Millicom International Cellular S.a. · NASDAQ:TIGO
Millicom International Cellular — Investor Day (February 2022)
118 slides from Millicom International Cellular's investor day presentation, Feb 14, 2022
Slide 1: Investor Day 2022
* WAILTICOM ticg | Investor Day e@ THE ILLICOM CiGO 2022 February 14, 2022
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: Our Presenters
Our Presenters Mauricio Ramos Esteban Iriarte Susy Bobenrieth Karim Lesina Salvador Escalón Chief Executive EVP, Chief EVP, Human EVP, Chief External EVP, Chief Legal and Officer Operating Officer Resources Officer Affairs Officer Compliance Officer Sheldon Bruha Tim Pennington Xavier Rocoplan Pablo
Slide 5: Our Journey so far
Our Journey so far 5
Slide 6: We build Digital Highways
1 Centered Tigo around a strong purpose We build Digital Highways that connect people, improve lives and develop our communities 6
Slide 7: A clear and holistic value creation strategy
2 A clear and holistic value creation strategy… 7
Slide 8: …to drive organic growth
3 …to drive organic growth Expand broadband Monetize mobile GO Customer digital centricity Accelerate B2B Drive convergence 8
Slide 9: Consistent capital allocation decisions to drive strategy
4 Consistent capital allocation decisions to drive strategy Out of Africa Went big into cable Invested organically to improve market positions Invested inorganically to strengthen our position in Latam 9
Slide 10: Out of Africa
4A Out of Africa Africa disposals Helios Towers DRC Senegal Jumia Ghana 2015 2018 2020 2021 2017 2019 2022 Tanzania Rwanda Chad Pending completion 10
Slide 11: Cable turned into our engine of growth
4B Cable turned into our engine of growth Latam HFC/FTTH (‘000) CAGR Homes Passed +10% 11,888 12,413 40% Fiber-cable 11,460 10,559 contribution to Latam 8,446 revenue in 2021 2017 2018 2019 2020 2021 Customer Relationships Latam HFC/FTTH (‘000) 11% CAGR +16% 4,148 3,733 3,456 3,105 2,329 Fiber-cable
Slide 12: Invested organically to improve our market positions
4C Invested organically to improve our market positions 4G coverage Network +25 p.p. modernizations Customer Digital centricity transformation 12
Slide 13: Invested inorganically to strengthen position in Latam
4D Invested inorganically to strengthen position in Latam Panama › Investment grade & dollarized economy › Cable Onda acquisition for $1.46bn › #1 in fixed broadband and Pay-TV December 2018 › #1 mobile operator – unlocking synergies › Mobile acquisition for $594m › Improving market structure August
Slide 14: Our strongest competitive tool: Sangre Tigo
5 Painted ourselves blue with Sangre Tigo Our strongest competitive tool 14
Slide 15: Tigo Today
Tigo Today… 15
Slide 16: Market leader in Latam
Market leader in Latam1 Honduras Nicaragua Mobile #1 Mobile #1 BBI #1 BBI #2 Guatemala Pay TV #1 Pay TV #3 Mobile #1 BBI #1 Pay TV #1 El Salvador Colombia Mobile #1 Mobile #3 BBI #2 BBI #2 Pay TV #2 Pay TV #2 Costa Rica BBI #3 Pay TV #2 Panama Mobile #1 BBI #1 Paraguay Pay TV #1 Mobile #1 BBI #1 Bol
Slide 17: Favorable market structures
Favorable market structures Combined market share of Tigo and the other top 2 provider Mobile Fixed 100% 100% 100% 100% 92% 90% 88% 80% 83% 80% 78% 74% 71% Tigo #3 with 20% share 59% 51% 49% El Salvador El Salvador Guatemala Guatemala Panama Panama Bolivia Bolivia Colombia Colombia Costa Rica Hondur
Slide 18: Underpenetrated markets
Underpenetrated markets Mobile broadband Fixed broadband As % of total mobile users As a % of total households 87% 93% 65% 60% 61% 55% 53% 51% 49% 47% 45% 41% 45% 43% 38% 35% 31% 31% 30% 27% 25% 24% 22% Guatemala Guatemala Latam Latam Colombia Colombia Panama Honduras Panama Honduras Bolivia El Salv
Slide 19: Solid foundation
Solid foundation PURPOSE STRATEGY BRAND GOVERNANCE CULTURE 19
Slide 20: Core, infrastructure and fintech businesses
Core, infrastructure and fintech businesses1 +44m +4m +12m Core Mobile Home Homes customers customers Passed Infrastructure +10,000 150,000 13 Towers Km of fiber Data centers +5m $4bn $50m Fintech Tigo Money Transacted Revenue active users volume 20 1) All figures relate to the Latam segment and own
Slide 21: Balanced portfolio
Balanced portfolio Service revenue1 EBITDA1 Latam ($m) Latam ($m) 2021 2021 1% 6% 4% 2% 9% 16% 9% 32% 54% $5,716 $2,498 29% 10% 11% 17% Mobile B2C Home B2B Other Guatemala Honduras El Salvador Colombia Bolivia Nicaragua Panama Paraguay Costa Rica 1) Non-IFRS measure. Please refer to the non-IFRS dis
Slide 22: Historically stable sources of revenue and cash flow
Historically stable sources of revenue and cash flow Service revenue1 Operating cash flow1 Latam ($m) Latam ($m) 2021 2021 59% 84% Subscription revenue Dollarized, dollar-linked or stable currencies 1) Non-IFRS measure. Please refer to the non-IFRS disclosures in this presentation for a description
Slide 23: What next?
