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?