Millicom International Cellular S.a. · NASDAQ:TIGO
Millicom International Cellular — Q1 2023 Earnings Presentation
32 slides from Millicom International Cellular's earnings presentation, Apr 27, 2023
Slide 1: Strong mobile performance continued in Q1
Strong mobile performance continued in Q1 Millicom International Cellular Q1 2023
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: Q1 23 Highlights
C iGO Q1 23 Highlights ee
Slide 5: Continued execution during Q1
Continued execution during Q1 23 Service Revenue1 +2.2% organically Strength in B2B Postpaid momentum continues Project Everest implementation 1) Group financial information does not include Honduras, which is not consolidated. Non-IFRS measure. Please refer to the non-IFRS disclosures in this prese
Slide 6: Sustained service revenue growth
Sustained service revenue growth All business units growing Strong performance across countries Q1 23 Service Revenue organic growth1 Q1 23 Service Revenue local currency growth1 2.2% Q1 23 organic service 6.0% 4.3% 5.8% 6.0% 6.6% 3.6% revenue growth1 3.1% +13.4% 1.9% in USD 0.6% -0.2% Home Mobile B
Slide 7: B2B digital strategy supporting strong results
B2B digital strategy supporting strong results B2B growth driven by digital services B2B Service Revenue and Digital Service Revenue YoY Organic Growth %1 B2B Service Revenue B2B Digital Service Revenue +6% +28% Q1 2022 Q1 2023 Q1 2022 Q1 2023 Digital as % of B2B 16% 19% 342k SME Clients 1) Group fi
Slide 8: Postpaid sustaining strong momentum
Postpaid sustaining strong momentum Positive quarterly net adds continue… …driving sequential revenue growth Postpaid customers (m) Postpaid Last Twelve-Month USD quarterly service revenue1 168k 6.5 8.8% Q1 23 postpaid net adds Q1 23 postpaid organic 5.9 service revenue growth1 1.9m 4.7 Q1 Q1 Q1 Q1
Slide 9: Home investment adapting to market conditions
Home investment adapting to market conditions Moderating Home build HFC / FTTH Homes Passed Net Additions (‘000) Continued price discipline Maintaining installation fees 254 Softer consumer demand 214 199 155 Rationalizing Colombia 99 and Bolivia investment Q1 22 Q2 22 Q3 22 Q4 22 Q1 23 9
Slide 10: Tigo Money gaining ground
Tigo Money gaining ground Accelerating Service Revenue Growth 2x 25x Tigo Money Service Revenue year-on-year growth1 16.3% 14.0% Digital User Growth Q1 23 Merchant Growth Q1 23 ▪ Lending pilot ongoing ▪ Guatemala banking 5.7% 4.0% interoperability signed 3.5% ▪ Panama soft launch in Q2 2023 Q1 22 Q2
Slide 11: Lati preparing for potential transaction launch
Lati preparing for potential transaction launch Timeline 2022 Q1 23 Next Steps Corporate and governance MLA key terms defined Legal entities incorporated MLA execution structure Brand defined Transition service agreement Transition service agreement Legal and regulatory due defined execution diligen
Slide 12: Spotlight on Guatemala
Spotlight on Guatemala Subscription business growth Q1 2023 service revenue organic growth1 % 8% Subscription businesses Prepaid reloads returning Holidays Prepaid customers reloading over last 28 days 6% 4% Back to July 2022 levels 2% 0% -2% -4% Q2 Q3 Q4 Q1 22 22 22 23 -6% Home B2B Postpaid Prepaid
Slide 13: Spotlight on Colombia
Spotlight on Colombia Conversion to Postpaid driving mobile service revenue… Prepaid Mobile customers (‘000) Mobile B2C Service Revenue (COP) Postpaid +8.1% 11,196 11,458 10,310 24% 27% 17% Q1 21 Q1 22 Q1 23 Q1 21 Q1 22 Q1 23 ▪ Postpaid migration ▪ Strong B2B growth ▪ Mobile ARPU growth for 5th ▪ 19
Slide 14: Spotlight on Panama
Spotlight on Panama Steady postpaid growth and growing OCF Postpaid Customers (‘000) OCF1(m) 63% +19% Q1 21 Q1 22 Q1 23 LTM Q1 22 LTM Q1 23 ▪ Postpaid ▪ Home leadership ▪ Strong cash flow consolidation generation 2018 2019 2020 2022 2023 History Cable acquisition Mobile acquisition Tigo brand launch
Slide 15: Q1 2023 Financial Review
e on C Tele) Q1 2023 Financial Review ew
Slide 16: Macro challenging but improving
Macro challenging but improving All business units and most countries growing Inflation gradually receding GDP growth expectations stable YoY CPI inflation % IMF 2023 GDP growth expectations December 2022 Inflation Oct 2022 Estimate March 2023 Inflation Apr 2023 Estimate Bolivia 3.1 3.2 2.5 Bolivia
Slide 17: Group Service Revenue
