136 | $ 85,011 |
AA+ | ||
Disclosure of nature and extent of risks arising from financial instruments [line items] | ||
Other receivables credit exposure | 4,650 | |
B | ||
Disclosure of nature and extent of risks arising from financial instruments [line items] | ||
Other receivables credit exposure | 145,300 | 4,881 |
B- | ||
Disclosure of nature and extent of risks arising from financial instruments [line items] | ||
Other receivables credit exposure | 7,418 | 14,273 |
BB- | ||
Disclosure of nature and extent of risks arising from financial instruments [line items] | ||
Other receivables credit exposure | 6,665 | 7,045 |
Not rated | ||
Disclosure of nature and extent of risks arising from financial instruments [line items] | ||
Other receivables credit exposure | $ 39,753 | $ 54,162 |
Introduction and overview of _9
Introduction and overview of Group's risk management - Internal credit rating (Details) $ in Thousands | 12 Months Ended | |
Dec. 31, 2021USD ($)customer | Dec. 31, 2020USD ($) | |
Disclosure of nature and extent of risks arising from financial instruments [line items] | ||
Accrued Revenue | $ 103,369 | $ 89,960 |
Net trade receivables | $ 222,788 | 200,652 |
Number of customers | 2 | |
Bottom of range | ||
Disclosure of nature and extent of risks arising from financial instruments [line items] | ||
Number of customers | customer | 2 | |
Top of range | ||
Disclosure of nature and extent of risks arising from financial instruments [line items] | ||
Number of customers | customer | 5 | |
Internal Credit Grades, First tier [Member] | ||
Disclosure of nature and extent of risks arising from financial instruments [line items] | ||
Accrued Revenue | $ 102,931 | 89,138 |
Net trade receivables | $ 211,150 | 185,344 |
Revenue percentage | 80.00% | |
Internal Credit Grades, Second tier [Member] | ||
Disclosure of nature and extent of risks arising from financial instruments [line items] | ||
Accrued Revenue | $ 438 | 822 |
Net trade receivables | $ 11,638 | 15,308 |
Revenue percentage | 20.00% | |
Gross carrying amount [member] | ||
Disclosure of nature and extent of risks arising from financial instruments [line items] | ||
Accrued Revenue | $ 273,774 | 334,452 |
Gross carrying amount [member] | Internal Credit Grades, First tier [Member] | ||
Disclosure of nature and extent of risks arising from financial instruments [line items] | ||
Accrued Revenue | 217,832 | 269,563 |
Gross carrying amount [member] | Internal Credit Grades, Second tier [Member] | ||
Disclosure of nature and extent of risks arising from financial instruments [line items] | ||
Accrued Revenue | 55,942 | 64,889 |
Accumulated impairment [member] | ||
Disclosure of nature and extent of risks arising from financial instruments [line items] | ||
Accrued Revenue | (50,986) | (133,800) |
Accumulated impairment [member] | Internal Credit Grades, First tier [Member] | ||
Disclosure of nature and extent of risks arising from financial instruments [line items] | ||
Accrued Revenue | (6,682) | (84,219) |
Accumulated impairment [member] | Internal Credit Grades, Second tier [Member] | ||
Disclosure of nature and extent of risks arising from financial instruments [line items] | ||
Accrued Revenue | (44,304) | (49,581) |
Not due | ||
Disclosure of nature and extent of risks arising from financial instruments [line items] | ||
Accrued Revenue | 39,950 | 18,953 |
Not due | Internal Credit Grades, First tier [Member] | ||
Disclosure of nature and extent of risks arising from financial instruments [line items] | ||
Accrued Revenue | 37,238 | 18,772 |
Not due | Internal Credit Grades, Second tier [Member] | ||
Disclosure of nature and extent of risks arising from financial instruments [line items] | ||
Accrued Revenue | 2,712 | 181 |
030 days | ||
Disclosure of nature and extent of risks arising from financial instruments [line items] | ||
Accrued Revenue | 16,532 | 3,820 |
030 days | Internal Credit Grades, First tier [Member] | ||
Disclosure of nature and extent of risks arising from financial instruments [line items] | ||
Accrued Revenue | 15,113 | 3,616 |
030 days | Internal Credit Grades, Second tier [Member] | ||
Disclosure of nature and extent of risks arising from financial instruments [line items] | ||
Accrued Revenue | 1,419 | 204 |
3160 days | ||
Disclosure of nature and extent of risks arising from financial instruments [line items] | ||
Accrued Revenue | 28,409 | 27,276 |
3160 days | Internal Credit Grades, First tier [Member] | ||
Disclosure of nature and extent of risks arising from financial instruments [line items] | ||
Accrued Revenue | 25,585 | 26,393 |
3160 days | Internal Credit Grades, Second tier [Member] | ||
Disclosure of nature and extent of risks arising from financial instruments [line items] | ||
Accrued Revenue | 2,824 | 883 |
6190 days | ||
Disclosure of nature and extent of risks arising from financial instruments [line items] | ||
Accrued Revenue | 9,988 | 4,842 |
6190 days | Internal Credit Grades, First tier [Member] | ||
Disclosure of nature and extent of risks arising from financial instruments [line items] | ||
Accrued Revenue | 8,024 | 2,588 |
6190 days | Internal Credit Grades, Second tier [Member] | ||
Disclosure of nature and extent of risks arising from financial instruments [line items] | ||
Accrued Revenue | 1,964 | 2,254 |
Over 90 days | ||
Disclosure of nature and extent of risks arising from financial instruments [line items] | ||
Accrued Revenue | 75,526 | 189,601 |
Over 90 days | Internal Credit Grades, First tier [Member] | ||
Disclosure of nature and extent of risks arising from financial instruments [line items] | ||
Accrued Revenue | 28,941 | 129,056 |
Over 90 days | Internal Credit Grades, Second tier [Member] | ||
Disclosure of nature and extent of risks arising from financial instruments [line items] | ||
Accrued Revenue | $ 46,585 | $ 60,545 |
Introduction and overview of_10
Introduction and overview of Group's risk management - Impairment loss of trade receivables (Details) - Trade receivables - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Disclosure of reconciliation of changes in loss allowance and explanation of changes in gross carrying amount for financial instruments [line items] | |||
Opening balance | $ 133,800 | $ 133,889 | $ 110,615 |
(Decrease)/Increase in impairment provision | (34,117) | 13,081 | 27,944 |
Written-off during the year | (67,053) | (2,106) | (5,591) |
Foreign exchange | (1,567) | (11,064) | 921 |
Closing balance | $ 31,063 | $ 133,800 | $ 133,889 |
Introduction and overview of_11
Introduction and overview of Group's risk management - Liquidity risk (Details) - USD ($) $ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 |
Disclosure of nature and extent of risks arising from financial instruments [line items] | ||
Contractual undiscounted cash flows | $ 4,720,177 | $ 3,825,849 |
Maximum debt amount | 3,500,000 | 2,600,000 |
Borrowing capacity utilized | 2,700,000 | 2,300,000 |
Trade payables | ||
Disclosure of nature and extent of risks arising from financial instruments [line items] | ||
Contractual undiscounted cash flows | 342,841 | 301,813 |
Other payables | ||
Disclosure of nature and extent of risks arising from financial instruments [line items] | ||
Contractual undiscounted cash flows | 78,505 | 81,851 |
Payroll and other related statutory liabilities | ||
Disclosure of nature and extent of risks arising from financial instruments [line items] | ||
Contractual undiscounted cash flows | 53,446 | 27,476 |
Lease liabilities | ||
Disclosure of nature and extent of risks arising from financial instruments [line items] | ||
Contractual undiscounted cash flows | 700,877 | 453,590 |
Bank and bond borrowings | ||
Disclosure of nature and extent of risks arising from financial instruments [line items] | ||
Contractual undiscounted cash flows | 3,544,508 | 2,961,119 |
Within 1 year | ||
Disclosure of nature and extent of risks arising from financial instruments [line items] | ||
Contractual undiscounted cash flows | 892,128 | 734,197 |
Within 1 year | Trade payables | ||
Disclosure of nature and extent of risks arising from financial instruments [line items] | ||
Contractual undiscounted cash flows | 342,841 | 301,813 |
Within 1 year | Other payables | ||
Disclosure of nature and extent of risks arising from financial instruments [line items] | ||
Contractual undiscounted cash flows | 78,193 | 72,286 |
Within 1 year | Payroll and other related statutory liabilities | ||
Disclosure of nature and extent of risks arising from financial instruments [line items] | ||
Contractual undiscounted cash flows | 53,446 | 27,476 |
Within 1 year | Lease liabilities | ||
Disclosure of nature and extent of risks arising from financial instruments [line items] | ||
Contractual undiscounted cash flows | 54,303 | 39,677 |
Within 1 year | Bank and bond borrowings | ||
Disclosure of nature and extent of risks arising from financial instruments [line items] | ||
Contractual undiscounted cash flows | 363,345 | 292,945 |
Later than two years and not later than three years [member] | ||
Disclosure of nature and extent of risks arising from financial instruments [line items] | ||
Contractual undiscounted cash flows | 763,619 | 763,932 |
Later than two years and not later than three years [member] | Other payables | ||
Disclosure of nature and extent of risks arising from financial instruments [line items] | ||
Contractual undiscounted cash flows | 312 | 9,565 |
Later than two years and not later than three years [member] | Lease liabilities | ||
Disclosure of nature and extent of risks arising from financial instruments [line items] | ||
Contractual undiscounted cash flows | 106,015 | 152,386 |
Later than two years and not later than three years [member] | Bank and bond borrowings | ||
Disclosure of nature and extent of risks arising from financial instruments [line items] | ||
Contractual undiscounted cash flows | 657,292 | 601,981 |
Later than four years and not later than five years [member] | ||
Disclosure of nature and extent of risks arising from financial instruments [line items] | ||
Contractual undiscounted cash flows | 1,107,785 | 993,775 |
Later than four years and not later than five years [member] | Lease liabilities | ||
Disclosure of nature and extent of risks arising from financial instruments [line items] | ||
Contractual undiscounted cash flows | 99,573 | 44,294 |
Later than four years and not later than five years [member] | Bank and bond borrowings | ||
Disclosure of nature and extent of risks arising from financial instruments [line items] | ||
Contractual undiscounted cash flows | 1,008,212 | 949,481 |
Over 5 years | ||
Disclosure of nature and extent of risks arising from financial instruments [line items] | ||
Contractual undiscounted cash flows | 1,956,645 | 1,333,945 |
Over 5 years | Lease liabilities | ||
Disclosure of nature and extent of risks arising from financial instruments [line items] | ||
Contractual undiscounted cash flows | 440,986 | 217,233 |
Over 5 years | Bank and bond borrowings | ||
Disclosure of nature and extent of risks arising from financial instruments [line items] | ||
Contractual undiscounted cash flows | $ 1,515,659 | $ 1,116,712 |
Introduction and overview of_12
Introduction and overview of Group's risk management - Net leverage ratios (Details) $ in Thousands | 12 Months Ended | |||
Dec. 31, 2021USD ($) | Dec. 31, 2020USD ($) | Dec. 31, 2019USD ($) | Dec. 31, 2018USD ($) | |
Disclosure of financial assets [line items] | ||||
Borrowings | $ 2,609,090 | $ 2,203,209 | $ 2,055,878 | $ 1,897,774 |
Lease liabilities | 376,101 | 314,747 | 184,494 | 204,065 |
Less: Cash and cash equivalents | (916,488) | (585,416) | $ (898,802) | $ (633,450) |
Net debt | 2,068,703 | 1,932,540 | ||
Adjusted EBITDA | $ 926,396 | $ 819,014 | ||
Management net leverage ratio | 2.2 | 2.4 | ||
Top of range | ||||
Disclosure of financial assets [line items] | ||||
Target ratio of net debt to adjusted EBITDA | 4 | 4 | ||
Bottom of range | ||||
Disclosure of financial assets [line items] | ||||
Target ratio of net debt to adjusted EBITDA | 3 | 3 |
Introduction and overview of_13
Introduction and overview of Group's risk management - Financial instruments that are measured at fair value (Details) - USD ($) $ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 |
Disclosure of nature and extent of risks arising from financial instruments [line items] | ||
Financial instruments at fair value | $ 161,340 | $ 175,414 |
Fair value through other comprehensive income financial assets | ||
Disclosure of nature and extent of risks arising from financial instruments [line items] | ||
Financial instruments at fair value | 11 | 8 |
Embedded options within listed bonds | ||
Disclosure of nature and extent of risks arising from financial instruments [line items] | ||
Financial instruments at fair value | 165,100 | 155,196 |
Non-deliverable forwards (NDF) | ||
Disclosure of nature and extent of risks arising from financial instruments [line items] | ||
Financial instruments at fair value | (3,771) | 27,495 |
Embedded derivatives within revenue contracts | ||
Disclosure of nature and extent of risks arising from financial instruments [line items] | ||
Financial instruments at fair value | (7,285) | |
Level 1 of fair value hierarchy [member] | ||
Disclosure of nature and extent of risks arising from financial instruments [line items] | ||
Financial instruments at fair value | 11 | 8 |
Level 1 of fair value hierarchy [member] | Fair value through other comprehensive income financial assets | ||
Disclosure of nature and extent of risks arising from financial instruments [line items] | ||
Financial instruments at fair value | 11 | 8 |
Level 2 of fair value hierarchy [member] | ||
Disclosure of nature and extent of risks arising from financial instruments [line items] | ||
Financial instruments at fair value | 161,329 | 182,691 |
Level 2 of fair value hierarchy [member] | Embedded options within listed bonds | ||
Disclosure of nature and extent of risks arising from financial instruments [line items] | ||
Financial instruments at fair value | 165,100 | 155,196 |
Level 2 of fair value hierarchy [member] | Non-deliverable forwards (NDF) | ||
Disclosure of nature and extent of risks arising from financial instruments [line items] | ||
Financial instruments at fair value | $ (3,771) | 27,495 |
Level 3 of fair value hierarchy [member] | ||
Disclosure of nature and extent of risks arising from financial instruments [line items] | ||
Financial instruments at fair value | (7,285) | |
Level 3 of fair value hierarchy [member] | Embedded derivatives within revenue contracts | ||
Disclosure of nature and extent of risks arising from financial instruments [line items] | ||
Financial instruments at fair value | $ (7,285) |
Introduction and overview of_14
Introduction and overview of Group's risk management - Reconciliation of Level 3 fair value measurements of financial instruments (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Disclosure of nature and extent of risks arising from financial instruments [line items] | ||
Opening balance at January 1 | $ 3,223,452 | |
Closing balance at December 31 | 3,747,691 | $ 3,223,452 |
Level 3 of fair value hierarchy [member] | ||
Disclosure of nature and extent of risks arising from financial instruments [line items] | ||
Opening balance at January 1 | 7,285 | |
Recognition of embedded derivatives within revenue contracts | 7,575 | |
Change in fair value | (7,231) | (169) |
Foreign exchange translation impact | (54) | (121) |
Closing balance at December 31 | $ 7,285 | $ 7,285 |
Introduction and overview of_15
Introduction and overview of Group's risk management - Fair value estimation (Details) - USD ($) $ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 |
Disclosure of nature and extent of risks arising from financial instruments [line items] | ||
Financial liabilities, Carrying value | $ 3,410,308 | $ 2,899,340 |
Not measured at fair value in statement of financial position but for which fair value is disclosed [member] | ||
Disclosure of nature and extent of risks arising from financial instruments [line items] | ||
Financial liabilities, Carrying value | 2,609,090 | 2,203,209 |
Fair value | 2,668,792 | 2,230,846 |
Bank and bond borrowings | ||
Disclosure of nature and extent of risks arising from financial instruments [line items] | ||
Financial liabilities, Carrying value | 2,609,090 | 2,203,209 |
Bank and bond borrowings | Not measured at fair value in statement of financial position but for which fair value is disclosed [member] | ||
Disclosure of nature and extent of risks arising from financial instruments [line items] | ||
Financial liabilities, Carrying value | 2,609,090 | 2,203,209 |
Fair value | $ 2,668,792 | $ 2,230,846 |
Introduction and overview of_16
Introduction and overview of Group's risk management - Financial instruments by category - Financial assets (Details) - USD ($) $ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 |
Disclosure of nature and extent of risks arising from financial instruments [line items] | ||
Financial assets | $ 1,503,524 | $ 1,053,778 |
Financial assets at amortised cost, category [member] | ||
Disclosure of nature and extent of risks arising from financial instruments [line items] | ||
Financial assets | 1,338,413 | 871,079 |
Financial assets at fair value through profit or loss, category [member] | ||
Disclosure of nature and extent of risks arising from financial instruments [line items] | ||
Financial assets | 165,100 | 182,691 |
Financial assets at fair value through other comprehensive income, category [member] | ||
Disclosure of nature and extent of risks arising from financial instruments [line items] | ||
Financial assets | 11 | 8 |
Trade receivables [member] | ||
Disclosure of nature and extent of risks arising from financial instruments [line items] | ||
Financial assets | 222,789 | 200,652 |
Trade receivables [member] | Financial assets at amortised cost, category [member] | ||
Disclosure of nature and extent of risks arising from financial instruments [line items] | ||
Financial assets | 222,789 | 200,652 |
Other receivables | ||
Disclosure of nature and extent of risks arising from financial instruments [line items] | ||
Financial assets | 199,136 | 85,011 |
