Postpaid Customers('000) (m) 2019 Mobile acquisition Paraguay (11% of Group) MILLICOM ticô | --- | --- | --- | --- | |-------|---------------------------------|-------|-------| | | | | | | | | | | | | Strong mobile | | | | | | | | | | performance | | | | | continued in Q1 | | | | | Millicom International Cellular | | | | | | | | 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- ...

Company Participants Andres Coello - Scotiabank Marcelo Santos - JPMorgan Soomit Datta - New Street Research Lucas Chaves - UBS Fredrik Lithell - Handelsbanken Phani Kanumuri - HSBC With those disclaimers out of the way, let me turn the call over to our CEO, Mauricio. Millicom International Cellular S.A. (NASDAQ:TIGO) Q1 2023 Earnings Conference Call April 27, 2023 8:00 AM ET Conference Call Participants Hello, everyone. Thanks for taking the time to connect to our First Quarter 2023 Results Conference Call ...

[PART I](index=10&type=section&id=PART%20I) This section covers Millicom's key risks, business operations, financial performance, governance, and major shareholders [Item 3. Key Information](index=10&type=section&id=Item%203.%20Key%20Information) This section outlines the principal risks facing Millicom, categorized into industry-related, operational, structural, and shareholder risks, emphasizing challenges in the rapidly evolving telecommunications sector within emerging markets [Risk Factors](index=11&type=section&id=D.%20Risk%20Factors) Millicom faces significant risks across four main areas: industry dynamics, business operations in emerging markets, corporate size and structure, and share ownership - The company's primary risks are grouped into four categories: risks related to the telecommunications, cable, and Mobile Financial Services (MFS) industries; risks related to Millicom's specific business operations; risks associated with its size, structure, and leadership; and risks concerning share ownership and SEC registration[51](index=51&type=chunk) - Key operational and strategic risks include adapting to rapid technological change, generating returns on substantial network investments, competition from larger providers, political and economic instability in emerging markets, managing high debt levels, and currency fluctuations[50](index=50&type=chunk)[51](index=51&type=chunk) - Cybersecurity is a notable risk, with the company having experienced web portal attacks, ransomware, and threats in several Latin American countries, including El Salvador, Bolivia, Nicaragua, Guatemala, and Colombia[87](index=87&type=chunk) - The company is subject to anti-corruption laws like the FCPA and disclosed that on April 27, 2022, it received a subpoena from the U.S. Department of Justice (DOJ) requesting information concerning its business in Guatemala and other Latin American countries, with the company cooperating with the investigation[158](index=158&type=chunk) [Item 4. Information on the Company](index=41&type=section&id=Item%204.%20Information%20on%20the%20Company) Millicom International Cellular S.A., operating under the Tigo brand, is a leading provider of cable and mobile services in nine Latin American countries, having strategically exited its African operations to focus on regional broadband expansion and digital convergence [History and Development of the Company](index=41&type=section&id=A.%20History%20and%20Development%20of%20the%20Company) Millicom International Cellular S.A. (MIC S.A.) was established on June 16, 1992, in Luxembourg, formed in December 1990 through a joint venture between Kinnevik AB and Millicom Incorporated, operating under the Tigo brand - The company, legally named Millicom International Cellular S.A., was incorporated in Luxembourg on **June 16, 1992**[229](index=229&type=chunk) - It was formed from the international mobile joint ventures of Kinnevik AB (Sweden) and Millicom Incorporated (United States) in **December 1990**[230](index=230&type=chunk) [Business Overview](index=41&type=section&id=B.