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Introduction to the
Tower Industry & American Tower
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Forward Looking Statements
SAFE HARBOR STATEMENT UNDER THEPRIVATE SECURITIES LITIGATION REFORM ACT OF 1995
This presentation contains forward-looking statements concerning our goals, beliefs,strategies, future operating results and underlying assumptions. Actual results maydiffer materially from those indicated by these forward-looking statements as aresult of various important factors, including those described in Item 1A of our SECForm 10-K for the year ended December 31, 2010 under the caption Risk Factorsand other filings we make with the SEC. We undertake no obligation to updatethe information contained in this presentation to reflect subsequently occurring
events or circumstances. Definitions are provided at the end of the presentation andreconciliations to GAAP measures are available on our website atwww.americantower.com.
Disclaimer
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1 The Tower Asset 1
Wireless Tower Basics 2
Types of Towers 3
Typical Tower Components 4
Sample Ownership Distribution 6
2 The Business Model 7
Recurring Long-Term Revenue Stream 8
Fixed-Cost, Long-Term Ground Interests 9
Low Ongoing Capital Requirements 10
Accommodating Additional Tenants 11
Sample Tower Leasing Scenarios 12
Sample Tower Economics U.S. 13
Tower Economics International 14
Business Model Summary 15
3 Industry & Technology Overview 16
What is a Cell Site? 17
Spectrum Tutorial 18
Spectrum Related to Network Structure 19
Narrowing Cell Radius 20
Growing Tower Demand 21
Carrier Preference for Tower Sites 22
4 Drivers of Demand 23
Highlights 24
Carrier Lease-Build Decision 25
Tower Economics 26
U.S. Wireless Industry Trends 27
U.S. Carrier Operating Performance 28
Market Diversification Fuels Ongoing Demand 29
Demand Driver: U.S. Smartphone & Connected Device Growth 30
4G Technology Migration 31
5 American Tower Overview 32
Who is American Tower? 33Long-Term Strategy 34
Customer Base 35
Revenue Overview 36
Consistent Revenue Growth 37
Capital Expense Profile 38
Commitment to Secure Real Estate U.S. 39
Consistent Adjusted EBITDA Growth 40
Cash Flow Based Returns 41
International Expansion 42
Growing Asset Base 43
Global Investment Opportunities 44
Global Expansion Considerations 45
Balance Sheet Prudence 46
The American Tower Difference 47
Executive Team 48
Summary 49
A Appendix 50
Straight-Line Revenue & Expense Example 51
Definitions 52American Tower Contacts 53
Introduction to the Tower Industry & American Tower | Contents
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1 The Tower Asset
2 The Business Model
3 Industry & Technology Overview
4
Drivers of Demand5 American Tower Overview
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What is a tower?
A vertical structure built on a small parcel of land, designed to accommodatemultiple wireless tenants
Our tenants utilize many different technologies, including: telephony, mobiledata, broadcast television and radio, and paging
Wireless tenants lease vertical space on the tower and portions of the landunderneath for their equipment
What is found at the tower site?
Tower company typically owns or leases under a long term contract:
Tower structure
Ground interest (fee simple or lease)
Wireless tenant typically owns and operates:
Equipment, including the antenna array, antenna, coaxial cablesand base stations
Equipment shelters
Wireless Tower Basics
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Monopole
100 200 feet Typical use: telephony
Lattice
200 400 feet Also called self-support
Typical use: telephony
Guyed
200 2,000 feet Typical use: television and
radio broadcasting, paging andtelephony
Stealth
Range in size Generally used to maintain
aesthetic quality of area wheretower is built
Particularly useful in areas withstrict zoning regulations
Types of Towers
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1. WHIP ANTENNA
A stiff, monopole antenna, usually mounted vertically.2. ANTENNA ARRAY
A platform (typically three sided) where tenants placeequipment to provide signal transmission and reception toa specific area. The number of antennas necessary per arrayis determined based on a number of factors including:
the number of active subscribers;
the volume and type of network usage by subscribers
(e.g.: average minutes of use, voice versus data); the technology being used (e.g.: CDMA, GSM, LTE,
WiMAX);
the type of spectrum currently utilized by the tenant.
3. PORT HOLES
Holes cut into the base and top of tower to allowcables and wiring to pass through the towerstructure, from the base station to the antennas.
