Millicom International Cellular S.a. · NASDAQ:TIGO
Millicom International Cellular — Q1 2022 Earnings Presentation
29 slides from Millicom International Cellular's earnings presentation, Apr 28, 2022
Slide 1: Continued growth in all business lines
Continued growth in all business lines First Quarter 2022 Mauricio Ramos, CEO Sheldon Bruha, CFO April 28th, 2022 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 m
Slide 4: Q1 2022 Highlights
PE an a ligh CLGO Q1 2022 Highlights ed
Slide 5: Q1 22 Highlights
Q1 22 Highlights 1 Robust subscriber growth continues 2 Sustained growth in all countries and business units 3 Africa exit completed 4 Advanced on ESG initiatives 5
Slide 6: Robust subscriber growth continues
1 Robust subscriber growth continues Postpaid continuing strength Home subscriber growth steady Group postpaid mobile customers1 and YoY Growth Group HFC / FTTH Home Customer Relationships1 27.3% 8.4% Growth YoY 5,935 Growth YoY 4,062 74 320 59 337 85 333 4,661 284 96 3,747 31-Mar-21 Q2 21 Q3 21 Q4
Slide 7: Sustained growth in all countries and business units
2 Sustained growth in all countries and business units Countries continue positive trend… …with business units growing Q1 22 Group organic growth % and country local currency growth % Q1 22 Group organic service revenue1 growth % 4.6% 4.9% 5.3% Service Revenue1 3.6% 10.3% 9.1% 7.8% 6.7% 4.9% 4.1% 0.
Slide 8: Continued strong momentum in Colombia
2 Continued strong momentum in Colombia Postpaid strong… …driving mobile… … Accelerating EBITDA1 Colombia mobile postpaid customers Colombia mobile local currency service revenue1 Colombia local currency EBITDA1 1 million 16.9% 30.3% New customers Increase YoY EBITDA1 margin 2,740 259 434 263 423 42
Slide 9: Home demand continues as we expand our network
3 Home demand continues as we expand our network Penetrating network Ramping up build Group HFC / FTTH Home Customer Relationships over Homes Passed Group HFC / FTTH Homes Passed, Last Twelve Months (‘000) 34.0% 33.7% 33.8% 33.4% 33.0% 612 31.8% 526 502 31.2% 481 30.9% 30.4% 386 Q1 20 Q2 20 Q3 20 Q4
Slide 10: B2B accelerating
3 B2B accelerating Strong Results Executing on strategy B2B Group Organic Service Revenue1 Growth YoY • Solid growth across all 4.9% B2B segments Increase • Corporate segment driven by digital services 30k • Launched Cloud Center of Excellence in partnership New SME with Microsoft Accounts 1) Group
Slide 11: Tigo Money
3 Tigo Money Customers increasing 2022 milestones Tigo Money Latam customers1 (m) • Enter new markets 17% • Boost Guatemala Increase 5.6 • Launch merchant platform • Launch lending platform 4.8 • Launch access card • Tigo Money wallet upgrade Q1 21 Q1 22 11
Slide 12: Africa exit completed and $1.6b of capital freed
3 Africa exit completed and $1.6b of capital freed 1 Reinvested into Latam with leadership position in all markets Service Revenue3 Market Position OCF3 Margin Currency Growth Investment Grade #1 of 2 7% 24% Dollars Panama Telco2 #1 of 2 10% 24% Low Nicaragua Mobile Volatility #1 of 2 7% 41% Stable
Slide 13: Advanced on ESG initiatives
4 Advanced on ESG initiatives Recognized as Great Place to Work #5 Central America Top 5 in 8 out of 9 countries 13
Slide 14: Q1 2022 Financial Review
tico Q1 2022 Financial Review ww
Slide 15: Group Service Revenue
Group Service Revenue1 YoY Organic Service Revenue1 Growth Q1 21 – Q1 22 1,300 946 4.6% Organic Service Revenue1 Growth Organic +4.6% Q1 21 M&A, FX Rebased Mobile Fixed Q1 22 & Others Q1 21 1) Non-IFRS measure. Please refer to the non-IFRS disclosures in this presentation for a description of non-IF
Slide 16: Q1 2022 Service Revenue by Country
