Gustavo Campos

Gustavo Campos asked for details on the debt reduction plan, including prioritization within the capital structure and the use of proceeds from a recent local bond issuance. He also inquired about the oil breakeven estimate after hedging and what percentage of Synfuels production is hedged for FY26 and FY27.

Answer

CFO Walt Bruns explained that deleveraging is the top priority, with excess cash being used to pay down the Revolving Credit Facility (RCF). He confirmed a ZAR 5.3 billion bond was issued in July to diversify funding. The reported $59/bbl breakeven was pre-hedging. For FY26, approximately 60% of the Energy business's production is hedged, and the FY27 hedging program has just commenced.

Gustavo Campos from Jefferies asked if the company has a total debt target for the end of the year and how the geographic mix of EBITDA is expected to evolve over the medium term.

Answer

EVP & CFO Steve Howden responded that there is no specific total debt target; the focus remains on achieving the net leverage target of approximately 3x. He added that the future EBITDA mix by geography is dependent on potential future disposals and that previous targets are being re-evaluated in light of current strategic priorities like profitability and cash flow.

Gustavo Campos asked if any FX reset 'catch-up' effect remains in Nigeria, requested details on the Rwanda sale proceeds and EBITDA, questioned the future of the asset sale target, and asked about the cause of MLA reductions in Nigeria.

Answer

CFO Steve Howden clarified that Nigerian FX resets are current with no 'catch-up' effect. He stated the Rwanda sale will yield approximately $274.5 million in all-cash proceeds from a debt-free entity that generated 'high 30s' million in LTM EBITDA. CEO Sam Darwish and CFO Steve Howden noted that while they've hit the low end of their disposal target, they will remain opportunistic. The Nigerian tenancy reduction was attributed solely to the planned churn of 1,050 sites by MTN.

Gustavo Campos of Jefferies sought confirmation of the $0.5 billion to $1 billion asset disposal target, asking if it represented proceeds or enterprise value. He also inquired about year-end debt targets, potential bond tenders, and the working capital outlook for 2025.

Answer

CFO Steve Howden confirmed the asset sale target represents proceeds to be received and that the primary deleveraging goal is to reach the lower half of the 3x-4x leverage range. He also projected a flat-to-positive working capital result for 2025. CEO Sam Darwish added that recent asset sales highlight the company's valuation disconnect with public markets.

Gustavo Finatti Campos questioned how Turkcell plans to maintain its EBITDA margin amid potential declines in consumer purchasing power and competitive pressures. He also asked for a breakdown of the 2025 CapEx plan and the strategy for the upcoming Eurobond maturity.

Answer

CFO Kamil Kalyon emphasized Turkcell's history of disciplined cost management alongside growth, noting the margin expansion in 2024. CEO Ali Koç added that the diversified revenue portfolio across telco, Techfin, and data centers supports stability. Mr. Kalyon detailed the CapEx plan, with 65% allocated to core mobile and fixed infrastructure. He also confirmed the January $1 billion Eurobond issuance was intended to refinance the bond maturing in October 2025.

Gustavo Campos of Jefferies asked for a review of the mobile contract structure, specifically regarding tenor and CPI adjustments. He also sought to confirm if refinancing the 2025 Eurobond is the company's base case and inquired about the future direction of net leverage.

Answer

Executive Ali Koç clarified that postpaid contracts are for a 12-month period and that two price increases in the year (February and July) resulted in a year-over-year increase of around 90%. CFO Kamil Kalyon confirmed the company plans to be in the market to refinance the Eurobond. He stated that the current net leverage of 0.6x is low and expects to maintain these levels, supported by cash from the Ukraine sale and a careful financing structure.