%20Business%20Overview) Millicom is a leading provider of cable and mobile services in nine Latin American countries under the Tigo brand, focusing on broadband expansion, mobile data monetization, B2B acceleration, and digital convergence, serving 40.6 million mobile and 4.8 million fixed-line customers as of year-end 2022 - Millicom provides a range of digital services including high-speed data, cable TV, DTH, mobile voice and data, and Mobile Financial Services (MFS) across nine countries in Latin America[233](index=233&type=chunk) - The company has completed its strategic exit from Africa by divesting its Tanzania and Ghana operations to focus capital investment in Latin America[234](index=234&type=chunk) Customer Base as of December 31, 2022 | Customer Type | Number (millions) | | :--- | :--- | | **Mobile Customers (Consolidated)** | 40.6 | | **Mobile Customers (incl. Honduras JV)** | 45.7 | | **Fixed Service Customer Relationships** | 4.8 | | - of which on HFC/FTTH networks | 4.1 | - The company's operational strategy is built on six pillars: Expand Broadband, Monetize Mobile, Accelerate B2B, Drive Convergence, Go Digital, and Customer Centricity[239](index=239&type=chunk) - The company holds numerous spectrum licenses across its markets, with key licenses in Paraguay and Colombia set to expire in 2023[71](index=71&type=chunk)[303](index=303&type=chunk) [Organizational Structure](index=53&type=section&id=C.%20Organizational%20Structure) Millicom International Cellular S.A., a Luxembourg-based parent entity, operates through a network of wholly-owned, majority-controlled subsidiaries, and a significant joint venture in Honduras where it holds a 66.67% equity stake but lacks sole control due to super-majority voting requirements - The parent company, Millicom International Cellular S.A., is a public limited liability company based in Luxembourg[314](index=314&type=chunk) - Millicom operates through wholly-owned or majority-controlled subsidiaries in countries like El Salvador, Bolivia, Paraguay, Panama, and Nicaragua, and holds a **50% + 1 share voting interest** in Colombia[314](index=314&type=chunk) - The company has a joint venture in Honduras (Celtel) with a **66.67% equity stake**, but due to super-majority voting requirements, it does not have sole control and accounts for it using the equity method[315](index=315&type=chunk) [Property, Plant and Equipment](index=54&type=section&id=D.%20Property,%20Plant%20and%20Equipment) Millicom owns or leases extensive telecommunications infrastructure and has strategically sold and leased back tower assets to reallocate capital, currently separating tower and other infrastructure assets into distinct legal entities for value optimization and potential divestiture - The company's property, plant, and equipment include switching/transmission equipment, connecting lines, towers, office buildings, and other related infrastructure[317](index=317&type=chunk) - Millicom has completed several sale and lease-back transactions for its tower assets to focus capital on network equipment and service quality, with no such transactions occurring in 2022, 2021, or 2020[317](index=317&type=chunk)[318](index=318&type=chunk) - The company is in the process of separating its towers and potentially other infrastructure assets (data centers, fiber) into distinct legal entities to optimize their utilization and capital structure, with an eye towards future minority sales or complete divestitures[319](index=319&type=chunk) [Item 5. Operating and Financial Review and Prospects](index=55&type=section&id=Item%205.%20Operating%20and%20Financial%20Review%20and%20Prospects) This section details Millicom's financial performance, liquidity, and capital resources, with 2022 results significantly impacted by the full-year consolidation of the Guatemala business and the company maintaining sufficient liquidity through cash from operations and external financing [A. Operating Results](index=55&type=section&id=A.