Other receivables | Financial assets at amortised cost, category [member] | ||
Disclosure of nature and extent of risks arising from financial instruments [line items] | ||
Financial assets | 199,136 | 85,011 |
Cash and cash equivalents | ||
Disclosure of nature and extent of risks arising from financial instruments [line items] | ||
Financial assets | 916,488 | 585,416 |
Cash and cash equivalents | Financial assets at amortised cost, category [member] | ||
Disclosure of nature and extent of risks arising from financial instruments [line items] | ||
Financial assets | 916,488 | 585,416 |
Financial assets at fair value through other comprehensive income, category [member] | ||
Disclosure of nature and extent of risks arising from financial instruments [line items] | ||
Financial assets | 11 | 8 |
Financial assets at fair value through other comprehensive income, category [member] | Financial assets at fair value through other comprehensive income, category [member] | ||
Disclosure of nature and extent of risks arising from financial instruments [line items] | ||
Financial assets | 11 | 8 |
Derivatives [member] | ||
Disclosure of nature and extent of risks arising from financial instruments [line items] | ||
Financial assets | 165,100 | 182,691 |
Derivatives [member] | Financial assets at fair value through profit or loss, category [member] | ||
Disclosure of nature and extent of risks arising from financial instruments [line items] | ||
Financial assets | $ 165,100 | $ 182,691 |
Introduction and overview of_17
Introduction and overview of Group's risk management - Financial instruments by category - Financial liabilities (Details) - USD ($) $ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 |
Disclosure of nature and extent of risks arising from financial instruments [line items] | ||
Financial liabilities | $ 3,410,308 | $ 2,899,340 |
Amortized cost | ||
Disclosure of nature and extent of risks arising from financial instruments [line items] | ||
Financial liabilities | 3,406,537 | 2,892,055 |
Financial liabilities at fair value through profit or loss, category [member] | ||
Disclosure of nature and extent of risks arising from financial instruments [line items] | ||
Financial liabilities | 3,771 | 7,285 |
Bank and bond borrowings | ||
Disclosure of nature and extent of risks arising from financial instruments [line items] | ||
Financial liabilities | 2,609,090 | 2,203,209 |
Bank and bond borrowings | Amortized cost | ||
Disclosure of nature and extent of risks arising from financial instruments [line items] | ||
Financial liabilities | 2,609,090 | 2,203,209 |
Trade payables | ||
Disclosure of nature and extent of risks arising from financial instruments [line items] | ||
Financial liabilities | 342,841 | 301,813 |
Trade payables | Amortized cost | ||
Disclosure of nature and extent of risks arising from financial instruments [line items] | ||
Financial liabilities | 342,841 | 301,813 |
Other payables | ||
Disclosure of nature and extent of risks arising from financial instruments [line items] | ||
Financial liabilities | 78,505 | 72,286 |
Other payables | Amortized cost | ||
Disclosure of nature and extent of risks arising from financial instruments [line items] | ||
Financial liabilities | 78,505 | 72,286 |
Lease liabilities [member] | ||
Disclosure of nature and extent of risks arising from financial instruments [line items] | ||
Financial liabilities | 376,101 | 314,747 |
Lease liabilities [member] | Amortized cost | ||
Disclosure of nature and extent of risks arising from financial instruments [line items] | ||
Financial liabilities | 376,101 | 314,747 |
Derivatives [member] | ||
Disclosure of nature and extent of risks arising from financial instruments [line items] | ||
Financial liabilities | 3,771 | 7,285 |
Derivatives [member] | Financial liabilities at fair value through profit or loss, category [member] | ||
Disclosure of nature and extent of risks arising from financial instruments [line items] | ||
Financial liabilities | $ 3,771 | $ 7,285 |
Segment reporting - Summarized
Segment reporting - Summarized financial information (Details) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021USD ($)segment | Dec. 31, 2020USD ($) | Dec. 31, 2019USD ($) | |
Geographical information | |||
Number of operating segments | segment | 4 | ||
Number of reporting segments | segment | 4 | ||
Revenue | $ 1,579,730 | $ 1,403,149 | $ 1,231,056 |
Adjusted EBITDA | 926,396 | 819,014 | 668,614 |
Depreciation and amortization | (382,882) | (408,662) | (384,507) |
Net (gain)/loss on disposal of property, plant and equipment | 2,499 | 764 | (5,819) |
Insurance claims | 6,861 | 14,987 | 3,607 |
Impairment of withholding tax receivables | (61,810) | (31,533) | (44,586) |
Business combination transaction costs | (15,779) | (13,727) | (3,745) |
Impairment of property, plant and equipment and prepaid rental | (51,113) | (27,594) | (21,604) |
Reversal of provision for decommissioning costs | 2,671 | ||
Listing costs | (22,153) | (12,652) | (1,078) |
Other costs | (15,752) | (310) | (16,932) |
Share-based payment expense | (11,780) | (8,342) | (351,054) |
Finance income | 25,522 | 148,968 | 36,045 |
Finance costs | (422,034) | (633,766) | (288,915) |
Other non-operating income and expenses | 11,213 | ||
Profit/(loss) before income tax | (8,141) | (152,853) | (409,974) |
Segment assets | 5,473,651 | 4,447,643 | |
Segment liabilities | 3,747,691 | 3,223,452 | |
Redundancy costs | 3,200 | ||
Professional costs related to financing | 15,100 | 9,600 | |
Aborted transaction costs | 700 | 600 | |
MENA startup costs | 3,400 | ||
Nigeria | |||
Geographical information | |||
Revenue | 1,146,732 | 1,037,836 | 925,704 |
Adjusted EBITDA | 783,544 | 701,273 | 559,049 |
Additions of property, plant and equipment and intangible assets: - In the normal course of business | 318,971 | 195,692 | 363,501 |
Segment assets | 2,038,376 | 2,040,911 | 2,349,699 |
Segment liabilities | 745,944 | 747,428 | 768,206 |
SSA | |||
Geographical information | |||
Revenue | 343,945 | 313,416 | 305,352 |
Adjusted EBITDA | 190,654 | 170,784 | 165,626 |
Additions of property, plant and equipment and intangible assets: - In the normal course of business | 56,291 | 61,147 | 49,704 |
Segment assets | 1,024,347 | 1,043,669 | 1,056,982 |
Segment liabilities | 494,236 | 532,801 | 552,343 |
Latam | |||
Geographical information | |||
Revenue | 59,706 | 30,185 | |
Adjusted EBITDA | 42,688 | 22,696 | |
Additions of property, plant and equipment and intangible assets: - through business combinations | 677,226 | 760,246 | |
Additions of property, plant and equipment and intangible assets: - In the normal course of business | 103,338 | 31,703 | |
Segment assets | 1,385,224 | 682,813 | |
Segment liabilities | 342,181 | 266,596 | |
MENA | |||
Geographical information | |||
Revenue | 29,347 | 21,712 | |
Adjusted EBITDA | 13,085 | 9,937 | |
Additions of property, plant and equipment and intangible assets: - through business combinations | 112,878 | ||
Additions of property, plant and equipment and intangible assets: - In the normal course of business | 20,725 | 8,465 | |
Segment assets | 173,888 | 142,210 | |
Segment liabilities | 100,947 | 92,917 | |
Other | |||
Geographical information | |||
Adjusted EBITDA | $ (103,575) | $ (85,676) | $ (56,061) |
Segment reporting - Geographica
Segment reporting - Geographical information (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Geographical information | |||
Revenue | $ 1,579,730 | $ 1,403,149 | $ 1,231,056 |
Noncurrent assets | $ 4,045,883 | $ 3,458,323 | |
Customer A | |||
Geographical information | |||
Revenue percentage | 66.00% | 66.00% | 63.00% |
Customer B | |||
Geographical information | |||
Revenue percentage | 14.00% | 13.00% | |
Customer B | Top of range | |||
Geographical information | |||
Revenue percentage | 10.00% | ||
Customer C | |||
Geographical information | |||
Revenue percentage | 14.00% | 14.00% | |
Customer C | Top of range | |||
Geographical information | |||
Revenue percentage | 10.00% | ||
Countries where entity holds significant non-current assets | |||
Geographical information | |||
Noncurrent assets | $ 3,800,229 | $ 3,253,267 | $ 2,874,790 |
Nigeria | |||
Geographical information | |||
Revenue | 1,146,732 | 1,037,836 | 925,704 |
Noncurrent assets | $ 1,572,774 | 1,654,318 | 1,991,553 |
COTE D'IVOIRE | |||
Geographical information | |||
Noncurrent assets | $ 330,705 | 317,597 | |
COTE D'IVOIRE | Top of range | |||
Geographical information | |||
Percentage of entity's non-current assets | 10.00% | ||
CAMEROON | |||
Geographical information | |||
Noncurrent assets | 288,773 | ||
CAMEROON | Top of range | |||
Geographical information | |||
Percentage of entity's non-current assets | 10.00% | 10.00% | |
BRAZIL | |||
Geographical information | |||
Noncurrent assets | $ 812,100 | $ 641,253 | |
Rest of world | |||
Geographical information | |||
Revenue | 432,998 | 365,313 | 305,352 |
Noncurrent assets | $ 1,415,355 | $ 626,991 | $ 276,867 |
Segment reporting - Major custo
Segment reporting - Major customers (Details) | 12 Months Ended | ||
Dec. 31, 2021customer | Dec. 31, 2020 | Dec. 31, 2019 | |
Geographical information | |||
Number of major customers | 2 | ||
Top of range | |||
Geographical information | |||
Number of major customers | 5 | ||
Customer A | |||
Geographical information | |||
Revenue percentage | 66.00% | 66.00% | 63.00% |
Customer B | |||
Geographical information | |||
Revenue percentage | 14.00% | 13.00% | |
Customer B | Top of range | |||
Geographical information | |||
Revenue percentage | 10.00% | ||
Customer C | |||
Geographical information | |||
Revenue percentage | 14.00% | 14.00% | |
Customer C | Top of range | |||
Geographical information | |||
Revenue percentage | 10.00% |
Revenue - Disaggregation of rev
Revenue - Disaggregation of revenue (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Revenue. | |||
Lease component | $ 1,233,816 | $ 1,026,103 | $ 889,909 |
Services component | 345,914 | 377,046 | 341,147 |
Total revenue | $ 1,579,730 | $ 1,403,149 | $ 1,231,056 |
Revenue - Performance obligatio
Revenue - Performance obligation (Details) - USD ($) $ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 |
Revenue | |||
Remaining performance obligation | $ 2,177,268 | $ 2,318,354 | $ 2,113,329 |
Within one year | |||
Revenue | |||
Remaining performance obligation | 351,071 | 343,209 | 290,645 |
1-2 years | |||
Revenue | |||
Remaining performance obligation | 309,861 | 331,608 | 263,298 |
2-3 years | |||
Revenue | |||
Remaining performance obligation | 255,791 | 291,891 | 250,167 |
3-4 years | |||
Revenue | |||
Remaining performance obligation | 211,615 | 258,129 | 218,380 |
4-5 years | |||
Revenue | |||
Remaining performance obligation | 190,018 | 214,223 | 196,753 |
After 5 years | |||
Revenue | |||
Remaining performance obligation | $ 858,912 | $ 879,294 | $ 894,086 |
Revenue - Future minimum receip
Revenue - Future minimum receipts (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Disclosure of maturity analysis of finance lease payments receivable [abstract] | |||
Future minimum receipts | $ 7,847,250 | $ 6,894,473 | $ 5,376,066 |
Bottom of range | |||
Disclosure of maturity analysis of finance lease payments receivable [abstract] | |||
Term of lease | 5 years | ||
Top of range | |||
Disclosure of maturity analysis of finance lease payments receivable [abstract] | |||
Term of lease | 20 years | ||
Within one year | |||
Disclosure of maturity analysis of finance lease payments receivable [abstract] | |||
Future minimum receipts | $ 1,284,692 | 1,011,501 | 791,654 |
1-2 years | |||
Disclosure of maturity analysis of finance lease payments receivable [abstract] | |||
Future minimum receipts | 1,177,665 | 981,778 | 704,054 |
2-3 years | |||
Disclosure of maturity analysis of finance lease payments receivable [abstract] | |||
Future minimum receipts | 1,083,942 | 880,316 | 678,734 |
3-4 years | |||
Disclosure of maturity analysis of finance lease payments receivable [abstract] | |||
Future minimum receipts | 847,224 | 801,452 | 572,273 |
4-5 years | |||
Disclosure of maturity analysis of finance lease payments receivable [abstract] | |||
Future minimum receipts | 749,839 | 625,352 | 520,933 |
After 5 years | |||
Disclosure of maturity analysis of finance lease payments receivable [abstract] | |||
Future minimum receipts | $ 2,703,888 | $ 2,594,074 | $ 2,108,418 |
Cost of sales (Details)
Cost of sales (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Administrative expenses | |||
Staff costs | $ 139,670 | $ 111,306 | $ 417,138 |
Impairment of property, plant and equipment and prepaid land rent | 51,113 | 27,594 | 21,604 |
Total Cost of sales | 907,388 | 838,423 | 810,967 |
Indirect tax receivable | 400 | 800 | |
Cost of sales. | |||
Administrative expenses | |||
Tower repairs and maintenance | 74,523 | 75,931 | 69,304 |
Power generation | 267,044 | 216,030 | 237,640 |
Short term site rental | 11,165 | 7,543 | 3,547 |
Short term other rent | 3,419 | 3,085 | 2,289 |
Vehicle maintenance and repairs | 2,754 | 2,754 | 2,108 |
Site regulatory permits | 41,165 | 27,313 | 19,360 |
Security services | 36,132 | 32,719 | 33,027 |
Insurance | 4,156 | 4,695 | 5,958 |
Staff costs | 26,323 | 24,588 | 20,561 |
Travel costs | 7,155 | 4,313 | 4,719 |
Professional fees | 3,385 | 2,457 | 2,122 |
Depreciation | 330,799 | 367,007 | 353,368 |
Amortization | 34,051 | 32,503 | 24,549 |
Impairment of property, plant and equipment and prepaid land rent | 51,113 | 27,594 | 21,604 |
Other | 14,204 | 9,891 | 10,811 |
Total Cost of sales | $ 907,388 | $ 838,423 | $ 810,967 |
Administrative expenses (Detail
Administrative expenses (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Administrative expenses | |||
Key management compensation | $ 35,437 | $ 19,805 | $ 363,500 |
Share-based payment expense | 11,780 | 8,342 | 351,054 |
Business combination transaction costs | 15,779 | 13,727 | 3,745 |
Impairment of withholding tax receivables | 61,810 | 31,533 | 44,586 |
Net (gain)/loss on disposal of property, plant and equipment | (2,499) | (764) | 5,819 |
Other | 15,752 | 310 | 16,932 |
Total administrative expenses | 336,511 | 236,112 | 556,285 |
Administrative expenses. | |||
Administrative expenses | |||
Facilities, short term rental and upkeep | 23,210 | 12,872 | 12,881 |
Depreciation | 13,917 | 6,240 | 2,392 |
Amortization | 4,115 | 2,912 | 4,198 |
Travel costs | 8,654 | 6,815 | 13,475 |
Staff costs | 101,567 | 78,376 | 45,523 |
Key management compensation | 25,642 | 13,776 | 20,215 |
Share-based payment expense | 11,780 | 8,342 | 351,054 |
Professional fees | 49,685 | 38,200 | 15,275 |
Business combination transaction costs | 15,779 | 13,727 | 3,745 |
Impairment of withholding tax receivables | 61,810 | 31,533 | 44,586 |
Net (gain)/loss on disposal of property, plant and equipment | (2,499) | (764) | 5,819 |
Operating taxes | 1,561 | 2,239 | 505 |
Other | 21,290 | 21,844 | 36,617 |
Total administrative expenses | $ 336,511 | $ 236,112 | $ 556,285 |
Administrative expenses - Loss
Administrative expenses - Loss allowance on trade receivables (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Administrative expenses. | |||
Impairment loss (reversal of impairment loss) on trade receivables, net | $ (34,031) | $ 13,081 | $ 27,944 |
Administrative expenses - Staff
Administrative expenses - Staff Costs (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Administrative expenses | |||
Salaries and wages | $ 106,754 | $ 85,690 | $ 54,632 |
Pension contribution - employer | 4,854 | 3,780 | 2,474 |
Other benefits | 16,282 | 13,494 | 8,978 |
Share-based payment expense | 11,780 | 8,342 | 351,054 |
Total Staff costs | 139,670 | 111,306 | 417,138 |
Cost of sales. | |||
Administrative expenses | |||
Total Staff costs | 26,323 | 24,588 | 20,561 |
Administrative expenses. | |||
Administrative expenses | |||
Share-based payment expense | 11,780 | 8,342 | 351,054 |
Total Staff costs | 113,347 | 86,718 | 396,577 |
Staff costs | $ 101,567 | $ 78,376 | $ 45,523 |
Other income (Details)
Other income (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Other income. | |||
Insurance claims | $ 6,861 | $ 14,987 | $ 3,607 |
Other income | 11,648 | 1,425 | 3,429 |
Total other income | 18,509 | $ 16,412 | 7,036 |
One off claim, insurance income | $ 8,700 | $ 0 |
Finance Income (Details)
Finance Income (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Finance income. | |||
Interest income - bank deposits | $ 7,798 | $ 5,101 | $ 14,732 |
Net foreign exchange gain arising from derivative instruments - unrealized | 29,151 | 53 | |
Net foreign exchange gain arising from derivative instruments - realized | 9,889 | 4,061 | 228 |
Fair value gain on embedded options | 604 | 110,655 | 17,245 |
Fair value gain on embedded derivative in revenue contract | 7,231 | 3,787 | |
Total Finance income | $ 25,522 | $ 148,968 | $ 36,045 |
Finance Costs (Details)
Finance Costs (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Finance costs. | |||
Interest expenses - third party loans | $ 179,280 | $ 182,246 | $ 193,829 |
Unwinding of discount on decommissioning liability | 4,644 | 2,644 | 1,712 |
Interest and finance charges for lease liabilities | 32,826 | 27,384 | 16,024 |
Net foreign exchange loss arising from financing - unrealized | 126,131 | 363,953 | 47,291 |
Net foreign exchange loss arising from financing - realized | 43,422 | 49,564 | |
Net foreign exchange loss on derivative instruments - realized | 1,594 | ||
Costs paid on early loan and bond settlement | 18,171 | 22,153 | |
Fees on loans and financial derivatives | 13,663 | 7,806 | 6,312 |
Fair value loss on embedded derivative within revenue contract | 169 | ||
Net foreign exchange loss on derivative instruments-unrealized | 3,897 | ||
Finance costs | $ 422,034 | $ 633,766 | $ 288,915 |
Income Tax Expense (Details)
Income Tax Expense (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Income Tax Expense | |||
Current taxes on income | $ 91,692 | $ 95,107 | $ 3,304 |
Deferred income taxes | (73,712) | 74,722 | 10,214 |
Total taxes | $ 17,980 | $ 169,829 | $ 13,518 |
Income Tax Expense - Reconcilia
Income Tax Expense - Reconciliation of effective tax charge (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Reconciliation of effective tax charge | |||
