Millicom International Cellular S.a. · NASDAQ:TIGO
Millicom International Cellular — Q3 2021 Earnings Presentation
31 slides from Millicom International Cellular's earnings presentation, Oct 28, 2021
Slide 1: Broad-based growth continued in Q3
Broad-based growth continued in Q3 Mauricio Ramos, CEO Tim Pennington, CFO October 28th, 2021 Millicom International Cellular S.A.
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 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 these non-IFRS
Slide 4: 1. Q3 2021 Highlights
1. Q3 2021 Highlights
Slide 5: Q3 Highlights
Q3 Highlights 11 Double-digit customer growth in Latam 22 Revenue growth in every Latam country and business unit 33 Winning in Colombia 44 Strong performance in Guatemala and Panama 5 Resumed shareholder remuneration and reduced leverage 5
Slide 6: Driven by our purpose
Driven by our purpose 2 Ivan Duque & @ 58 MILLICOM ticd Destacamos la vision de Mauricio Ramos, CEO de @Millicom, sobre cdmo va Colombia en la #ReactivacionSegura y lidera en la region los avances de la economia digital. Este es un importante = \ reconocimiento. #Conectividad es #Equidad mania — EEE
Slide 7: Double-digit customer growth
1 Double-digit customer growth Home Mobile Postpaid Latam1 HFC customer relationships (‘000) Latam1 mobile customers (millions) Latam1 postpaid mobile customers (‘000) 4,086 44 5,682 3,630 39 4,773 +13% +11% +19% Q3 20 Q3 21 Q3 20 Q3 21 Q3 20 Q3 21 LTM LTM LTM +456k net adds +4.4m net adds +900k net
Slide 8: Growth in every country and business unit
2 Growth in every country and business unit Revenue up in every business… …and every country Latam organic service revenue YoY growth1 (%) Local currency service revenue YoY growth1 (%) 13% 18% 15% 12% 8% 9% 9% 8% Latam 9% 6% 6% 4% 3% El Salvador Paraguay Guatemala Nicaragua Colombia Honduras Costa
Slide 9: Sustaining revenue momentum…
2 Sustaining revenue momentum… Latam service revenue1 ($m) YoY +9% Growth 1,427 1,419 1,413 1,394 1,318 Q3 20 Q4 20 Q1 21 Q2 21 Q3 21 1) Non-IFRS measure. Please refer to the non-IFRS disclosures in this presentation for a description of non-IFRS measures. 9 A reconciliation of non-IFRS measures to
Slide 10: …as a result of our continued investment in networks
2 …as a result of our continued investment in networks +456k HFC Home Customer Relationships +501k HFC Homes Passed 2021 Capex1 ~18% Capex/ Sales +20% Mobile points of presence 80% 4G Population Coverage 700MHz Rollout in Colombia KPIs relate to HFC Homes Passed and Homes Connected Last Twelve Month
Slide 11: Significant investment in Colombia…
3 Significant investment in Colombia… Increased coverage Colombia 4G population coverage Executing our strategy Spectrum 2019 Q3 21 Network Distribution Growth 11
Slide 12: …powering strong momentum
3 …powering strong momentum Mobile subscriber surging… …and mobile revenue inflecting Colombia Mobile Customers (m) and Q3 net adds Colombia mobile service revenue1 – rebased to Q3 20 (COP) 106 Mobile Postpaid 105 104 11 9 103 New Player +6% 102 101 +18% +36% 100 99 98 97 Q3 20 Q3 21 Q3 20 Q3 21 Q3
Slide 13: Guatemala continued growth and cash flow
4 Guatemala continued growth and cash flow Customer base expansion Growing service revenue Guatemala mobile customers (m) and home customer relationships (‘000) Guatemala service revenue1 ($m) and YoY Local Currency Growth (%) Mobile Home +9% 12 670 11 343 519 304 314 +7% +29% Q3 19 Q3 20 Q3 21 2019
Slide 14: Panama: Solid growth from our biggest investment yet
4 Panama: Solid growth from our biggest investment yet Continued Home strength Gaining market share in mobile Panama Home Customer Relationships (‘000) and CAGR (%) Panama Mobile customers (‘000) and CAGR (%) +5% +13% 486 2,208 453 1,744 1,838 442 Q3 19 Q3 20 Q3 21 Q3 19 Q3 20 Q3 21 Steadily increas
Slide 15: 2. Q3 2021 Financial Review
2. Q3 2021 Financial Review
Slide 16: Group results summary – Q3 2021
Group results summary – Q3 2021 Group revenue to Latam service revenue1 bridge, Q3 2021 1,634 86 1,548 121 1,427 541 1,093 Group Guatemala Underlying1 Africa & Latam Telephone and Latam service Revenue & Honduras revenue Eliminations Revenue Equipment revenue1 Group operating profit to Latam EBITDA1
Slide 17: Latam service revenue – Q3 2021
