Millicom International Cellular S.a. · NASDAQ:TIGO
Millicom International Cellular — Q4 2008 Earnings Presentation
37 slides from Millicom International Cellular's earnings presentation, Feb 11, 2009
Slide 1: Financial Results Q4 2008
Millicom International Cellular S.A. Financial Results Q4 2008 February 11th, 2008 Marc Beuls François-Xavier Roger
Slide 2: Highlights - Group
: : Highlights - Group US$m Q4 08 Q4 07 Change FY 08 FY 07 Change Subscribers ('000) 32,044 23,251 38% 32,044 23,251 38% Revenues 907 766 18% 3,412 2,624 30% EBITDA 406 309 31% 1,468 1,119 31% EBITDA margin 45% 40% 43% 43% Net Profit * 66 113 -41% 518 697 -25% Capex 465 300 55% 1,431 1,050 37% Capex
Slide 3: Revenue split by category
: : Revenue split by category US$m Q4 08 Q4 07 Growth FY 08 FY 07 Change Airtime 663 607 9% 2,615 2,096 25% % of Total Revenues 73% 79% 77% 80% VAS/SMS 134 78 72% 443 233 90% % of Total Revenues 15% 10% 13% 9% Other 110 80 36% 354 295 20% % of Total Revenues 12% 11% 10% 11% 1,049 Total Revenues 907
Slide 4: Composition of quarterly revenues
: : Composition of quarterly revenues 2007 2008 100% 90% 27% 27% 26% 26% 25% 24% 25% 23% 80% 70% 17% 19% 21% 21% 21% 20% 19% COS% 16% 60% S&M% 50% 13% 13% 12% 13% 13% 12% 13% 12% 40% G&A% 30% 44% 45% EBITDA% 20% 43% 43% 42% 43% 40% 42% 10% 0% Q1 07 Q2 07 Q3 07 Q4 07 Q1 08 Q2 08 Q3 08 Q4 08 (*) exclu
Slide 5: Quarterly Year on Year growth
Click to add title Quarterly Add Title Year on Year growth 5
Slide 6: Total Subscriber growth
: : Total Subscriber growth Quarterly YoY Growth +38% +53% +58% 30 +59% +56% 25 20 15 1049 10 35 FY Growth Q4 07 Q1 08 Q2 08 Q3 08 Q4 08 Total Subscribers (m) 32 +38% 30 25 23 20 +38% subscribers Year on 15 Year 10 Total Subscribers (m) 6
Slide 7: Total Revenue growth
: : Total Revenue growth 1,000 Quarterly YoY Growth +18% +27% 900 +37% +42% 800 +41% 700 4,000 FY Growth 600 3,500 +30% 3,412 500 400 3,000 Q4 07 Q1 08 Q2 08 Q3 08 Q4 08 Total Revenues (USDm) 2,624 2,500 2,000 1,500 1,000 +30% Revenue Year on Year FY07 FY08 Total Revenues (USDm) 7
Slide 8: Total EBITDA Growth
: : Total EBITDA Growth Quarterly YoY Growth 450 +31% +25% 400 +34% +36% 350 +34% 300 250 200 Q4 07 Q1 08 Q2 08 Q3 08 Q4 08 1,700 FY Growth Total EBITDA (USDm) 1,468 1,500 +31% 1,300 1,119 1,100 +31% EBITDA Year on Year 900 700 500 FY07 Total EBITDA (USDm)FY08 8
Slide 9: Quarterly Highlights
Click to add title Quarterly Highlights
Slide 10: Quarterly Highlights – Central America
: : Quarterly Highlights – Central America US$m Q4 08 Q4 07 Change MIC Subscribers ('000) 11,181 8,825 27% 38% % of total MIC 35% 38% Revenues 355 329 8% 18% % of total MIC 39% 43% EBITDA 199 168 19% 31% % of total MIC 49% 54% EBITDA margin 56% 51% 45% Capex 87 81 8% 55% Capex% of revenues 25% 24% 5
Slide 11: Quarterly Highlights – Amnet
: : Quarterly Highlights – Amnet US$m Q4 08 Revenues 43 % of total MIC 5% EBITDA 18 % of total MIC 4% EBITDA margin 42% Capex 12 Capex% of revenues 27% 11
Slide 12: Quarterly Highlights – South America