What next? Upsize cable build to >20m homes (15m by 2024) Win in Colombia Cement our leadership in ESG in the region Unlock hidden value of Infrastructure and Fintech assets Show the cash flow… 10% OCF growth Equity Free Cash Flow1 $0.8-1.0 Cumulative 2022-2024 target billion Rebased2 1) Non-IFRS me
Slide 24: Accelerate cable
1 Accelerate cable Homes Passed1 (HFC/FTTH, millions) >20 Targeting 15m homes passed by 2024 15 Return focused network expansion 12 Continued evolution to FTTH Drive network penetration 34% → above 35% Sustained home growth and accelerate B2B 2021 2024 Potential 1)Including Honduras 24
Slide 25: Gain scale in Colombia mobile
2 Gain scale in Colombia mobile Focused on market share1 Service revenue2 inflecting Colombia mobile market share % (Tutela) Colombia mobile service revenue (COPm) 516 35 30 487 25 468 20 21% 463 459 15 10 2016 2017 2018 2019 2020 2021 Our Q4 20 Q1 21 Q2 21 Q3 21 Q4 21 ambition › Strong spectrum pos
Slide 26: ESG: agent of positive change in the region
3 ESG: agent of positive change in the region Environment Society Governance Committed to net zero Technology-based Robust governance programs framework and oversight DE&I Targets 26
Slide 27: New ventures - Infrastructure and Tigo Money
4 New ventures - Infrastructure and Tigo Money Infrastructure Tigo Money › Towers, fiber and data centers › Accelerate growth › Prioritizing towers › Equity partner with fintech experience › Improve asset utilization ▪ Targeting initial 20-30% stake sale › Optimize capital structure › Optionality fo
Slide 28: Targeting cash flow growth acceleration
5 Targeting cash flow growth acceleration Over the medium term ~10% $0.8-1.0 Organic growth billion Rebased OCF1 EFCF1 1) Non-IFRS measure. Please refer to the non-IFRS disclosures in this presentation for a description of non-IFRS measures 28 A reconciliation of non-IFRS measures to the nearest equ
Slide 29: Sangre Tigo
ee Sangre Tigo SANGRE TIGO
Slide 30: Purpose and Culture
Purpose We build the digital highways that connect people, improve lives and develop communities Culture aspiration: Align our culture to Attract and Engage Contribute to our Strategy, talent and customers build a better facilitating its through a compelling society execution value proposition 30
Slide 31: Milestones
Milestones DE&I Sangre Tigo DE&I ST Leader success is born Strategy profile 2018 2019 - 2020 2021 2019 2020 2021 Culture All employees DE&I training and Strategy immersed in ST awareness 31
Slide 32: One of the best workplaces in Latin America
As a result, we have built one of the best workplaces in Latin America Evolution of GPTW Trust Index GPTW External ranking 85 82 79 76 Latest 2017 2018 2019 Latest #1 Telco in the region 32
Slide 33: We have a clear DE&I strategy
We have a clear DE&I strategy › WE provide equal opportunities for all › WE build diverse and inclusive leadership & teams that represent, the markets where we operate and the customers who we serve › WE foster a culture of inclusion (Sangre TIGO); everyone has a voice › WE monitor and address any e
Slide 34: 2030 DE&I targets
2030 DE&I targets 50% of women at all levels of the organization 50% gender balance in upper management positions globally Train 100% of employees annually on DE&I Work only with strategic suppliers with DE&I policies & training in place 34
Slide 35: Environment
Environment SANGRE TIGO
Slide 36: A watershed year for our ESG strategy
A watershed year for our ESG strategy We have stepped up our overall ESG approach, our climate and DE&I work ESG context Low-carbon transition DE&I Emissions reduction Strategy, Adaptation › 2030 DE&I targets set for gender parity › Tone from the top and Climate Risk key focus areas and for DE&I Tra
Slide 37: Science-Based Targets and net-zero partnerships
