Millicom International Cellular S.a. · NASDAQ:TIGO
Millicom International Cellular — Merger or Acquisition (February 2019)
28 slides from Millicom International Cellular's merger presentation, Feb 21, 2019
Slide 1: Millicom adds mobile to its cable footprint with acquisition of Telefónica's operations
Millicom adds mobile to its cable footprint with acquisition of Telefónica’s operations in Panama, Costa Rica and Nicaragua Highlights · Millicom is paying $1.65 billion to acquire leading mobile assets that complement Millicom’s cable operations in Panama, Costa Rica, and Nicaragua. · Upon completi
Slide 2: The aggregate purchase price and synergies
The aggregate purchase price implies a multiple of 6.8x 2018 Combined Adjusted EBITDA and 10.1x Combined OCF, whilst on a post-synergy basis it implies 5.8x 2018 Combined Adjusted EBITDA and 8.3x Combined OCF based on cost and capex synergies. Millicom expects to generate annual run-rate opex and ca
Slide 3: Costa Rica and Nicaragua highlights
Costa Rica · #2 mobile operator in a three-player market with 2.4 million customers · 4G network covers 85% of population · Revenue CAGR of approximately 13% in 2015-2018, in US dollar terms, drove much faster EBITDA growth over the period · 2018 revenue of $253 million and EBITDA of $60 million, re
Slide 4: For further information, please contact
For further information, please contact Press: Vivian Kobeh, Corporate Communications Director +1 305 476 7352 press@millicom.com Investors: Michel Morin, VP Investor Relations +305 445-4156 investors@millicom.com Mauricio Pinzon, Investor Relations Manager Tel: +44 20 3249 2460 investors@millicom.c
Slide 5: Forward-Looking Statements
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 prospects, are forward-looking statements. Such
Slide 6: Millicom's Non-IFRS Measures
Millicom’s Non IFRS Measures This press release 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 thes
Slide 7: Financial Data for Telefonica businesses
Financial Data for Telefonica businesses The financial data for the Telefonica businesses that are included in this press release are derived from unaudited standalone financial statements prepared by Telefonica for each of the Panama, Costa Rica and Nicaragua businesses. Such financial statements h
Slide 8: Millicom adds mobile to cable footprint in Central America
1 Millicom adds mobile to cable footprint in Central America Acquisition of Tele fó nica Assets in Panama, Costa Rica and Nicaragua February 20 th 2019
Slide 9: Safe Harbor Cautionary Language Concerning Forward-Looking Statements
2 Safe Harbor Cautionary Language Concerning Forward - Looking Statements Statements included herein that are not historical facts, including without limitation statements concerning future strategy, pl ans, objectives, expectations and intentions, projected financial results, liquidity, growth and
Slide 10: Non IFRS measures
3 Non IFRS measures This presentation contains financial measures for Millicom not prepared in accordance with IFRS. These measures are referred to as “non - IFRS” meas ures and include: non - IFRS service revenue, non - IFRS EBITDA, and non - IFRS Capex, among others defined below. Annual growth ra
Slide 11: Certain financial data
4 Certain financial data Financial Data for Telefonica businesses The financial data for the Telefonica businesses that are included in this presentation are derived from unaudited standalone financial statements prepared by Telefonica for each of the Panama, Costa Rica and Nicaragua businesses. Suc
Slide 12: In Summary
5 In Summary Accelerates fixed - mobile convergence strategy, complementing our existing fixed portfolio with leading mobile assets Reinforces our leadership position in Central America , further diversifying our geographical presence and financial profile Unlocks significant value creation , with u
Slide 13: Strong Strategic and Financial Rationale
6 Strong Strategic and Financial Rationale ▪ Aggregate purchase price of $1.65 billion Enterprise Value (EV) ▪ Implies 2018 multiple of 6.8x Adjusted EBITDA 1 (5.8x post expected opex synergies) ▪ Implies 2018 multiple of 10.1x OCF 2 (8.3x post expected opex and capex synergies) ▪ Value accretive: I
Slide 14: Highly-Attractive Portfolio in Central America
7 Panama 31% Nicaragua 33% Costa Rica 36% Panama 37% Nicaragua 38% Costa Rica 25% A well - balanced portfolio Leading market positions 1 Highly - Attractive Portfolio in Central America History of growth, margin expansion, and cash flow generation 624 649 688 709 2015A 2016A 2017A 2018A Combined Adj
