Millicom International Cellular S.a. · NASDAQ:TIGO
Millicom International Cellular — Q3 2023 Earnings Presentation
25 slides from Millicom International Cellular's earnings presentation, Oct 26, 2023
Slide 1: Q3 2023 Earnings Presentation
Q3 2023 Earnings Presentation
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 m
Slide 4: CEO Remarks
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Slide 5: Key 2023 Priorities – Progress Update
Key 2023 Priorities – Progress Update Colombia Guatemala Everest Infrastructure profitability back to growth efficiency value capture ✓ Increased mobile scale ✓ Spectrum acquisitions ✓ Phase 1 nearly complete ✓ Asset transfers underway ✓ Margin expansion ✓ Prepaid recovery ✓ Phase 2 underway ✓ Launc
Slide 6: Colombia profitability improving
Colombia profitability improving MOBILE GROWTH EFFICIENCIES OPERATING CASH FLOW ▪ Postpaid growth continues ▪ Everest Phase 1 implemented ▪ 700MHz network investment completed ▪ Shift in mix lifting ARPU ▪ Phase 2 initiatives already identified ▪ Home price and capital allocation discipline ▪ Mobile
Slide 7: Guatemala: Maintaining leadership
Guatemala: Maintaining leadership Mobile leadership maintained Stabilization in Q3 Service revenue growth, local currency YoY % 12 3 2 Mobile customers (m) Market share 1 (%) 1 11 0 -1 -2 10 -3 Q1 Q1 Q1 Q1 Q1 Q3 Q1 22 Q2 22 Q3 22 Q4 22 Q1 23 Q2 23 Q3 23 19 20 21 22 23 23 Mobile customers (m, LHS) Ma
Slide 8: Project Everest expanded
Project Everest expanded $100+ million Phase 1 implementation nearly complete ✓ Run-rate savings Additional Phase 2 launched in Q3 ✓ $35 million Run-rate savings Phase 2 – to continue in Q4 Additional Run-rate savings and 2024 Efficiencies provide foundation for strong EFCF generation in 2024 8
Slide 9: Lati monetization ahead
Lati monetization ahead Investment Highlights Asset transfers underway ❖ Tower portfolio of more than 9,000 sites with presence in seven countries Monetization process ❖ Top 10 largest tower portfolios in Latam launch in Q4 ❖ Long term contract and BTS growth opportunity with Millicom, the leading t
Slide 10: Q3 2023 Financial Review
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Slide 11: Macro update: All business units and most countries growing
Macro update All business units and most countries growing Inflation tracking U.S. levels Colombian Peso Stronger in 2023 YoY CPI inflation % 5,000 14 13 12 11 11.0% Colombia 4,500 10 9 8 4,054 7 4,000 6 5 Tigo Country 4 4.3% Average 3,500 3 3.7% U.S. 2 1 0 3,000 12/20 03/21 06/21 09/21 12/21 03/22
Slide 12: Group Service Revenue
Group Service Revenue1 YoY Organic Service Revenue1 Growth Q3 22 – Q3 23, $m +1.8% 1,320 1,280 1.8% Organic Service Revenue1 Growth Q3 22 FX Rebased Q3 22 Mobile Fixed Q3 23 1) Group financial information does not include Honduras, which is not consolidated. Non-IFRS measure. Please refer to the non
Slide 13: Q3 2023 Service Revenue by Country
Q3 2023 Service Revenue by Country1 Service revenue ($m), and YoY local currency growth2 Guatemala (25% of Group) Colombia (25% of Group) Panama (12% of Group) Bolivia (11% of Group) -1.5% +2.5% +1.4% -0.8% 331 333 160 151 Q3 22 Q3 23 Q3 22 Q3 23 Q3 22 Q3 23 Q3 22 Q3 23 Paraguay (10% of Group) El Sa
Slide 14: Group EBITDA
Group EBITDA 1 YoY Organic EBITDA1 Growth Q3 22 – Q3 23, $m One-offs 539 533 2.6% Organic EBITDA1 Growth, ex one-offs2 Q3 22 FX Rebased Everest Legal rulings Performance Q3 23 EBITDA Restructuring EBITDA 1) Group financial information does not include Honduras, which is not consolidated. Non-IFRS me
Slide 15: Q3 2023 EBITDA by Country
Q3 2023 EBITDA by Country1 EBITDA2 ($m), and YoY local currency growth2 Guatemala (33% of Group) Colombia (19% of Group) Panama (13% of Group) Paraguay (11% of Group) +9.1% +2.0% +8.1% -3.0% +19.5% +11.6% 199 114 77 63 Q3 22 Q3 23 Q3 22 Q3 23 Q3 22 Q3 23 Q3 22 Q3 23 52.1% 52.1% 30.4% 33.2% 45.2% 42.