: : Quarterly Highlights – South America US$m Q4 08 Q4 07 Change MIC Subscribers ('000) 7,461 5,893 27% 38% % of total MIC 23% 25% Revenues 260 239 9% 18% % of total MIC 29% 31% EBITDA 100 75 33% 31% % of total MIC 25% 24% EBITDA margin 39% 31% 45% Capex 100 99 1% 55% Capex% of revenues 39% 42% 51%
Slide 13: Quarterly Highlights – Africa
: : Quarterly Highlights – Africa US$m Q4 08 Q4 07 Change MIC Subscribers ('000) 9,049 5,568 63% 38% % of total MIC 28% 24% Revenues 183 143 28% 18% % of total MIC 20% 19% EBITDA 64 46 41% 31% % of total MIC 16% 15% EBITDA margin 35% 32% 45% Capex 225 84 166% 55% Capex% of revenues 123% 59% 51% 13
Slide 14: Quarterly Highlights – Asia
: : Quarterly Highlights – Asia US$m Q4 08 Q4 07 Change MIC Subscribers ('000) 4,353 2,965 47% 38% % of total MIC 14% 13% Revenues 66 55 20% 18% % of total MIC 7% 7% EBITDA 24 20 18% 31% % of total MIC 6% 7% EBITDA margin 37% 37% 45% Capex 40 35 14% 55% Capex% of revenues 61% 65% 51% 14
Slide 15: Financial review
Financial review
Slide 16: Quarterly Capex
: : Quarterly Capex 1,600 1,431 1,400 1,050 1,200 1,000 800 600 350 465 300 377 328 400 192 208 261 200 0 Q1 07 Q2 07 Q3 07 Q4 07 FY07 Q1 08 Q2 08 Q3 08 Q4 08 FY08 CAPEX (USD m) 16
Slide 17: Quarterly Depreciation
: : Quarterly Depreciation 600 517 500 351 400 300 200 84 86 104 123 134 149 77 110 100 0 Q1 07 Q2 07 Q3 07 Q4 07 FY07 Q1 08 Q2 08 Q3 08 Q4 08 FY08 Total Depreciation (USD m) 17
Slide 18: Quarterly Debt – Net Debt/EBITDA ratio
: : Quarterly Debt – Net Debt/EBITDA ratio 2,500 2007 2008 2,158 1,834 1,735 2,000 1,636 1,642 1,805 1,827 1,507 1,500 1,175 1,212 1,087 1,058 993 1,001 1,000 904 674 500 - Q1 07 Q2 07 Q3 07 Q4 07 Q1 08 Q2 08 Q3 08 Q4 08 Total Debt Cash 1.2 1.0 1.0 0.8 0.7 0.6 0.5 0.6 0.5 0.5 0.5 0.4 0.4 0.2 0.0 Q1
Slide 19: Debt maturity as at 31.12.2008
: : Debt maturity as at 31.12.2008 800 692 700 600 497 453m 10% notes 500 312 333 400 300 145 179 200 100 0 Less than 1 1-2 years 2-3- years 3-4 years 4-5 years more than 5 year Debt maturity (USD m) 19
Slide 20: Quarterly Interest expense
: : Quarterly Interest expense 2007 2008 200 190 12% 180 10% 10% 10% 10% 10% 10% 160 9% 149 9% 9% 140 8% 120 100 6% effective rate 80 72 4% 60 50 41 31(*) 45 41 41 38 39 40 13** 2% 41 20 28 0 0% Q1 07 Q2 07 Q3 07 Q4 07 FY07 Q1 08 Q2 08 Q3 08 Q4 08 FY08 Total Interest expense (USD m) (*) Cost of earl
Slide 21: EPS
- 6.90 Total FY07 : : EPS Discontinued 6.90 operations 2.43 FY07 DTA Colmbia 0.19 Continuing operations 4.28 FY07 Total FY2008 5.01 Discontinued operations 0.21 FY08 +32% DTA Colmbia 0.42 0.42 Colombian Deferred Tax Asset +32% Continuing EPS from continuing operations excluding operations 5.64 FY08
Slide 22: Net Cash provided by operating activities
: : Net Cash provided by operating activities 1,500 1,146 1,000 855 500 249 241 285 371 218 183 218 236 0 Q1 07 Q2 07 Q3 07 Q4 07 FY 07 Q1 08 Q2 08 Q3 08 Q4 08 FY 08 Net cash provided by operating activities (USD m) * (*) Ebitda - WC movements - Interests and Taxes Net Cash provided by operating act
Slide 23: Taxes
: : Taxes US$m FY08 FY07 PBT 704 552 Taxes (*) 187 173 Effective tax rate 27% 31% (*) excluding Colombian Deferred Tax Asset Effective Tax Rate from 31% to 27% 23