4. PANEL/ANTENNA
Customer equipment which transmits a signal fromthe tower to a mobile device, or vice versa.
5. MICROWAVE DISH
A specific type of antenna, which is used in point-to-point radio, television and data communications. Alsocommonly used by wireless carriers for backhaul.
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Typical Tower Components
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6. COAXIAL CABLING
Transmission lines which carry the signal received fromthe antenna to the base-station, or vice versa.
7. REINFORCEMENT BARS
Threaded anchors which are used to reinforce tower sites toadd additional capacity to accommodate further tenants.
8. SHELTERS
Buildings at cell sites used by our tenants to house communications,radio and network equipment. Some shelters are designed to be stacked
on top of one another to conserve space at smaller tower sites.9. GENERATOR
Gas or diesel powered generators provide emergency backuppower to keep cell sites operational during power outages.
10. GROUND SPACE
The area within a tower site where carriers lease space fromthe tower company to place their shelters and generators.
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Typical Tower Components (CONTINUED)
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Owned by Tenants
Antenna equipment, including microwave equipment
Tenant shelters containing base-station equipment and HVAC, which tenantsown, operate and maintain
Coaxial cable
Owned by American Tower Tower structure owned by American Tower tower sites are generally
constructed with the capacity for ~4-5 tenants
Land parcel owned or operated pursuant to a long-term lease by American Tower
AMT
AMT
AMT
TEN
TEN
TEN
TEN
TEN
TEN
TEN
Sample Ownership Distribution
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1 The Tower Asset
2 The Business Model
3 Industry & Technology Overview
4
Drivers of Demand5 American Tower Overview
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Rental charges are typically based on location, leased vertical space on the
tower, weight placed on tower from equipment and coax lines and
square footage leased on the ground.
Revenues (1)
SOURCES
Multiple tenants lease vertical space on the tower and portions of the ground fortheir wireless communications equipment
LONG-TERM CUSTOMER LEASES
Contracts are typically non-cancellable
Typical contract terms include an initial term of 5 to 10 years with multiple
5-year renewal periods
Annual lease escalators in the U.S. of approximately 3.5%
Escalations in international operations are typically based on local inflation rates
Historically low annual churn of less than 2%
Global Tenant Lease Renewal Schedule (1)
% OF TOTAL LEASES DUE FOR RENEWAL WITHIN 5 YEAR PERIOD
(1) Characteristics as of the year ended December 31, 2010.
5%7%
9%8%
13%
2011 2012 2013 2014 2015
Recurring Long-Term Revenue Stream
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Direct Cost of Operations (1)
SOURCES
Ground rent
Monitoring
Insurance
Real estate taxes
Utilities
Site maintenance
LAND LEASE ATTRIBUTES
Long term: average remaining ground lease term is approximately22 years until final maturity in the U.S.
Annual lease escalators in the U.S. of approximately 3%; and international aretypically based on local inflation rates
Selectively purchasing land interests where return hurdles are met
PASS THROUGH
Our international markets typically pass through a portion of their operatingexpenses to the tenant (e.g.: ground rent, fuel)
FIXED COST STRUCTURE OF TOWERS
Accommodating additional tenants requires minimaladditional operating costs
(1) Characteristics as of the year ended December 31, 2010.
Fixed-Cost, Long-Term Ground Interests
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Capital Expenditures (1)
MINIMAL MAINTENANCE CAPEX REQUIREMENTS
Examples include: lighting system and fence repair, ground upkeep
U.S. historical average: approximately $1,500 per year, per site
International historical average: approximately $500 per year, per site
2010 spending of approximately $31 million (2)
AUGMENTATION CAPEX
Capital spending to increase capacity of tower site, including height extension,foundation strengthening, extension of ground space, etc.
2010 spending of approximately $26 million (2)
2011 augmentation capex expected to be approximately $55 million (2)
Investment payback period is typically one to two years
Cost typically shared with tenant
CORPORATE CAPEX
Capital spending, primarily on IT infrastructure
2010 spending of approximately $12 million (2)
(1) Characteristics as of the year ended December 31, 2010.
(2) As reported on our Form 8-K, filed on February 23, 2011.
