Millicom International Cellular S.a. · NASDAQ:TIGO
Millicom International Cellular — Merger or Acquisition (February 2019)
21 slides from Millicom International Cellular's merger presentation, Feb 20, 2019
Slide 1: Millicom adds mobile to cable footprint in Central America
Millicom adds mobile to cable footprint in Central America Acquisition of Telefónica Assets in Panama, Costa Rica and Nicaragua February 20th 2019 1
Slide 2: Safe Harbor
Safe Harbor Cautionary Language Concerning Forward-Looking Statements Statements included herein that are not historical facts, including without limitation statements concerning future strategy, plans, objectives, expectations and intentions, projected financial results, liquidity, growth and prosp
Slide 3: Non IFRS measures
Non IFRS measures This presentation contains financial measures for Millicom not prepared in accordance with IFRS. These measures are referred to as “non-IFRS” measures and include: non-IFRS service revenue, non-IFRS EBITDA, and non-IFRS Capex, among others defined below. Annual growth rates for the
Slide 4: Certain financial data
Certain financial data Financial Data for Telefonica businesses The financial data for the Telefonica businesses that are included in this presentation are derived from unaudited standalone financial statements prepared by Telefonica for each of the Panama, Costa Rica and Nicaragua businesses. Such
Slide 5: In Summary
In Summary Millicom to acquire Telefónica’s telecom operations in Panama, Costa Rica and Nicaragua Leading mobile player in Panama, Costa Rica and Nicaragua In-market consolidation: adds mobile to Millicom’s existing cable operations in these three countries completing the footprint Accelerates fixe
Slide 6: Strong Strategic and Financial Rationale
Strong Strategic and Financial Rationale Leading mobile market player in Panama, Costa Rica and Nicaragua Acquisition of a highly 1 attractive business National 3G and 4G network coverage in each country and strong spectrum positions 2018 revenue of $709 million, Adjusted EBITDA of $243 millio
Slide 7: Highly-Attractive Portfolio in Central America
1 Highly-Attractive Portfolio in Central America Leading market positions 1 A well-balanced portfolio Breakdown by Country (2018A) Costa Rica Panama Combined Revenue Combined Adjusted EBITDA2 Combined OCF3 Mobile subs 2018: 2.4m Mobile subs 2018: 1.6m ($709 million) ($243 million) ($164 million)
Slide 8: Consolidates Industry Structure in the Region
2 Consolidates Industry Structure in the Region Strengthening our leadership position in Central America with No. 1 or No.2 positions in every market 1 1 TEF CAM acquisition Mobile Broadband PayTV Costa Rica 2 Fixed Voice Mobile Broadband PayTV El Salvador Fixed Voice
Slide 9: Diversifies and Balances Millicom Latam Footprint
2 Diversifies and Balances Millicom Latam Footprint Balance between the different Latam markets improves Revenue Illustrative Pro forma Revenue Latam (2018A) Latam (2018A) 1 Other Bolivia Other Bolivia Paraguay 3% 10% 9% 11% 12% Panama 10% Honduras Colombia 11% Paraguay 25% Colombia 10% 30% Honduras
Slide 10: Acceleration of Fixed-Mobile Convergence Strategy
2 Acceleration of Fixed-Mobile Convergence Strategy The transaction provides the opportunity to accelerate Millicom’s FMC strategy… Positions Millicom as #1 fixed-mobile convergent provider in the country Panama Significant cross-selling opportunities in both B2C and B2B customer segments Cata
Slide 11: Unlocking Expected Significant Synergies
3 Unlocking Expected Significant Synergies NPV of expected synergies of approximately $500 million, including $290 million of opex and capex synergies Annual Net Present Value 1 Run rate 2 $m Network and IT benefits c. 250 – Optimisation of backbone and operations, software and other procurement c
Slide 12: Attractive Valuation
4 Attractive Valuation Attractive OCF multiple of 10x pre synergies and 8.3x post opex and capex synergies EV / 2018 Adj. EBITDA1 EV / 2018 OCF Multiples pre-synergies 6.8x 10.1x Multiples post-opex & capex synergies 5.8x 8.3x Meets our criteria for inorganic growth opportunities Core competencies
Slide 13: Financial Implications of the Transaction
Financial Implications of the Transaction Telefonica CAM would have added 12-15% to Millicom Latam segment financials in 2018 Revenue Adjusted EBITDA OCF Latam, 2018A ($m) Latam, 2018A ($m) Latam, 2018A ($m) 12.9% 709 6,194 11.7% 5,485 14.6% 243 2,320 2,077 164 1,287 1,124 Millicom Telefonica CAM Co
Slide 14: Financing and Capital Structure
Financing and Capital Structure Maintaining a strong and disciplined financial position Millicom has secured bridge funding commitments from a group of banks Bridge expected to be refinanced predominantly with the issuance of new debt by Millicom and its operating subsidiaries Proportional net
Slide 15: In Summary
In Summary Millicom to acquire Telefónica’s mobile operations in Panama, Costa Rica and Nicaragua 1 Acquisition of a highly attractive business 2 Strong strategic rationale for greater scale and diversification Strengthens Millicom's leadership position in Central America Diversifies and balances Mi
Slide 16: Appendix
* WaLicom | Appendix THE DIGITAL LIFESTYLE
Slide 17: Panama Overview
Panama Overview Shift in customer mix driving ARPU uplift Complementary business propositions 2015-18A Customers (2017A) Mobile BB PayTV Fixed Voice $7.5 $7.8 $8.0 $8.5 1.5M 1K 5K 19K 1,529 1,552 1,524 1,612 Combined 2015A 2016A 2017A 2018A Market Position 2 #1 #1 #1 #2 B2C + B2B Mob
Slide 18: Costa Rica Overview
Costa Rica Overview Significant growth in customer base Complementary business propositions 2015-18A Customers (2017A) Mobile BB PayTV Fixed Voice $7.3 $6.9 $7.1 $6.6 2.1M 7K 20K 22K 2,381 1,996 2,134 1,654 Combined 2015A 2016A 2017A 2018A Market Position 2 #2 #2 #1 #2 B2C + B2B Mobi
Slide 19: Nicaragua Overview
Nicaragua Overview Growing customer base Complementary business propositions 2015-18A Customers (2017A) Mobile BB PayTV Fixed Voice $3.8 $3.6 $3.5 $3.1 4.3M 7K 43K 66K 4,675 3,935 4,163 4,277 Combined 2015A 2016A 2017A 2018A Market Position 2 #1 NM #2 #3 B2C + B2B Mobile Subs EoP ('0
Slide 20: Overview of Spectrum Licenses
Overview of Spectrum Licenses Solid #1 market position in terms of spectrum holdings, having secured licenses for the long term Band and Holdings (MHz)1 Expiry Year Holding Comparison2 700 MHz 20 2036 65 Panama 50 50 20 25 30 30 Total Spectrum: 850 MHz 25 2036 65 MHz 20 20 20 Movil Claro Digicel 1,9
Slide 21: tico
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