%20Operating%20Results) Millicom's 2022 operating results saw reported revenue increase by **32.0% to $5,624 million** due to the full-year consolidation of Guatemala operations, though net profit significantly decreased to **$129 million** from **$542 million** in 2021 primarily due to a one-time gain in the prior year - Key factors affecting performance include macro-economic conditions (GDP, inflation, FX volatility), competitive intensity, regulatory changes, technological evolution (4G/5G deployment), and shifts in consumer behavior towards data services[324](index=324&type=chunk) - Financial comparability between periods is significantly affected by the acquisition of the remaining **45%** of the Guatemala business on November 12, 2021, leading to its full consolidation from that date, whereas prior periods accounted for it using the equity method[325](index=325&type=chunk)[331](index=331&type=chunk) Consolidated Results of Operations (2022 vs. 2021) | Metric | 2022 (US$ millions) | 2021 (US$ millions) | % Change | | :--- | :--- | :--- | :--- | | **Revenue** | 5,624 | 4,261 | 32.0% | | **Operating Profit** | 915 | 619 | 47.9% | | **Profit from continuing operations** | 16 | 570 | (97.2)% | | **Net Profit for the year** | 129 | 542 | (76.2)% | Group Segment Results (Non-IFRS) | Metric | 2022 (US$ millions) | 2021 (US$ millions) | % Change | | :--- | :--- | :--- | :--- | | **Revenue** | 6,203 | 6,216 | (0.2)% | | **Operating Profit** | 1,004 | 983 | 2.1% | | **EBITDA** | 2,457 | 2,494 | (1.5)% | - The company provides reconciliations for non-IFRS measures such as Operating Free Cash Flow, Equity Free Cash Flow, and Organic Revenue Growth to enhance transparency[406](index=406&type=chunk)[408](index=408&type=chunk)[412](index=412&type=chunk) [B. Liquidity and Capital Resources](index=71&type=section&id=B.%20Liquidity%20and%20Capital%20Resources) Millicom maintains liquidity through cash from operations and a mix of internal and external financing, holding **$1,039 million** in cash and cash equivalents and **$6,804 million** in total consolidated indebtedness as of December 31, 2022, with cash repatriation significantly boosted by debt issuance for the Guatemala acquisition Key Liquidity and Debt Figures (as of Dec 31) | Metric | 2022 (US$ millions) | 2021 (US$ millions) | | :--- | :--- | :--- | | **Cash and Cash Equivalents** | 1,039 | 895 | | **Total Debt (excl. leases)** | 6,804 | 7,744 | | **Total Net Debt (excl. leases)** | 5,765 | 6,814 | Cash Flow Summary (Year Ended Dec 31) | Metric | 2022 (US$ millions) | 2021 (US$ millions) | | :--- | :--- | :--- | | **Net cash from operating activities** | 1,284 | 956 | | **Net cash used in investing activities** | (1,104) | (2,703) | | **Net cash from/(used in) financing activities** | (1) | 1,777 | - Cash repatriated to the parent company MIC S.A. increased significantly to **$1,651 million** in 2022 from **$605 million** in 2021, largely due to proceeds from the **5.125% Senior Notes due 2032** used to refinance the Guatemala acquisition bridge loan[426](index=426&type=chunk) - As of December 31, 2022, **62%** of total consolidated debt (excluding leases) was held at the operational level and was generally non-recourse to the parent company, MIC S.A[439](index=439&type=chunk) [Item 6. Directors, Senior Management and Employees](index=76&type=section&id=Item%206.%20Directors,%20Senior%20Management%20and%20Employees) This section details Millicom's board of directors, executive team, compensation policies, board practices, and employee base, highlighting performance-based executive compensation and the company's adherence to Luxembourg corporate governance practices [A. Directors and Senior Management](index=77&type=section&id=A.%20Directors%20and%20Senior%20Management) Millicom's Board of Directors comprises nine members, chaired by José Antonio Ríos García, with CEO Mauricio Ramos leading an executive team that includes Sheldon Bruha, who became CFO in April 2022 - The Board of Directors consists of **nine members**, including Chairman José Antonio Ríos García and CEO Mauricio Ramos[455](index=455&type=chunk) - The executive team is comprised of **seven members**, including the CEO, CFO, COO, Chief Legal and Compliance Officer, Chief Human Resources Officer, Chief External Affairs Officer, and Chief Technology and Information Officer[469](index=469&type=chunk) - Sheldon Bruha assumed the role of Executive Vice President and Chief Financial Officer in **April 2022**, having joined the company in January 2022[470](index=470&type=chunk) [B. Compensation](index=80&type=section&id=B.