Slide 24: Cash flow
: : Cash flow US$m FY 08 FY 07 Net cash provided by operating activities 1,146 855 Cash used by investing activities (1,899) (842) Cash (used) provided by financing activities 286 245 Net cash from continuing operations (467) 258 Discontinued operations/ exchange rate changes (24) 251 Exchange rate
Slide 25: Appendix
Click to add title Appendix 25
Slide 26: Highlights
: : Highlights Subscribers Revenues + 38% + 30% Vs FY 07 Vs FY 07 VAS/SMS Ebitda revenue Margin +90% FY 45% in 08 vs 07 Q408 26
Slide 27: Subscribers contribution by region
: : Subscribers contribution by region CAM SAM 35% 23% Q4 08 Africa Asia Africa 14% 28% From 24% to 28% of total CAM MIC 38% SAM subscribers Q4 07 25% Asia Africa 13% 24% 27
Slide 28: Revenue contribution by region
: : Revenue contribution by region CAM 39% Q4 08 SAM 29% AMNET 5% Africa Asia Africa 7% 20% 20% of total revenue in CAM Q4 08 43% Q4 07 SAM Asia 31% 7% Africa 19% 28
Slide 29: EBITDA contribution by region
: : EBITDA contribution by region CAM 49% Q4 08 AMNET Africa 4% Asia Africa SAM 6% 16% 25% Ebitda 16% of total CAM in Q4 54% Q4 07 Asia 7% Africa SAM 15% 24% 29
Slide 30: Capex contribution by region
Capex contribution by region CAM 19% SAM 22% Q4 08 AMNET Africa Africa 2% Asia 48% 9% From 28% to 48% of total Capex SAM CAM 33% 27% Q4 07 Asia Africa 12% 28% 30
Slide 31: Geographical presence
Geographical presence Amnet: 38m Guatemala 13m Central America: South America: Africa: Asia: Total pops El Salvador 7m 28 m 61 m 163 m 42 m under licence: Honduras 8m 294 m Costa Rica 4m Nicaragua 6m Guatemala 13m El Salvador 7m Senegal 13m Chad 10m Laos 7m Cambodia 14m Ownership: 100% Ownership: 87
Slide 32: Penetration rates
Penetration rates Asia CAM SAM Africa 120 96 100 87 72 78 78 77 80 60 44 42 42 33 40 29 17 22 12 9 10 20 0 C M El C Pa C Se Sr G H B D M G R Ta am ol ha on ol R w ill ua ha au iL Sa ra ne nz C an om ic iv d te du na rit bo gu an an ga lv om ia da m iu bi ra ad di ay ka ia l al s a s a La or a os Pen
Slide 33: Market share evolution: Q4 07 – Q4 08
Market share evolution: Q4 07 – Q4 08 Asia CAM SAM Africa Gain % Senegal +5% Tanzania +9% DRC: +8% 80.0 70.7 Guatemala: +3% 70.0 60.0 54.7 54.9 Paraguay: +5% 50.0 45.345.0 44.7 42.6 Laos +3% 40.0 33.6 36.0 Sri Lanka +4% 28.2 28.1 26.0 30.0 20.0 17.9 20.0 8.5 10.0 0.0 Market C M El G C Pa bia D M G T
Slide 34: Population Coverage
Population Coverage Availability Asia CAM SAM Africa 120 96 91 94 100 88 86 88 81 72 74 69 80 67 58 53 60 40 26 20 20 0 C M El G C Pa D M G Ta Sr H B C Se am ua ol RC ha ill au on ol ha iL nz Sa ra ne om ic iv te na d ri t du bo gu an an lv ga o ia m iu m bi ad ra d ay ia k l al s ia a a s La or a o
Slide 35: Affordability
Affordability Best Value Low denomination for money reloads Affordability Price Per second leadership billing 35
Slide 36: No. Of Outlets ('000)
No. Of Outlets (‘000) Accessibility Q4 08 250 186 193 200 172 Asia 15 0 CAM 10 0 59 SAM 50 Africa 0 No.of outlets '000 36
Slide 37: Thank You!
Thank You!
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