Millicom International Cellular S.a. · NASDAQ:TIGO
Millicom International Cellular — Q4 2020 Earnings Presentation
34 slides from Millicom International Cellular's earnings presentation, Feb 11, 2021
Slide 1: Resilient cash flow and customer growth
Resilient cash flow and customer growth Fourth Quarter 2020 Mauricio Ramos, CEO Tim Pennington, CFO February 11th, 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. 2020 Highlights
1. 2020 Highlights
Slide 5: Key Messages
Key Messages Strong subscriber growth Continuing recovery Sustained network investment Resilient cash flow Reduced net debt 5
Slide 6: Strong subscriber growth
1 Strong subscriber growth Robust net adds +1.9m +277k Mobile subscribers HFC home customers Q4 19 Q4 20 Q4 19 Q4 20 Protecting our market leadership 42m 4.5m Mobile subscribers Home customers 18m 4G data users 6 Net additions and subscribers relate to Latam.
Slide 7: Continuing recovery
2 Continuing recovery Latam organic Service Revenue growth1 (%) Q2 20, Q4 20 Service -0.4% Revenue -6.8% Q2 20 Q4 20 Latam organic EBITDA growth1 (%) Q2 20, Q4 20 1.0% EBITDA1 -8.1% Q2 20 Q4 20 1) Non-IFRS measure. Please refer to the non-IFRS disclosures in this presentation for a description of no
Slide 8: Sustained network investment
3 Sustained network investment 2020 investment highlights Latam capex paying off +8% HFC 16% +277k $1b Capex 1 Capex to HFC Customer Net additions HFC customer growth Sales1 Colombia 700 MHz spectrum roll-out +6% +428k +5,400 Upgraded 2,300 2 Mobile customer growth HFC homes Upgraded PoPs passed PoP
Slide 9: Resilient cash flow
4 Resilient cash flow OCF Underlying OCF1 ($b) 2019 - 2020 1.50 1.47 $1.4b target2 2019 2020 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 nearest equivalent IFRS measures is ava
Slide 10: Reduced net debt
5 Reduced net debt Underlying Net Debt ~$0.5b Net debt reduction 5.86 5.32 2019 2020 10
Slide 11: We delivered for all of our stakeholders in 2020
We delivered for all of our stakeholders in 2020… Investors Customers $0.5b +13% +78% $1.5b Net debt YoY NPS YoY Digital OCF1 reduction Collection Communities Employees 770k Lifeline Customers2 1) Non-IFRS measure. Please refer to the non-IFRS disclosures in this presentation for a description of no
Slide 12: … showing our strong commitment to ESG
… showing our strong commitment to ESG AA B Other ESG Merits CDP Climate MSCI ESG ratings Change Score Rating Top third Above Consistently ranked of global Telcos global average among top global telcos2 137k Strong Governance Teachers Achievements trained Maestr@s 2020 Contectad@s $600m 500k ESG-lin
Slide 13: Our Purpose
Our Purpose We build the digital highways that connect people, improve lives and develop our communities Mission : We will have the fastest digital highway and be the first choice for customers in all our markets that connect people, improve lives and develop our communities More focused than ever d
Slide 14: 2. Q4 and FY 2020 Financial Review
2. Q4 and FY 2020 Financial Review
Slide 15: Group results summary – 2020
Group results summary – 2020 Group revenue to Latam service revenue1 bridge, 2020 6,206 362 5,843 466 5,377 2,035 4,171 Revenue Guatemala Underlying1 Africa & Latam Telephone and Latam service & Honduras revenue Eliminations revenue equipment revenue1 Group operating profit to Latam EBITDA1 bridge,
Slide 16: Story of 2020: steady recovery from COVID
Story of 2020: steady recovery from COVID Resilience of business shows recovery from Q2 lows Service Revenue EBITDA Latam Service Revenue1 ($m) Latam EBITDA1 ($m) Q4 19- Q4 20 Q4 19- Q4 20 1,442 636 634 1,395 1,394 2.0% 2.3% 0.2% 1.0% 600 1,318 -0.4% 581 1,270 -2.5% 544 -3.1% -5.6% -6.8% -8.1% Q4 19
Slide 17: Levers constantly adjusted to optimize the output
Levers constantly adjusted to optimize the output Investment plans constantly adjusted to deliver optimal result Capex OCF Underlying Capex1 ($m) Underlying OCF1 ($m) Q1 20- Q4 20 Q1 20- Q4 20 Initial reduction target 1,497 ~1,100 announced at Q1 300 989 1,197 200-300 381 816 367 449 Original Covid
Slide 18: Latam service revenue – Q4 and FY 2020
Latam service revenue – Q4 and FY 2020 YoY organic growth for Service revenue1($m) Q4 19 - Q4 20 and 2019 - 2020 -0.4% -3.4% 1,442 Q4 2020 0.0% 3.8% 6.3% 1,394 Q4 19 Mobile Home B2B Fx and Other Q4 20 B2C -2.5% 5,514 -2.5% FY 2020 5,377 -4.3% 3.3% -6.6% 2019 Mobile Home B2B Fx, M&A, and Other 2020 B