Loss before income tax | $ (8,141) | $ (152,853) | $ (409,974) |
Tax calculated at domestic tax rates applicable to profits in respective countries | (4,433) | (66,049) | (71,224) |
Tax incentives and income not subject to taxation | (46,175) | (34,932) | (39,725) |
Expenses not deductible for tax purposes | 76,059 | 82,662 | 88,792 |
Movement in deferred tax assets not recognized | 74,084 | 181,403 | 20,475 |
Change in tax base | (86,184) | ||
Prior year under provision | 6,636 | 478 | (43,280) |
Other profitrelated taxes | 5,239 | 876 | 5,813 |
Foreign tax credit | (3,570) | (8,406) | |
Effects of changes in tax rates | (5,272) | ||
Non-deductible share-based payment expense | 1,441 | 1,082 | 52,136 |
Foreign exchange effects and other differences | (3,415) | 7,879 | 8,937 |
Total taxes | $ 17,980 | $ 169,829 | $ 13,518 |
Income Tax Expense - Current In
Income Tax Expense - Current Income Tax (Details) - USD ($) $ in Thousands | 12 Months Ended | |||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Disclosure of operating segments [line items] | ||||
Current income tax receivables | $ 128 | $ 233 | ||
Current income tax payables | (68,834) | $ (48,703) | (30,373) | |
Current tax liabilities (assets), net | $ (68,706) | $ (48,703) | $ (30,140) | $ (26,415) |
Nigeria | ||||
Disclosure of operating segments [line items] | ||||
Education tax rate | 2.50% | 2.00% |
Income Tax Expense - Movement i
Income Tax Expense - Movement in current Income Tax (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Reconciliation of Movement in Current Income Tax | |||
At beginning of year | $ (48,703) | $ (30,140) | $ (26,415) |
Additions through business combination | (3,434) | (1,538) | |
Charged to profit or loss | (91,692) | (95,107) | (3,304) |
Paid during the year | 29,147 | 14,540 | 13,396 |
Withholding tax netting off | 45,849 | 59,986 | |
Exchange difference | 127 | 3,556 | (13,817) |
At end of year | $ (68,706) | $ (48,703) | $ (30,140) |
Loss per share (Details)
Loss per share (Details) $ / shares in Units, shares in Thousands, $ in Thousands | Oct. 13, 2021 | Dec. 31, 2021USD ($)$ / sharesshares | Dec. 31, 2020USD ($)$ / sharesshares | Dec. 31, 2019USD ($)$ / sharesshares |
Earnings per share [line items] | ||||
Loss before income tax | $ | $ (26,121) | $ (322,682) | $ (423,492) | |
Non-controlling interest | $ | (289) | (688) | ||
Owners of the Company | $ | $ (25,832) | $ (321,994) | $ (423,492) | |
Basic weighted average shares outstanding | shares | 301,185 | 294,103 | 293,570 | |
Potentially dilutive securities | shares | 20,323 | 23,246 | 22,911 | |
Potentially dilutive weighted average common shares outstanding | shares | 321,508 | 317,349 | 316,481 | |
Loss per share - basic | $ / shares | $ (0.09) | $ (1.09) | $ (1.44) | |
Loss per share - diluted | $ / shares | $ (0.09) | $ (1.09) | $ (1.44) | |
Class A and B shares | ||||
Earnings per share [line items] | ||||
Ratio for exchange of old classes of shares into ordinary shares | 500 |
Property, plant and equipment_2
Property, plant and equipment (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Disclosure of detailed information about property, plant and equipment [line items] | |||
Beginning balance | $ 1,438,040 | ||
Additions during the year | 371,089 | $ 176,003 | $ 160,527 |
Charge for the year | 344,716 | 373,247 | 355,760 |
Ending balance | 1,708,834 | 1,438,040 | |
Total (excluding right-of-use assets) | |||
Disclosure of detailed information about property, plant and equipment [line items] | |||
Beginning balance | 1,438,040 | 1,537,155 | |
Ending balance | 1,708,834 | 1,438,040 | 1,537,155 |
Total (excluding right-of-use assets) | Cost | |||
Disclosure of detailed information about property, plant and equipment [line items] | |||
Beginning balance | 2,820,519 | 2,700,132 | 2,476,815 |
Additions during the year | 257,367 | 103,115 | 113,057 |
Additions through business combinations | 304,648 | 150,229 | |
Transfer from advance payments | 127,372 | 121,986 | 262,097 |
Disposals | 23,266 | 26,199 | 108,633 |
Effects of movement in exchange rates | (163,572) | (228,744) | (43,204) |
Ending balance | 3,323,068 | 2,820,519 | 2,700,132 |
Total (excluding right-of-use assets) | Accumulated amortization and impairment | |||
Disclosure of detailed information about property, plant and equipment [line items] | |||
Beginning balance | (1,382,479) | (1,162,977) | (944,839) |
Charge for the year | 284,438 | 319,968 | 317,630 |
Impairment | 48,073 | 27,245 | 21,565 |
Disposals | (16,549) | (22,770) | (102,730) |
Effects of movement in exchange rates | 84,207 | 104,941 | 18,327 |
Ending balance | (1,614,234) | (1,382,479) | (1,162,977) |
Towers and tower equipment | |||
Disclosure of detailed information about property, plant and equipment [line items] | |||
Beginning balance | 1,307,928 | 1,393,153 | |
Ending balance | 1,254,213 | 1,307,928 | 1,393,153 |
Towers and tower equipment | Cost | |||
Disclosure of detailed information about property, plant and equipment [line items] | |||
Beginning balance | 2,660,120 | 2,527,637 | 2,257,701 |
Additions during the year | 20,995 | 10,287 | 15,135 |
Additions through business combinations | 77,142 | 144,388 | |
Reclassification | 124,548 | 91,165 | 129,420 |
Transfer from advance payments | 111,439 | 124,272 | 272,298 |
Disposals | 21,359 | 23,591 | 106,757 |
Effects of movement in exchange rates | (143,357) | (214,038) | (40,160) |
Ending balance | 2,829,528 | 2,660,120 | 2,527,637 |
Towers and tower equipment | Accumulated amortization and impairment | |||
Disclosure of detailed information about property, plant and equipment [line items] | |||
Beginning balance | (1,352,192) | (1,134,484) | (918,520) |
Charge for the year | 272,068 | 315,131 | 313,320 |
Impairment | 48,391 | 26,824 | 21,565 |
Disposals | (14,660) | (21,435) | (101,100) |
Effects of movement in exchange rates | 82,676 | 102,812 | 17,821 |
Ending balance | (1,575,315) | (1,352,192) | (1,134,484) |
Fiber assets | |||
Disclosure of detailed information about property, plant and equipment [line items] | |||
Ending balance | 239,909 | ||
Fiber assets | Cost | |||
Disclosure of detailed information about property, plant and equipment [line items] | |||
Additions through business combinations | 220,950 | ||
Reclassification | 23,241 | ||
Transfer from advance payments | 7,862 | ||
Effects of movement in exchange rates | (6,790) | ||
Ending balance | 245,263 | ||
Fiber assets | Accumulated amortization and impairment | |||
Disclosure of detailed information about property, plant and equipment [line items] | |||
Charge for the year | 5,366 | ||
Effects of movement in exchange rates | 12 | ||
Ending balance | (5,354) | ||
Land and buildings | |||
Disclosure of detailed information about property, plant and equipment [line items] | |||
Beginning balance | 45,708 | 50,571 | |
Ending balance | 54,631 | 45,708 | 50,571 |
Land and buildings | Cost | |||
Disclosure of detailed information about property, plant and equipment [line items] | |||
Beginning balance | 47,436 | 51,734 | 48,679 |
Additions during the year | 825 | 768 | 859 |
Additions through business combinations | 968 | 566 | |
Reclassification | 5,999 | 887 | 1,825 |
Transfer from advance payments | 4,112 | 620 | 672 |
Disposals | 1,203 | ||
Effects of movement in exchange rates | (3,072) | (5,936) | (301) |
Ending balance | 56,268 | 47,436 | 51,734 |
Land and buildings | Accumulated amortization and impairment | |||
Disclosure of detailed information about property, plant and equipment [line items] | |||
Beginning balance | (1,728) | (1,163) | (880) |
Charge for the year | 296 | 331 | 296 |
Impairment | (318) | 421 | |
Effects of movement in exchange rates | 69 | 187 | 13 |
Ending balance | (1,637) | (1,728) | (1,163) |
Furniture and office equipment | |||
Disclosure of detailed information about property, plant and equipment [line items] | |||
Beginning balance | 3,878 | 3,199 | |
Ending balance | 5,041 | 3,878 | 3,199 |
Furniture and office equipment | Cost | |||
Disclosure of detailed information about property, plant and equipment [line items] | |||
Beginning balance | 18,169 | 15,877 | 13,500 |
Additions during the year | 5,056 | 2,470 | 2,732 |
Additions through business combinations | 93 | 305 | |
Reclassification | 808 | ||
Transfer from advance payments | 91 | ||
Disposals | 82 | 95 | 187 |
Effects of movement in exchange rates | (1,038) | (1,287) | (168) |
Ending balance | 22,198 | 18,169 | 15,877 |
Furniture and office equipment | Accumulated amortization and impairment | |||
Disclosure of detailed information about property, plant and equipment [line items] | |||
Beginning balance | (14,291) | (12,678) | (10,842) |
Charge for the year | 3,806 | 2,547 | 2,145 |
Disposals | (73) | (41) | (173) |
Effects of movement in exchange rates | 867 | 893 | 136 |
Ending balance | (17,157) | (14,291) | (12,678) |
Motor vehicles | |||
Disclosure of detailed information about property, plant and equipment [line items] | |||
Beginning balance | 5,880 | 5,172 | |
Ending balance | 8,687 | 5,880 | 5,172 |
Motor vehicles | Cost | |||
Disclosure of detailed information about property, plant and equipment [line items] | |||
Beginning balance | 20,148 | 19,824 | 18,708 |
Additions during the year | 6,012 | 2,576 | 3,327 |
Reclassification | 658 | ||
Disposals | 1,825 | 1,310 | 1,689 |
Effects of movement in exchange rates | (877) | (1,600) | (522) |
Ending balance | 23,458 | 20,148 | 19,824 |
Motor vehicles | Accumulated amortization and impairment | |||
Disclosure of detailed information about property, plant and equipment [line items] | |||
Beginning balance | (14,268) | (14,652) | (14,597) |
Charge for the year | 2,902 | 1,959 | 1,869 |
Disposals | (1,816) | (1,294) | (1,457) |
Effects of movement in exchange rates | 583 | 1,049 | 357 |
Ending balance | (14,771) | (14,268) | (14,652) |
Capital work in progress | |||
Disclosure of detailed information about property, plant and equipment [line items] | |||
Beginning balance | 74,646 | 85,060 | |
Additions during the year | 224,479 | 87,014 | 91,004 |
Ending balance | 146,353 | 74,646 | 85,060 |
Capital work in progress | Cost | |||
Disclosure of detailed information about property, plant and equipment [line items] | |||
Beginning balance | 74,646 | 85,060 | 138,227 |
Additions during the year | 224,479 | 87,014 | 91,004 |
Additions through business combinations | 5,495 | 4,970 | |
Reclassification | (153,788) | (93,518) | (131,245) |
Transfer from advance payments | 3,959 | (2,997) | (10,873) |
Effects of movement in exchange rates | (8,438) | (5,883) | (2,053) |
Ending balance | 146,353 | 74,646 | 85,060 |
Right-of-use asset | |||
Disclosure of detailed information about property, plant and equipment [line items] | |||
Beginning balance | 468,130 | 369,862 | |
Additions during the year | 113,722 | 72,888 | 47,470 |
Ending balance | 520,651 | 468,130 | 369,862 |
Right-of-use asset | Cost | |||
Disclosure of detailed information about property, plant and equipment [line items] | |||
Beginning balance | 549,594 | 406,897 | 372,000 |
Additions during the year | 113,722 | 72,888 | 47,470 |
Additions through business combinations | 41,709 | 129,711 | |
Disposals | 18,872 | 15,721 | 6,307 |
Effects of movement in exchange rates | (35,649) | (44,181) | (6,266) |
Ending balance | 650,504 | 549,594 | 406,897 |
Right-of-use asset | Accumulated amortization and impairment | |||
Disclosure of detailed information about property, plant and equipment [line items] | |||
Beginning balance | (81,464) | (37,035) | |
Charge for the year | 60,685 | 54,089 | 38,130 |
Impairment | 2,797 | ||
Disposals | (8,634) | (5,594) | (735) |
Effects of movement in exchange rates | 6,459 | 4,066 | 360 |
Ending balance | $ (129,853) | $ (81,464) | $ (37,035) |
Property, plant and equipment -
Property, plant and equipment - Depreciation expense (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Disclosure of detailed information about property, plant and equipment [line items] | |||
Depreciation expense | $ 344,716 | $ 373,247 | $ 355,760 |
Cost of sales. | |||
Disclosure of detailed information about property, plant and equipment [line items] | |||
Depreciation expense | 330,799 | 367,007 | 353,368 |
Administrative expense | |||
Disclosure of detailed information about property, plant and equipment [line items] | |||
Depreciation expense | $ 13,917 | $ 6,240 | $ 2,392 |
Property, plant and equipment_3
Property, plant and equipment - Analysis of additions to property, plant and equipment (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Disclosure of detailed information about property, plant and equipment [line items] | |||
Additions during the year | $ 371,089 | $ 176,003 | $ 160,527 |
Capital work in progress | |||
Disclosure of detailed information about property, plant and equipment [line items] | |||
Additions during the year | 224,479 | 87,014 | 91,004 |
Decommissioning estimates | |||
Disclosure of detailed information about property, plant and equipment [line items] | |||
Additions during the year | 7,212 | 8,315 | 405 |
Right-of-use asset | |||
Disclosure of detailed information about property, plant and equipment [line items] | |||
Additions during the year | 113,722 | 72,888 | 47,470 |
Base station equipment (other equipment) | |||
Disclosure of detailed information about property, plant and equipment [line items] | |||
Additions during the year | 13,666 | $ 7,786 | $ 21,648 |
Non-cash, other | |||
Disclosure of detailed information about property, plant and equipment [line items] | |||
Additions during the year | $ 12,010 |
Property, plant and equipment_4
Property, plant and equipment - Additional Information (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Disclosure of detailed information about property, plant and equipment [line items] | |||
Property, plant and equipment, value of asset retirement obligation | $ 48,600,000 | $ 21,800,000 | $ 17,100,000 |
Right of use assets | 520,651,000 | 468,130,000 | |
IHS Brasil Cesso de Infraestruturas S.A. | |||
Disclosure of detailed information about property, plant and equipment [line items] | |||
Indirect taxes benefit | 400,000 | 800,000 | 0 |
Towers and tower equipment | |||
Disclosure of detailed information about property, plant and equipment [line items] | |||
Borrowing costs capitalized | 0 | ||
Warehouse in Cameroon damaged by fire | |||
Disclosure of detailed information about property, plant and equipment [line items] | |||
Impairment | 5,700,000 | ||
Towers under rationalization program agreed with Key Customer | |||
Disclosure of detailed information about property, plant and equipment [line items] | |||
Recoverable amount | 0 | ||
Vehicles | |||
Disclosure of detailed information about property, plant and equipment [line items] | |||
Right of use assets | $ 1,800,000 | $ 1,300,000 | $ 300,000 |
Goodwill and other intangible_3
Goodwill and other intangible assets (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Goodwill and other intangible assets | |||
Beginning balance | $ 1,347,097 | $ 967,773 | |
Charge for the year | 38,166 | 35,415 | $ 28,747 |
Ending balance | 1,570,744 | 1,347,097 | 967,773 |
Cost | |||
Goodwill and other intangible assets | |||
Beginning balance | 1,500,380 | 1,094,432 | 1,108,708 |
Additions during the year | 5,054 | 2,464 | 5,286 |
Additions through business combinations | 330,869 | 593,184 | |
Disposals | 741 | 476 | |
Exchange difference | (83,826) | (189,224) | (19,562) |
Ending balance | 1,751,736 | 1,500,380 | 1,094,432 |
Accumulated amortization and impairment | |||
Goodwill and other intangible assets | |||
Beginning balance | (153,283) | (126,659) | (99,203) |
Charge for the year | 38,166 | 35,415 | 28,747 |
Disposals | (741) | (475) | |
Exchange difference | 9,716 | 8,316 | 1,291 |
Ending balance | (180,992) | (153,283) | (126,659) |
Goodwill | |||
Goodwill and other intangible assets | |||
Beginning balance | 656,256 | 518,141 | |
Ending balance | 869,319 | 656,256 | 518,141 |
Goodwill | Cost | |||
Goodwill and other intangible assets | |||
Beginning balance | 656,507 | 518,392 | 530,910 |
Additions through business combinations | 248,869 | 232,030 | |
Exchange difference | (35,806) | (93,915) | (12,518) |
Ending balance | 869,570 | 656,507 | 518,392 |
Goodwill | Accumulated amortization and impairment | |||
Goodwill and other intangible assets | |||
Beginning balance | (251) | (251) | (251) |
Ending balance | (251) | (251) | (251) |
Customerrelated intangible assets | |||
Goodwill and other intangible assets | |||
Beginning balance | 622,719 | 407,105 | |
Ending balance | 636,288 | 622,719 | 407,105 |
Customerrelated intangible assets | Cost | |||
Goodwill and other intangible assets | |||
Beginning balance | 732,434 | 496,990 | 503,442 |
Additions through business combinations | 78,173 | 324,290 | |
Exchange difference | (42,751) | (88,846) | (6,452) |
Ending balance | 767,856 | 732,434 | 496,990 |
Customerrelated intangible assets | Accumulated amortization and impairment | |||
Goodwill and other intangible assets | |||
Beginning balance | (109,715) | (89,885) | (71,501) |
Charge for the year | 29,037 | 26,921 | 19,468 |
Exchange difference | 7,184 | 7,091 | 1,084 |
Ending balance | (131,568) | (109,715) | (89,885) |
Network - related intangible assets | |||
Goodwill and other intangible assets | |||
Beginning balance | 54,530 | 27,601 | |
Ending balance | 50,921 | 54,530 | 27,601 |
Network - related intangible assets | Cost | |||
Goodwill and other intangible assets | |||
Beginning balance | 73,552 | 43,556 | 43,841 |
Additions through business combinations | 2,792 | 36,831 | |
Exchange difference | (3,538) | (6,835) | (285) |
Ending balance | 72,806 | 73,552 | 43,556 |
Network - related intangible assets | Accumulated amortization and impairment | |||
Goodwill and other intangible assets | |||
Beginning balance | (19,022) | (15,955) | (13,106) |
Charge for the year | 4,237 | 4,070 | 2,950 |
Exchange difference | 1,374 | 1,003 | 101 |
Ending balance | (21,885) | (19,022) | (15,955) |
Licenses | |||
Goodwill and other intangible assets | |||
Beginning balance | 9,340 | 9,525 | |
Ending balance | 10,829 | 9,340 | 9,525 |
Licenses | Cost | |||
Goodwill and other intangible assets | |||