We have submitted our first near-term Science-Based Targets and are building partnerships for a net-zero digital economy in Latam 37 37
Slide 38: Decarbonize our energy consumption
Reducing scope 1 and 2 emissions Combining technology, new sourcing models and market instruments Lower electricity / fuel consumption › Evolving technologies in new investments › Deliberate focus on energy efficiency › Improvements to existing infrastructure for operational efficiencies Cleaner ene
Slide 39: Scope 3 reduction is an industry-wide opportunity
Leveraging our impact across the value chain The multiplying role of Procurement Engagement Procurement Processes Accountability › Tools for key procurement staff › Supplier training program › RFP › Monitor data for tracking and › Ecovadis › Contract negotiation reporting › Partnerships › Business r
Slide 40: Society
OUR PURPOSE Society SANGRE TIGO
Slide 41: Societal impacts with ripple effects
Societal impacts with ripple effects… +100k +160k 78% Teachers trained Women enrolled in digital Strategic suppliers trained in on digital tools inclusion programs Sustainability (112% 2021 target) (166% 2021 target) (104% 2021 target) 41
Slide 42: Collaborating for scale and impact
Collaborating for scale and impact We build relationships with key partners to foster conditions for ESG development 42 42
Slide 43: Governance
Governance SANGRE TIGO
Slide 44: Governance structure
SWEDEN LUXEMBOURG UNITED STATES GOVERNANCE STRUCTURE At Millicom, we are proud to provide investors with the opportunity to invest in emerging markets through a company that is subject to rigorous governance standards. These governance standards provide a high level of transparency to investors and
Slide 45: Luxembourg
LUXEMBOURG Shareholder rights Insider trading Articles of regulations Association LUXEMBOURG Shareholder CORPORATE Corporate meetings LAW transactions Takeover Transparency law law Millicom is a public limited liability European company organized under the laws market abuse of Luxembourg rules 45
Slide 46: Sweden
SWEDEN Swedish Securities Regulations and NASDAQ Listing Rules › Takeover law 90% › NASDAQ listing rules › Reporting/Disclosure Swedish Code of Corporate Governance › Nominations › Board & CEO remuneration Approximately 90% of Millicom’s › CEO Instructions › Independence common shares are represente
Slide 47: United States
UNITED STATES United States Securities Regulations and NASDAQ Listing Rules › U.S. Securities Laws › NASDAQ Rulebook FOREIGN PRIVATE ISSUER › SOX › NASDAQ Governance Rules (FPI) › SEC Rules › FCPA 47
Slide 48: Anti-Corruption & Compliance
Principal legal frameworks ANTI-CORRUPTION & COMPLIANCE Millicom ethics and compliance program 48
Slide 49: Subject to all local anti-corruption laws
FCPA Anti-Bribery Provisions ▪ Illegal to offer “anything of value,” directly or indirectly, to foreign government officials for the purpose of seeking an improper advantage. Accounting Provisions ▪ Books, records, and accounts must accurately and fairly reflect transactions in reasonable detail. UK
Slide 50: FCPA and UK Bribery Act
FCPA Anti-Bribery Provisions ▪ Illegal to offer “anything of value,” directly or indirectly, to foreign government officials for the purpose of seeking an improper advantage. Accounting Provisions ▪ Books, records, and accounts must accurately and fairly reflect transactions in reasonable detail. UK
Slide 51: Ethics & Compliance Program: common risk areas
Common risk areas Post- Regulatory M&A/pre- KYC acquisition treatment and acquisition integration changes Obtaining St.-owned or Facilitation licenses, govt St.-controlled payments permits, etc. customers ETHICS & Transaction Gifts, travel, and Third-party agents, Govt. suggested monitoring consulta
Slide 52: Ethics & Compliance Program