Slide 15: Consolidates Industry Structure in the Region
8 Consolidates Industry Structure in the Region Strengthening our leadership position in Central America with No. 1 or No.2 positions in every market Costa Rica 2 El Salvador Guatemala Nicaragua 2 Panama Mobile Broadband PayTV Fixed Voice Mobile Broadband PayTV Fixed Voice Mobile Broadband PayTV Fix
Slide 16: Diversifies and Balances Millicom Latam Footprint
9 Bolivia 9% Colombia 19% El Salvador 5% Guatemala 26% Honduras 10% Paraguay 13% Panama 10% Other 8% Bolivia 9% Colombia 25% El Salvador 6% Guatemala 21% Honduras 9% Paraguay 10% Panama 10% Other 10% Diversifies and Balances Millicom Latam Footprint Balance between the different Latam markets improv
Slide 17: Acceleration of Fixed-Mobile Convergence Strategy
10 Colombia Bolivia Paraguay NPS Non Convergent NPS Convergent Prepaid to Postpaid New Postpaid Home ARPA before Convergence Home ARPA after Convergence … which so far resulted in a consistent NPS and ARPA 1 improvement (USD) +18% +27% +15% +18% +45% Acceleration of Fixed - Mobile Convergence Strate
Slide 18: Unlocking Expected Significant Synergies
11 Unlocking Expected Significant Synergies NPV of expected synergies of approximately $500 million, including $290 million of opex and capex synergies c.230 c. 60 c. 250 c.70 c. 500 Opex Capex Revenue Integration Costs Total Net Synergies $m Annual Run rate 2 Network and IT benefits – Optimisatio
Slide 19: Attractive Valuation
12 Attractive Valuation Attractive OCF multiple of 10x pre synergies and 8.3x post opex and capex synergies 1 Adjusted EBITDA refers to Adjusted EBITDA of the standalone business pre - synergies, excluding management fees and other non - rec urring items. Adjusted EBITDA is a non - IFRS measures. Mu
Slide 20: Financial Implications of the Transaction
13 Revenue Financial Implications of the Transaction Latam, 2018A ($m) Adjusted EBITDA Latam, 2018A ($m) OCF Latam, 2018A ($m) Notes: Telefonica CAM Adjusted EBITDA is standalone, pre - synergies, and is adjusted to exclude management fees and other one - tim e items. OCF defined as Adjusted EBITDA
Slide 21: Financing and Capital Structure
14 Financing and Capital Structure Pro Forma Prop. Net Debt / Adjusted EBITDA 2 As of Dec - 2018 2.5x 3.0x Millicom Combined 1 Underlying net debt, Adjusted EBITDA and Underlying net debt to Adjusted EBITDA are non - IFRS measures. Please refer to slide 3 of this presentation for definitions of non
Slide 22: In Summary
15 In Summary Millicom to acquire Telef ó nica’s mobile operations in Panama , Costa Rica and Nicaragua Acquisition of a highly attractive business Highly synergetic in - market consolidation expected 1 3 Strengthens Millicom's leadership position in Central America Diversifies and balances Millicom
Slide 23: Appendix
* MILLICOM | Appendix THE DIGITAL LIPESTYLE
Slide 24: Panama Overview
17 1,529 1,552 1,524 1,612 2015A 2016A 2017A 2018A B2C + B2B Mobile Subs EoP ('000) Panama Overview 196 201 214 223 2015A 2016A 2017A 2018A 73 71 85 90 2015A 2016A 2017A 2018A 37.3% 39.5% Revenue Adjusted EBITDA and Margin 3 35.3% 40.5% $m 1.5M x x 1K x x 19K Mobile BB PayTV Fixed Voice Customers
Slide 25: Costa Rica Overview
18 1,654 1,996 2,134 2,381 2015A 2016A 2017A 2018A B2C + B2B Mobile Subs EoP ('000) Costa Rica Overview Coverage Map Spectrum Distribution 93% 85% 176 198 231 253 2015A 2016A 2017A 2018A 11 26 45 60 2015A 2016A 2017A 2018A Revenue Adjusted EBITDA and Margin 3 2.1M 7K 20K 22K Mobile BB PayTV Fixed Vo
Slide 26: Nicaragua Overview
19 3,935 4,163 4,277 4,675 2015A 2016A 2017A 2018A B2C + B2B Mobile Subs EoP ('000) Nicaragua Overview 251 250 243 233 2015A 2016A 2017A 2018A 94 92 95 92 2015A 2016A 2017A 2018A 37.3% 39.1% Revenue Adjusted EBITDA and Margin 3 36.8% 39.6% $m 4.3M 7K 43K 66K Mobile BB PayTV Fixed Voice 2015 - 18A Co
Slide 27: Overview of Spectrum Licenses
20 40 40 25 60 40 165 40 Claro CooTel 700 MHZ 850 MHZ 1,900 MHZ AWS 39 60 40 40 40 40 100 159 Claro Kolbi 850 MHz 1,800 MHz 1,900 / 2,100 MHz 2,600 MHz 20 20 20 25 20 30 30 65 50 50 Movil Claro Digicel 700 MHz 850 MHz 1,900 MHz Overview of Spectrum Licenses Source: Telefonica 1 Based on paired spect
Slide 28: Signatures
21 SIGNATURES Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized. MILLICOM INTERNATIONAL CELLULAR S.A. (Registrant) By: /s/ Salvador Escalon Name: Salvador Escalon Ti
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