Millicom International Cellular S.a. · NASDAQ:TIGO
Millicom International Cellular — Q4 2021 Earnings Presentation
30 slides from Millicom International Cellular's earnings presentation, Feb 11, 2022
Slide 1: Strong finish to a solid 2021
Strong finish to a solid 2021 Mauricio Ramos, CEO Tim Pennington, CFO February 11th, 2022 Millicom International Cellular S.A. 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 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. 2021 Highlights
1. 2021 Highlights 4
Slide 5: 2021 highlights
2021 highlights 1 1 Robust subscriber growth 2 2 Strong 7% growth in service revenue and EBITDA 3 3 OCF above guidance 4 4 Excellence in ESG 5
Slide 6: Robust subscriber growth - Home
1 Robust subscriber growth - Home Record net additions Serving over 4.1m households Latam HFC/FTTH Home Customer Relationship Net Adds Latam HFC/FTTH Home Customer Relationships (‘000) (‘000) 415 4,148 351 3,733 3,456 277 +11% 2019 2020 2021 2019 2020 2021 2021 6
Slide 7: Robust subscriber growth – Mobile
1 Robust subscriber growth – Mobile Mobile customers increasing Latam Mobile customers (m) 44.9 39.8 41.7 +3.1m Mobile customers +8% Year-on-year year-on-year 2019 2020 2021 Driven by postpaid Latam postpaid mobile customers (m) 6.0 Postpaid 5.1 +1.1m mobile +22% Year-on-year 4.9 customers 2021 2019
Slide 8: Robust subscriber growth – B2B
1 Robust subscriber growth – B2B B2B customer base increasing Latam small business and enterprise accounts (‘000) 340 332 16% Year-on-year account increase 316 308 294 New Alliances & Agreements Q4 20 Q1 21 Q2 21 Q3 21 Q4 21 8
Slide 9: Strong service revenue and EBITDA growth
2 Strong service revenue and EBITDA growth Every country growing Service Revenue1 Local Currency FY Growth (‘%) 14.4% 6.7% 6.7% 10.0% 7.3% 7.3% 6.2% 6.2% 6.3% 6.7% 3.8% 2.7% Service Revenue EBITDA Guatemala Colombia Bolivia Nicaragua Paraguay Panama El Salvador Costa Rica Honduras 1 FY Organic Growt
Slide 10: Guatemala growth and profitability
2 Guatemala growth and profitability Mobile continued strength Home accelerating Guatemala Mobile Customers (‘000) Guatemala HFC/FTTH Home Customer Relationships (‘000) 471 11,754 11,416 420 +337k +51k 10,817 377 Net Adds Net Adds Investments 2019 2020 2021 2019 2020 2021 Spectrum Home network Servi
Slide 11: Guatemala ahead of our targets
2 Guatemala ahead of our targets Tigo Guatemala grew strongly in 2021 surpassing guidance1 INDICATOR TARGET1 2021 REVENUE $1.6bn $1.6bn EBITDA1 $850m $857m OCF1 $650m $660m EFCF1 $450m $475m Net Income $350m $375m 11 1) Guatemala full-year guidance as presented on November 12, 2021.
Slide 12: Colombia mobile accelerating
2 Colombia mobile accelerating Mobile customers accelerating Consistent Home growth Colombia Mobile Customers (‘000) Colombia HFC/FTTH Customer Relationships (‘000) 11,271 +1.2m 1,590 1,615 10,792 1,558 10,432 10,310 Net Adds 1,526 +133k 10,025 1,482 +811k Net Adds Postpaid Q4 20 Q1 21 Q2 21 Q3 21 Q
Slide 13: Panama continued strength
2 Panama continued strength Mobile growing rapidly Home customer growth steady Panama Mobile Customers (‘000) Panama HFC/FTTH Home Customer Relationships (‘000) 421 2,095 1,957 395 1,766 +137k +25k 365 Net Adds Net Adds Investments 2019 2020 2021 2019 2020 2021 Network Brand Service Revenue strong C
Slide 14: OCF above guidance
3 OCF above guidance Underlying OCF1 ($m) Underlying capex to sales 2017-2021 17.7% 1,453 17.0% 16.8% 16.6% Ø 16.8% 1,400 15.9% Target 2021 OCF 2017 2018 2019 2020 2021 OCF1 margin 22.1% Investment driven growth Recurring Non-recurring ✓ Colombia 700MHz rollout 35% +415k ✓ El Salvador AWS rollout +2
Slide 15: 2. Q4 2021 Financial Review
2. Q4 2021 Financial Review
Slide 16: Group results summary – Q4 2021
Group results summary – Q4 2021 Group revenue to Latam service revenue1 bridge, Q4 2021 1,687 1,597 91 1,458 1,347 341 139 6 weeks of Guatemala Group Guatemala Underlying1 Africa & Latam Telephone and Latam service Revenue & Honduras revenue Eliminations Revenue Equipment revenue1 Group operating pr
