Millicom International Cellular S.a. · NASDAQ:TIGO
Millicom International Cellular — Q1 2024 Earnings Presentation
23 slides from Millicom International Cellular's earnings presentation, May 8, 2024
Slide 1: Q1 2024 Earnings Presentation
Q1 2024 Earnings Presentation
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: CEO & COO Remarks
CEO & COO Remarks
Slide 5: On track with 2024 EFCF target of ~$550m
Financial Highlights1 Service Revenue EBITDA OCF % Organic2 growth YoY EBITDA (US$m) and Q1 2024 growth YoY OCF (US$m) and Q1 2024 growth YoY 3.8 632 519 3.2 2.2 557 353 1.9 1.8 533 333 322 515 507 +24.5% 294 +61.0% +20.0% +53.0% Q1 23 Q2 23 Q3 23 Q4 23 Q1 24 Q1 23 Q2 23 Q3 23 Q4 23 Q1 24 Q1 23 Q2 2
Slide 6: Colombia - Continued Improvement
Colombia - Continued Improvement 1 Network & Spectrum Increased Efficiencies & Free Cash Flow Industry Investments Scale Price Discipline Generation Rationalization Mobile Growth EBITDA Margin OCF Mobile service revenue (COP$b) and Q1 2024 growth YoY % OCF (COP$b) and Q1 2024 growth YoY 36.5 36.0 +3
Slide 7: Guatemala – Back To Growth
Guatemala – Back To Growth 1 Network & Market Full Ownership Commercial Spectrum Efficiencies & Leadership Investments Parity Price Leadership Shielded Service Revenue EBITDA Local currency growth YoY Local currency growth YoY1 2.0% 7.9% 2.0 1.5 1.0 0.5 0.0 -0.5 -0.2% -1.8% -1.0 -3.0% -1.5 -1.6% -1.
Slide 8: Panama – Executing Our Investment Case
Panama – Executing Our Investment Case Strategic Market Efficiencies & Convergence Consolidation Market Entry Leadership Strong EFCF Mobile Growth OCF Mobile service revenue (US$ millions) OCF1, US$ millions 287 216 275 192 197 251 236 202 154 139 11% 12% 2020-2023 CAGR 2020-2023 CAGR 2020 2021 2022
Slide 9: EFCF and Leverage Evolution
EFCF and Leverage Evolution Equity Free Cash Flow1 Leverage US$ millions Net Debt / EBITDAaL +$134m -0.19x +1 3.29x 3.10x -133 Q4 23 Q1 24 Q1 23 Q1 24 Leverage Beginning to Decline Rapidly 1) EFCF and Leverage are non-IFRS measures. Please refer to the non-IFRS disclosures in this presentation for a
Slide 10: Leadership changes
Leadership changes 1 CEO Succession 2 CFO Transition Board of Directors 3 10
Slide 11: Q1 2024 Financial Review
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Slide 12: Group Financial Performance - Q1 2024
Group Financial Performance - Q1 2024 1 $m Service Revenue EBITDA OCF 1,376 632 519 1,264 507 322 +8.8% +24.5% +61.0% +3.8% +20.0% +53.0% Q1 23 Q1 24 Q1 23 Q1 24 Q1 23 Q1 24 Reported Organic2 1) Group financial information does not include Honduras, which is not consolidated. Service Revenue, EBITDA
Slide 13: Q1 2024 Service Revenue by Country
Q1 2024 Service Revenue by Country Service revenue ($m), and YoY local currency growth 1 Guatemala (25%2) Colombia (25%) Panama (14%) 334 341 346 187 286 159 +2.2% +21.2% +17.8% +2.0% +0.0% Q1 23 Q1 24 Q1 23 Q1 24 Q1 23 Q1 24 Bolivia (11%) Paraguay (10%) Others3(16%) 150 150 137 208 219 132 +0.1% +3
Slide 14: Group EBITDA
Group EBITDA YoY Organic EBITDA1 Growth Q1 23 – Q1 24, $m +24.5% +20.0% 133 632 21 -30 24.5% 507 EBITDA Growth Reported Organic2 Q1 23 FX Performance* Severance Q1 24 EBITDA EBITDA *Includes $15 million related to restructuring charges booked in Q1 2023, which negatively impacted EBITDA in that peri
Slide 15: Q1 2024 EBITDA by Country
Q1 2024 EBITDA by Country EBITDA1 ($m), and YoY local currency growth Guatemala (32%3) Colombia (19%) Panama (13%) 215 130 90 199 86 71 +8.1% +50.3% +26.1% +7.9% +24.2% Q1 23 Q1 24 Q1 23 Q1 24 Q1 23 Q1 24 50.3% 54.0% 28.9% 36.5% 42.6% 42.8% Bolivia (10%) Paraguay (10%) Others2 (15%) 65 69 100 58 85
Slide 16: Q1 2024 Leverage
Q1 2024 Leverage Group Net Debt1 ($m) Net Debt +19 5,975 38 39 8 5,956 27 15 Net debt EFCF* Asset Sale Discount on Debt Share Buyback FX, Derivatives Net debt 31-Dec-23 Repurchases & Others 31-Mar-24 3.29x Net Debt / EBITDAaL (-0.19x) 3.10x • Excluding Asset Sale 1) Group financial information does
Slide 17: Financial Targets
Financial Targets1 ✓ Equity Free Cash Flow of around $550 million in 2024 ✓ Leverage to reach 2.5x by 2025 1) Excluded from these targets are (a) any cash proceeds and related taxes stemming from a potential Lati transaction and (b) cash proceeds from the Colombia tower transaction. 17
Slide 18: CEO Wrap Up
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Slide 19: Group Financial Highlights – Q1 2024
Group Financial Highlights – Q1 2024 Group Consolidated Financial Statements Selected P&L data Key Observations $ millions (except EPS in $ per share) Q1 2024 Q1 2023 % Var Revenue 1,487 1,369 8.6% A •A Revenue benefited from both currency appreciation Equipment, programming and other direct costs (
Slide 20: Debt Maturity Schedule (Proforma)
1 Debt Maturity Schedule (Proforma ) As of Q1 24 Average maturity 4.9 Years Average cost of debt 6.5% Average cost of USD debt 5.7% 1,186 990 1,002 849 257 3 Comcel $736m 95 $200m 492 736 5.125% DNB 16 51 685 Loans 14 96 637 Telecel 42 $503m Telecel 445 339 5.875% $503m 64 Cable 31’s31s Comcel 5.875
Slide 21: Capital Structure (Proforma)
1 Capital Structure (Proforma ) Debt profile2 As of March 31, 2024 Fixed or Swapped Variable 83% 17% Local Other 3 40% 60% 5Y or more Less than 5Y 52% 48% Latam HQ 60% 40% HQ Bonds OpCos Bonds Banks & Others 39% 35% 25% 1) Proforma for the April issuance of new $450 million bond and $200 million DNB
Slide 22: Net Debt by country (Proforma)
1,2 3 Net Debt by country (Proforma ) Honduras Guatemala: (not consolidated): Gross: $1,379m Gross: $347m Net: $1,244m Net: $287m Leverage: 1.63x Nicaragua: Leverage: 1.10x Gross: $148m Net: $137m Group: El Salvador: Leverage: 1.48x Gross: $6,780m Gross: $74m Net: $5,975m Net: $47m Leverage: 0.30x C
Slide 23: * \LLICOM tic6
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