Q1 2022 Service Revenue by Country1 Service revenue ($m), and YoY local currency growth2 Guatemala (26% of Group) Colombia (25% of Group) Bolivia (12% of Group) Panama (12% of Group) +0.8% +7.8% +0.6% +4.1% 340 332 152 152 Q1 21 Q1 22 Q1 21 Q1 22 Q1 21 Q1 22 Q1 21 Q1 22 Paraguay (10% of Group) El Sa
Slide 17: Group EBITDA
Group EBITDA1 YoY Organic EBITDA1 Growth Q1 21 – Q1 22 0.2% Key Drivers •A Normalized bad debt A Organic EBITDA1 Growth B 564 B Customer growth in 362 Colombia Tigo Money investment Organic +0.2% Q1 21 M&A, FX Rebased Revenue Direct Net Opex Q1 22 EBITDA & Others Q1 21 Growth Costs EBITDA 36.2% 40.0
Slide 18: Q1 2022 EBITDA by Country
Q1 2022 EBITDA by Country1 EBITDA ($m), and YoY local currency growth2 Guatemala (36% of Group) Colombia (18% of Group) Panama (12% of Group) Paraguay (10% of Group) +0.6% +6.1% +9.4% -2.3% 216 108 71 63 Q1 21 Q1 22 Q1 21 Q1 22 Q1 21 Q1 22 Q1 21 Q1 22 54.9% 54.9% 33.9% 30.3% 44.1% 45.2% 43.8% 46.3%
Slide 19: Group OCF
Group OCF1 YoY Organic OCF1 Growth Q1 21 – Q1 22 -7.6% • A Phasing in line with Organic OCF1 plan Growth A 365 242 Organic -7.6% Q1 21 M&A, FX Rebased EBITDA Capex Q1 22 & Others Q1 21 24.2% 26.9% OCF1 Margin 1) Non-IFRS measure. Please refer to the non-IFRS disclosures in this presentation for a de
Slide 20: Net financial obligations and leverage
Net financial obligations and leverage Group financial obligations1 ($m) 1,071 7,795 -90 6,814 69 165 6,724 21 16 Net debt1 EFCF Disposal of FX Others Net debt1 Leases Net financial 31-Dec-21 Africa Net Debt 31-Mar-22 obligations1 31-Mar-22 3.28x Group leverage 3.37x Group leverage1 3.46x after leas
Slide 21: Wrap up
tico Wrap up ed
Slide 22: Wrap up
Wrap up 1 Robust subscriber growth continues 2 Ramping up fiber-cable build 3 Mid-single digit service revenue growth 4 Winning in Colombia 5 Progress on all investor day commitments 22
Slide 23: Investor Day Targets
Investor Day Targets 1 OCF1 growth of 10% per year on average 2 Cumulative EFCF1 of $0.8-$1.0bn over next three years 3 Reduce leverage to 2.5x by 2025 4 Share buybacks expected to commence in 2023 5 Pass 3 million additional homes over next three years 6 Carve out tower portfolio 7 Carve out Tigo M
Slide 24: tico
tico 28 eu
Slide 25: Group Financial Highlights – Q1 2022
Group Financial Highlights – Q1 2022 Group Consolidated Financial Statements1 Selected P&L data Key Observations $ million Q1 22 Q1 21 % Var Revenue 1,408 999 40.9% A •A Consolidation of Guatemala operations Cost of sales (370) (278) (33.3%) Operating expenses (474) (360) (31.8%) •B Revaluation of H
Slide 26: Debt Maturity Schedule
Debt Maturity Schedule1 Q1 22 Average maturity 6.2 Years Average cost of debt 5.5% 880 878 888 2 82 762 724 737 52 676 648 45 Telecel 149 482 $550m 462 5.875% Tigo Guat. 31s $900m 141 29s $808m 5.125% 698 Cable $675m 4.500% Onda 6.250% $600m 28s 4.500% $450m 193 5.125% 84 SEK SEK 2bn 2.15bn 72 4.913
Slide 27: Capital Structure
Capital Structure1 Financial obligation profile As of March 31, 2022 Latam HQ Geography 67% 33% Bonds Banks Leases Source 65% 22% 13% Interest Fixed or Swapped Variable rates* 84% 16% FX Local Other exposure* 42% 58% Less than 5Y 5Y or more Maturity* 32% 68% 1) Proforma for expected bridge• loan rep
Slide 28: Financial obligations by country
1 Financial obligations by country Guatemala Gross: $1,702m Net: $1,551m Nicaragua: Leverage: 1.80x Gross: $128m Net: $114m Group Leverage: 1.08x Gross: $8,047m El Salvador: Gross: $203m Net: $7,348m Net: $148m Of which Leases: Leverage: 0.90x Colombia: Gross: $1,078m $1,071m Net: $1,011m Costa Rica
Slide 29: * \LLICOM tic6
* \LLICOM tic6 r ) THE DIGITAL LIFESTYLE
Millicom International Cellular — Q1 2022 Earnings Presentation on 6ix