Slide 16: Project Everest Update
Project Everest Update Implementation costs Target run-rate savings at YE24 $m $m Phase 1 Phase 2 35 + TBD 19 3 16 6 >100 $44 million YTD Q1 Q2 Q3 Q4 FY23 Phase 1 Phase 2 Total Ambition ✓ Increased scope and accelerated Phase 2 ✓ Savings of $135+ million already achieved ✓ 40% headcount reduction in
Slide 17: Network Investment
Network Investment Increased capital allocation efficiency Three areas of savings in 2023 4G Points of Presence 15% Home Installations Pricing Q1-22 Q2-22 Q3-22 Q4-22 Q1-23 Q2-23 Q3-23 Home Expansion ✓ Discounted pricing from multi-year planning ✓ 4G population coverage + 2p.p. to 81% ✓ Price discip
Slide 18: Q3 2023 Leverage
Q3 2023 Leverage Group financial obligations1 ($m) Net Debt Net Financial Obligations -74 -82 6,083 7,110 7,028 100 6,009 24 2 1,027 1,019 6,083 6,009 Net debt EFCF FX & Derivatives Others Net debt 30-Jun-23 30-Sep-23 30-Jun-23 30-Sep-23 Net Debt Leases Net debt to Group 3.34x 3.32x 3.37x 3.34x EBIT
Slide 19: President & COO Remarks
President & COO Remarks
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Slide 21: Group Financial Highlights – Q3 2023
Group Financial Highlights – Q3 2023 Group Consolidated Income Statement Data ($m) . 21
Slide 22: Debt Maturity Schedule
Debt Maturity Schedule Q3 23 Average maturity 5.2 Years Average cost of debt 6.6% Telecel $503m 5.875% Cable 31s Comcel 29s Onda $808m $881m 28s $675m $600m 4.500% 5.125% $450m 6.250% 4.500% 5.125% SEK 26s 2.25bn $148m 6.625% 7.299%1 1) Fully swapped currency 22
Slide 23: Capital Structure
Capital Structure Financial obligation profile As of September 30, 2023 Fixed or Swapped Variable 80% 20% Local Other 42% 58% 5Y or more Less than 5Y 60% 40% Latam HQ 69% 31% Bonds Banks Leases 62% 25% 13% *Excluding Leases. El Salvador's official • unit of currency is the U.S. dollar, while Panama
Slide 24: Financial obligations by country
1 Financial obligations by country Honduras Guatemala: (not consolidated): Gross: $1,675m Gross: $423m Net: $1,520m Net: $389m Nicaragua: Leverage: 1.88x Leverage: 1.43x Gross: $266m Group: Net: $256m Gross: $7,741m El Salvador: Leverage: 2.27x Gross: $283m Net: $7,028m Net: $259m Of which Leases: L
Slide 25: Millicom Tigo – The Digital Lifestyle
* \LLICOM tic6 r ) THE DIGITAL LIFESTYLE
Millicom International Cellular — Q3 2023 Earnings Presentation on 6ix