Board of Directors & Compliance Business Conduct Committee Oversees compliance program Strong tone from the top Executive Team reviews Executive Team compliance-related matters CLCO ETHICS & Ethics & Compliance Team VP of Compliance oversees Directors of Corporate Compliance, Compliance COMPLIANCE S
Slide 53: Ethics & Compliance Program
Compliance and Business Conduct Committee & strong “tone at the top” Anti-Money Laundering Communi- Speak up cations policy campaign ETHICS & Compliance Corporate Strategic COMPLIANCE Global compliance Compliance Response Risk assessments PROGRAM hotline Regular trainings Code of conduct 53
Slide 54: Global Compliance Hotline
Millicom Global Compliance Hotline ETHICS & COMPLIANCE 647 Ethics Line cases in 2021 PROGRAM Responded within 3 days to all Ethics line claims Provided corrective action plan for each substantiated Ethics Line case 54
Slide 55: Key features of our Compliance Program
Key features of our Compliance Program GLOBAL COMPLIANCE LOCAL INTEGRATION OVERSIGHT PROGRAM › Communications and “tone at the top” › GM bonus tied to Compliance KPIs › Dedicated Compliance Committee › Training – 99% completion › Local Compliance Officers, of Board of Directors › Automated third par
Slide 56: Millicom corporate governance framework
Millicom corporate governance framework Purpose Financial controls SOX Board of directors Listing rules Corporate law NASDAQ, SEC, SFA, CSSF Luxembourg, Sweden 56
Slide 57: Ethics & Compliance Program
ETHICS & COMPLIANCE PROGRAM For more information on Millicom’s culture of compliance, please visit the Millicom website 57 57
Slide 58: Organic Growth
DRIVE ORGANIC OCF GROWTH TO 10% een OUR PURPOSE Organic Growth oe @ SANGRE TIGO
Slide 59: Our strategy
Our strategy Expand broadband Monetize mobile GO Customer digital centricity Accelerate B2B Drive convergence 59
Slide 60: Cable track record of growth
Cable track record of growth Home revenue growing rapidly Cable now 40% of Tigo revenue Latam Home Service Revenue1 ($b) Latam Cable Service Revenue as % of total Service Revenue1 (%) CAGR 1.7 40% +7p.p. +10% 33% 1.1 2017 2021 2017 2021 Home Cable (Home + B2B) 1) Non-IFRS measure. Please refer to th
Slide 61: Bolivia case study
Bolivia case study Network size 10x in 6 years +600 subs and 40% penetration Bolivia HFC Homes Passed (‘000) Bolivia HFC Home customer relationships (‘000) Network penetration % 1,563 614 16 150 2015 2016 2017 2018 2019 2020 2021 10.6% 17.6% 26.5% 32.0% 33.6% 34.0% 39.3% 2015 2016 2017 2018 2019 202
Slide 62: Tigo markets in steepest part of U.S. adoption curve
Tigo markets in steepest part of U.S. adoption curve US broadband penetration 100% Mexico 90% Chile Brazil 80% Panama 70% 60% United States 50% Sweden Costa Rica Tigo Average 40% El Salvador Colombia 30% Guatemala Bolivia Honduras Paraguay 20% Nicaragua 10% 0% US Broadband Home Penetration % 2021 pe
Slide 63: Significant opportunity to grow Home for years
Significant opportunity to grow Home for years 32m 20-25m 7-10m TOTAL HOUSEHOLDS1 ADDRESSABLE POTENTIAL HOUSEHOLDS CUSTOMERS In Tigo footprint today 60%-80% of total Potential 35%-40% penetration POTENTIAL 2-5m additional CUSTOMERS growing at c.2% p.a. Based on Based on our potential customers compa
Slide 64: Home - 2024 targets
Home - 2024 targets Homes passed* Home customer relationships* (HFC/FTTH, millions) (HFC/FTTH, millions) >15 >1m 12.4 4.1 10.6 3.1 2018 2021 2024 2018 2021 2024 * Including Honduras › Network expansion across most markets › Network penetration 34%→ above 35% › Majority FTTH › Stable ARPU in dollars
Slide 65: Consumer Mobile – Investment-led growth
Consumer Mobile – Investment-led growth Mobile customers Recent key investments Latam (m) CAGR +8% 44.9 Colombia 700Mhz 41.7 39.8 El Salvador AWS 33.1 33.7 Panama network upgrade Nicaragua network upgrade 2017 2018 2019 2020 2021 21.8% 31.1% 38.6% 43.7% 47.8% Mobile broadband as % of total mobile cu