%20Compensation) Executive compensation at Millicom is heavily performance-based, aligning management interests with shareholder value creation through a base salary, a Short-Term Incentive (STI) plan, and a Long-Term Incentive (LTI) plan, with the 2020 LTI plan resulting in a zero payout due to unmet targets - The company's compensation philosophy is based on being competitive, driving right behaviors, aligning with shareholder interests, paying for performance, and transparency[494](index=494&type=chunk) 2022 CEO & CFO Compensation Summary | Executive | Total Fixed Pay (US$) | Annual Bonus (US$) | Deferred Share Units (US$) | LTIP Grant Value (US$) | Total Annual Comp (US$) | | :--- | :--- | :--- | :--- | :--- | :--- | | **Mauricio Ramos (CEO)** | 1,584,535 | 1,650,460 | 4,373,719 | 3,745,939 | **11,354,653** | | **Sheldon Bruha (CFO)** | 809,845 | 541,075 | 973,935 | 718,750 | **3,043,605** | - The 2022 Short-Term Incentive (STI) was based on Service Revenue (**20% weight**), EBITDA (**20%**), Operating Free Cash Flow after Leases (OFCFaL) (**20%**), Relational Net Promoter Score (rNPS) (**10%**), and personal performance (**30%**)[498](index=498&type=chunk) - The 2020 Long-Term Incentive Plan (LTI), which vested in January 2023, resulted in a **0% payout** for all participants as performance targets were not met[524](index=524&type=chunk)[525](index=525&type=chunk) - For 2023, the LTI plan will incorporate ESG metrics with a **10% total weight**[529](index=529&type=chunk)[530](index=530&type=chunk) [C. Board Practices](index=103&type=section&id=C.%20Board%20Practices) Millicom's board practices are guided by Luxembourg law and the Swedish Code of Corporate Governance, with a nine-member board elected annually and supported by three committees, while a separate Nomination Committee proposes director candidates, and the company leverages foreign private issuer exemptions from certain Nasdaq rules - The Board of Directors consists of **nine members** elected annually and is responsible for strategy, financial objectives, and governance oversight[553](index=553&type=chunk)[555](index=555&type=chunk) - The Board is supported by three committees: Audit, Compensation, and Compliance and Business Conduct[558](index=558&type=chunk) - A Nomination Committee, appointed by the largest shareholders rather than the Board, proposes director candidates and their remuneration to the AGM[551](index=551&type=chunk)[552](index=552&type=chunk) - As a foreign private issuer, Millicom relies on home country (Luxembourg) practices for certain governance rules, exempting it from specific Nasdaq requirements regarding shareholder meeting quorums and the composition of nomination and compensation committees[566](index=566&type=chunk) [D. Employees](index=105&type=section&id=D.%20Employees) In 2022, the Millicom Group had an average of approximately **19,446 employees**, a decrease from prior years, with about **17%** of the workforce covered by collective employment agreements, and the company reports good relations with its employees Average Number of Employees | Year | Average Employees | | :--- | :--- | | **2022** | 19,446 | | **2021** | 20,687 | | **2020** | 21,419 | - Approximately **17%** of employees were covered by collective bargaining agreements on average during 2022[567](index=567&type=chunk) [E. Share Ownership](index=105&type=section&id=E.%20Share%20Ownership) This subsection details the beneficial ownership of Millicom's common shares by its directors and senior management as of January 1, 2023, with CEO Mauricio Ramos being the largest individual holder among the group, and collectively, all directors and executive team members owning less than **1%** of total common shares Share Ownership by Key Management (as of Jan 1, 2023) | Individual | Position | Common Shares | | :--- | :--- | :--- | | **Mauricio Ramos** | CEO | 426,607 | | **José Antonio Ríos García** | Chairman | 43,891 | | **Directors & Executive Team (as a group)** | - | 919,857 | - The total share ownership of all directors and executive team members as a group is **less than 1%** of the company's outstanding common shares[569](index=569&type=chunk) [Item 7. Major Shareholders and Related Party Transactions](index=106&type=section&id=Item%207.