Low Ongoing Capital Requirements
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Augmentation Capex Examples
1. HEIGHT EXTENSION
Allows for more equipment and more wireless tenants
2. MULTIPLE ANTENNA MOUNTING SCENARIOS
Options include whips, panels, microwaves and various combinationsdetermined by internal RF engineering
3. PORT HOLE ADDITIONS
Additional entry and exit port designs accommodate additional coaxial cables
4. TOWER REINFORCEMENTS
Adds structural strength to accommodate additional tenants
5. STRENGTHENED FOUNDATION
Increases load capacity of the tower
6. SHARED GENERATOR
Provided by American Tower, maximizes compound space
7. STACKED SHELTERS
Shelter stacked atop an existing shelter using a steel platform
8. EXTENDED GROUND SPACE
Where space allows, expanded to accommodate more equipment
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Accommodating Additional Tenants
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One Tenant Two Tenants Three Tenants
Adding additional tenants, equipment and upgradesyields additional revenue, while costs stay relatively flat.
Sample Tower Leasing Scenarios
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One Tenant Two Tenants Three Tenants
Construction/Upgrade Costs($ in USD)
$225,000
Tenant Revenue $20,000 $40,000 $60,000
Operating Expenses(incl. ground rent, utility, monitor)
$12,000 $13,000 $14,000
Gross Margin $8,000 $27,000 $46,000
Gross Margin (%) 40% 68% 77%
Gross Margin Conversion Rate 95% 95%
Return on Investment (2) 4% 12% 20%
(1 ) For i ll us tra tiv e purposes onl y. D oes not reflect any A merican Tower financ ia l dat a. ( 2) Cal cu la ted a s G ro ss M arg in d iv ided by Constr uc ti on /U pg rade Cos ts .
Sample Tower Economics U.S. (1)
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Latin America
Construction cost: approximately $125-$175k per tower
Pass through land rent to our customers
Low additional operating expenses, beyond land rent
Escalators based on local inflation
Contracts denominated in local currency
India
Construction cost: approximately $40-$60k per tower
Low land rent costs
Pass through fuel costs to our customers (associated with back-up generators)
Additional operating expense for security
Contracts denominated in local currency
International build-to-suit and acquisition target returns: mid to high teen IRRs
Tower Economics International
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Several factors contribute to the
success of the tower business model Secure assets
Strong recurring cash flow characteristics
Long-term revenue
Strong contracted revenue backlog
Embedded contractual escalators
High incremental cash flow margins
Low maintenance capex
Financially strong customer base
Economics of scale
Replicate systems and processes to new markets
Ability to add additional assets to existing markets without a need forsignificant increase in overhead
Barriers to entry
Location-based business, often with zoning restrictions
High cost to build meaningful scale
Consistent demand
$20-25 billion in annual capex plans from U.S. service providers (1)
Demand from new technology overlays (e.g.: LTE)
International demand driven by
Continued deployment of voice and introductory data networks
Spectrum auctions and new market entrants
Demand from new technology overlays (e.g.: 3G and WiMAX)
(1) Source: Wall Street Research.
Business Model Summary
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1 The Tower Asset
2 The Business Model
3 Industry & Technology Overview
4
Drivers of Demand5 American Tower Overview
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A cell site can be located on a tower site or alternative structures, such as: rooftops, water towers, church steeples, etc.
One single tower site can support multiple carriers cell sites through collocation
A cell site is an area within a carriers wireless network, which is serviced by an antenna array.
Cell Site
n Antenna location
n Geographic area covered by antenna array
Cell Site Network
A carriers coverage area is dependent upon the capacity of its equipmentand the frequency of the signal being transmitted.
What is a Cell Site?
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Lower frequency spectrum + Higher power = Broader signal propagation
(1) For illustrative purposes only and does not reflect American Tower data.
700 MHZ
2.5 GHZ
POWER
High
Low
Spectrum Tutorial (1)
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As data usage increases, it places greater demands on cell site networks. As a result,networks become overburdened and carriers must split cell sites to meet subscriber demand.
Network Structure For Voice Deficiencies in Existing NetworkStructure as a Result of Data Usage
NETWORK NEEDS CELL-SPLITTING
TRENDS
Smartphonepenetration doubles
Bandwidth ofapplications increases
Spectrum Related to Network Structure
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Signal Strength Curve
As the market migrates toward 4G, the increasing demand for advanced applicationsand higher quality of service result in a narrower range at which signals can betransmitted. As a result, carriers will need to invest in denser networks.