Slide 17: Latam service revenue
Latam service revenue YoY organic growth for service revenue1($m) Q4 20 – Q4 21 +5.7% +4.6% 1,458 +3.3% +10.0% 1,394 +4.2% Q4 20 Mobile Home B2B FX and other Q4 21 B2C Service Revenue1 YoY organic growth 17 1) Non-IFRS measure. Please refer to the non-IFRS disclosures in this presentation for a desc
Slide 18: Q4 2021 Latam service revenue by country
Q4 2021 Latam service revenue by country1 Service revenue ($m), and YoY local currency growth2, Guatemala (24% of Latam) Panama (11% of Latam) Honduras (9% of Latam) El Salvador (7% of Latam) +2.4% +10.2% +0.8% +11.1% 345 159 138 106 Q4 20 Q4 21 Q4 20 Q4 21 Q4 20 Q4 21 Q4 20 Q4 21 Colombia (23% of L
Slide 19: Latam EBITDA
Latam EBITDA YoY growth for EBITDA1 ($m) Q4 20 – Q4 21 -2.7% 63 Bad debt returned to run-rate 634 617 Customer and network growth + Tigo Money investment Q4 20 Revenue Direct Costs Opex Q4 21 EBITDA EBITDA 41.3% 38.7% EBITDA1 margin 19 1) Non-IFRS measure. Please refer to the non-IFRS disclosures in
Slide 20: Q4 2021 Latam EBITDA by country
Q4 2021 Latam EBITDA by country1 EBITDA ($m), and YoY local currency growth2, Guatemala (32% of Latam) Panama (11% of Latam) Honduras (9% of Latam) El Salvador (7% of Latam) -0.3% +19.3% -9.4% +1.9% 211 77 45 61 Q4 20 Q4 21 Q4 20 Q4 21 Q4 20 Q4 21 Q4 20 Q4 21 52.8% 51.4% 42.7% 46.6% 44.9% 41.1% 40.0
Slide 21: Underlying OCF
Underlying OCF YoY growth for OCF1 ($m) 2020 – 2021 -3.0% 129 173 1,497 1,453 2020 EBITDA Capex 2021 24.1% 22.1% OCF1 margin 21 1) Non-IFRS measure. Please refer to the non-IFRS disclosures in this presentation for a description of non-IFRS measures. A reconciliation of non-IFRS measures to the near
Slide 22: Net financial obligations and leverage
Net financial obligations and leverage Underlying financial obligations1($m) 1,228 8,282 +1,735 50 25 7,054 $450 outstanding Bridge 2,091 as of February 11, $1,650m 2021 5,319 490 59 Underlying Underlying Spectrum M&A Share FX & others Underlying Leases Underlying net debt1 EFCF after Repurchase net
Slide 23: 3. Wrap up
3. Wrap up
Slide 24: 2021 Recap
2021 Recap 1 +3m mobile subscribers +1m postpaid 2 HFC/FTTH home customers +415k 3EBITDA and Service Revenue Growth of 7% 4 OCF above target of $1.4bn Accretive buyout of minority partner in Guatemala 24
Slide 25: Q&A
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Slide 26: Group Financial highlights – 2021
Group Financial highlights – 2021 IFRS Group Consolidated Financial Statements1 Selected P&L data Key Observations $ million 2021 2020 % Var •A Improved commercial activity and Revenue 4,617 A 4,171 10.7% Guatemala consolidation as of Cost of sales (1,302) (1,171) 11.1% November 12 Operating expense
Slide 27: Debt Maturity Schedule – Proforma
Debt Maturity Schedule – Proforma1 Q4 21 Average maturity 6.4 Years Average cost of debt 5.4% 953 890 877 843 758 733 670 638 Telecel $550m 486 5.875% Comcel $900m 31s 29s 5.125% Cable $808m $675m 4.500% Onda 6.250% $600m 28s 4.500% 208 206 $450m 5.125% SEK SEK 2bn 2.15bn 26s 4.913%2 $148m 3.643%2 6
Slide 28: Capital structure
Capital structure Financial obligation profile December 31st, 2021 Latam HQ Africa Geography 46% 52% 2% Bonds Banks Leases Source 46% 41% 13% Interest Fixed or Swapped Variable rates* 64% 36% FX Local Other exposure* 38% 62% Less than 5Y 5Y or more Maturity* 53% 47% • Excluding Leases. El Salvador's
Slide 29: Financial obligations by country
1 Financial obligations by country Group IFRS Corporate Gross: $8,911m Gross: $4,039m Net: $7,981m Net: $3,779m Of which Leases: $1,167m Guatemala: Gross: $808m Net: $654m Leverage: 0.76x El Salvador: Gross: $207m Net: $157m Nicaragua: Leverage: 0.97x Gross: $117m Net: $106m Leverage: 1.01x Costa Ri
Slide 30: * \aLicom tico
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