Group Service Revenue1 YoY Organic Service Revenue1 Growth Q1 22 – Q1 23, $m 1,300 +2.2% 1,264 2.2% Organic Service Revenue1 Growth Q1 22 FX Rebased Q1 22 Mobile Fixed Q1 23 1) Group financial information does not include Honduras, which is not consolidated. Non-IFRS measure. Please refer to the non
Slide 18: Q1 2023 Service Revenue by Country
Q1 2023 Service Revenue by Country1 Service revenue ($m), and YoY local currency growth2 Guatemala (26% of Group) Colombia (23% of Group) Panama (13% of Group) Bolivia (12% of Group) -0.2% +3.6% +4.3% -1.5% 334 286 159 150 Q1 22 Q1 23 Q1 22 Q1 23 Q1 22 Q1 23 Q1 22 Q1 23 Paraguay (10% of Group) El Sa
Slide 19: Group EBITDA
Group EBITDA 1 YoY Organic EBITDA1 Growth Q1 22 – Q1 23, $m Unusual Items Investments 564 15 507 Q1 22 FX Rebased Everest Buyout Share-based Content, Others Q1 23 EBITDA Q1 22 Restructuring Discussions compensation TigoMoney EBITDA (non-cash) and LATI 1) Group financial information does not include
Slide 20: Q1 2023 EBITDA by Country
Q1 2023 EBITDA by Country1 EBITDA2 ($m), and YoY local currency growth2 Guatemala (36% of Group) Colombia (15% of Group) Panama (13% of Group) Paraguay (11% of Group) +4.2% +1.4% +0.8% -6.4% -3.8% -0.1% -0.4% 199 86 71 61 Q1 22 Q1 23 Q1 22 Q1 23 Q1 22 Q1 23 Q1 22 Q1 23 54.9% 50.3% 30.3% 28.9% 45.2%
Slide 21: Project Everest Underway
Project Everest Underway Q1 Accomplishments Organizational restructuring Majority of implementation costs already incurred - $15 million in Q1 2023- smaller amount expected in Q2 IT and services optimization On track for >$100m run rate annual Fixed Mobile Convergence savings by 2024 year-end Truck
Slide 22: Capex investment significant over last years
Capex investment significant over last years Continued investment in business LTM Capex / Revenue (%). All dates exclude Africa and are proforma for Guatemala before Q4 2021 20 19 18 Average: 17.7% 17 16 15 14 Q1 19 Q1 20 Q1 21 Q1 22 Q1 23 2019 Highlights 2020 Highlights 2021 Highlights 2022 Highlig
Slide 23: Equity Free Cash Flow
Equity Free Cash Flow 1 $m -63 26 23 20 1 -133 EFCF Q1 22 Guatemala Tax Panama Others EFCF Q1 23 Excluding Coupon & Amnesty Spectrum Africa Variable Interest Rates 1) Group financial information does not include Honduras, which is not consolidated. Non-IFRS measure. Please refer to the non-IFRS disc
Slide 24: Q1 2023 Leverage
Q1 2023 Leverage Group financial obligations1 ($m) Net Debt Net Financial Obligations +184 +195 5,983 6,814 7,009 47 5 133 1,016 1,026 5,799 5,799 5,983 Net debt1 EFCF FX & Derivatives Others Net debt1 31-Dec-22 31-Mar-23 31-Dec-22 31-Mar- 2023 Net Debt Leases Net debt to Group 2.99x 3.18x 3.06x 3.2
Slide 25: Wrap Up
tid == —— ws
Slide 26: Advancing on value creation strategy
Advancing on value creation strategy Our We build digital highways that connect people, improve lives and develop our communities purpose Value Drive Organic Growth to Unlock Hidden Shareholder Creation Allocate Capital for Return ESG 10%1 Value Strategy Continued Efficiency Program Investment Multi
Slide 27: Appendix
tico =___— ws
Slide 28: Group Financial Highlights – Q1 2023
Group Financial Highlights – Q1 2023 Group Consolidated Financial Statements Selected P&L data Key Observations $ million Q1 2023 Q1 2022 % Var Revenue 1,369 A 1,408 (2.8)% •A Depreciation of currencies Cost of sales (372) (370) (0.4)% B Operating expenses (490) (474) (3.4)% •B Organizational restru
Slide 29: Debt Maturity Schedule
Debt Maturity Schedule Q1 23 Average maturity 5.3 Years Average cost of debt 6.5% 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 SEK 2bn $148m 4.913%1 6.625% 7.299%2 1) Fully swapped rate 29 2) Fully swapped currency
Slide 30: Capital Structure
Capital Structure Financial obligation profile As of March 31, 2023 Fixed or Swapped Variable 82% 18% Local Other 40% 60% 5Y or more Less than 5Y 55% 45% Latam HQ 67% 33% Bonds Banks Leases 63% 23% 13% *Excluding Leases. El Salvador's official unit of currency is the U.S. dollar, while Panama uses t
Slide 31: Financial obligations by country
1 Financial obligations by country Honduras Guatemala: (not consolidated): Gross: $1,658m Gross: $400m Net: $1,558m Net: $365m Nicaragua: Leverage: 1.85x Leverage: 1.38x Gross: $270m Group: Net: $258m Gross: $7,872m El Salvador: Leverage: 2.33x Gross: $289m Net: $7,009m Net: $272m Of which Leases: L
Slide 32: Millicom – The Digital Lifestyle
* \LLICOM tic6 r ) THE DIGITAL LIFESTYLE
Millicom International Cellular — Q1 2023 Earnings Presentation on 6ix