Latam service revenue – Q3 2021 YoY organic growth for service revenue1($m) Q3 20 – Q3 21 +8.5% +8.2% 1,427 +2.7% +13.3% 1,318 +7.5% Q3 20 Mobile Home B2B FX and other Q3 21 B2C Service Revenue1 YoY organic growth 17 1) Non-IFRS measure. Please refer to the non-IFRS disclosures in this presentation
Slide 18: Q3 2021 Latam service revenue by country
Q3 2021 Latam service revenue by country1 Service revenue ($m), and YoY local currency growth2, Guatemala (24% of Latam) Honduras (10% of Latam) Panama (11% of Latam) El Salvador (7% of Latam) +9.2% +4.4% +9.5% +18.0% 343 138 152 99 Q3 20 Q3 21 Q3 20 Q3 21 Q3 20 Q3 21 Q3 20 Q3 21 Colombia (23% of La
Slide 19: Latam EBITDA – Q3 2021
Latam EBITDA – Q3 2021 EBITDA1 ($m) +7.4% +7.1% 622 581 Q3 20 Revenue Direct Costs Opex Q3 21 EBITDA EBITDA 40.2% 40.2% EBITDA1 YoY organic growth EBITDA1 margin 19 1) Non-IFRS measure. Please refer to the non-IFRS disclosures in this presentation for a description of non-IFRS measures. A reconcilia
Slide 20: Q3 2021 Latam EBITDA by country
Q3 2021 Latam EBITDA by country1 EBITDA ($m), and YoY local currency growth2, Guatemala (33% of Latam) Honduras (10% of Latam) Panama (11% of Latam) El Salvador (6% of Latam) +12.5% +2.2% +12.5% +21.7% 215 64 71 39 Q3 20 Q3 21 Q3 20 Q3 21 Q3 20 Q3 21 Q3 20 Q3 21 50.3% 53.6% 44.1% 43.7% 43.7% 44.7% 3
Slide 21: OCF trending above $1.4bn in 2021
OCF trending above $1.4bn in 2021 Underlying ($m) 108 154 1,243 1,197 OCF1 9M 20 EBITDA1 Capex OCF1 9M 21 26.2% 25.4% OCF1 margin2 21 1) Non-IFRS measure. Please refer to the non-IFRS disclosures in this presentation for a description of non-IFRS measures. A reconciliation of non-IFRS measures to th
Slide 22: Net financial obligations and leverage
Net financial obligations and leverage Underlying financial obligations1($m) 1,217 6,236 -300 5,319 277 47 46 5,019 144 28 Underlying Underlying Spectrum M&A Share FX & others Underlying Leases Underlying net debt1 EFCF after Repurchase net debt1 net financial YE 2020 leases1 Q3 2021 obligations Q3
Slide 23: Leverage improved even as we executed share buybacks
Leverage improved even as we executed share buybacks Leverage Share Buyback Program2 Proportionate leverage1 Q1 20 – Q3 21 3.25 3.29 Shares repurchased 835k 3.24 3.20 3.13 Shares repurchased as % of total shares 0.8% 2.89 2.81 Cost of repurchases $31m Q1 20 Q2 20 Q3 20 Q4 20 Q1 21 Q2 21 Q3 21 1) Non
Slide 24: 3. Closing remarks
3. Closing remarks
Slide 25: Our value creation strategy remains the same
Our value creation strategy remains the same Organic Growth Capital Allocation • Network-centric • Healthy balance sheet • ~10% OCF growth • Shareholder Our Purpose remuneration We build • Exiting Africa • Digital Highways Inorganic growth That connect people, improve lives and develop our communiti
Slide 26: Q&A
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Slide 27: Group Financial highlights – Q3 2021
Group Financial highlights – Q3 2021 IFRS Group Consolidated Financial Statements1 Selected P&L data Key Observations $ million Q3 2021 Q3 2020 % Var •A Brands acquired in Panama now fully Revenue 1,093 1,026 6.5% amortized Cost of sales (313) (286) 9.4% Operating expenses (400) (369) 8.3% •B Increa
Slide 28: Debt Maturity Schedule
Debt Maturity Schedule Q3 21 Average maturity 5.9 Years Average cost of debt 5.39% 906 806 752 717 675 651 527 457 31s 377 29s $808m $675m Cable Telecel Onda 4.500% 6.250% $550m $600m 5.875% 28s 4.500% $450m 5.125% 123 SEK 2bn 26s 4.913%* $148m 6.625% 11 2021 2022 2023 2024 2025 2026 2027 2028 2029
Slide 29: Capital structure
Capital structure Financial obligation profile September 30th, 2021 Latam HQ Africa Geography 63% 32% 5% Bonds Banks Leases Source 56% 27% 17% Interest Fixed or Swapped Variable rates* 81% 19% FX Local Other exposure* 46% 54% Less than 5Y 5Y or more Maturity* 33% 67% * Excluding Leases. El Salvador'
Slide 30: Financial obligations by country
1 Financial obligations by country Central America Africa Corporate Group (underlying) South America Gross: $2,413m Gross: $388m Gross: $2,316m Gross: $7,220m Gross: $2,103m Net: $2,022m Net: $370m Net: $1,946m Net: $6,236m Net: $1,899m Of which Leases: $1,217m Guatemala: Gross: $620m Net: $418m Hon
Slide 31: Millicom Tigo - The Digital Lifestyle
tico MILLICOM THE DIGITAL LIFESTYLE
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