%20Major%20Shareholders%20and%20Related%20Party%20Transactions) This section identifies Millicom's major shareholders, including Société Générale S.A., Xavier Niel, and Dodge & Cox, and details its transactions with related parties such as EPM and former JV partner Miffin Associates Corp, with transactions with Miffin ceasing after the Guatemala acquisition [A. Major Shareholders](index=106&type=section&id=A.%20Major%20Shareholders) As of December 31, 2022, Millicom's major shareholders holding over **5%** of common shares were Société Générale S.A. (**8.0%**), Xavier Niel (**7.0%**), and Dodge & Cox (**5.1%**), with Xavier Niel's beneficial ownership subsequently increasing to approximately **20%** by February 24, 2023 Major Shareholders as of December 31, 2022 | Shareholder | Percentage of Share Capital | | :--- | :--- | | **Société Générale S.A.** | 8.0% | | **Xavier Niel** | 7.0% | | **Dodge & Cox** | 5.1% | - A subsequent Schedule 13D filing indicated that Xavier Niel's beneficial ownership increased to approximately **20%** of common shares outstanding as of February 24, 2023[573](index=573&type=chunk) [B. Related Party Transactions](index=107&type=section&id=B.%20Related%20Party%20Transactions) Millicom engages in transactions with related parties on normal commercial terms, including Empresas Públicas de Medellín (EPM) and formerly Miffin Associates Corp, with transactions with Miffin ceasing after Millicom acquired the remaining stake in November 2021 - Significant related parties include EPM (non-controlling shareholder in Colombia), Miffin Associates Corp (former JV partner in Guatemala until Nov 2021), and Cable Onda Partners (former non-controlling shareholders in Panama until June 2022)[579](index=579&type=chunk)[580](index=580&type=chunk)[582](index=582&type=chunk) Expenses from Transactions with Related Parties | Party | 2022 (US$ millions) | 2021 (US$ millions) | 2020 (US$ millions) | | :--- | :--- | :--- | :--- | | **Miffin** | — | (165) | (216) | | **EPM** | (45) | (39) | (37) | | **Total** | **(63)** | **(220)** | **(310)** | Income from Transactions with Related Parties | Party | 2022 (US$ millions) | 2021 (US$ millions) | 2020 (US$ millions) | | :--- | :--- | :--- | :--- | | **Miffin** | — | 299 | 327 | | **EPM** | 11 | 14 | 15 | | **Total** | **11** | **314** | **343** | [Item 8. Financial Information](index=109&type=section&id=Item%208.%20Financial%20Information) This section contains the company's consolidated financial statements and information on legal proceedings, including ongoing tax disputes and the decision not to repurchase shares due to its Rights Offering [A. Consolidated Statements and Other Financial Information](index=109&type=section&id=A.%20Consolidated%20Statements%20and%20Other%20Financial%20Information) Millicom faces routine litigation, with a majority of cases and potential exposure originating in Colombia, and is addressing numerous tax disputes across its markets, while no shares were repurchased under the 2022 authorization due to the company's Rights Offering - The company is party to various legal proceedings, with commercial claims being the largest category, and litigation matters in Colombia representing the majority of cases and potential exposure[590](index=590&type=chunk)[591](index=591&type=chunk) - Millicom has ongoing tax disputes in most of its markets concerning issues such as VAT, withholding tax on services, and the deductibility of intercompany fees and other expenses[592](index=592&type=chunk) - No shares were repurchased under the share repurchase plan authorized at the May 4, 2022 AGM due to the company's decision to conduct a Rights Offering[595](index=595&type=chunk) [Item 10. Additional Information](index=111&type=section&id=Item%2010.%20Additional%20Information) This section provides supplementary corporate information, including details on the company's articles of association, material contracts, and a summary of tax considerations for shareholders in Luxembourg and the United States [C. Material Contracts](index=115&type=section&id=C.