PROLIFERATIONOFADVANC
EDWIRELESSHANDSETS
ACCEPTABLESIGNALINTERFERENCE
Cell Radius 3
Cell Radius 2
Cell Radius 1
DISTANCEMORE
LESS
Narrowing Cell Radius
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NETWORK DESIGNED FOR
INITIAL VOICE AND 3G SERVICES
Quality of voice services on the rise
Smartphones introduced to the market
AS DATA USAGE RISES, THE
EXISTING NETWORK STRUCTUREPROVES DEFICIENT FOR DATASIGNAL PROPAGATION
Smartphone penetration on the rise
New smartphone handsets introduced
BUILDING NEW CELL SITES IS
THEREFORE REQUIRED TO CREATEADEQUATE COVERAGE FORSEAMLESS DATA USAGE
Carriers consistently invest in networksto meet growing demand
The result: growing demand for towers to meet the requirements of increased data usage
Original Cell Site New Cell Site
Growing Tower Demand
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Technology Capability
Population Coverage Area Wide Narrow
Satellite Tower Site DAS Network Wifi Femtocell
Mobility
Uses Licensed Spectrum
Low Latency
Tower sites continue to be our customers number one preference, as they providethe most technologically efficient and cost-effective option.
Carrier Preference for Tower Sites
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1 The Tower Asset
2 The Business Model
3 Industry & Technology Overview
4
Drivers of Demand5 American Tower Overview
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Affordability of the leasing model
More cost-effective for carriers to lease rather than build their own towers
Time-to-market advantages
Increasing demands on networks from existing data users
Increasing penetration of data devices
Highlights
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Significant economic incentive exists for carriers to choose a collocation model over building their own site
Significant time to market advantage from leasing space on an existing tower site Building a site may involve years of work to secure ground interests and zoning approvals
An Example
PRESENT VALUE OF CARRIER NETWORK BUILD-OUT ALTERNATIVES
Term Carrier Build Tower Lease Savings
5 years $286,638 $89,575 $197,062
10 years $333,079 $158,720 $174,359
15 years $368,070 $212,094 $155,976
20 years $394,433 $253,293 $141,140
CARRIER BUILD SCENARIO
$225,000 construction cost, $1,250 monthly operating expenses with 3% annual escalator, 9% Weighted Average Cost of Capital (WACC)
TOWER LEASE SCENARIO
$1,800 monthly lease with 3.5% annual escalator, 9% WACC
(1) For illustrative purposes only and does not reflect American Tower financial data.
Carrier Lease-Build Decision (1)
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U.S. Connections Per Cell Site (2) (3) Carrier Cell Site Economics
(1) For illustrative purposes only and does not reflect American Tower financial data.
(2) Source: CTIA Semi-Annual Wireless Industry Survey.
(3) Connections is defined as any device whose signal is sent and received over a wireless network. It includes phones,
smartphones, wireless data cards, laptop wireless modem cards, etc. Any one subscriber may have multiple connections.
Minor cost of leasing for carrier + Cost and engineering complexity of moving a cell site =Continued tower demand and low annual churn
1,0501,007 1,010 974
1,037
1,1321,191 1,197
1,1161,156
0
200
400
600
800
1000
1200
1400
2000 2001 2002 2003 2004 2005 2006 2007 2008 2009
U.S. LEASE COST PER TOWER
CARRIER REVENUE PER CELL SITE
$1,800 per month (1)
$55,673 per month2009 Average monthly wireless bill: $48.16 (2)
X 2009 Average connections per cell site: 1,156 (2) =
Tower Economics (1)
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Spectrum auctions + Introduction of new handsets + Next generation network upgrades
= $20-25 billion of annual carrier capexStrong demand for future towers
(1) Source: Wall Street Research.
U.S.CARRIERCAPEX
(1)
($INBILLIONS)
PCS Auctions1.9 GHz
AWS Auction1.7-2.1 GHz
700 MHzAuction
$0
$5
$10
$15
$20
$25
$30
2011E20102009200820072006200520042003200220012000
2G
3G 3.5G
4G
U.S. Wireless Industry Trends
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With wireless carrier service revenues and adjusted EBITDA expected to increase,
current levels of capital expenditures become more sustainable.
(1) Source: Wall Street Research.