Slide 66: Mobile – 2024 targets
Mobile – 2024 targets Mobile Customers* Postpaid customers* (millions) (millions) 44.9 +5-6m >1m +1-3m 6.0 2021 2024 * Including Honduras, projections for B2C mobile business 2021 2024 › Sustain market leadership via customer › Pre-to-post migration centricity and network investment › Price discipli
Slide 67: Drive convergence: Panama case study
Drive convergence Panama case study Rapid growth since acquisition Improving profitability Panama mobile customers (‘000) Panama EBITDA1 and OCF1 margin (%) Mobile Postpaid EBITDA1 OCF1 2,095 213 44.4% 24.3% 1,744 43.8% 23.7% 126 20% 69% +0.6 +0.6 Growth Growth p.p. p.p. Q3 19 Q4 21 Q3 19 Q4 21 2020
Slide 68: Accelerate B2B – Our game plan
Accelerate B2B – Our game plan Strategy supported by clear customer group segmentation Implement robust customer value 1 Fill the network 5 management practices Mission Become the most trusted ally for businesses in their Deliver exceptional 4 customer experience digital journey 2 Drive higher ARPA
Slide 69: B2B – 2024 targets
B2B – 2024 targets SME Accounts1 Digital Service Revenue1,2 (B2B SME Accounts, ‘000) ($m) % of B2B service revenue % of B2B service revenue >200 340 +60 134 2021 2024 2021 2024 47% 48% 15% 20% › Leverage Tigo digital infrastructure › Customer segmentation & focus › Upgrade salesforce technical skill
Slide 70: Go Digital – Multi-year strategy well advanced
Go Digital – Multi-year strategy well advanced… 1 2 Build own Expand digital ecosystem penetration + Connect to other ecosystems + Platforms E2E digital journey Digital is first customer choice Acquire and Develop + Efficient Capabilities New ops model 3 4 70
Slide 71: Driving rapid adoption
… Driving rapid adoption Digital reloads Mi Tigo: Best ranked App Public Play Store rating as of Jan 3rd, 2022 $m CAGR 65% 5.0 4.7 4.6 4.6 4.6 4.5 4.5 4.5 4.4 4.0 4.0 4.0 4.0 3.9 3.9 3.8 3.8 3.6 3.5 3.5 3.7 2019 2020 2021 Digital collections 3.0 2.9 2.9 2.8 $m CAGR 2.3 2.2 50% 2.0 2.1 … El Salvador
Slide 72: Customer centricity and brand equity
Customer centricity and brand equity Tools to support management decision-making and track performance to enhance brand equity Brand health tracker Digital listening Measuring changes in brand perception over time Providing real-time consumer insights based on Brand’s sentiment on Digital Platforms
Slide 73: Efficiencies for growth: Objectives and scope
Efficiencies for growth: Objectives and scope HEAT AURORA NOW TAJY PLUS SUMMIT 2016 2017 2018 2019 2021 2022 Continuous waves of efficiencies to strengthen bottom line and fuel growth Scope Increase efficiency › Embed efficiency and continuous › HEAT: ALL improvement into our DNA › Standardize best
Slide 74: Guatemala
DRIVE ORGANIC GROWTHTO 10% » proftabilty focues AUMU ROSS Guatemala er eo) and d SANGRE TIGO
Slide 75: Key dates in our 31-year history in Guatemala
Key dates in our 31-year history in Guatemala 2021 2019 2011 1990 Tigo launches first Tigo enters home Mobile becomes Millicom acquires mobile operation in business 2-player market minority interest country 75 75
Slide 76: Guatemala Overview
Guatemala Overview Service Revenue1 12% 11.8m Mobile customers 21% $1,365m 675k HFC Home customers 79% 4,400 Towers Mobile Cable B2B 2 Data centers 7% 10% +21,000 2021 Service 2021 EBITDA1 Km of fiber revenue1 growth growth 76 1) Non-IFRS measure. Please refer to the non-IFRS disclosures in this pre
Slide 77: Tigo is the market leader in Guatemala
Tigo is the market leader in Guatemala1 #1 #1 #1 MOBILE BROADBAND PAY TV 64% 43% 38% Market share Market share Market Share 77 1) Data reflects Millicom’s experience and investigation of market conditions.
