Millicom International Cellular S.a. · NASDAQ:TIGO
Millicom International Cellular — Q4 2023 Earnings Presentation
25 slides from Millicom International Cellular's earnings presentation, Feb 27, 2024
Slide 1: Q4 2023 Earnings Presentation
Q4 2023 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: Targeting EFCF ~$550 million in 2024
Key 2023 Priorities Everest Colombia Guatemala Infrastructure efficiency profitability back to growth value capture › Savings target raised › Record margins in Q4 › Improved pricing and › Monetization process growth trends in Q4 underway Targeting EFCF ~$550 million in 2024 ~$700 million in 2022-202
Slide 6: Efficiencies – Beyond Everest
Efficiencies – Beyond Everest Key Levers Focus Areas Run-rate savings at YE24 >250 Central Employee External Functions Cost Services >135 >100 Network Information Programming Phase 1 Phase 2 Phase 2 Optimization Technology HQ Other Headcount More than $250 million in run-rate savings initiatives alr
Slide 7: Colombia profitability
Colombia profitability Building blocks in place to significantly improve cash flow generation ✓ Spectrum acquired 700MHz mobile & renewed network built Digitalized Network & ✓ fixed B2B services spectrum sharing Home discipline & ✓ Towers divested commercial initiatives Capitalization ✓ Everest effi
Slide 8: Guatemala back to growth
Guatemala back to growth 2023 Accomplishments 2024 Opportunities Spectrum Spectrum Parity Utilization Everest Margin Efficiencies Expansion Pricing Revenue Improvement Growth Network Network Investment Optimization Second largest contributor to EFCF improvement in 2024 8
Slide 9: Lati infrastructure value capture
Lati infrastructure value capture Active monetization process underway 9
Slide 10: Millicom today
Millicom today Over the years we have invested and built strong positions… Networks Customers Brand Footprint ...and we now have the cost structure to generate strong EFCF 10
Slide 11: Q4 2023 Financial Review
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Slide 12: Group Service Revenue
Group Service Revenue 1 YoY Organic Service Revenue1 Growth Q4 22 – Q4 23, $m +3.2% 1,375 1,276 3.2% Organic Service Revenue1 Growth Q4 22 FX Rebased Q4 22 Mobile Fixed Q4 23 1) Group financial information does not include Honduras, which is not consolidated. Non-IFRS measure. Please refer to the no
Slide 13: Q4 2023 Service Revenue by Country
Q4 2023 Service Revenue by Country Service revenue ($m), and YoY local currency growth2 1 Guatemala (25%3) Colombia (25%) Panama (14%) Bolivia (11%) -2.3% +3.4% +18.9% +0.8% World Cup -0.5% 339 348 190 151 Q4 22 Q4 23 Q4 22 Q4 23 Q4 22 Q4 23 Q4 22 Q4 23 Paraguay (10%) El Salvador (8%) Nicaragua (5%)
Slide 14: Group EBITDA
Group EBITDA 1 YoY Organic EBITDA1 Growth Q4 22 – Q4 23, $m 557 5.3% 548 Organic EBITDA1 Growth, ex Everest restructuring Q4 22 FX Rebased Everest Performance Q4 23 EBITDA Restructuring EBITDA 1) Group financial information does not include Honduras, which is not consolidated. Non-IFRS measure. Plea
Slide 15: Q4 2023 EBITDA by Country (ex Severance)
Q4 2023 EBITDA by Country (ex Severance) 1,2 EBITDA3 ($m), and YoY local currency growth3 Guatemala (33%4) Colombia (21%) Panama (13%) Paraguay (10%) -0.3% +24.5% +10.8% +10.8% World Cup 2.6% 213 137 84 65 Q4 22 Q4 23 Q4 22 Q4 23 Q4 22 Q4 23 Q4 22 Q4 23 52.7% 54.2% 30.9% 38.4% 45.5% 41.0% 42.8% 45.2
Slide 16: Project Everest Update
Project Everest Update Implementation costs Run-rate savings $m $m 42 87 >250 22 >135 >100 7 16 Q1 Q2 Q3 Q4 FY23 Phase 1 Phase 2 - HQ Phase 2 - Ops Q4 Q3 Q4 Announced 2022 2023 2023 › Country-level implementation in Q4 › Savings of more than $250 million – more than double our initial ambition – alr
Slide 17: Q4 2023 Leverage
Q4 2023 Leverage Group Net Debt1 ($m) Net Debt -53 6,009 39 5,956 8 74 17 48 13 Net debt EFCF Colombia Discount on Debt FX & Derivatives Lati Carve- Share Buyback Net debt 30-Sep-23 Partner Equity Repurchases Out Taxes & Others 31-Dec-23 Net debt to 3.32x 3.29x EBITDA after Leases 1) Group financial
Slide 18: Equity Free Cash Flow
Equity Free Cash Flow Various items impacted EFCF in 2023 vs. 2022 Equity Free Cash Flow1 2022 2023 Observations EBITDA including discontinued operations 2,252 2,115 2023 includes $106 million of one-offs – mostly severance Cash Capex (957) (931) 2023 Capex booked $809 million Taxes (316) (233) 2022
Slide 19: Financial Targets
Financial Targets1 Equity Free Cash Flow of around $550 million in 2024 2023 Impacts EFCF, $m ~550 2024 Drivers › One-offs › Everest savings ~$700m › › Spectrum Capex control 2022-24 › Capex payments › Guatemala recovery 171 › Guatemala competition › Colombia profitability -18 2022 2023 2024 Target
Slide 20: Appendix
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Slide 21: Group Financial Highlights – FY 2023
Group Financial Highlights – FY 2023 Selected P&L data Key Observations $ million FY 2023 FY 2022 % Var Revenue 5,661 A 5,624 0.7% •A Organic growth of 1.5% partially offset by slight Cost of sales (1,507) (1,506) (0.1)% currency depreciation. Operating expenses (2,043) B (1,890) (8.1)% Depreciation
Slide 22: Debt Maturity Schedule
Debt Maturity Schedule As of YE23 Average maturity 5.0 Years Average cost of debt 6.6% Telecel $503m 5.875% Cable 31s Comcel 29s Onda $792m $832m 28s $675m $584m 4.500% 5.125% $450m 6.250% 4.500% 5.125% SEK 2.25bn 26s 8.363%1 $148m 6.625% 22 1) Fully swapped currency
Slide 23: Capital Structure
Capital Structure Debt profile** As of December 31, 2023 Fixed or Swapped Variable 80% 20% Local Other 42% 58% 5Y or more Less than 5Y 48% 52% Latam HQ 64% 36% HQ Bonds OpCos Bonds Banks & Others 34% 37% 29% *El Salvador's official unit of currency is the U.S. dollar, while Panama uses the U.S. doll
Slide 24: Net Debt by country
1,2 Net Debt by country Honduras Guatemala: (not consolidated): Gross: $1,463m Gross: $360m Net: $1,322m Net: $313m Nicaragua: Leverage: 1.76x Leverage: 1.23x Gross: $148m Net: $137m Group: El Salvador: Leverage: 1.54x Gross: $6,678m Gross: $174m Net: $5,956m Net: $136m Leverage: 0.93x Colombia: Lev
Slide 25: Millicom – The Digital Lifestyle
* \LLICOM tic6 r ) THE DIGITAL LIFESTYLE
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