American Tower
Corporation
NYSE: AMT (55.05) Prepared by Sarah Salinas
20 October 2011
Presentation Agenda
I. Overview and OperaEons II. Thesis Points III. Stock AcEvity IV. MispercepEons V. VAR VI. Risk VII. QuesEons
Overview & History
OperaEons Thesis Points Stock AcEvity VAR MispercepEons Risk
• Wireless CommunicaEons Infrastructure
• 38,000 sites in U.S. and abroad
• IPO in March 1997 • Strong & experienced management team
• > 2000 employees
• US • InternaEonal
India, Mexico, Brazil, Chile, Colombia, Peru, South Africa, & Ghana
Business Segments
OperaEons Thesis Points Stock AcEvity VAR MispercepEons Risk
U.S.
Brazil Chile
Colombia Ghana
India
Mexico Peru S.A.
ProporEon of owned sites
U.S.
InternaEonal
Revenues by Segment (Q2 2011)
Customers
OperaEons Thesis Points Stock AcEvity VAR MispercepEons Risk
Operations
• Wireless Towers • Broadcast Towers • Roo\ops • DAS SoluEons • Site Services
OperaEons Thesis Points Stock AcEvity VAR MispercepEons Risk
Distributed Antenna Systems (DAS) • Compliment to tower transport within high-‐traffic areas and densely constructed ciEes
• In-‐building (ex. malls, casinos, arenas) • Outdoors
OperaEons Thesis Points Stock AcEvity VAR MispercepEons Risk
Customer Properties (in- building)
OperaEons Thesis Points Stock AcEvity VAR MispercepEons Risk
Central Equipment Hub
OperaEons Thesis Points Stock AcEvity VAR MispercepEons Risk
Fiber Connections
OperaEons Thesis Points Stock AcEvity VAR MispercepEons Risk
Individual Wireless Coverage
OperaEons Thesis Points Stock AcEvity VAR MispercepEons Risk
OperaEons Thesis Points Stock AcEvity VAR MispercepEons Risk
Fast & Reliable Connections • Takes pressure off of macro-‐networks
• Allows for operaEon of various frequencies
Thesis Points
AcquisiEons and New Market Development
Superior CompeEEve Advantage
REIT Status
OperaEons Thesis Points Stock AcEvity VAR MispercepEons Risk
Acquisitions & New Market Development • InternaEonal business 69% growth (Q2 2011) • Emerging middle class with recent access to data phones & disposable income
• Padern of investment: currently 3G • Within the U.S., 4G à addiEonal overlay
OperaEons Thesis Points Stock AcEvity VAR MispercepEons Risk
Superior Competitive Advantage
• Comprehensive sales package – Ground rent – Property taxes – Repairs & maintenance
• Highest naEonal provider of DAS; becoming more necessary within ciEes – UniversiEes, businesses, government offices
• Nature of the business; fixed costs
OperaEons Thesis Points Stock AcEvity VAR MispercepEons Risk
REIT Status
• Real Estate Investment Trust will give AMT a new tax designaEon
• Reduces corporate tax • Required to distribute 90% of taxable income to investors
OperaEons Thesis Points Stock AcEvity VAR MispercepEons Risk
• Price: $55.05 • Market Cap: 21.80 B • P/E: 57.68 • EPS: 0.96 • 52 week range: 45.85 -‐
56.84
AMT Stock Performance
OperaEons Thesis Points Stock AcEvity VAR MispercepEons Risk
• Beta: 0.62 • OperaEng Margin: 38.76%
(vs. 11.34%) • Profit Margin: 17.29% • EBITDA: 766,206,000
AMT vs. S&P 500 (since March 1997)
AMT
S&P 500
Misperceptions
OperaEons Thesis Points Stock AcEvity VAR MispercepEons Risk
• Towers are a fading star within telecom • AMT is vulnerable to data regulaEons
VAR
OperaEons Thesis Points Stock AcEvity VAR MispercepEons Risk
• “Towers are necessary and are most cost-‐effecEve for transporEng data. They are preferred, but rather than being replaced, they are being complemented by new and more efficient technologies”
Fiona McKone VP of Finance and Investor RelaEons
Crown Castle InternaEonal
Risk
OperaEons Thesis Points Stock AcEvity VAR MispercepEons Risk
• AT&T / T-‐Mobile merger • InternaEonal exchange rates & regulaEons • Nature of long-‐term contracts assumes financial viability of customers
Questions?