Slide 19: Q4 Latam service revenue by country
Q4 20 Latam service revenue by country Service revenue ($m), and YoY organic growth1, Q4 19 – Q4 20 Guatemala (24% of Latam) Honduras (10% of Latam) Panama (10% of Latam) El Salvador (7% of Latam) 6.6% -3.4% -6.3% 9.0% 334 136 144 95 Q4 19 Q4 20 Q4 19 Q4 20 Q4 19 Q4 20 Q4 19 Q4 20 Colombia (23% of L
Slide 20: Latam EBITDA – Q4 and FY 2020
Latam EBITDA– Q4 and FY 2020 YoY organic growth EBITDA1 ($m) Q4 19 - Q4 20 and 2019 - 2020 -0.2% Q4 2020 636 634 1.0% Q4 19 Organic growth FX Q4 20 40.3% 40.4% -2.4% 2,418 2,360 FY 2020 -3.7% 2019 Organic growth FX Perimeter 2020 40.5% 40.4% EBITDA1 YoY organic growth EBITDA1 margin 20 1) Non-IFRS m
Slide 21: Q4 Latam EBITDA by country
Q4 20 Latam EBITDA by country EBITDA($m), and YoY organic growth1, Q4 19 – Q4 20 Guatemala (31% of Latam) Honduras (10% of Latam) Panama (10% of Latam) El Salvador (7% of Latam) 14.7% -7.6% -11.5% 9.9% 210 67 44 64 Q4 19 Q4 20 Q4 19 Q4 20 Q4 19 Q4 20 Q4 19 Q4 20 48.9% 52.8% 47.1% 44.9% 45.5% 42.7% 4
Slide 22: Cost and capex measures protected 2020 OCF
Cost and capex measures protected 2020 OCF Underlying OCF ($m) 1 67 1,497 1,466 119 155 2019 OCF Service revenue Cost Capex 2020 OCF 22 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
Slide 23: Net financial obligations and leverage
Net financial obligations and leverage Reduced underlying net debt by $541m in 2020. 1,312 6,631 -541 5,860 184 389 210 32 5,319 157 Underlying Underlying Spectrum Disposals Payable FX & others Underlying Leases Underlying net debt* EFCF after to minority net debt* net financial YE 2019 leases* part
Slide 24: 3. Closing remarks
3. Closing remarks
Slide 25: Wrap-up
Wrap-up Strong subscriber growth Continuing recovery Sustained network investment Resilient cash flow Reduced net debt 25
Slide 26: Executing our operational strategy
Executing our operational strategy Network centric HFC homes passed 4G coverage 12m 76% Leading fixed and mobile Convergence driven provider in Latam Creating shareholder Customer focused value by improving customer experience Digital as future Digital-first platform 26
Slide 27: 2021 Outlook
2021 Outlook • Investing in the business • Target at least Operational • Pandemic still ongoing Focus $1.4b of OCF1 • Prudent and flexible approach • No cash dividend • Prioritize net debt Shareholder • Buybacks may resume reduction Remuneration in H2 1) Underlying OCF. Non-IFRS measure. Please refe
Slide 28: Q&A
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Slide 29: Group Financial highlights – Q4 2020
Group Financial highlights – Q4 2020 IFRS Group Consolidated Financial Statements Selected P&L data Key Observations $ million Q4 2020 Q4 2019 % Var •A Accelerated depreciation and brand Revenue 1,088 1,150 (5.3)% amortization in Panama Cost of sales (284) (311) (8.5)% Operating expenses (405) (415)
Slide 30: Debt Maturity Schedule
Debt Maturity Schedule Lowering our cost and extending our maturities** Underlying Q4 20 Average maturity 6.3 Years Average cost of debt 5.6% USD denominated debt Average maturity 7.0 Years Average cost of debt 5.2% 883 848 832 724 661 681 550 531 479 29s $750m 6.250% Cable Telecel Onda 26s (PY) 28s
Slide 31: Capital structure
Capital structure Financial obligation profile December 31st, 2020 Latam HQ Africa Geography 62% 33% 5% Bonds Banks Leases Source 55% 28% 17% Interest Fixed or Swapped Variable rates* 81% 19% FX Local Hard currency exposure* 44% 56% Less than 5y 5Y or more Maturity* 37% 63% * Excluding Leases 31
Slide 32: Gross financial obligations by country
Gross financial obligations* by country Central America South America Africa Corporate Group (underlying) $2,498m $2,320m $408m $2,528m $7,753m 9% guaranteed 0% guaranteed 0% guaranteed 0% guaranteed 3% Guaranteed Of which Leases: $1,312m Guatemala: $643m Honduras: $400m (0% guaranteed) (0% guarante
Slide 33: Net financial obligations by country
Net financial obligations* by country Central America South America Africa Group (underlying) Corporate $2,102m $1,918m $388m $6,631m $2,223m Leverage: 2.91x Guatemala: $454m Honduras: $339m Leverage: 0.58x Leverage: 1.38x El Salvador: $188m Nicaragua: $109m Leverage: 1.37x Leverage: 1.24x Costa Ric
Slide 34: Millicom - The Digital Lifestyle
tico MILLICOM THE DIGITAL LIFESTYLE
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