Slide 78: Track record of growth and profitability
Track record of growth and profitability Mobile base steadily expanding Home growing rapidly Guatemala mobile customers (m) Guatemala home customer relationships (‘000) +17% 675 +3% 11.8 606 11.4 485 519 10.9 10.8 361 10.4 CAGR2017 2018 2019 2020 2021 2017 2018 2019 2020 2021 CAGR Service revenue ac
Slide 79: Cable growth track record and potential
Cable growth track record and potential A decade of rapid growth…. …and potential ahead Guatemala Home customer relationships (‘000) Home % of Service Revenue CAGR 675 29% 32% 25% 15% Broadband penetration 16x 41 2011 2021 Tigo Guatemala Tigo Latam 79
Slide 80: Keys to our success in Guatemala
Keys to our success in Guatemala DISTRIBUTION 70,000 points of sale NETWORK TEAM 89% coverage Continuity and track 76% on LTE record BRAND OPERATIONS Market-leading NPS Operational efficiencies 80
Slide 81: Colombia
DRIVE ORGANIC GROWTHTO 10% » profitability focused MOM UL UNO Na Colombia bul ial © and d SANGRE TIGO
Slide 82: Colombia overview
Colombia overview Service revenue1 20% 11.3m Mobile customers 39% $1,319m 1.8m Home customers 57% B2B 4,000 Employees 6% 6% 8% 16% 2 Certified data centers ICREA Uptime Institute 2021 Service 2021 Mobile service 2021 Home service 2021 B2B digital revenue1 growth revenue1 growth revenue1 growth reven
Slide 83: Sustained top in fixed services and growing share in mobile
Sustained top 2 in fixed services and growing share in mobile #2 #2 #3 BROADBAND PAY TV MOBILE 32% 21% 21% Market share Market Share Market share +1pp +1pp +1pp +3pp In last year InInlast last year year In last year 83 Source: Tutela for mobile and broadband and MINTIC 2020 for PayTV.
Slide 84: 2019 auction greatly enhanced our competitive position
2019 auction greatly enhanced our competitive position Newly-acquired low band spectrum allows us to rapidly improve coverage Holdings in total MHz 4G Coverage Evolution MHz Low bands High bands +59% +47% 2019 2021 135 125 0% 85 85 85 85 +133% 90 85 70 60 60 60 85 50 30 45 40 25 25 25 30 20 2019 202
Slide 85: Gaining scale in Colombia mobile
Gaining scale in Colombia mobile Tripled 4G network size in 2 years Investment-led growth Colombia 4G Points of Presence › New 700 MHz spectrum acquired early 2020 3x › Accelerated 4G network deployment › More than 90% of data traffic and 40% of VoLTE now supported by 700MHz network › Best quality n
Slide 86: Mobile experience and speedtest awards
Mobile experience and speedtest awards Tigo was the best telco in Colombia in network experience according to the latest Open Signal report In 6 of 7 categories, Tigo was the absolute winner Tigo's download speed improved 40%, going The time in LTE of Tigo users grew 5.6pp in the among the other tel
Slide 87: Continuing to increase fixed footprint
Continuing to increase fixed footprint Upgraded and expanded network Home growing rapidly Colombia homes passed (‘000) › Significant investment since 2015 to upgrade and expand Other HFC / FTTH network and migrate customers 5,422 5,575 5,610 5,774 5,032 4,253 4,580 › Customer base growing since 2018
Slide 88: Solid foundation for future growth and profitability
Solid foundation for future growth and profitability Service revenue1 EBITDA1 Colombia local currency service revenue1 ($b) Colombia local currency EBITDA1 ($b) 5.0 1.7 1.7 1.7 4.7 4.7 4.6 1.5 1.4 4.4 2017 2018 2019 2020 2021 2017 2018 2019 2020 2021 28.9% 29.7% 33.3% 34.0% 31.2% EBITDA margin % › R
Slide 89: Technology Roadmap
DRIVE ORGANIC GROWTHTO 10% > Network centric Technology Roadmap SANGRE TIGO
Slide 90: Executing within our capex envelope
Executing within our capex envelope Stable capex investments, while growing the mobile and home business 2019 2020 2021 CAGR HFC / FTTH Homes passed 11.5m 11.9m 12.4m 4.1% HFC / FTTH New Customers 8.7% 351k 277k 415k Pop. coverage 68% 73% 78% 6.4% Traffic (TB) 0.69m 1.10m 1.70m 57.0% Points of prese