Beginning balance | 15,796 | 14,592 | 14,876 |
Additions during the year | 3,145 | 4 | 19 |
Disposals | 18 | 1 | |
Exchange difference | (1,217) | 1,201 | (303) |
Ending balance | 17,706 | 15,796 | 14,592 |
Licenses | Accumulated amortization and impairment | |||
Goodwill and other intangible assets | |||
Beginning balance | (6,456) | (5,067) | (4,284) |
Charge for the year | 978 | 871 | 877 |
Disposals | (15) | ||
Exchange difference | 542 | (518) | 94 |
Ending balance | (6,877) | (6,456) | (5,067) |
Software | |||
Goodwill and other intangible assets | |||
Beginning balance | 4,252 | 5,401 | |
Ending balance | 3,387 | 4,252 | 5,401 |
Software | Cost | |||
Goodwill and other intangible assets | |||
Beginning balance | 22,091 | 20,902 | 15,639 |
Additions during the year | 1,909 | 2,460 | 5,267 |
Additions through business combinations | 1,035 | 33 | |
Disposals | 723 | 475 | |
Exchange difference | (514) | (829) | (4) |
Ending balance | 23,798 | 22,091 | 20,902 |
Software | Accumulated amortization and impairment | |||
Goodwill and other intangible assets | |||
Beginning balance | (17,839) | (15,501) | (10,061) |
Charge for the year | 3,914 | 3,553 | 5,452 |
Disposals | (726) | (475) | |
Exchange difference | 616 | 740 | 12 |
Ending balance | $ (20,411) | $ (17,839) | $ (15,501) |
Goodwill and other intangible_4
Goodwill and other intangible assets - Amortization expense (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Goodwill and other intangible assets | |||
Amortization expense | $ 38,166 | $ 35,415 | $ 28,747 |
Cost of sales. | |||
Goodwill and other intangible assets | |||
Amortization expense | 34,051 | 32,503 | 24,549 |
Administrative expenses. | |||
Goodwill and other intangible assets | |||
Amortization expense | $ 4,115 | $ 2,912 | $ 4,198 |
Goodwill and other intangible_5
Goodwill and other intangible assets - Allocation of Goodwill (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Disclosure of intangible assets material to entity [line items] | |||
Opening balance | $ 656,256 | $ 518,141 | $ 530,659 |
Additions | 248,869 | 232,030 | |
Effects of movements in exchange rates | (35,806) | (93,915) | (12,518) |
Closing balance | 869,319 | 656,256 | 518,141 |
IHS Nigeria Limited | |||
Disclosure of intangible assets material to entity [line items] | |||
Opening balance | 63,374 | 71,297 | 71,328 |
Effects of movements in exchange rates | (3,606) | (7,923) | (31) |
Closing balance | 59,768 | 63,374 | 71,297 |
INT Towers Limited | |||
Disclosure of intangible assets material to entity [line items] | |||
Opening balance | 227,715 | 256,149 | 256,261 |
Effects of movements in exchange rates | (12,940) | (28,434) | (112) |
Closing balance | 214,775 | 227,715 | 256,149 |
IHS Towers NG Limited | |||
Disclosure of intangible assets material to entity [line items] | |||
Opening balance | 45,741 | 51,460 | 51,483 |
Effects of movements in exchange rates | (2,603) | (5,719) | (23) |
Closing balance | 43,138 | 45,741 | 51,460 |
IHS Cameroon S.A. | |||
Disclosure of intangible assets material to entity [line items] | |||
Opening balance | 48,170 | 43,933 | 44,910 |
Effects of movements in exchange rates | (3,782) | 4,237 | (977) |
Closing balance | 44,388 | 48,170 | 43,933 |
IHS Mauritius Cote d Ivoire Limited | |||
Disclosure of intangible assets material to entity [line items] | |||
Opening balance | 23,888 | 21,787 | 22,272 |
Effects of movements in exchange rates | (1,876) | 2,101 | (485) |
Closing balance | 22,012 | 23,888 | 21,787 |
IHS Zambia Group | |||
Disclosure of intangible assets material to entity [line items] | |||
Opening balance | 39,907 | 60,529 | 70,780 |
Effects of movements in exchange rates | 10,802 | (20,622) | (10,251) |
Closing balance | 50,709 | 39,907 | 60,529 |
IHS Rwanda Group | |||
Disclosure of intangible assets material to entity [line items] | |||
Opening balance | 12,319 | 12,986 | 13,625 |
Effects of movements in exchange rates | (452) | (667) | (639) |
Closing balance | 11,867 | 12,319 | $ 12,986 |
IHS Kuwait Limited | |||
Disclosure of intangible assets material to entity [line items] | |||
Opening balance | 13,142 | ||
Additions | 13,143 | ||
Effects of movements in exchange rates | (773) | (1) | |
Closing balance | 12,369 | 13,142 | |
IHS Latam tower businesses | |||
Disclosure of intangible assets material to entity [line items] | |||
Opening balance | 182,000 | ||
Additions | 75,034 | 218,887 | |
Effects of movements in exchange rates | (15,583) | (36,887) | |
Closing balance | 241,451 | $ 182,000 | |
I-Systems | |||
Disclosure of intangible assets material to entity [line items] | |||
Additions | 173,835 | ||
Effects of movements in exchange rates | (4,993) | ||
Closing balance | $ 168,842 |
Goodwill and other intangible_6
Goodwill and other intangible assets - Recoverable amounts based on value in use (Details) | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Goodwill and other intangible assets | |||
Cash flow calculations, projection period | 5 years | ||
Bottom of range | |||
Goodwill and other intangible assets | |||
Terminal growth rate | 2.00% | ||
Top of range | |||
Goodwill and other intangible assets | |||
Terminal growth rate | 3.20% | ||
IHS Nigeria Limited | |||
Goodwill and other intangible assets | |||
Discount rate | 16.10% | 22.60% | 15.80% |
Terminal growth rate | 2.70% | 2.70% | 3.20% |
IHS Nigeria Limited | Bottom of range | |||
Goodwill and other intangible assets | |||
Tenancy Ratio | 3.32 | 2.59 | 2.35 |
Gross margins excluding depreciation & amortization | 64.20% | 67.80% | 69.80% |
IHS Nigeria Limited | Top of range | |||
Goodwill and other intangible assets | |||
Tenancy Ratio | 5.18 | 4.55 | 3.90 |
Gross margins excluding depreciation & amortization | 79.70% | 82.10% | 77.10% |
INT Towers Limited | |||
Goodwill and other intangible assets | |||
Discount rate | 16.00% | 22.50% | 16.50% |
Terminal growth rate | 2.70% | 2.70% | 3.20% |
INT Towers Limited | Bottom of range | |||
Goodwill and other intangible assets | |||
Tenancy Ratio | 3.56 | 2.87 | 2.46 |
Gross margins excluding depreciation & amortization | 67.40% | 73.70% | 60.80% |
INT Towers Limited | Top of range | |||
Goodwill and other intangible assets | |||
Tenancy Ratio | 4.98 | 5.22 | 3.90 |
Gross margins excluding depreciation & amortization | 74.90% | 79.90% | 71.90% |
IHS Towers NG Limited | |||
Goodwill and other intangible assets | |||
Discount rate | 16.50% | 23.20% | 16.20% |
Terminal growth rate | 2.70% | 2.70% | 3.20% |
IHS Towers NG Limited | Bottom of range | |||
Goodwill and other intangible assets | |||
Tenancy Ratio | 3.63 | 2.80 | 3.29 |
Gross margins excluding depreciation & amortization | 52.30% | 64.40% | 60.90% |
IHS Towers NG Limited | Top of range | |||
Goodwill and other intangible assets | |||
Tenancy Ratio | 4.44 | 3.02 | 3.80 |
Gross margins excluding depreciation & amortization | 63.10% | 69.90% | 65.40% |
IHS Cameroon S.A. | |||
Goodwill and other intangible assets | |||
Discount rate | 12.10% | 13.80% | 13.20% |
Terminal growth rate | 3.20% | 3.20% | 3.20% |
IHS Cameroon S.A. | Bottom of range | |||
Goodwill and other intangible assets | |||
Tenancy Ratio | 2.37 | 2.61 | 3.33 |
Gross margins excluding depreciation & amortization | 57.80% | 55.90% | 53.80% |
IHS Cameroon S.A. | Top of range | |||
Goodwill and other intangible assets | |||
Tenancy Ratio | 2.89 | 3.16 | 4.22 |
Gross margins excluding depreciation & amortization | 64.60% | 61.00% | 57.90% |
IHS Mauritius Cote d Ivoire Limited | |||
Goodwill and other intangible assets | |||
Discount rate | 9.80% | 10.00% | 10.30% |
Terminal growth rate | 3.20% | 3.20% | 3.20% |
IHS Mauritius Cote d Ivoire Limited | Bottom of range | |||
Goodwill and other intangible assets | |||
Tenancy Ratio | 3.45 | 3.44 | 2.39 |
Gross margins excluding depreciation & amortization | 53.80% | 57.50% | 56.10% |
IHS Mauritius Cote d Ivoire Limited | Top of range | |||
Goodwill and other intangible assets | |||
Tenancy Ratio | 4.46 | 4.56 | 3.49 |
Gross margins excluding depreciation & amortization | 63.50% | 61.60% | 59.90% |
IHS Zambia Group | |||
Goodwill and other intangible assets | |||
Discount rate | 24.10% | 32.20% | 21.80% |
Terminal growth rate | 2.00% | 3.20% | 3.20% |
IHS Zambia Group | Bottom of range | |||
Goodwill and other intangible assets | |||
Tenancy Ratio | 2.40 | 2.21 | 2.05 |
Gross margins excluding depreciation & amortization | 65.20% | 68.40% | 62.60% |
IHS Zambia Group | Top of range | |||
Goodwill and other intangible assets | |||
Tenancy Ratio | 3.30 | 2.93 | 2.58 |
Gross margins excluding depreciation & amortization | 74.60% | 75.80% | 73.00% |
IHS Rwanda Group | |||
Goodwill and other intangible assets | |||
Discount rate | 15.50% | 17.00% | 16.30% |
Terminal growth rate | 3.20% | 3.20% | 3.20% |
IHS Rwanda Group | Bottom of range | |||
Goodwill and other intangible assets | |||
Tenancy Ratio | 2.04 | 2.13 | 2.05 |
Gross margins excluding depreciation & amortization | 67.00% | 65.90% | 68.60% |
IHS Rwanda Group | Top of range | |||
Goodwill and other intangible assets | |||
Tenancy Ratio | 2.97 | 2.60 | 2.37 |
Gross margins excluding depreciation & amortization | 73.30% | 69.80% | 70.00% |
IHS Kuwait Limited | |||
Goodwill and other intangible assets | |||
Discount rate | 6.00% | 5.00% | |
Terminal growth rate | 2.90% | 2.80% | |
IHS Kuwait Limited | Bottom of range | |||
Goodwill and other intangible assets | |||
Tenancy Ratio | 1 | 1 | |
Gross margins excluding depreciation & amortization | 52.40% | 45.30% | |
IHS Kuwait Limited | Top of range | |||
Goodwill and other intangible assets | |||
Tenancy Ratio | 1.46 | 1.46 | |
Gross margins excluding depreciation & amortization | 64.90% | 59.20% |
Goodwill and other intangible_7
Goodwill and other intangible assets - Sensitivity analysis (Details) | 12 Months Ended |
Dec. 31, 2021 | |
IHS Nigeria Limited | |
Goodwill and other intangible assets | |
% Rise in discount rate | 36.20% |
Decrease in tenancy ratio for carrying amount to exceed recoverable amount | 2.51 |
Period of tenancy ratio | 4 years |
Gross margin (excluding depreciation and amortization) | 49.30% |
Period of gross margin | 4 years |
Decrease in terminal growth rate | 0.00% |
INT Towers Limited | |
Goodwill and other intangible assets | |
% Rise in discount rate | 83.70% |
Decrease in tenancy ratio for carrying amount to exceed recoverable amount | 3.06 |
Period of tenancy ratio | 4 years |
Gross margin (excluding depreciation and amortization) | 57.00% |
Period of gross margin | 4 years |
Decrease in terminal growth rate | 0.00% |
IHS Towers NG Limited | |
Goodwill and other intangible assets | |
% Rise in discount rate | 11.00% |
Decrease in tenancy ratio for carrying amount to exceed recoverable amount | 1.44 |
Period of tenancy ratio | 4 years |
Gross margin (excluding depreciation and amortization) | 24.00% |
Period of gross margin | 4 years |
Decrease in terminal growth rate | 0.00% |
IHS Cameroon S.A. | |
Goodwill and other intangible assets | |
% Rise in discount rate | 4.00% |
Decrease in tenancy ratio for carrying amount to exceed recoverable amount | 0.52 |
Period of tenancy ratio | 4 years |
Gross margin (excluding depreciation and amortization) | 16.70% |
Period of gross margin | 4 years |
Decrease in terminal growth rate | 0.00% |
IHS Mauritius Cote d Ivoire Limited | |
Goodwill and other intangible assets | |
% Rise in discount rate | 6.80% |
Decrease in tenancy ratio for carrying amount to exceed recoverable amount | 1.76 |
Period of tenancy ratio | 4 years |
Gross margin (excluding depreciation and amortization) | 37.20% |
Period of gross margin | 4 years |
Decrease in terminal growth rate | 0.00% |
IHS Zambia Group | |
Goodwill and other intangible assets | |
% Rise in discount rate | 10.50% |
Decrease in tenancy ratio for carrying amount to exceed recoverable amount | 0.65 |
Period of tenancy ratio | 4 years |
Gross margin (excluding depreciation and amortization) | 19.20% |
Period of gross margin | 4 years |
Decrease in terminal growth rate | 0.00% |
IHS Rwanda Group | |
Goodwill and other intangible assets | |
% Rise in discount rate | 7.20% |
Decrease in tenancy ratio for carrying amount to exceed recoverable amount | 0.72 |
Period of tenancy ratio | 4 years |
Gross margin (excluding depreciation and amortization) | 22.70% |
Period of gross margin | 4 years |
Decrease in terminal growth rate | 0.00% |
IHS Kuwait Limited | |
Goodwill and other intangible assets | |
% Rise in discount rate | 4.60% |
Decrease in tenancy ratio for carrying amount to exceed recoverable amount | 0.43 |
Period of tenancy ratio | 4 years |
Gross margin (excluding depreciation and amortization) | 34.10% |
Period of gross margin | 4 years |
Decrease in terminal growth rate | 0.00% |
Goodwill and other intangible_8
Goodwill and other intangible assets - Fair value (Details) - Level 3 | 12 Months Ended | |
Dec. 31, 2021USD ($) | Dec. 31, 2020USD ($) | |
Goodwill and other intangible assets | ||
Monthly tower cashflow | $ 2,600,000 | $ 1,600,000 |
Monthly tower cashflow changes | $ 327,000 | |
Tower cashflow multiples | 22 | 22 |
Changes in tower cashflow multiples | 2.63 | |
Estimated cost of disposal percent | 0.82% | 1.20% |
Changes in estimated cost of disposal percent | 11.95% |
Deferred income tax - Deferred
Deferred income tax - Deferred tax asset and liability (Details) - USD ($) $ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 |
Deferred income tax | ||||
Deferred income tax assets | $ 11,064 | $ 13,443 | ||
Deferred income tax liabilities | (118,210) | (177,184) | ||
Net deferred tax liabilities | $ (107,146) | $ (163,741) | $ (14,937) | $ (7,436) |
Deferred income tax - Offset (D
Deferred income tax - Offset (Details) - USD ($) $ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 |
Deferred income tax | ||||
Deferred income tax assets | $ 11,064 | $ 13,443 | ||
Deferred income tax liabilities | (118,210) | (177,184) | ||
Deferred tax liability (asset) | 107,146 | 163,741 | $ 14,937 | $ 7,436 |
December 31, 2024 | ||||
Deferred income tax | ||||
Deferred tax liability (asset) | (200) | |||
Property, plant and equipment | ||||
Deferred income tax | ||||
Deferred income tax assets | 1,678 | 2,117 | ||
Deferred income tax liabilities | (145,888) | (155,198) | ||
Deferred tax liability (asset) | 144,209 | 153,081 | 106,060 | 106,538 |
Intangible assets | ||||
Deferred income tax | ||||
Deferred income tax assets | (6,231) | (8,486) | ||
Deferred income tax liabilities | (110,843) | (183,401) | ||
Deferred tax liability (asset) | 117,093 | 191,887 | $ 121,721 | $ 129,777 |
Provisions | ||||
Deferred income tax | ||||
Deferred income tax assets | 13,064 | 13,665 | ||
Deferred income tax liabilities | 36,397 | 52,478 | ||
Unrealized derivative income | ||||
Deferred income tax | ||||
Deferred income tax liabilities | (48,077) | (58,461) | ||
Timing differences on loans | ||||
Deferred income tax | ||||
Deferred income tax liabilities | 33,192 | 32,407 | ||
Unrealized foreign exchange | ||||
Deferred income tax | ||||
Deferred income tax liabilities | 21,010 | 25,948 | ||
Tax losses | ||||
Deferred income tax | ||||
Deferred income tax assets | 240 | 3,203 | ||
Deferred income tax liabilities | 3,450 | 9,150 | ||
Deferred tax liability (asset) | (3,700) | |||
Unutilized capital allowances | ||||
Deferred income tax | ||||
Deferred income tax liabilities | 89,157 | 97,220 | ||
Other | ||||
Deferred income tax | ||||
Deferred income tax assets | 2,313 | 2,944 | ||
Deferred income tax liabilities | $ 3,392 | $ 2,673 |
Deferred income tax - Reconcili
Deferred income tax - Reconciliation (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Disclosure of temporary difference, unused tax losses and unused tax credits [line items] | |||
Net deferred income tax, Beginning balance | $ (163,741) | $ (14,937) | $ (7,436) |
Additions through business combinations | 28,486 | (98,669) | |
Tax (charge)/income | 73,716 | (74,722) | (10,214) |
Effects of movement in exchange rates | (11,365) | (24,587) | (2,713) |
Net deferred income tax, Ending balance | (107,146) | (163,741) | (14,937) |
Deferred income tax assets deductible temporary differences for which no deferred tax is recognized | 1,800,000 | 1,600,000 | 1,300,000 |
Deferred tax liabilities, including netting | 118,210 | 177,184 | |
December 31, 2024 | |||
Disclosure of temporary difference, unused tax losses and unused tax credits [line items] | |||
Deferred income tax assets deductible temporary differences for which no deferred tax is recognized | 230,900 | 383,800 | 0 |
December 31, 2025 | |||
Disclosure of temporary difference, unused tax losses and unused tax credits [line items] | |||
Deferred income tax assets deductible temporary differences for which no deferred tax is recognized | 191,000 | 195,600 | 0 |
December 31, 2026 | |||
Disclosure of temporary difference, unused tax losses and unused tax credits [line items] | |||
Deferred income tax assets deductible temporary differences for which no deferred tax is recognized | 298,100 | 0 | 0 |
Property, plant and equipment | |||
Disclosure of temporary difference, unused tax losses and unused tax credits [line items] | |||
Net deferred income tax, Beginning balance | (153,081) | (106,060) | (106,538) |
Additions through business combinations | 4,220 | (3,378) | |
Tax (charge)/income | 2,078 | (46,364) | (2,692) |
Effects of movement in exchange rates | (11,014) | (2,721) | (3,170) |
Net deferred income tax, Ending balance | (144,209) | (153,081) | (106,060) |
Deferred tax liabilities, including netting | 145,888 | 155,198 | |
Provisions / share based payments obligation | |||
Disclosure of temporary difference, unused tax losses and unused tax credits [line items] | |||
Net deferred income tax, Beginning balance | 66,143 | 29,279 | 43,389 |
Additions through business combinations | 2,182 | ||
Tax (charge)/income | (11,922) | 35,089 | (12,375) |
Effects of movement in exchange rates | 4,759 | 407 | 1,735 |
Net deferred income tax, Ending balance | 49,462 | 66,143 | 29,279 |
Intangible assets | |||
Disclosure of temporary difference, unused tax losses and unused tax credits [line items] | |||
Net deferred income tax, Beginning balance | (191,887) | (121,721) | (129,777) |