Service Revenue (in billions)
Adjusted EBITDA as % of Service Revenue
Capex as % of Service Revenue
U.S. Carrier Operating Performance (1)
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Domestic
Mature wireless market
Rising smartphone penetration,with data expected to make upapproximately 40% of servicerevenues by year end 2012 (1)
Carriers are focused aggressivelyon investment in data networks
International
BRAZIL CHILE COLOMBIA GHANA INDIA MEXICO PERU SOUTH AFRICA
Recent Spectrum Auctions
Brazil: NII Holdings a top winner
Chile: nationwide 3G network build outexpected over next few years
Colombia: expected future build out ofnew mobile broadband network
Mexico: Telefnica and NII Holdings weretop winners
India: spectrum will be utilized tocontinue the deployment of voice andinitial data networks
India
Rapidly growing wireless market, with subscriber growthexpected to be approximately 52% over the next two years(1)
Peru
Spectrum auction possible in 2011, which we expect wouldresult in investment in data networks
South Africa
Mature wireless market carriers focused on building outdata networks
Ghana
Growing wireless market carriers focused on improving thequality and coverage of voice networks
Increased data
adoption and use+
Spectrum
auctions+
Growing
subscriber bases=
Future growth in
tower demand
(1) Source: Wall Street Research.
Market Diversification Fuels Ongoing Demand
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Smartphone & Connected Devices(1)Projections
SMARTPHONE USERS EXPECTED TO SURPASS 100M IN 2011
2010 Data Usage by Device
(MB/MONTH)
(1) Connected Devices include netbooks, laptops and tablets with embedded modems, USB modems, e-readers, portable gaming consoles, digital picture frames, portable navigation devices, MPS players and digital cameras.
Source: Altman Vilandrie and Company analysis, SNL Kagan Economics of Mobile Programming 2011, Cisco VNI Mobile 2011, Strategy Analytics, eMarketer, IDC.
UNITS(INMILLIONS)
3.379
405
1708
Feature Phones Smartphones Tablets Laptops/Netbooks
Connected Devices
24X FEATURE PHONES
123X FEATURE PHONES
518X FEATURE PHONES
19
33
61
91
122
157
190
1317
43
80
138
202
2007 2008 2009 2010E 2011E 2012E 2013E
# of Smartphones # of Connected Devices
Demand Driver: U.S. Smartphone & Connected Device Growth
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4G subscriber migration and usage will drive future demand for cell site leasing.
Current
Initial network overlay
Antenna and base station investment
Limited deployment to introduce4G to users
2-5 Years
Overlay network and fill in coveragegaps based on usage trends
Urban investment first, suburbandeployment follows
5-10 Years
Full network migration
Deploy 4G across all cell sites
Fill in sites needed based onusage trends
4G Technology Migration
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1 The Tower Asset
2 The Business Model
3 Industry & Technology Overview
4
Drivers of Demand
5 American Tower Overview
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1995 2000 2005 2010
1999
American Towerenters Mexico
2000
American Tower
enters Brazil
2005
Merger in the U.S.with SpectraSite, Inc.
2007
American Tower
enters India
2010
American Towerenters Chile,Colombia, Ghana,Peru & South Africa
Continued U.S. and International market expansion through acquisition and new site construction
Global headquarters located in Boston, Massachusetts
Global portfolio includes over 35,000 owned sites
American Tower (NYSE: AMT) is a leading independent owner,
operator and developer of broadcast and wireless communications sites.
Who is American Tower?
Tower Count
U.S. International0
5,500
11,000
16,500
22,000
1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010
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American Tower remains focused on
driving return on invested capital.
Long-Term Strategy
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American Towers customer base includes the leading wireless carriersin the U.S. as well as those in our international markets.
Tower Revenue by Customer (1)
(1) Characteristics as of the year ended December 31, 2010. (2) Domestic Other consists of government agencies, microwave backhaul providers and other wireless applications.
Domestic Big 4
Domestic Voice & Data
Domestic Broadcasters
Domestic Other (2)
International
22%
3%
4%
12%
AT&T22%
Sprint15%
Verizon14%
T-Mobile8%
Customer Base
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Distribution & Revenue by Market(1)
COMMUNICATIONSITES BY MARKET
Domestic WirelessDomestic ServicesMexicoBrazilChile,Colombia, PeruIndia
TOTAL REVENUEBY MARKET
Domestic WirelessDomestic ServicesMexicoBrazilChile,Colombia, PeruIndia
Revenue Backlog(1)
($ BILLIONS)
(1) Characteristics as of the year ended December 31, 2010.