Slide 91: Establishing key 5G enablers in advance
Establishing key 5G enablers in advance We have been preparing organically for 5G introduction within our Capex envelope Securing strategic 5G spectrum LTE still mainstream and Core virtualization expanding reach 2500 MHz TDD 3500 MHz › Multi-market RAN › Virtual packet core and Wi-Fi 351 modernizat
Slide 92: Strengthening our spectrum portfolio
Strengthening our spectrum portfolio We have a strong spectrum position in all markets1 165 1 120 115 •1 Target of 90 MHz FDD spectrum achieved in all markets 95 99 95 90 2 78 •2 Low and High frequencies in all markets 3 •3 Excluding other spectrum assets not paired in 700MHz, El Salvador Guatemala
Slide 93: Introducing FTTH efficiently
Introducing FTTH efficiently We are prepared to efficiently introduce FTTH where and when required We have a young, fiber-deep HFC network that continues to demonstrate competitiveness in our markets given relatively low overall speeds (c.73 Mb offered vs. up to 300 Mb capacity) FTTH is our technolo
Slide 94: Leveraging new technology levers
Leveraging new technology levers Technology openings to increase efficiency and create new enablers for our business LTE deployment with Iridium OpenRAN Tigo’s 1st truly regional, multi-tenant hybrid cloud as key enabler 1st O-RAN 362 compliant LTE sites on network in LatAm 700 MHz Automation / AI /
Slide 95: Unlock hidden shareholder value
Unlock hidden shareholder value
Slide 96: Millicom’s infrastructure
Millicom’s infrastructure1 +10,000 towers 150,000 km fiber 13 data centers +12m homes passed 1) Towers and fiber reflect owned assets and include assets owned by entities in which Millicom has a minority partner. 96
Slide 97: Tower portfolio
Tower portfolio +10,000 towers across 8 markets Significant assets reflecting Tigo’s strong market position Average tenancy ratio of ~1.1x Portfolio with significant scale Full ownership of Guatemala portfolio (42% of total) 3% 4% 4% 4% 6% Guatemala Panama 42% Honduras Paraguay +10,000 Bolivia El Sa
Slide 98: Tower company to create optionality
Tower company to create optionality Pillars of value creation Operational independence Increase asset utilization Optimize capital structure Crystallize and unlock value with partial or full monetization Timeline We are here 12-18 months Scope and data Structuring Separation Value creation & collect
Slide 99: Millicom’s tower portfolio has significant scale
Millicom’s tower portfolio has significant scale EV ($b) $6.2 $4.6 $6.3 $7.2 $5.4 N/A $3.3 Tenancy 1.5x 1.6x 1.9x 1.9x 1.2x 1.1x 2.0x Ratio 31,000 28,000 22,000 20,000 19,000 10,000 9,000 IHS Mitratel Sarana Menara Tower Bersama Telesites Millicom Helios Towers Source: Public disclosures 99
Slide 100: Tigo Money
e ao Wy ticomoney™
Slide 101: Tigo Money Journey
Tigo Money Journey Strategic review Tigo Cash Launched Tigo launched in Money in Bolivia ACH and e- wallet launched in G2P Tigo Money Paraguay Paraguay to with P2P services, salaries Tigo Money in El Salvador Honduras, Guatemala, used for the disbursement of replace cash cash-in, cash out payments i
Slide 102: Tigo Money today
Tigo Money today 1 2 3 5+ million $4 billion $50 million active users transacted volume revenue * Reflects 2021 results 102102
Slide 103: The Opportunity
The Opportunity “Becoming the leading fintech player in the markets where we operate” Total revenue addressable market: $14 B (7) Population with smartphone: 62 M (6) Unbanked population: 67 M (3) Share of smartphone penetration (4) Unique Mobile Tigo B2C Share of Unbanked / Banked (1) Total Subs (5
Slide 104: Our reasons to believe