Additions through business combinations | 24,266 | (103,638) | |
Tax (charge)/income | 85,254 | 11,030 | 5,719 |
Effects of movement in exchange rates | (13,806) | (22,442) | (2,337) |
Net deferred income tax, Ending balance | (117,093) | (191,887) | (121,721) |
Deferred tax liabilities, including netting | 110,843 | 183,401 | |
Loans and derivatives | |||
Disclosure of temporary difference, unused tax losses and unused tax credits [line items] | |||
Net deferred income tax, Beginning balance | (26,054) | (11,697) | (2,150) |
Tax (charge)/income | 9,295 | (16,444) | (9,547) |
Effects of movement in exchange rates | (1,874) | (2,087) | |
Net deferred income tax, Ending balance | (14,885) | (26,054) | (11,697) |
Unrealized exchange differences/tax losses | |||
Disclosure of temporary difference, unused tax losses and unused tax credits [line items] | |||
Net deferred income tax, Beginning balance | 141,138 | 195,262 | 187,640 |
Additions through business combinations | 6,165 | ||
Tax (charge)/income | (10,989) | (58,033) | 8,681 |
Effects of movement in exchange rates | 10,570 | 2,256 | 1,059 |
Net deferred income tax, Ending balance | 119,579 | $ 141,138 | $ 195,262 |
Undistributed earnings of subsidiaries [Member] | |||
Disclosure of temporary difference, unused tax losses and unused tax credits [line items] | |||
Deferred tax liabilities, including netting | $ 0 |
Inventories (Details)
Inventories (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Inventories | ||
Stock of materials | $ 42,022 | $ 49,222 |
Inventory write-down | 100 | 4,700 |
Inventory recognized as an expense | $ 267,500 | $ 216,300 |
Derivative financial instrume_3
Derivative financial instruments - Notional amount (Details) - USD ($) $ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 |
Derivatives | ||
Derivative financial instruments | ||
Derivative instruments, notional amount | $ 2,064,023 | $ 2,102,088 |
Nondeliverable forwards | ||
Derivative financial instruments | ||
Derivative instruments, notional amount | 124,023 | 652,088 |
Embedded options within listed bonds | ||
Derivative financial instruments | ||
Derivative instruments, notional amount | $ 1,940,000 | $ 1,450,000 |
Derivative financial instrume_4
Derivative financial instruments - Fair value (Details) - USD ($) $ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 |
Derivative financial instruments | ||
Fair value balances | $ 161,329 | $ 175,406 |
Nondeliverable forwards | ||
Derivative financial instruments | ||
Fair value balances | (3,771) | 27,495 |
Embedded options within listed bonds | ||
Derivative financial instruments | ||
Fair value balances | $ 165,100 | 155,196 |
Embedded derivatives within revenue contracts | ||
Derivative financial instruments | ||
Fair value balances | $ (7,285) |
Derivative financial instrume_5
Derivative financial instruments - Change in fair value of the derivative instruments (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Derivative financial instruments | |||
Change in fair value of the derivative instruments | $ 3,938 | $ 139,637 | $ 17,298 |
Nondeliverable forwards | |||
Derivative financial instruments | |||
Change in fair value of the derivative instruments | (3,897) | 29,151 | 53 |
Embedded options within listed bonds | |||
Derivative financial instruments | |||
Change in fair value of the derivative instruments | 604 | 110,655 | $ 17,245 |
Embedded derivatives within revenue contracts | |||
Derivative financial instruments | |||
Change in fair value of the derivative instruments | $ 7,231 | $ (169) |
Derivative financial instrume_6
Derivative financial instruments - Credit ratings (Details) - USD ($) $ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 |
Derivative financial instruments | ||
Derivative financial instrument assets | $ 165,100 | $ 182,691 |
AA+ | ||
Derivative financial instruments | ||
Derivative financial instrument assets | 7,500 | |
B | ||
Derivative financial instruments | ||
Derivative financial instrument assets | 3,590 | |
B- | ||
Derivative financial instruments | ||
Derivative financial instrument assets | 10,938 | |
BB- | ||
Derivative financial instruments | ||
Derivative financial instrument assets | 5,467 | |
Not rated | ||
Derivative financial instruments | ||
Derivative financial instrument assets | $ 165,100 | $ 155,196 |
Derivative financial instrume_7
Derivative financial instruments - Reconciliation of movements (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Derivative financial instruments | |||
Fair value loss (unrealized foreign exchange on open contracts) | $ 3,938 | $ 139,637 | $ 17,298 |
Nondeliverable forwards | |||
Derivative financial instruments | |||
Opening balance | 27,495 | ||
Fair value loss (unrealized foreign exchange on open contracts) | (3,897) | 29,151 | $ 53 |
Foreign exchange gain | 10,342 | ||
Cash flow on settlement | (37,711) | ||
Ending balance | $ (3,771) | $ 27,495 |
Trade and other receivables (De
Trade and other receivables (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Trade and other current receivables [abstract] | ||
Net trade receivables | $ 222,789 | $ 200,652 |
Other receivables | 199,136 | 85,011 |
Prepaid land rent | 1,069 | 1,588 |
Other prepaid expenses | 25,080 | 16,538 |
Advance payments | 14,663 | 18,766 |
Withholding tax receivables | 992 | 800 |
VAT receivables | 5,401 | 3,832 |
Trade and other current receivables | 469,130 | 327,187 |
Trade and other non-current receivables [abstract] | ||
Accrued income and lease incentive | 21,408 | 15,481 |
Payment in advance for property, plant and equipment | 48,071 | 20,928 |
Trade and other non-current receivables | 69,479 | 36,409 |
Accrued revenue | 103,400 | 90,000 |
Contract assets | $ 22,200 | 23,200 |
Top of range | ||
Trade and other non-current receivables [abstract] | ||
Non-current receivable due term | 20 years | |
Gross carrying amount [member] | ||
Trade and other current receivables [abstract] | ||
Net trade receivables | $ 253,852 | 334,452 |
Accumulated impairment [member] | ||
Trade and other current receivables [abstract] | ||
Net trade receivables | $ (31,063) | $ (133,800) |
Cash and cash equivalents (Deta
Cash and cash equivalents (Details) - USD ($) $ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 |
ifrs_Cash and Cash Equivalents [Line Items] | ||||
Cash at bank | $ 916,488 | $ 585,416 | ||
Cash and cash equivalents | 916,488 | 585,416 | $ 898,802 | $ 633,450 |
AAA (F1+) | ||||
ifrs_Cash and Cash Equivalents [Line Items] | ||||
Cash and cash equivalents | 127,781 | 15,413 | ||
AA+ | ||||
ifrs_Cash and Cash Equivalents [Line Items] | ||||
Cash and cash equivalents | 9,407 | |||
AA | ||||
ifrs_Cash and Cash Equivalents [Line Items] | ||||
Cash and cash equivalents | 115,810 | |||
A+ | ||||
ifrs_Cash and Cash Equivalents [Line Items] | ||||
Cash and cash equivalents | 30,576 | |||
A (F1) | ||||
ifrs_Cash and Cash Equivalents [Line Items] | ||||
Cash and cash equivalents | 628,033 | 216,700 | ||
A- | ||||
ifrs_Cash and Cash Equivalents [Line Items] | ||||
Cash and cash equivalents | 25,559 | |||
BBB+ | ||||
ifrs_Cash and Cash Equivalents [Line Items] | ||||
Cash and cash equivalents | 6,349 | |||
BBB | ||||
ifrs_Cash and Cash Equivalents [Line Items] | ||||
Cash and cash equivalents | 3,143 | |||
BBB- | ||||
ifrs_Cash and Cash Equivalents [Line Items] | ||||
Cash and cash equivalents | 162 | 25 | ||
BB | ||||
ifrs_Cash and Cash Equivalents [Line Items] | ||||
Cash and cash equivalents | 6,663 | |||
BB- | ||||
ifrs_Cash and Cash Equivalents [Line Items] | ||||
Cash and cash equivalents | 18,469 | |||
B+ | ||||
ifrs_Cash and Cash Equivalents [Line Items] | ||||
Cash and cash equivalents | 2,809 | |||
B | ||||
ifrs_Cash and Cash Equivalents [Line Items] | ||||
Cash and cash equivalents | 157,277 | 46,757 | ||
B- | ||||
ifrs_Cash and Cash Equivalents [Line Items] | ||||
Cash and cash equivalents | 90,564 | |||
C | ||||
ifrs_Cash and Cash Equivalents [Line Items] | ||||
Cash and cash equivalents | 67 | |||
Not rated | ||||
ifrs_Cash and Cash Equivalents [Line Items] | ||||
Cash and cash equivalents | $ 25 | $ 315 |
Trade and other payables (Detai
Trade and other payables (Details) - USD ($) $ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 |
Current | ||
Trade payables | $ 342,841 | $ 301,813 |
Deferred revenue | 20,435 | 2,224 |
Withholding tax payables | 4,517 | 5,694 |
Payroll and other related statutory liabilities | 53,446 | 27,476 |
Other payables | 78,193 | 72,286 |
Trade and other payables | 499,432 | 409,493 |
Non-current | ||
Other payables | 312 | 9,565 |
Trade and other payables, non current | 312 | 9,565 |
Contract liabilities | $ 2,800 | $ 600 |
Borrowings - Debt Classificatio
Borrowings - Debt Classification (Details) - USD ($) $ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 |
Borrowings | ||||
Non Current Borrowings | $ 2,401,471 | $ 2,017,090 | ||
Current Borrowings | 207,619 | 186,119 | ||
Borrowings | 2,609,090 | 2,203,209 | $ 2,055,878 | $ 1,897,774 |
Senior Notes | ||||
Borrowings | ||||
Non Current Borrowings | 1,916,062 | 1,428,398 | ||
Current Borrowings | 27,195 | 32,352 | ||
Bank borrowings | ||||
Borrowings | ||||
Non Current Borrowings | 485,409 | 588,692 | ||
Current Borrowings | 177,216 | $ 153,767 | ||
Bank overdraft | ||||
Borrowings | ||||
Current Borrowings | $ 3,208 |
Borrowings - Debt Reconciliatio
Borrowings - Debt Reconciliation (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Borrowings. | |||
Opening balance - January 1 | $ 2,203,209 | $ 2,055,878 | $ 1,897,774 |
Additions through business combination | 6,457 | 46,356 | |
Interest expense | 179,280 | 182,246 | 193,829 |
Interest paid | 168,285 | 167,938 | 171,883 |
Bank loans and bond proceeds received | 1,076,063 | 232,219 | 1,800,000 |
Bank loans and bonds repaid | (653,504) | (99,903) | (1,622,317) |
Bank overdraft | 3,208 | ||
Transaction costs | (38,597) | (5,561) | (58,044) |
Foreign exchange | 1,259 | (40,088) | 16,519 |
Closing balance - December 31 | $ 2,609,090 | $ 2,203,209 | $ 2,055,878 |
Borrowings - Debt instrument (D
Borrowings - Debt instrument (Details) - USD ($) $ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 |
Borrowings | ||||
Borrowings | $ 2,609,090 | $ 2,203,209 | $ 2,055,878 | $ 1,897,774 |
INT Towers Limited, 2024 | US Dollar | 3 M LIBOR | ||||
Borrowings | ||||
Borrowings, adjustment to interest rate basis | 3.75% | |||
Borrowings | $ 92,769 | 104,532 | ||
INT Towers Limited, 2024 | Nigeria Naira | 3 M NIBOR | ||||
Borrowings | ||||
Borrowings, adjustment to interest rate basis | 2.50% | |||
Borrowings | $ 284,882 | $ 342,995 | ||
IHS Cameroon S.A., 2020 | CFA Franc | ||||
Borrowings | ||||
Interest rate | 6.50% | |||
IHS Cameroon S.A., 2020 | Euro | 3 M EURIBOR | ||||
Borrowings | ||||
Borrowings, adjustment to interest rate basis | 3.75% | |||
IHS Cote d Ivoire S.A. 2022 | CFA Franc | ||||
Borrowings | ||||
Interest rate | 6.00% | 6.00% | ||
Borrowings | $ 31,627 | $ 54,266 | ||
IHS Cote d Ivoire S.A. 2022 | Euro | 3 M EURIBOR | ||||
Borrowings | ||||
Borrowings, adjustment to interest rate basis | 3.75% | |||
Borrowings | $ 24,156 | 41,172 | ||
IHS Zambia Limited, 2027 | US Dollar | 3 M LIBOR | ||||
Borrowings | ||||
Borrowings | $ 93,164 | $ 96,287 | ||
IHS Zambia Limited, 2027 | US Dollar | 3 M LIBOR | Maximum | ||||
Borrowings | ||||
Borrowings, adjustment to interest rate basis | 5.50% | |||
IHS Zambia Limited, 2027 | US Dollar | 3 M LIBOR | Minimum | ||||
Borrowings | ||||
Borrowings, adjustment to interest rate basis | 5.00% | |||
IHS Rwanda Limited, 2021 | Rwandan Franc | ||||
Borrowings | ||||
Interest rate | 16.00% | 16.00% | ||
Borrowings | $ 650 | |||
IHS Rwanda Limited, 2022 | US Dollar | 3 M LIBOR | ||||
Borrowings | ||||
Borrowings, adjustment to interest rate basis | 6.50% | |||
Borrowings | 13,804 | |||
IHS Brasil Cesso de Infraestruturas Limitada, 2029 | Brazil Real | CDI | ||||
Borrowings | ||||
Borrowings, adjustment to interest rate basis | 3.65% | |||
Borrowings | $ 69,768 | |||
IHS Brasil Cesso de Infraestruturas Limitada, 2021 | Brazil Real | CDI | ||||
Borrowings | ||||
Borrowings, adjustment to interest rate basis | 3.85% | |||
Borrowings | 38,613 | |||
IHS Kuwait Limited, 2029 | Kuwaiti Dinar | 3 M KIBOR | ||||
Borrowings | ||||
Borrowings, adjustment to interest rate basis | 2.00% | |||
Borrowings | $ 66,257 | $ 50,140 | ||
IHS Holding limited, Senior Note Maturing 2026 | ||||
Borrowings | ||||
Interest rate | 5.625% | |||
IHS Holding limited, Senior Note Maturing 2026 | US Dollar | ||||
Borrowings | ||||
Interest rate | 5.63% | |||
Borrowings | $ 496,850 | |||
IHS Holding limited, Senior Note Maturing 2028 | ||||
Borrowings | ||||
Interest rate | 6.25% | |||
IHS Holding limited, Senior Note Maturing 2028 | US Dollar | ||||
Borrowings | ||||
Interest rate | 6.25% | |||
Borrowings | $ 497,366 | |||
IHS Netherlands Holdco B.V., Senior Note Maturing 2027 | US Dollar | ||||
Borrowings | ||||
Interest rate | 8.00% | 8.00% | ||
Borrowings | $ 949,041 | $ 946,352 | ||
IHS Netherlands Holdco B.V., Senior Note Maturing 2025 | US Dollar | ||||
Borrowings | ||||
Interest rate | 7.125% | 7.125% | ||
Borrowings | $ 514,398 | |||
Global Independent Connect Limited overdraft, maturing 2022 | Yen | ||||
Borrowings | ||||
Interest rate | 10.30% | |||
Borrowings | $ 3,208 |
Borrowings - Narratives (Detail
Borrowings - Narratives (Details) $ in Thousands, € in Millions, د.ك in Millions, ¥ in Millions, R$ in Millions, ₦ in Billions, in Billions | Nov. 29, 2021USD ($) | Nov. 18, 2021 | Mar. 04, 2021USD ($) | Jul. 31, 2020USD ($) | Jul. 21, 2020USD ($) | Sep. 18, 2018 | Jun. 28, 2021USD ($) | Dec. 31, 2021USD ($) | Dec. 31, 2021CNY (¥) | Dec. 31, 2020USD ($) | Dec. 31, 2019USD ($) | Dec. 31, 2021NGN (₦) | Dec. 31, 2021XAF ( ) | Dec. 31, 2021EUR (€) | Dec. 31, 2021KWD (د.ك) | Dec. 31, 2021CNY (¥) | Jun. 28, 2021BRL (R$) | May 21, 2021USD ($) | May 21, 2021BRL (R$) | Mar. 30, 2021USD ($) | Dec. 31, 2020XAF ( ) | Dec. 31, 2020EUR (€) | Dec. 31, 2020BRL (R$) | Dec. 31, 2020KWD (د.ك) | Apr. 19, 2020KWD (د.ك) | Dec. 31, 2019XAF ( ) | Dec. 31, 2019EUR (€) | Sep. 18, 2019USD ($) | Dec. 31, 2018USD ($) |
Disclosure of detailed information about borrowings [line items] | |||||||||||||||||||||||||||||
Maximum debt amount | $ 3,500,000 | $ 2,600,000 | |||||||||||||||||||||||||||
Issue of debt | 1,076,063 | 232,219 | $ 1,800,000 | ||||||||||||||||||||||||||
Borrowings | 2,609,090 | 2,203,209 | 2,055,878 | $ 1,897,774 | |||||||||||||||||||||||||
Repayments of borrowings, classified as financing activities | 653,504 | 99,903 | 1,622,317 | ||||||||||||||||||||||||||
Debt repaid | 653,504 | 99,903 | 1,622,317 | ||||||||||||||||||||||||||
Interest paid | 168,285 | 167,938 | $ 171,883 | ||||||||||||||||||||||||||
IHS Netherlands Holdco B.V. | |||||||||||||||||||||||||||||
Disclosure of detailed information about borrowings [line items] | |||||||||||||||||||||||||||||
Issue of debt | $ 150,000 | ||||||||||||||||||||||||||||
IHS Netherlands Holdco B.V., 2027 | |||||||||||||||||||||||||||||
Disclosure of detailed information about borrowings [line items] | |||||||||||||||||||||||||||||
Debt instrument, face amount | $ 940,000 | $ 800,000 | |||||||||||||||||||||||||||
Interest rate | 8.00% | 8.00% | 8.00% | 8.00% | 8.00% | 8.00% | |||||||||||||||||||||||
Issue of debt | $ 140,000 | ||||||||||||||||||||||||||||
Debt term | 8 years | ||||||||||||||||||||||||||||
IHS Netherlands Holdco B.V., 2025 | |||||||||||||||||||||||||||||
Disclosure of detailed information about borrowings [line items] | |||||||||||||||||||||||||||||
Debt instrument, face amount | $ 500,000 | ||||||||||||||||||||||||||||
Issue of debt | $ 10,000 | ||||||||||||||||||||||||||||
Repayments of borrowings, classified as financing activities | $ 510,000 | ||||||||||||||||||||||||||||
Debt repaid | 510,000 | ||||||||||||||||||||||||||||
Interest paid | 7,300 | ||||||||||||||||||||||||||||
Early redemption premium paid | $ 18,200 | ||||||||||||||||||||||||||||
Senior Credit Facilities | |||||||||||||||||||||||||||||
Disclosure of detailed information about borrowings [line items] | |||||||||||||||||||||||||||||
Debt term | 60 months | 60 months | |||||||||||||||||||||||||||
Borrower's notice period for voluntary prepayment and permanent cancellation of facility | 5 days | 5 days | |||||||||||||||||||||||||||
Senior Credit Facilities | US Dollar | |||||||||||||||||||||||||||||
Disclosure of detailed information about borrowings [line items] | |||||||||||||||||||||||||||||
Debt instrument, face amount | $ 110,000 | ||||||||||||||||||||||||||||
Senior Credit Facilities | Nigeria Naira | |||||||||||||||||||||||||||||
Disclosure of detailed information about borrowings [line items] | |||||||||||||||||||||||||||||
Debt instrument, face amount | $ 325,000 | ₦ 141.3 | |||||||||||||||||||||||||||
Senior Credit Facilities | LIBOR | US Dollar | |||||||||||||||||||||||||||||
Disclosure of detailed information about borrowings [line items] | |||||||||||||||||||||||||||||
Borrowings, adjustment to interest rate basis | 4.25% | 4.25% | 4.25% | 4.25% | 4.25% | 4.25% | |||||||||||||||||||||||
Interest rate basis floor | 0.00% | 0.00% | |||||||||||||||||||||||||||
Senior Credit Facilities | LIBOR | Minimum | Margin ratchet activated | US Dollar | |||||||||||||||||||||||||||||
Disclosure of detailed information about borrowings [line items] | |||||||||||||||||||||||||||||
Borrowings, adjustment to interest rate basis | 3.50% | 3.50% | 3.50% | 3.50% | 3.50% | 3.50% | |||||||||||||||||||||||
Senior Credit Facilities | LIBOR | Maximum | Margin ratchet activated | US Dollar | |||||||||||||||||||||||||||||
Disclosure of detailed information about borrowings [line items] | |||||||||||||||||||||||||||||
Borrowings, adjustment to interest rate basis | 4.50% | 4.50% | 4.50% | 4.50% | 4.50% | 4.50% | |||||||||||||||||||||||
Senior Credit Facilities | NIBOR | Nigeria Naira | |||||||||||||||||||||||||||||
Disclosure of detailed information about borrowings [line items] | |||||||||||||||||||||||||||||
Borrowings, adjustment to interest rate basis | 2.50% | 2.50% | 2.50% | 2.50% | 2.50% | 2.50% | |||||||||||||||||||||||
Interest rate basis floor | 0.00% | 0.00% | |||||||||||||||||||||||||||
IHS Cote d Ivoire S.A. | Maximum | |||||||||||||||||||||||||||||