Increasing diversificationinto international markets
Long-term contracts producesignificant revenue backlog
Non-cancellable revenuebacklog is equivalent toalmost 7x our annual rental &management segment revenue
$13.5
$1.9
Revenue Backlog as of 12/31/10 2010 Rental & Management Revenue
77%
2%
8%
5%
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Total Rental & Management Revenue
($ MILLIONS)
Strong core performance and growing international presencelead to continued growth in revenue.
$1,294
$1,936
2006 2007 2008 2009 2010
10.6%CAGR
Consistent Revenue Growth
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Capital is primarily allocated to discretionary projects in both the U.S. and our international markets
Recurring capex remains relatively low
Global Capital Expenditure Breakdown (1)
(1) Profiles as of the year ended December 31, 2010.
Recurring
Discretionary
56%24%
8%
9% 3%Capital Projects
Ground Lease Purchases
Redevelopment
Capital Improvements
Corporate
Capital Expense Profile
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U.S. Land Lease Characteristics(1)
Over 24% of the land under our U.S. towers is owned or operated under acapital lease
The remainder of our towers are on land subject to an operating lease
Highly fragmented landlords
Approximately 96% of landlords own only a single ground lease
Maximum ownership for one landlord is approximately2.0% of total ground leases
U.S. Ground Lease Renewal Schedule
(1)
U.S. Land Ownership by Vendor Type(1)
Individuals U.S. Government Aggregators Other (2)
(1) Characteristics as of the year ended December 31, 2010. (2) Other includes schools, colleges, universities, railway companies, etc.
Long-term leases + Successful renewal rates + Diversified land sources = Secure real estate
88%
7%4%
1%
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Adjusted EBITDA(1)
($ MILLIONS)
(1) Definitions are provided at the end of this presentation and reconciliations to GAAP measures can be found at www.americantower.com.
Strong core performance, maintaining industry leading margins.
2006 2007 2008 2009 2010
$868
$1,348
11.6%CAGR
Consistent Adjusted EBITDA Growth
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Recurring Free Cash Flow(2)
($ MILLIONS, EXCEPT PER SHARE AMOUNTS)
Return on Invested Capital(2)
$598
$919
(1) As outlined in our form 8-K filed on February 23, 2011.
(2) Definitions are provided at the end of this presentation and reconciliations to GAAP measures can be found at www.americantower.com.
(3) Last quarter Adjusted EBITDA less improvement and corporate capital expenditures annualized divided by gross property, plant and equipment, goodwill and intangible assets as of the year ended December 31, 2010.
Strong operational results and disciplined investments continue to support RFCF & ROIC growth.
200bpsincrease
15.4%CAGR,17.2%
pershareCAGR
2007 2008 2009 2010
RFCF/Share(2) $1.41 $2.27
2007 2008 2009 2010 4Q10 (3)
9.3%
11.3%
Cash Flow Based Returns(1)
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Recent Announcements
SOUTH AFRICA March 2011: the Company completed its purchase of 959 existing towers
through its local South African subsidiary from Cell C (Pty) Limited(Cell C) for an aggregate purchase price of approximately $150 million.
Pursuant to the agreement with Cell C, the Company expects to acquireapproximately 400 additional existing towers during 2011 for an aggregate purchaseprice of approximately $60 million, subject to customary closing conditions.
The Company may also acquire up to an additional 1,800 towers that are eithercurrently under construction or are expected to be constructed over the next oneto two years for an aggregate purchase price of up to approximately $230 million.
GHANA
December 2010: the Company entered into a definitive agreement withMTN Group Limited to establish a joint venture in Ghana, of which theCompany will own a 51% share through a wholly owned subsidiary.
Pursuant to the agreement, the joint venture expects to purchase a total of up to1,876 existing towers from MTN in various tranches throughout 2011 and early 2012.The Companys investment in the joint venture will be approximately $220 million.
The joint venture closed an initial tranche of 400 towers in early May.
The joint venture expects to close approximately 500 additional towers in the thirdquarter of 2011 and the remaining balance of approximately 976 towers in thefourth quarter of 2011 and early 2012, subject to customary closing conditions.