Our reasons to believe ‘Blue ocean’ opportunity in a geography where Tigo already leads 5 Credit data on millions of 1 Established user base 3 customer relationships brand awareness 2 Already the leading 4 Leverage capillarity of mobile wallet Telecom distribution 104 104
Slide 105: Becoming the leading Fintech player where we operate
Becoming the leading Fintech player where we operate Monetization Money Traffic Traffic & Engagement Merchants Wallet ecosystem Lending Engagement 105 105
Slide 106: Priorities 2022
Priorities 2022 Tigo Money wallet Launch access card upgrade Launch merchant Milestones Launch lending platform platform Boost Guatemala Enter new markets 106 106
Slide 107: Allocate capital for return
DRIVE ORGANIC GROWTHTO 10% > Network centric » Customer driven ia ticdmoney yp prmerereeyOUR PURPOSE Allocate capital for return SANGRE TIGO
Slide 108: Solid macroeconomic fundamentals
Solid macroeconomic fundamentals Growing economies Low FX volatility GDP growth average 2022-2026 Coefficient of variation of daily local currency vs. USD over last 10 years 5.0% 1.0 3.5% 3.5% 3.6% 3.7% 3.8% 3.8% 3.2% 2.4% 2.5% 2.7% 0.3 0.2 0.2 0.1 0.2 0.0 0.1 0.1 0.0 0.0 0.0 Costa Rica Latam Tigo A
Slide 109: Soaring remittances underpin Central American economies
Soaring remittances underpin Central American economies Guatemala remittances El Salvador remittances 15% of 24% of $m GDP $m GDP +35% +27% 15,296 10,508 11,340 +46% 7,517 5,649 5,930 +33% 1 2019 2020 2021 2019 2020 1 2021 Honduras remittances Nicaragua remittances 24% of 15% of $m GDP $m GDP +28% +
Slide 110: Mobility has returned and vaccination rates are increasing
Mobility has returned and vaccination rates are increasing Vaccination rates Mobility % of total population, as of Feb 2, 2022 Series 1 Google mobility index, as of Feb 2, 2022 Costa Rica 73% 20 15 El Salvador 65% 10 5 0 Colombia 63% -5 Jan-20 Apr-20 Jul-20 Oct-20 Jan-21 Apr-21 Jul-21 Oct-21 Jan-22
Slide 111: How our reporting will change in 2022
How our reporting will change in 2022 › Guatemala fully consolidated Service Revenue1 EBITDA1 after minority purchase ($m) ($m) 6,069 2,615 › Colombia (50% owned) and 2,264 Panama (80% owned) fully 5,171 consolidated › Honduras (67% owned) only country not included in consolidated Group IFRS 2021 Ho
Slide 112: Investing to accelerate and sustain top line growth
Investing to accelerate and sustain top line growth SERVICE Mid single-digit REVENUE1 Organic growth ambition Home High single-digit Consumer Mobile Low single-digit Accelerate to B2B Mid single-digit 1) Non-IFRS measure. Please refer to the non-IFRS disclosures in this presentation for a descriptio
Slide 113: Medium term targets
Medium term targets Service revenue1 Mid single-digit Organic growth Above Service EBITDA1 Revenue Growth 1 Around $1bn Capex Declining Capex-to-Sales Around 10% OCF1 Organic growth 1)All figures rebased to exclude Honduras and Africa. Non-IFRS measure. Please refer to the non-IFRS disclosures in th
Slide 114: Cumulative Equity Free Cash Flow 2022-2024 Target
Cumulative Equity Free Cash Flow1 2022-2024 Target 2022-2024 $0.8-1.0 billion Rebased 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 available
Slide 115: Capital allocation priorities
Capital allocation priorities 1 Organic investment 2 Deleveraging 3 Buybacks 115
Slide 116: Wrap up
Wrap up 1 Drive organic OCF1 growth to around 10% 2 Target cumulative EFCF1 of $0.8 – 1.0 billion 2022-2024 3 Reduce leverage and resume buybacks in 2023 4 Unlock hidden shareholder value 5 Raise the bar on ESG 1) Non-IFRS measure. Please refer to the non-IFRS disclosures in this presentation for a
Slide 117: Q&A
Q&A 117
Slide 118: * \LLIcoM ticd
* \LLIcoM ticd r THE DIGITAL LIFESTYLE
Millicom International Cellular — Investor Day (February 2022) on 6ix