Disclosure of detailed information about borrowings [line items] | |||||||||||||||||||||||||||||
Debt instrument, face amount | 18.3 | € 52 | 44.6 | € 52 | 44.6 | € 52 | |||||||||||||||||||||||
IHS Zambia Limited | |||||||||||||||||||||||||||||
Disclosure of detailed information about borrowings [line items] | |||||||||||||||||||||||||||||
Borrowings | $ 600 | ||||||||||||||||||||||||||||
Remaining fully drawn down loan facility | $ 95,000 | ||||||||||||||||||||||||||||
Deferral period of principal payments | 24 months | ||||||||||||||||||||||||||||
IHS Rwanda Limited | |||||||||||||||||||||||||||||
Disclosure of detailed information about borrowings [line items] | |||||||||||||||||||||||||||||
Borrowings | $ 0 | ||||||||||||||||||||||||||||
IHS Brasil Cesso de Infraestruturas S.A. | Banco Safra [member] | |||||||||||||||||||||||||||||
Disclosure of detailed information about borrowings [line items] | |||||||||||||||||||||||||||||
Borrowings | 5,400 | R$ 30 | |||||||||||||||||||||||||||
IHS Brasil Cesso de Infraestruturas S.A. | Itau BBA [Member] | |||||||||||||||||||||||||||||
Disclosure of detailed information about borrowings [line items] | |||||||||||||||||||||||||||||
Borrowings | 30,500 | R$ 170 | |||||||||||||||||||||||||||
IHS Kuwait Limited | |||||||||||||||||||||||||||||
Disclosure of detailed information about borrowings [line items] | |||||||||||||||||||||||||||||
Interest rate | 2.00% | ||||||||||||||||||||||||||||
Borrowings | $ 69,000 | $ 52,100 | د.ك 21.0 | د.ك 15.8 | |||||||||||||||||||||||||
Remaining fully drawn down loan facility | د.ك | د.ك 26.0 | ||||||||||||||||||||||||||||
IHS Holding limited, Senior Note Maturing 2026 | |||||||||||||||||||||||||||||
Disclosure of detailed information about borrowings [line items] | |||||||||||||||||||||||||||||
Debt instrument, face amount | $ 500,000 | ||||||||||||||||||||||||||||
Interest rate | 5.625% | 5.625% | 5.625% | 5.625% | 5.625% | 5.625% | |||||||||||||||||||||||
Debt term | 5 years | ||||||||||||||||||||||||||||
IHS Holding limited, Senior Note Maturing 2026 | US Dollar | |||||||||||||||||||||||||||||
Disclosure of detailed information about borrowings [line items] | |||||||||||||||||||||||||||||
Interest rate | 5.63% | 5.63% | 5.63% | 5.63% | 5.63% | 5.63% | |||||||||||||||||||||||
Borrowings | $ 496,850 | ||||||||||||||||||||||||||||
IHS Holding limited, Senior Note Maturing 2028 | |||||||||||||||||||||||||||||
Disclosure of detailed information about borrowings [line items] | |||||||||||||||||||||||||||||
Debt instrument, face amount | $ 500,000 | ||||||||||||||||||||||||||||
Interest rate | 6.25% | 6.25% | 6.25% | 6.25% | 6.25% | 6.25% | |||||||||||||||||||||||
Debt term | 7 years | ||||||||||||||||||||||||||||
IHS Holding limited, Senior Note Maturing 2028 | US Dollar | |||||||||||||||||||||||||||||
Disclosure of detailed information about borrowings [line items] | |||||||||||||||||||||||||||||
Interest rate | 6.25% | 6.25% | 6.25% | 6.25% | 6.25% | 6.25% | |||||||||||||||||||||||
Borrowings | $ 497,366 | ||||||||||||||||||||||||||||
Global Independent Connect Limited | |||||||||||||||||||||||||||||
Disclosure of detailed information about borrowings [line items] | |||||||||||||||||||||||||||||
Maximum debt amount | $ 3,200 | ¥ 21.6 | |||||||||||||||||||||||||||
Debt term | 90 days | 90 days | |||||||||||||||||||||||||||
Repayments of borrowings, classified as financing activities | $ 3,300 | ¥ 22.2 | |||||||||||||||||||||||||||
Repayment of cash cover | 100 | 0.6 | |||||||||||||||||||||||||||
Debt repaid | $ 3,300 | ¥ 22.2 | |||||||||||||||||||||||||||
IHS Brazil Participaes Limited | |||||||||||||||||||||||||||||
Disclosure of detailed information about borrowings [line items] | |||||||||||||||||||||||||||||
Debt instrument, face amount | $ 17,900 | R$ 100 | $ 53,800 | R$ 300 | |||||||||||||||||||||||||
Interest rate | 3.65% | 3.65% | 3.65% | 3.65% | |||||||||||||||||||||||||
Principal payments grace period | 1 year |
Lease liabilities - Components
Lease liabilities - Components of lease (Details) - USD ($) $ in Thousands | 12 Months Ended | |||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Lease liabilities. | ||||
Current | $ 50,560 | $ 28,246 | ||
Non-current | 325,541 | 286,501 | ||
Total lease liabilities | 376,101 | 314,747 | $ 184,494 | $ 204,065 |
Lease payments | $ 96,200 | $ 58,400 |
Lease liabilities - Reconciliat
Lease liabilities - Reconciliation of cash and non-cash changes (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Lease liabilities. | |||
Beginning balance | $ 314,747 | $ 184,494 | $ 204,065 |
Additions through business combinations | 44,557 | 131,651 | |
Additions through new leases or remeasurements | 131,438 | 65,070 | 47,469 |
Interest and finance charges for lease liabilities | 32,826 | 27,384 | 16,024 |
Payment for the principal of lease liabilities | (63,324) | (39,153) | (58,330) |
Interest paid for lease liabilities | (32,923) | (19,239) | (11,634) |
Remeasurements or terminations | 30,978 | 15,380 | 8,018 |
Effects of movement in exchange rates | (20,242) | (20,080) | (5,082) |
Closing balance | $ 376,101 | $ 314,747 | $ 184,494 |
Lease liabilities - Amount reco
Lease liabilities - Amount recognized in the statement of income (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Lease liabilities. | |||
Interest and finance charges for lease liabilities | $ 32,826 | $ 27,384 | $ 16,024 |
Expenses relating to short term leases and low value assets | 11,165 | 7,543 | 3,547 |
Depreciation for right of use assets | 60,685 | 54,089 | 38,130 |
Total for the year ended | $ 104,676 | $ 89,016 | $ 57,701 |
Lease liabilities - Contractual
Lease liabilities - Contractual maturities (Details) - USD ($) $ in Thousands | 12 Months Ended | |||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Disclosure of quantitative information about right-of-use assets [line items] | ||||
Carrying value | $ 376,101 | $ 314,747 | $ 184,494 | $ 204,065 |
Total contractual cash flows | $ 700,877 | 453,590 | ||
Average remaining lease term | 13 years 9 months 18 days | |||
Within 1 year | ||||
Disclosure of quantitative information about right-of-use assets [line items] | ||||
Total contractual cash flows | $ 54,303 | 39,677 | ||
2-3 years | ||||
Disclosure of quantitative information about right-of-use assets [line items] | ||||
Total contractual cash flows | 106,015 | 152,386 | ||
4-5 years | ||||
Disclosure of quantitative information about right-of-use assets [line items] | ||||
Total contractual cash flows | 99,573 | 44,294 | ||
Over 5 years | ||||
Disclosure of quantitative information about right-of-use assets [line items] | ||||
Total contractual cash flows | $ 440,986 | $ 217,233 |
Provisions for other liabilit_3
Provisions for other liabilities and charges - Decommissioning and site restoration provision (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Disclosure of other provisions [line items] | |||
Non-current | $ 71,598 | $ 49,469 | |
Current | 343 | 3,797 | |
Decommissioning and site restoration provisions | |||
Disclosure of other provisions [line items] | |||
At January 1 | 53,266 | 33,568 | $ 33,010 |
Additions through business combinations (refer to note 32) | 8,347 | 15,437 | |
Increase in provisions | 7,212 | 8,315 | 405 |
Payments for tower and tower equipment decommissioning | (231) | (65) | |
Reversal of decommissioning through profit and loss | 2,671 | ||
Unwinding of discount | 4,644 | 2,644 | 1,712 |
Effects of movement in exchange rates | 1,374 | (6,633) | (1,559) |
At December 31 | 71,941 | 53,266 | 33,568 |
Non-current | 71,598 | 49,469 | 29,801 |
Current | $ 343 | $ 3,797 | $ 3,767 |
Provisions for other liabilit_4
Provisions for other liabilities and charges - Discount Rate (Details) - USD ($) | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Disclosure of other provisions [line items] | ||
Percentage of Increase (Decrease) In discount rate | 1.00% | 1.00% |
Percentage of increase in discount rate | 1.00% | 1.00% |
Percentage of decrease in discount rate | 1.00% | 1.00% |
Effect of 1% increase in discount rate | $ (1,571,000) | $ (767,000) |
Effect of 1% decrease in discount rate | 1,093,000 | 815,000 |
Nigerian entities | ||
Disclosure of other provisions [line items] | ||
Percentage of discount rate applied to provisions calculation | 11.2 | 11.2 |
IIHS Cameroon S.A. | ||
Disclosure of other provisions [line items] | ||
Percentage of discount rate applied to provisions calculation | 5.5 | 5.5 |
IHS Cote d Ivoire S.A. | ||
Disclosure of other provisions [line items] | ||
Percentage of discount rate applied to provisions calculation | 8 | 8 |
IHS Zambia Limited | ||
Disclosure of other provisions [line items] | ||
Percentage of discount rate applied to provisions calculation | 5.1 | 5.5 |
IHS Rwanda Limited | ||
Disclosure of other provisions [line items] | ||
Percentage of discount rate applied to provisions calculation | 16 | 16 |
IHS Brasil Cesso de Infraestruturas | ||
Disclosure of other provisions [line items] | ||
Percentage of discount rate applied to provisions calculation | 6.8 | 6.8 |
IHS Kuwait Limited | ||
Disclosure of other provisions [line items] | ||
Percentage of discount rate applied to provisions calculation | $ 3.4 | $ 4.8 |
Stated capital (Details)
Stated capital (Details) | Oct. 14, 2021$ / sharesshares | Oct. 13, 2021 | Dec. 31, 2021USD ($)$ / sharesshares | Dec. 31, 2019USD ($)Voteitem$ / sharesshares | Dec. 31, 2020Voteitem$ / shares | Nov. 30, 2019shares |
Disclosure of classes of share capital [line items] | ||||||
Shares issued on exercise of options (In shares) | shares | 7,940,413 | |||||
Beginning Balance, Stated capital | $ 1,224,191,000 | $ 1,332,075,000 | ||||
Issue of equity | 349,846,000 | 12,368,000 | ||||
Ending Balance, Stated capital | $ 1,725,960,000 | $ 1,430,319,000 | ||||
Warrants exercised for gross cash settlement | shares | 345,400,314 | |||||
Number of warrants or rights outstanding | shares | 658,642,396 | |||||
Par value per share | $ / shares | $ 0.30 | |||||
Votes per ordinary share | 1 | |||||
Voting rights | 20 | |||||
Number of limit on equity shares | item | 0 | 0 | ||||
Share capital | $ 98,346,125 | |||||
Share premium | $ 5,125,138,448 | |||||
Number of shares authorised | shares | 1,700,000,000 | |||||
Ordinary shares issued in IPO | shares | 18,000,000 | |||||
Share issue price | $ / shares | $ 21 | |||||
Conversion ratio of old classes of ordinary shares into new class of ordinary shares | 500 | 500 | ||||
Class A shares | ||||||
Disclosure of classes of share capital [line items] | ||||||
Beginning Balance, Number of shares | shares | 130,492,567,000 | 130,147,167,000 | ||||
Issued on exercise of warrants (In shares) | shares | 345,400,000 | |||||
Reclassification of Class A and Class B shares to ordinary shares (in shares) | shares | 16,558,927,000 | |||||
Impact of reverse share split (in shares) | shares | (146,757,391,000) | |||||
Shares issued on IPO (In shares) | shares | 18,000,000 | |||||
Shares issued on exercise of options (In shares) | shares | 15,717,000 | |||||
Ending Balance, Number of shares | shares | 327,820,000 | 130,492,567,000 | ||||
Beginning Balance, Stated capital | $ 4,233,335,000 | $ 4,220,967,000 | ||||
Issued on exercise of warrants | 12,368,000 | |||||
Reclassification of Class A and Class B shares to ordinary shares | 299,405,000 | |||||
Reclassification of Class A and Class B shares to ordinary shares, net of issue costs | 299,014,000 | |||||
Issue of equity | 378,000,000 | |||||
Shares issue costs | 28,154,000 | |||||
Shares issued on exercise of options | 342,768,000 | |||||
Ending Balance, Stated capital | 5,253,508,000 | 4,233,335,000 | ||||
Beginning Balance, Stated capital net of issue costs | 4,231,856,000 | 4,219,488,000 | ||||
Ending Balance, Stated capital net of issue costs | $ 5,223,484,000 | $ 4,231,856,000 | ||||
Class B shares | ||||||
Disclosure of classes of share capital [line items] | ||||||
Beginning Balance, Number of shares | shares | 16,558,927,000 | 16,558,927,000 | ||||
Reclassification of Class A and Class B shares to ordinary shares (in shares) | shares | (16,558,927,000) | |||||
Ending Balance, Number of shares | shares | 16,558,927,000 | |||||
Beginning Balance, Stated capital | $ 299,405,000 | $ 299,405,000 | ||||
Reclassification of Class A and Class B shares to ordinary shares | (299,405,000) | |||||
Reclassification of Class A and Class B shares to ordinary shares, net of issue costs | (299,014,000) | |||||
Ending Balance, Stated capital | 299,405,000 | |||||
Beginning Balance, Stated capital net of issue costs | $ 299,014,000 | 299,014,000 | ||||
Ending Balance, Stated capital net of issue costs | $ 299,014,000 | |||||
Class C shares | ||||||
Disclosure of classes of share capital [line items] | ||||||
Voting rights | Vote | 0 | 0 | ||||
Class A and B shares | ||||||
Disclosure of classes of share capital [line items] | ||||||
Par value per share | $ / shares | $ 0 | $ 0 | ||||
Voting rights | Vote | 0 | 0 |
Other reserves (Details)
Other reserves (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Disclosure of reserves within equity [line items] | |||
Beginning balance for the period | $ (485,505) | $ (587,155) | $ (1,096,523) |
Other comprehensive income | 40,082 | 94,434 | 5,037 |
Recognition of share-based payment expense | 13,003 | 7,216 | 504,331 |
SBP reserve converted to share capital | (342,768) | ||
Other reclassifications related to share based payment | (5,084) | ||
Ending balance for the period | (780,272) | (485,505) | (587,155) |
Fair value through other comprehensive income reserve | |||
Disclosure of reserves within equity [line items] | |||
Beginning balance for the period | (6) | (6) | (7) |
Other comprehensive income | 3 | 1 | |
Ending balance for the period | (3) | (6) | (6) |
Restructuring reserve | |||
Disclosure of reserves within equity [line items] | |||
Beginning balance for the period | 4,019 | 4,019 | 4,019 |
Ending balance for the period | 4,019 | 4,019 | 4,019 |
Share- based payment reserve | |||
Disclosure of reserves within equity [line items] | |||
Beginning balance for the period | 511,547 | 504,331 | |
Recognition of share-based payment expense | 13,003 | 7,216 | 504,331 |
SBP reserve converted to share capital | (342,768) | ||
Other reclassifications related to share based payment | (5,084) | ||
Ending balance for the period | 176,698 | 511,547 | 504,331 |
Loss on transactions between owners | |||
Disclosure of reserves within equity [line items] | |||
Beginning balance for the period | (840,359) | (840,359) | (840,359) |
Ending balance for the period | (840,359) | (840,359) | (840,359) |
Foreign exchange translation reserve | |||
Disclosure of reserves within equity [line items] | |||
Beginning balance for the period | (160,706) | (255,140) | (260,176) |
Other comprehensive income | 40,079 | 94,434 | 5,036 |
Ending balance for the period | $ (120,627) | $ (160,706) | $ (255,140) |
Non-controlling interest (Detai
Non-controlling interest (Details) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021USD ($) | Dec. 31, 2020USD ($) | Feb. 29, 2020item | |
Disclosure of subsidiaries [line items] | |||
Balance at January 1 | $ 14,216 | ||
Non-controlling interest arising on business combinations | 132,407 | $ 14,927 | |
Loss for the period | (289) | (688) | |
Other comprehensive loss | (3,381) | (23) | |
Balance at December 31 | 142,953 | $ 14,216 | |
FiberCo Solues de Infraestrutura S.A. | |||
Disclosure of subsidiaries [line items] | |||
Balance at December 31 | $ 125,198 | ||
Proportion of ownership interest in subsidiary | 51.00% | ||
Proportion of ownership interests held by non-controlling interests | 49.00% | ||
Mobile Telecommunications Company K.S.C.P (Zain) | IHS GCC KW | |||
Disclosure of subsidiaries [line items] | |||
Percentage of business acquired | 30.00% | ||
IHS GCC KW | Mobile Telecommunications Company K.S.C.P (Zain) | |||
Disclosure of subsidiaries [line items] | |||
Number Of Towers To Be Purchased | item | 1,620 |
Non-controlling interest - Summ
Non-controlling interest - Summarized financial information (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Disclosure of subsidiaries [line items] | |||
Current assets | $ 1,427,768 | $ 989,320 | |
Current liabilities | 830,559 | 683,643 | |
Noncurrent assets | 4,045,883 | 3,458,323 | |
Non-current liabilities | 2,917,132 | 2,539,809 | |
Cash flows generated from operating activities | 750,189 | 635,256 | $ 641,940 |
Cash flows used in investing activities | (877,949) | (758,512) | (235,806) |
Cash flows generated from financing activities | 524,265 | (128,136) | (138,319) |
Net increase/(decrease) in cash and cash equivalents | 396,505 | (251,392) | $ 267,815 |
Loss allocated to non-controlling interest during the period | (3,670) | (711) | |
Accumulated non-controlling interest at the end of the year | 142,953 | $ 14,216 | |
FiberCo Solues de Infraestrutura S.A. | |||
Disclosure of subsidiaries [line items] | |||
Loss allocated to non-controlling interest during the period | (1,637) | ||
Accumulated non-controlling interest at the end of the year | 125,198 | ||
FiberCo Solues de Infraestrutura S.A. | FiberCo Solues de Infraestrutura S.A. | |||
Disclosure of subsidiaries [line items] | |||
Current assets | 101,033 | ||
Current liabilities | 19,357 | ||
Current net assets | 81,676 | ||
Noncurrent assets | 237,030 | ||
Non-current liabilities | 480 | ||
Non-current net assets | 236,550 | ||
Net assets | 318,226 | ||
Cash flows generated from operating activities | 6,056 | ||
Cash flows used in investing activities | (18,771) | ||
Cash flows generated from financing activities | 41,965 | ||
Net increase/(decrease) in cash and cash equivalents | $ 29,250 |
Share-based payment obligatio_3
Share-based payment obligations (Details) | Oct. 14, 2021 | Jul. 10, 2021 | Jul. 10, 2019tranche | Dec. 31, 2021Option |
Disclosure of terms and conditions of share-based payment arrangement [line items] | ||||
Number of share based payment plans | 4 | |||
Number of tranches | 3 | |||
Minimum | ||||
Disclosure of terms and conditions of share-based payment arrangement [line items] | ||||
Expiration period | 7 years | |||
Maximum | ||||
Disclosure of terms and conditions of share-based payment arrangement [line items] | ||||
Expiration period | 12 years | |||