Over 37,000 Sites Worldwide(1)
UNITED STATES 21,241
INDIA 7,928
MEXICO 2,853
BRAZIL 2,351
COLOMBIA 1,124
PERU 475
CHILE 253
SOUTH AFRICA 959
(1) Current site count as of March 31, 2011.
International Expansion
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2011 Outlook(1)
CHILE (VTR)Completed acquisition of 140 sites from VTR in Q1 2011
SOUTH AFRICA (CELL C)
Expect to close on initial 960 sites for approximately $140 million by end of Q1 2011
2011 PF(2)
SOUTH AFRICA (CELL C)
Up to an additional 440 existing towers expected to close during 2011
GHANA (JOINT VENTURE WITH MTN)
Expect to close on initial tranche of towers in the first half of 2011
CHILE & COLOMBIA (TELEFNICA)
Up to approximately 350 remaining sites expected to close during 2011
BRAZIL
Expect to purchase approximately 565 sites during Q1 2011
Site Count
(IN THOUSANDS)
2009 2010 2011 Outlook (1) 2011 PF (2)
Domestic International
(1) Reflects midpoint of 2011 outlook for new site construction, the VTR acquisition and the initial tranche of Cell C towers, as outlined in our form 8-K filed on February 23, 2011.
(2) Includes towers in 2011 outlook and all announced acquisitions expected to close in 2011, as outlined in our form 8-K filed on February 23, 2011.
19.8 21.2 21.6 21.6
6.8
13.916.0
18.8
Growing Asset Base
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Wireless Market Penetration(1)
EMERGING ESTABLISHED MATURE
(1) Source: Wall Street Research .
Focused on identifying compelling tower asset investment opportunities globally
AMT operations Currently no AMT operations
0%
20%
40%
60%
80%
100%
120%
140%
160%
180%
Bangladesh
Nigeria
India
Pakistan
China
Indonesia
Canada
Ghana
Peru
Mexico
Egypt
Morocco
Colombia
Philippines
Turkey
Japan
US
SouthAfrica
Brazil
Thailand
France
Korea
Malaysia
Taiwan
Hungary
Ireland
Chile
Denmark
Poland
Spain
Ukraine
Australia
Argentina
UK
C
zechRepublic
Israel
Germany
HongKong
Singapore
Italy
Russia
Finland
Greece
Global Investment Opportunities
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Three Pillar Analysis Approach to New Market Expansion
COUNTRY
Political stability
Solid macro-economic fundamentals
Business environment
Property rights
Regulatory environment
WIRELESS MARKET
Competitive wireless market
3+ wireless carriers
Stage of wireless maturity
Voice penetration
Data network deployments
OPPORTUNITY/COUNTERPARTY
Build-to-suit, merger, acquisition or joint venture
Evaluate options based on their economicbenefits as well as structure
Future potential investment/expansionwithin region
Global Expansion Considerations
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(1) Excludes approximately $46.3 million of other debt, which is comprised primarily of capital leases, and $72.9 million of
international subsidiary debt.
(2) Definitions are provided at the end of this presentation.
12.31.10 Pro Forma(1)
($ MILLIONS)
APPROXIMATELY $1.8 BILLIONOF TOTAL LIQUIDITY(1)
Net Leverage Ratio(2) Interest Expense
($ MILLIONS)
Interest Coverage Ratio(2)
$625
$1,750
$600 $500
$1,000
$300
$700
2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020
Bank Debt Securitization Senior Notes
$236
$254 $250 $246
2007 2008 2009 2010
4.2x4.3x
4.7x
5.5x
2007 2008 2009 2010
3.8x
4.3x
3.4x 3.5x
2007 2008 2009 2010
Balance Sheet Prudence
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Our Vision
To be the premier infrastructure provider in the eyes of our employees, customersand communities, enabling the deployment of advanced services that make wirelesscommunication possible everywhere.
Our Mission
Create a customer-focused team environment where employeesare respected and innovation is a state of mind.
Deliver the highest level of customer service whileproviding safe, compliant and quality tower sites.
Exceed yearly performance goals to create enduring success.
Pursue meaningful opportunities to grow and strengthen the company.
Diversity Statement
We firmly believe that what makes us different, also makes us stronger. Diversity atAmerican Tower is not just a statement or a program. Our philosophy of inclusion influenceshow we relate to each other, how we manage our company and how we serve ourcustomers. Above all, its about respect and what each employee brings to American Tower.