LTIP1, LTIP2, LTIP2B and LTIP3 plans | ||||
Disclosure of terms and conditions of share-based payment arrangement [line items] | ||||
Percentage of shares awarded | 66.70% | 66.70% | ||
Percentage of shares not immediately awarded in the event of an IPO | 33.30% | 33.30% | ||
Number of share options expired | Option | 0 | |||
Vested in 25% portions | ||||
Disclosure of terms and conditions of share-based payment arrangement [line items] | ||||
Vesting percentage | 25.00% | |||
Vested in 33% portions | ||||
Disclosure of terms and conditions of share-based payment arrangement [line items] | ||||
Vesting percentage | 33.00% | |||
Percentage of shares awarded | 50.00% | |||
Vested in 33% portions | LTIP1, LTIP2, LTIP2B and LTIP3 plans | ||||
Disclosure of terms and conditions of share-based payment arrangement [line items] | ||||
Percentage of shares awarded | 50.00% | |||
5% Adjusted EBITDA growth and Adjusted funds from operations | LTIP1, LTIP2, LTIP2B and LTIP3 plans | ||||
Disclosure of terms and conditions of share-based payment arrangement [line items] | ||||
Percentage of shares issued annually | 50.00% | |||
Measurement period for share-based payment arrangement | 12 months | |||
Adjusted EBITDA growth and adjusted funds from operations percentage | 5.00% | |||
5% to 10% Adjusted EBITDA growth and Adjusted funds from operations | LTIP1, LTIP2, LTIP2B and LTIP3 plans | ||||
Disclosure of terms and conditions of share-based payment arrangement [line items] | ||||
Percentage of shares issued annually | 50.00% | |||
Measurement period for share-based payment arrangement | 12 months | |||
Adjusted EBITDA growth and adjusted funds from operations percentage | 10.00% |
Share-based payment obligatio_4
Share-based payment obligations - Movement in the share-based payment obligation liability - (Details) $ in Thousands | 12 Months Ended |
Dec. 31, 2019USD ($) | |
Share-based payment obligations | |
Credit to profit or loss under cash settled classification | $ 25,922 |
Share-based payment obligatio_5
Share-based payment obligations - Total charge to the profit or loss - (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Share-based payment obligations | |||
Credit to profit or loss under cash settled classification | $ (25,922) | ||
Immediate charge on amendment for options vested at date of amendment | 363,302 | ||
Expense under equity settled classification from date of amendment | $ 11,780 | $ 8,342 | 13,674 |
Total charge to the profit or loss | $ 11,780 | $ 8,342 | $ 351,054 |
Share-based payment obligatio_6
Share-based payment obligations - Movements in the number of share options outstanding - (Details) shares in Thousands | Oct. 14, 2021 | Oct. 13, 2021 | Jul. 01, 2021USD ($) | Jul. 14, 2020USD ($) | Mar. 09, 2020USD ($) | Dec. 31, 2021OptionUSD ($)shares | Dec. 31, 2020Optionshares |
Disclosure of terms and conditions of share-based payment arrangement [line items] | |||||||
Share options at the beginning of the period | 23,749,430 | ||||||
Share options Issued | $ | 159,369 | 33,405 | 120,228 | ||||
Share options ending of the period | 7,942,538 | 23,749,430 | |||||
Conversion ratio of old classes of ordinary shares into new class of ordinary shares | 500 | 500 | |||||
Incentive Plan One | |||||||
Disclosure of terms and conditions of share-based payment arrangement [line items] | |||||||
Share options, authorized | shares | 3,800 | 3,800 | |||||
Share options at the beginning of the period | 3,749,000 | 3,659,000 | |||||
Share options Issued | 94,000 | 149,000 | |||||
Share options Forfeited | (43,000) | (59,000) | |||||
Exercised during the period | (2,533,000) | ||||||
Share options ending of the period | 1,267,000 | 3,749,000 | |||||
Incentive Plan Two | |||||||
Disclosure of terms and conditions of share-based payment arrangement [line items] | |||||||
Share options, authorized | shares | 15,360 | 15,360 | |||||
Share options at the beginning of the period | 15,350,000 | 15,360,000 | |||||
Share options Issued | 10,000 | ||||||
Share options Forfeited | (10,000) | ||||||
Exercised during the period | (10,240,000) | ||||||
Share options ending of the period | 5,120,000 | 15,350,000 | |||||
Incentive Plan Two B. | |||||||
Disclosure of terms and conditions of share-based payment arrangement [line items] | |||||||
Share options, authorized | shares | 4,600 | 4,600 | |||||
Share options at the beginning of the period | 4,595,000 | 4,612,000 | |||||
Share options Issued | 55,000 | ||||||
Share options Forfeited | (39,000) | (17,000) | |||||
Exercised during the period | (3,074,000) | ||||||
Share options ending of the period | 1,537,000 | 4,595,000 | |||||
Incentive Plan Three | |||||||
Disclosure of terms and conditions of share-based payment arrangement [line items] | |||||||
Share options, authorized | shares | 56 | 56 | |||||
Share options at the beginning of the period | 56,000 | 51,000 | |||||
Share options Issued | 5,000 | ||||||
Exercised during the period | (37,000) | ||||||
Share options ending of the period | 19,000 | 56,000 |
Share-based payment obligatio_7
Share-based payment obligations - Valuation assumptions - (Details) | Jul. 01, 2021USD ($)$ / shares | Jul. 14, 2020USD ($)$ / shares | Mar. 09, 2020USD ($)$ / shares | Jul. 10, 2019USD ($)$ / shares |
Disclosure of terms and conditions of share-based payment arrangement [line items] | ||||
Exercise price amendment | $ / shares | $ 0 | |||
Share price assumption | $ / shares | $ 23.19 | $ 22.14 | $ 21.20 | $ 22.04 |
Forfeiture rate | 0.00% | 10.00% | ||
Expected dividend | $ 0 | $ 0 | $ 0 | $ 0 |
Share options Issued | 159,369 | 33,405 | 120,228 | |
Fair value of options granted, at grant date | $ 3,700,000 | $ 700,000 | $ 2,200,000 | |
Incentive Plan One. | ||||
Disclosure of terms and conditions of share-based payment arrangement [line items] | ||||
Forfeiture rate | 0.00% | 0.00% | 5.00% | |
Incentive Plan Two. | ||||
Disclosure of terms and conditions of share-based payment arrangement [line items] | ||||
Forfeiture rate | 5.00% | 5.00% | 0.00% | |
Incentive Plan Three. | ||||
Disclosure of terms and conditions of share-based payment arrangement [line items] | ||||
Forfeiture rate | 10.00% | 10.00% |
Share-based payment obligatio_8
Share-based payment obligations - Weighted average remaining contractual life - (Details) | 12 Months Ended | ||
Dec. 31, 2021Option | Dec. 31, 2020Option | Jul. 10, 2019$ / shares | |
Disclosure of terms and conditions of share-based payment arrangement [line items] | |||
Exercise price | $ / shares | $ 0 | ||
Number of options in force at year end | 7,942,538 | 23,749,430 | |
2014 | |||
Disclosure of terms and conditions of share-based payment arrangement [line items] | |||
Weighted average remaining contractual life | 9 months 29 days | 5 months 26 days | |
Number of options in force at year end | 1,039,526 | 3,138,844 | |
2015 | |||
Disclosure of terms and conditions of share-based payment arrangement [line items] | |||
Weighted average remaining contractual life | 9 months 29 days | 6 years 2 months 4 days | |
Number of options in force at year end | 5,077,624 | 15,232,873 | |
2017 | |||
Disclosure of terms and conditions of share-based payment arrangement [line items] | |||
Weighted average remaining contractual life | 9 months 29 days | 8 years 1 month 13 days | |
Number of options in force at year end | 1,685,317 | 5,116,869 | |
2018 | |||
Disclosure of terms and conditions of share-based payment arrangement [line items] | |||
Weighted average remaining contractual life | 9 months 29 days | 9 years 2 months 12 days | |
Number of options in force at year end | 35,737 | 107,212 | |
2020 | |||
Disclosure of terms and conditions of share-based payment arrangement [line items] | |||
Weighted average remaining contractual life | 9 months 29 days | 6 years 4 months 28 days | |
Number of options in force at year end | 51,211 | 153,633 | |
2021 | |||
Disclosure of terms and conditions of share-based payment arrangement [line items] | |||
Weighted average remaining contractual life | 9 months 29 days | ||
Number of options in force at year end | 53,123 |
Cash from operations (Details)
Cash from operations (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Cash flows from operating activities | |||
Loss before income tax | $ (8,141) | $ (152,853) | $ (409,974) |
Adjustments: | |||
Depreciation of property, plant and equipment | 344,716 | 373,247 | 355,760 |
Amortization of intangible assets | 38,166 | 35,415 | 28,747 |
Impairment of property, plant and equipment and prepaid land rent | 51,113 | 27,594 | 21,604 |
Loss allowance on trade receivables | (34,031) | 13,081 | 27,944 |
Impairment of withholding tax receivables | 61,810 | 31,533 | 44,586 |
Amortization of prepaid site rent | 8,321 | 4,459 | 3,355 |
Net (gain)/loss on disposal of plant, property and equipment | (2,499) | (764) | 5,819 |
Insurance claim income | (6,861) | (14,987) | (3,607) |
Interest expense | 422,034 | 633,766 | 288,915 |
Interest income | (25,522) | (148,968) | (32,258) |
Fair value gain on warrants revaluation | (3,787) | ||
Sharebased payment expense | 11,780 | 8,342 | 351,054 |
(Reversal of impairment)/impairment of inventory | (315) | 4,599 | |
Increase in decommissioning expense | (2,671) | ||
Operating profit/loss before working capital changes | 857,900 | 814,464 | 678,158 |
Changes in working capital | |||
Decrease/(increase) in inventory | 6,689 | (8,482) | (27,069) |
Increase in trade and other receivables | (164,382) | (130,265) | (21,093) |
Increase/(decrease) in trade and other payables | 87,866 | (19,018) | 30,029 |
Net movement in working capital | (69,827) | (157,765) | (18,133) |
Cash from operations | $ 788,073 | $ 656,699 | $ 660,025 |
Related parties - Ownership per
Related parties - Ownership percentage (Details) | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
IHS Mauritius Cameroon Limited | ||
Disclosure of transactions between related parties [line items] | ||
Ownership percentage | 100.00% | 100.00% |
IHS Mauritius Cote d Ivoire Limited [Member] | ||
Disclosure of transactions between related parties [line items] | ||
Ownership percentage | 100.00% | 100.00% |
IHS Mauritius Netherlands Limited | ||
Disclosure of transactions between related parties [line items] | ||
Ownership percentage | 100.00% | 100.00% |
IHS Mauritius Zambia Limited | ||
Disclosure of transactions between related parties [line items] | ||
Ownership percentage | 100.00% | 100.00% |
IHS Mauritius Rwanda Limited | ||
Disclosure of transactions between related parties [line items] | ||
Ownership percentage | 100.00% | 100.00% |
IHS Africa (UK) Limited | ||
Disclosure of transactions between related parties [line items] | ||
Ownership percentage | 100.00% | 100.00% |
IHS Netherlands Coperatief U.A. | ||
Disclosure of transactions between related parties [line items] | ||
Ownership percentage | 100.00% | 100.00% |
IHS Netherlands Holdco B.V. | ||
Disclosure of transactions between related parties [line items] | ||
Ownership percentage | 100.00% | 100.00% |
IHS Netherlands NG1 B.V. | ||
Disclosure of transactions between related parties [line items] | ||
Ownership percentage | 100.00% | 100.00% |
IHS Netherlands NG2 B.V. | ||
Disclosure of transactions between related parties [line items] | ||
Ownership percentage | 100.00% | 100.00% |
IHS Nigeria Limited | ||
Disclosure of transactions between related parties [line items] | ||
Ownership percentage | 100.00% | 100.00% |
INT Towers Limited | ||
Disclosure of transactions between related parties [line items] | ||
Ownership percentage | 100.00% | 100.00% |
IHS Towers NG Limited | ||
Disclosure of transactions between related parties [line items] | ||
Ownership percentage | 100.00% | 100.00% |
Tower infrastructure Company Limited | ||
Disclosure of transactions between related parties [line items] | ||
Ownership percentage | 100.00% | |
IHS Cote d Ivoire S.A. | ||
Disclosure of transactions between related parties [line items] | ||
Ownership percentage | 100.00% | 100.00% |
IHS Cameroon S.A. | ||
Disclosure of transactions between related parties [line items] | ||
Ownership percentage | 100.00% | 100.00% |
IHS Zambia Limited | ||
Disclosure of transactions between related parties [line items] | ||
Ownership percentage | 100.00% | 100.00% |
IHS Rwanda Limited | ||
Disclosure of transactions between related parties [line items] | ||
Ownership percentage | 100.00% | 100.00% |
Rwanda Towers Limited | ||
Disclosure of transactions between related parties [line items] | ||
Ownership percentage | 100.00% | 100.00% |
IHS Kuwait Limited | ||
Disclosure of transactions between related parties [line items] | ||
Ownership percentage | 100.00% | 100.00% |
IHS Brasil Cesso de Infraestruturas S.A. | ||
Disclosure of transactions between related parties [line items] | ||
Ownership percentage | 100.00% | 100.00% |
IHS Towers Colombia S.A.S | ||
Disclosure of transactions between related parties [line items] | ||
Ownership percentage | 100.00% | 100.00% |
San Gimignano Imoveis e Adminsitracao Limitada | ||
Disclosure of transactions between related parties [line items] | ||
Ownership percentage | 100.00% | 100.00% |
Nigeria Tower Interco B.V. | ||
Disclosure of transactions between related parties [line items] | ||
Ownership percentage | 100.00% | 100.00% |
IHS Netherlands GCC B.V. | ||
Disclosure of transactions between related parties [line items] | ||
Ownership percentage | 100.00% | 100.00% |
IHS Netherlands KW B.V. | ||
Disclosure of transactions between related parties [line items] | ||
Ownership percentage | 100.00% | |
IHS Netherlands KSA B.V. | ||
Disclosure of transactions between related parties [line items] | ||
Ownership percentage | 100.00% | 100.00% |
IHS GCC Limited | ||
Disclosure of transactions between related parties [line items] | ||
Ownership percentage | 100.00% | 100.00% |
IHS Netherlands Connect B.V. | ||
Disclosure of transactions between related parties [line items] | ||
Ownership percentage | 100.00% | 100.00% |
IHS GCC KW Holding Limited | ||
Disclosure of transactions between related parties [line items] | ||
Ownership percentage | 70.00% | 100.00% |
IHS FinCo Management Limited | ||
Disclosure of transactions between related parties [line items] | ||
Ownership percentage | 100.00% | 100.00% |
Global Independent Connect Limited | ||
Disclosure of transactions between related parties [line items] | ||
Ownership percentage | 100.00% | 100.00% |
IHS KSA Limited | ||
Disclosure of transactions between related parties [line items] | ||
Ownership percentage | 100.00% | 100.00% |
IHS SSC FZE | ||
Disclosure of transactions between related parties [line items] | ||
Ownership percentage | 100.00% | 100.00% |
IHS Netherlands BR B.V | ||
Disclosure of transactions between related parties [line items] | ||
Ownership percentage | 100.00% | 100.00% |
IHS Netherlands PHP B.V | ||
Disclosure of transactions between related parties [line items] | ||
Ownership percentage | 100.00% | 100.00% |
IHS Peru S.A.C.[Member] | ||
Disclosure of transactions between related parties [line items] | ||
Ownership percentage | 100.00% | 100.00% |
IHS Netherlands RSA B.V [Member] | ||
Disclosure of transactions between related parties [line items] | ||
Ownership percentage | 100.00% | 100.00% |
IHS South Africa Holding Proprietary Limited [Member] | ||
Disclosure of transactions between related parties [line items] | ||
Ownership percentage | 100.00% | |
IHS Towers South Africa Proprietary Limited [Member] | ||
Disclosure of transactions between related parties [line items] | ||
Ownership percentage | 100.00% | |
IHS Towers Inc. [Member] | ||
Disclosure of transactions between related parties [line items] | ||
Ownership percentage | 100.00% | |
IHS Netherlands EGY B.V.[Member] | ||
Disclosure of transactions between related parties [line items] | ||
Ownership percentage | 100.00% | |
IHS Telecom Tower Egypt S.A.E.[Member] | ||
Disclosure of transactions between related parties [line items] | ||
Ownership percentage | 80.00% | |
Skysites Americas Ltda [Member] | ||
Disclosure of transactions between related parties [line items] | ||
Ownership percentage | 100.00% | |
Wi-Fi Mundial Ltda.[Member] | ||
Disclosure of transactions between related parties [line items] | ||
Ownership percentage | 100.00% | |
Topzio Empreendimentos Imoliliarios Ltda. [Member] | ||
Disclosure of transactions between related parties [line items] | ||
Ownership percentage | 100.00% | |
IHS Fiber Brasil Participaes Ltda. [Member] | ||
Disclosure of transactions between related parties [line items] | ||
Ownership percentage | 100.00% | |
IHS Fiber Brasil - Cesso de Infraestruturas Ltda.[Member] | ||
Disclosure of transactions between related parties [line items] | ||
Ownership percentage | 100.00% | |
Centennial Towers Colombia S.A.S.. [Member] | ||
Disclosure of transactions between related parties [line items] | ||
Ownership percentage | 100.00% | |
Polar Breeze Colombia S.A.S [Member] | ||
Disclosure of transactions between related parties [line items] | ||
Ownership percentage | 100.00% | |
Centennial Towers Brasil Cooperatief U.A. [Member] | ||
Disclosure of transactions between related parties [line items] | ||
Ownership percentage | 100.00% | |
FiberCo Solues de Infraestrutura S.A. [Member] | ||
Disclosure of transactions between related parties [line items] | ||
Ownership percentage | 51.00% | |
Centennial Towers of Brasil B.V. [Member] | ||
Disclosure of transactions between related parties [line items] | ||
Ownership percentage | 100.00% | |
Centennial Towers of Colombia Ltd. [Member] | ||
Disclosure of transactions between related parties [line items] | ||
Ownership percentage | 100.00% | |
IHS Centennial Brasil Torres de Telecomunicacoes Ltda [Member] | ||
Disclosure of transactions between related parties [line items] | ||
Ownership percentage | 100.00% | |
Polar Breeze Empreendimentos Ltda.. [Member] | ||
Disclosure of transactions between related parties [line items] | ||
Ownership percentage | 100.00% |
Related parties - Key manageria
Related parties - Key managerial person expenses (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Related parties. | |||
Shortterm employee benefits | $ 25,537 | $ 13,671 | $ 20,154 |
Postemployment benefits | 105 | 105 | 61 |