Each of us is unique. Our employees represent a diverse team of industry veterans,seasoned professionals and new team members with fresh ideas and differentperspectives. Starting at the top and working down through every level of the organization,we all work to ensure our workplace is free from discrimination and intolerance.
At American Tower, we celebrate the diverse talent and skills of these team members,provide equal access to growth and advancement and treat each other with respect.
Our Core Principles
UNDERSTAND OUR CUSTOMERS NEEDS AND SATISFY THEM Work as a team to build lasting customer relationships by understanding
their requirements and exceeding their expectations.
HIRE GOOD PEOPLE AND EMPOWER THEM
Place the right people in the right positions, develop their talent andskills and provide opportunities for them to influence outcomes.
FOCUS ON SOLUTIONS, NOT PROBLEMS
Begin with the end in mind and involve the right people.Stay positive and work together for desired results.
DO WHAT WE SAY WERE GOING TO DO
Set realistic expectations. Communicate clearly.Be accountable for your actions.
HAVE FUN
Recognize our success, celebrate together andcontribute to a positive work environment.
PLAY TO WIN Put integrity first. Be competitive. Work together
as a team to exceed expectations.
The American Tower Difference
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JAMES TAICLET
Chief Executive Officer
TOM BARTLETT
Chief Financial Officer
ED DISANTO
Executive Vice President,Chief Administrative Officer andGeneral Counsel
HAL HESS
Executive Vice President,International Operations andPresident, Latin America and EMEA
STEVEN MARSHALL
Executive Vice Presidentand President, U.S. Tower Division
AMIT SHARMA
Executive Vice Presidentand President, Asia
Executive Team
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Resilient business model, even in uncertain economic environments
Wireless industry continues to invest in substantial network development High visibility to drivers of revenue and profitability for 2011 and beyond
Significant capacity to invest to fuel strong future growth
Continued benefit from the strength of its free cash flow generation and solid balance sheet
Summary
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A Appendix
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Straight-Line Revenue
ASSUMPTIONS:Monthly lease rate: $1,800Annual escalator: 3.5%Initial term: 10 yearsRenewal terms: 3, 5 year
Straight-Line Expense
ASSUMPTIONS:Monthly ground rent expense: $750Annual escalator: 3%Initial term: 10 yearsRenewal terms: 4, 5 year
(1) For illustrative purposes only. Does not reflect American Tower financial data.
REVENUE IS STRAIGHT-LINED OVERTHE INITIAL AND CURRENT TERM
EXPENSE IS STRAIGHT-LINEDOVER THE FULL TERM
Variance represents non-cash revenue.
1 25
Cash GAAP
1 30
Cash GAAP
Straight-Line Revenue & Expense Example (1)
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ADJUSTED EBITDA
Operating income before depreciation, amortization and accretion, other
operating expenses, and stock-based compensation expense, plus interestincome, TV Azteca, net.
FREE CASH FLOW
Cash provided by operating activities less payments for purchase of property andequipment and construction activities.
INTEREST COVERAGE RATIO Adjusted EBITDA divided by interest expense.
NET DEBT
Total long-term obligations, including current portion, less cash and cashequivalents.
NET LEVERAGE Net Debt divided by annual Adjusted EBITDA.
RECURRING FREE CASH FLOW
Adjusted EBITDA before straight-line revenue and expense, plus interest income,
less interest expense, cash paid for income taxes and cash payments related toredevelopment, capital improvement and corporate capital expenditures.
RECURRING FREE CASH FLOW PER SHARE
Recurring Free Cash Flow divided by the diluted weighted average commonshares outstanding.
RETURN ON INVESTED CAPITAL Adjusted EBITDA less improvement and corporate capital spending divided by
gross PPE, goodwill and intangible assets.
Definitions
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American Tower Contacts
CORPORATE HEADQUARTERS116 Huntington Avenue
Boston, MA 02116
Phone: 617-375-7500
Fax: 617-375-7575
INVESTOR RELATIONS CONTACT
Leah C. Stearns
Director, Investor Relations
E-mail: [email protected]
Transfer Agent
THE BANK OF NEW YORK MELLON
Shareholder Relations Department - 12E
P.O. Box 11258Church Street Station
New York, NY 10286
Phone: (866) 201-5087
General inquiries: Stephen Jones
American Tower Contacts