Employee benefits | 25,642 | 13,776 | 20,215 |
Share-based payments | 9,795 | 6,029 | 343,285 |
Total | $ 35,437 | $ 19,805 | 363,500 |
Termination benefits | $ 3,200 |
Related parties - Other related
Related parties - Other related party transactions and balances (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Dar Telecom Consulting Llc [Member] | |||
Disclosure of transactions between related parties [line items] | |||
Payment made for services received from related party | $ 1,125,384 | $ 0 | $ 2,588,087 |
Expense for medical insurance premiums, paid by related party and subsequently invoiced to entity | 85,163 | 85,338 | 111,136 |
Receivable, related parties | 551,574 | 0 | |
Sam Darwish [Member] | |||
Disclosure of transactions between related parties [line items] | |||
Expense for medical insurance premiums, paid by related party and subsequently invoiced to entity | 38,330 | 36,648 | 38,341 |
Costs incurred and reimbursed on behalf of related party | 551,574 | 196,340 | 23,556 |
Cklb International Management Limited [Member] | |||
Disclosure of transactions between related parties [line items] | |||
Services received | $ 300,935 | $ 252,615 | $ 242,100 |
Business Combinations - Skysite
Business Combinations - Skysites Holdings S.A. (Details) $ in Thousands | Jan. 06, 2021USD ($) | Dec. 31, 2021USD ($) | Dec. 31, 2021USD ($) | Dec. 31, 2021USD ($) |
Disclosure of detailed information about business combination [line items] | ||||
Number of business acquired | 3 | |||
Loss after tax of combined entity | $ (24,000) | |||
Revenue - postacquisition | $ 1,583,000 | |||
Skysites Holdings S.A. | ||||
Disclosure of detailed information about business combination [line items] | ||||
Percentage of business acquired | 100.00% | 100.00% | 100.00% | |
Gross consideration | $ 40,611 | |||
Contingent consideration | (4,169) | $ (2,900) | $ (2,900) | $ (2,900) |
Less: cash in business at the date of acquisition | (2,775) | |||
Net cash consideration | 33,667 | |||
Identifiable assets acquired and liabilities assumed: | ||||
Capital work in progress | 535 | |||
Customer related intangible asset | 4,703 | |||
Right of use asset | 9,675 | |||
Trade and other receivables | 713 | |||
Trade and other payables | (1,132) | |||
Provisions for other liabilities and charges | (2,548) | |||
Lease liabilities | (10,071) | |||
Deferred tax liabilities | (2,205) | |||
Total identifiable net assets acquired | 10,972 | |||
Goodwill acquired | 26,864 | |||
Revenue - post-acquisition | 4,041 | |||
Loss - post-acquisition | $ 142 | |||
Contingent consideration released | $ 1,300 | |||
Skysites Holdings S.A. | Towers and tower equipment | ||||
Identifiable assets acquired and liabilities assumed: | ||||
Network assets | 11,276 | |||
Skysites Holdings S.A. | Land | ||||
Identifiable assets acquired and liabilities assumed: | ||||
Network assets | 15 | |||
Skysites Holdings S.A. | Furniture and office equipment | ||||
Identifiable assets acquired and liabilities assumed: | ||||
Network assets | $ 11 |
Business Combinations - Centenn
Business Combinations - Centennial Towers Colombia, S.A.S. and Centennial Towers Brasil Cooperatief U.A. (Details) | Apr. 08, 2021USD ($) | Mar. 19, 2021USD ($) | Apr. 08, 2021USD ($) | Dec. 31, 2021USD ($) |
Centennial Towers Colombia, S.A.S. and Centennial Towers Brasil Cooperatief U.A. | ||||
Business Combinations | ||||
Percentage of business acquired | 100.00% | |||
Number of sub-parts of business combination | 2 | |||
Goodwill acquired | $ 48,170,000 | $ 11,700,000 | $ 48,170,000 | |
Gross consideration | 140,951,000 | 140,951,000 | ||
Less: cash in business at the date of acquisition | (919,000) | |||
Net cash consideration | 140,032,000 | 140,032,000 | ||
Identifiable assets acquired and liabilities assumed: | ||||
Capital work in progress | 1,128,000 | 1,128,000 | ||
Right of use asset | 32,034,000 | 32,034,000 | ||
Customer related intangible asset | 68,021,000 | 68,021,000 | ||
Network related intangible asset | 915,000 | 915,000 | ||
Trade and other receivables | 5,386,000 | 5,386,000 | ||
Trade and other payables | (5,117,000) | (5,117,000) | ||
Provisions for other liabilities and charges | (5,799,000) | (5,799,000) | ||
Lease liabilities | (34,486,000) | (34,486,000) | ||
Tax payable | (3,434,000) | (3,434,000) | ||
Deferred tax liabilities | (26,281,000) | (26,281,000) | ||
Total identifiable net assets acquired | 91,862,000 | 91,862,000 | ||
Revenue - post-acquisition | $ 9,515,000 | |||
Loss - post-acquisition | (3,961,000) | |||
Centennial Towers Colombia, S.A.S. and Centennial Towers Brasil Cooperatief U.A. | Software | ||||
Identifiable assets acquired and liabilities assumed: | ||||
Software | 496,000 | 496,000 | ||
Centennial Towers Colombia, S.A.S. and Centennial Towers Brasil Cooperatief U.A. | Towers and tower equipment | ||||
Identifiable assets acquired and liabilities assumed: | ||||
Network assets | 57,964,000 | 57,964,000 | ||
Centennial Towers Colombia, S.A.S. and Centennial Towers Brasil Cooperatief U.A. | Land | ||||
Identifiable assets acquired and liabilities assumed: | ||||
Network assets | 953,000 | 953,000 | ||
Centennial Towers Colombia, S.A.S. and Centennial Towers Brasil Cooperatief U.A. | Furniture and office equipment | ||||
Identifiable assets acquired and liabilities assumed: | ||||
Network assets | 82,000 | 82,000 | ||
Centennial Towers Colombia, S.A.S. | ||||
Business Combinations | ||||
Goodwill acquired | 11,713,000 | |||
Gross consideration | 47,051,000 | |||
Less: cash in business at the date of acquisition | (659,000) | |||
Net cash consideration | 46,392,000 | |||
Identifiable assets acquired and liabilities assumed: | ||||
Capital work in progress | 500,000 | |||
Right of use asset | 9,761,000 | |||
Customer related intangible asset | 32,599,000 | |||
Network related intangible asset | 321,000 | |||
Trade and other receivables | 3,023,000 | |||
Trade and other payables | (3,646,000) | |||
Provisions for other liabilities and charges | (527,000) | |||
Lease liabilities | (10,458,000) | |||
Tax payable | (625,000) | |||
Deferred tax liabilities | (10,907,000) | |||
Total identifiable net assets acquired | 34,679,000 | |||
Centennial Towers Colombia, S.A.S. | Software | ||||
Identifiable assets acquired and liabilities assumed: | ||||
Software | 1,000 | |||
Centennial Towers Colombia, S.A.S. | Towers and tower equipment | ||||
Identifiable assets acquired and liabilities assumed: | ||||
Network assets | 14,074,000 | |||
Centennial Towers Colombia, S.A.S. | Land | ||||
Identifiable assets acquired and liabilities assumed: | ||||
Network assets | 546,000 | |||
Centennial Towers Colombia, S.A.S. | Furniture and office equipment | ||||
Identifiable assets acquired and liabilities assumed: | ||||
Network assets | $ 17,000 | |||
Centennial Towers Brasil Cooperatief U.A. | ||||
Business Combinations | ||||
Goodwill acquired | 36,457,000 | 36,457,000 | ||
Goodwill deductible for tax purpose | $ 0 | |||
Gross consideration | 93,900,000 | 93,900,000 | ||
Less: cash in business at the date of acquisition | (260,000) | |||
Net cash consideration | 93,640,000 | 93,640,000 | ||
Identifiable assets acquired and liabilities assumed: | ||||
Capital work in progress | 628,000 | 628,000 | ||
Right of use asset | 22,273,000 | 22,273,000 | ||
Customer related intangible asset | 35,422,000 | 35,422,000 | ||
Network related intangible asset | 594,000 | 594,000 | ||
Trade and other receivables | 2,363,000 | 2,363,000 | ||
Trade and other payables | (1,471,000) | (1,471,000) | ||
Provisions for other liabilities and charges | (5,272,000) | (5,272,000) | ||
Lease liabilities | (24,028,000) | (24,028,000) | ||
Tax payable | (2,809,000) | (2,809,000) | ||
Deferred tax liabilities | (15,374,000) | (15,374,000) | ||
Total identifiable net assets acquired | 57,183,000 | 57,183,000 | ||
Centennial Towers Brasil Cooperatief U.A. | Software | ||||
Identifiable assets acquired and liabilities assumed: | ||||
Software | 495,000 | 495,000 | ||
Centennial Towers Brasil Cooperatief U.A. | Towers and tower equipment | ||||
Identifiable assets acquired and liabilities assumed: | ||||
Network assets | 43,890,000 | 43,890,000 | ||
Centennial Towers Brasil Cooperatief U.A. | Land | ||||
Identifiable assets acquired and liabilities assumed: | ||||
Network assets | 407,000 | 407,000 | ||
Centennial Towers Brasil Cooperatief U.A. | Furniture and office equipment | ||||
Identifiable assets acquired and liabilities assumed: | ||||
Network assets | $ 65,000 | $ 65,000 |
Business Combinations - FiberCo
Business Combinations - FiberCo Solucoes de Infraestrutura S.A. (Details) - FiberCo Solues de Infraestrutura S.A. - USD ($) | 1 Months Ended | |
Dec. 31, 2021 | Nov. 16, 2021 | |
Disclosure of detailed information about business combination [line items] | ||
Percentage of voting equity interests acquired | 51.00% | |
Goodwill expected to be deductible for tax purposes | $ 0 | |
Goodwill recognised as of acquisition date | 173,835,000 | |
Gross consideration | 266,739,000 | |
Less: deferred consideration | (64,474,000) | |
Net cash consideration | 202,265,000 | |
Capital injection | 42,996,000 | |
Identifiable assets acquired and liabilities assumed: | ||
Cash | 44,872,000 | |
Network assets | 220,950,000 | |
Capital work in progress | 3,832,000 | |
Trade and other receivables | 8,498,000 | |
Trade and other payables | (5,764,000) | |
Loans payable | (6,457,000) | |
Total identifiable net assets acquired | 266,470,000 | |
Non-controlling interest | 130,570,000 | |
Goodwill acquired | 173,835,000 | |
Revenue - post-acquisition | $ 5,426,000 | |
Loss - post-acquisition | $ (3,341,000) | |
Software | ||
Identifiable assets acquired and liabilities assumed: | ||
Software | $ 539,000 | |
TIM S.A | ||
Disclosure of detailed information about business combination [line items] | ||
Percentage of voting equity interests acquired | 49.00% | |
FiberCo Solues de Infraestrutura S.A. | ||
Disclosure of detailed information about business combination [line items] | ||
Number of households covered by Fiber-To-Home | 3,500,000 | |
Number of households covered by Fiber-to-the-Cabinet | 3,400,000 | |
Total number of households covered by fiber connection | 6,400,000 | |
Number of households with overlapping fiber coverage | 570,000 |
Business Combinations - IHS Kuw
Business Combinations - IHS Kuwait Limited (Details) $ in Thousands | 1 Months Ended | 12 Months Ended | ||
Oct. 31, 2021item | Apr. 30, 2021item | Dec. 31, 2021USD ($)item | Dec. 31, 2020USD ($)item | |
IHS GCC KW | ||||
Business Combinations | ||||
Tower not yet acquired | item | 1,620 | |||
Remaining towers yet to acquired | item | 265 | |||
Shares in IHS GCC KW transferred in business combination | 30.00% | |||
IHS Kuwait Limited | ||||
Business Combinations | ||||
Towers to be acquired | item | 193 | 1,162 | ||
Towers acquired in first two stage | item | 1,620 | |||
Percentage of business acquired | 70.00% | 70.00% | ||
Goodwill acquired | $ 13,143 | |||
Gross consideration | $ 12,248 | 117,367 | ||
Less: consideration received in exchange for a retained 30% interest (by Zain Kuwait) in IHS GCC KW | (1,837) | (14,927) | ||
Net consideration for 70% controlling interest in the acquired towers | 10,411 | 102,440 | ||
Less: contingent and deferred consideration (note payable to Zain) | (25,202) | |||
Net cash consideration | 10,411 | 77,238 | ||
Identifiable assets acquired and liabilities assumed: | ||||
Network assets | 7,902 | 33,061 | ||
Right of use asset | 10,372 | |||
Customer related intangible asset | 5,449 | 41,878 | ||
Network related intangible asset | 1,877 | 14,424 | ||
Trade and other receivables | 872 | 14,318 | ||
Trade and other payables | (3,852) | (1,249) | ||
Lease liabilities | (8,580) | |||
Total identifiable net assets acquired | 12,248 | 104,224 | ||
Shareholder funding provided by the Group and external debt** | (6,124) | (48,730) | ||
Settlement for lease prepayment funded post acquisition | (5,738) | |||
Total identifiable net assets acquired for purposes of non-controlling interest | 6,124 | 49,756 | ||
Non-controlling interest | $ 1,837 | 14,927 | ||
Revenue - post-acquisition | 21,713 | |||
Profit - post-acquisition | $ (2,466) | |||
Percentage of net assets acquired (liabilities assumed) as disclosed in the acquisition analysis | 100.00% | 100.00% | ||
Deferred And Contingent consideration recognized as of acquisition date | $ 25,200 | |||
Deferred consideration recognized as of acquisition date, Payable | 18 months | |||
Contingent consideration recognised as of acquisition date, Payable | 24 months | |||
Zain Kuwait | ||||
Business Combinations | ||||
Towers acquired in third stage | item | 1,162 | |||
Proportion of ownership interests held by non-controlling interests | 30.00% | 30.00% | ||
Zain Kuwait | IHS GCC KW | ||||
Business Combinations | ||||
Towers to be acquired | item | 126 | 67 |
IHS Brasil Cessao de Infraestru
IHS Brasil Cessao de Infraestruturas SA (Details) - IHS Brasil Cesso de Infraestruturas S.A. - USD ($) $ in Thousands | Feb. 18, 2020 | Dec. 31, 2020 |
Business Combinations | ||
Percentage of business acquired | 100.00% | |
Goodwill acquired | $ 218,887 | |
Goodwill expected to be deductible for tax purposes | 0 | |
Gross consideration | 506,778 | |
Less: cash in business at the date of acquisition | (41,111) | |
Net cash consideration | 465,667 | |
Identifiable assets acquired and liabilities assumed: | ||
Capital work in progress | 4,970 | |
Right of use asset | 119,339 | |
Customer related intangible asset | 282,412 | |
Network related intangible asset | 22,407 | |
Other intangible assets | 33 | |
Deferred tax assets | 8,347 | |
Trade and other receivables | 14,615 | |
Trade and other payables | (24,123) | |
Income tax payable | (1,538) | |
Borrowings | (46,356) | |
Provisions for other liabilities and charges | (15,437) | |
Lease liabilities | (123,071) | |
Deferred tax liabilities | (107,016) | |
Total identifiable net assets acquired | 246,780 | |
Revenue - post-acquisition | $ 30,185 | |
Profit - post-acquisition | $ (296) | |
Towers and tower equipment | ||
Identifiable assets acquired and liabilities assumed: | ||
Property, plant and equipment recognised as of acquisition date | 111,327 | |
Land | ||
Identifiable assets acquired and liabilities assumed: | ||
Property, plant and equipment recognised as of acquisition date | 566 | |
Furniture and office equipment | ||
Identifiable assets acquired and liabilities assumed: | ||
Property, plant and equipment recognised as of acquisition date | $ 305 |
Acquisition of MTN telecom to_2
Acquisition of MTN telecom towers in South Africa (Details) R in Billions | Nov. 17, 2021ZAR (R)item |
MTN Group [Member] | IHS Holding Limited | |
Disclosure of detailed information about business combination [line items] | |
Percentage of shares held by beneficial ownership | 26.00% |
MTN telecom towers in South Africa [Member] | |
Disclosure of detailed information about business combination [line items] | |
Number Of Towers To Be Purchased | 5,709 |
Number of service sites to be acquired | 13,000 |
Colocation rate of towers acquired | 1.2 |
MTN telecom towers in South Africa [Member] | Forecast [Member] | |
Disclosure of detailed information about business combination [line items] | |
Consideration | R | R 6.4 |
Capital commitments and conti_2
Capital commitments and contingent liabilities (Details) - USD ($) | Dec. 31, 2021 | Dec. 31, 2020 |
Capital commitments and contingent liabilities. | ||
Commitments to purchase property, plant and equipment | $ 206,700,000 | $ 109,900,000 |
Contingent liabilities | 2,000,000 | $ 2,600,000 |
Legal proceedings provision | $ 0 |
Events after the reporting pe_2
Events after the reporting period (Details) | Feb. 04, 2022Option | Jul. 01, 2021USD ($) | Jul. 14, 2020USD ($) | Mar. 09, 2020USD ($) | Apr. 30, 2022USD ($) | Mar. 15, 2022 | Dec. 31, 2021USD ($) | Dec. 31, 2020USD ($) | Dec. 31, 2019USD ($) | Jan. 21, 2022USD ($) |
Disclosure of non-adjusting events after reporting period [line items] | ||||||||||
Number of share options granted in share-based payment arrangement | 159,369 | 33,405 | 120,228 | |||||||
Increase (decrease) through share-based payment transactions, equity | $ 13,003,000 | $ 7,216,000 | $ 504,331,000 | |||||||
Legacy employee share-based payment scheme [Member] | ||||||||||
Disclosure of non-adjusting events after reporting period [line items] | ||||||||||
Percentage of instruments in share-based payment arrangement where the performance conditions have not yet been met | 33.30% | |||||||||
Major business combination | Sao Paulo Cinco Locacao de Torres Ltda (SP5) | ||||||||||
Disclosure of non-adjusting events after reporting period [line items] | ||||||||||
Percentage of business acquired | 100.00% | |||||||||
Number Of Towers To Be Purchased | 2,115 | |||||||||
Consideration | $ 315,000,000 | |||||||||
New employee share-based payment scheme | ||||||||||
Disclosure of non-adjusting events after reporting period [line items] | ||||||||||
Number of share options granted in share-based payment arrangement | Option | 1,147,500 | |||||||||
New employee share-based payment scheme | Restricted stock option plan | ||||||||||
Disclosure of non-adjusting events after reporting period [line items] | ||||||||||
Vesting period of instruments in share-based payment arrangement | 3 years | |||||||||
New employee share-based payment scheme | Performance stock option plan | ||||||||||
Disclosure of non-adjusting events after reporting period [line items] | ||||||||||
Measurement period for share-based payment arrangement | 3 years | |||||||||
Performance conditions of share-based payment scheme met | Legacy employee share-based payment scheme [Member] | ||||||||||
Disclosure of non-adjusting events after reporting period [line items] | ||||||||||
Percentage of instruments out of the outstanding instruments at year end where performance conditions have been met | 50.00% | |||||||||
Performance conditions of share-based payment scheme met | Legacy employee share-based payment scheme [Member] | Forecast | ||||||||||
Disclosure of non-adjusting events after reporting period [line items] | ||||||||||
Increase (decrease) through share-based payment transactions, equity | $ 3,900,000 |