%20Material%20Contracts) Millicom has several material contracts, primarily related to its financing activities and recent strategic transactions, including indentures for various senior notes, a **$600 million** revolving credit facility, and the stock purchase agreement for the **$2.2 billion** acquisition of the remaining **45%** of its Guatemala joint venture - The company entered into a stock purchase agreement on November 11, 2021, to acquire the remaining **45%** of its Guatemala joint venture for **$2.2 billion** in cash[633](index=633&type=chunk) - On June 29, 2022, the company acquired the remaining **20%** equity interest in Tigo Panama for approximately **$290 million** in cash[630](index=630&type=chunk) - Key financing agreements include a **$600 million** revolving credit facility maturing in 2025 and indentures for multiple senior notes, such as the **4.500% Senior Notes due 2031** and the **6.250% Senior Notes due 2029**[634](index=634&type=chunk)[635](index=635&type=chunk)[638](index=638&type=chunk) [Item 11. Quantitative and Qualitative Disclosures About Risk](index=125&type=section&id=Item%2011.%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Risk) Millicom's primary financial risks are interest rate risk, foreign currency exchange risk, and non-repatriation risk, managed by maintaining over **75%** fixed-rate debt and at least **40%** local currency debt, despite experiencing a net foreign exchange loss of **$84 million** in 2022 - The company's principal market risks are interest rate risk, foreign currency exchange risk, and non-repatriation risk[700](index=700&type=chunk) - The Group's policy is to maintain over **75%** of its debt at fixed rates, with approximately **82%** of borrowings at a fixed rate or swapped to fixed rates as of December 31, 2022[704](index=704&type=chunk)[1125](index=1125&type=chunk) - The company experienced a net foreign exchange loss of **$84 million** in fiscal 2022, compared to a loss of **$42 million** in 2021[149](index=149&type=chunk)[711](index=711&type=chunk) - A hypothetical **100 basis point** change in floating interest rates would impact profit before tax by approximately **$12 million** for 2022[706](index=706&type=chunk)[1127](index=1127&type=chunk) [Item 15. Controls and Procedures](index=130&type=section&id=Item%2015.%20Controls%20and%20Procedures) This section confirms the effectiveness of Millicom's disclosure controls and internal control over financial reporting as of December 31, 2022, as concluded by the CEO and CFO, and audited by Ernst & Young S.A. with an unqualified opinion - The CEO and CFO concluded that as of December 31, 2022, the company's disclosure controls and procedures were effective at a reasonable assurance level[729](index=729&type=chunk) - Management assessed the company's internal control over financial reporting as effective as of December 31, 2022, based on the COSO 2013 framework[733](index=733&type=chunk) - The independent registered public accounting firm, Ernst & Young S.A., audited the internal control over financial reporting and issued an unqualified opinion, stating that the company maintained effective internal control as of December 31, 2022[736](index=736&type=chunk) [PART III](index=137&type=section&id=PART%20III) This section presents the audited consolidated financial statements of Millicom, prepared under IFRS, along with the independent auditor's opinion [Item 18. Financial Statements](index=137&type=section&id=Item%2018.%20Financial%20Statements) This section contains the audited consolidated financial statements of Millicom International Cellular S.A. for the fiscal years ended December 31, 2022, 2021, and 2020, prepared in accordance with IFRS, with Ernst & Young S.A. issuing an unqualified opinion while identifying impairment testing of goodwill and uncertain tax positions as critical audit matters - The financial statements were audited by Ernst & Young S.A., which issued an unqualified opinion, confirming they are presented fairly in conformity with IFRS as issued by the IASB[775](index=775&type=chunk) - The audit identified two Critical Audit Matters (CAMs): the impairment testing of the **$4,059 million** goodwill balance, due to the significant assumptions involved in valuation; and the assessment of uncertain tax positions, due to the complexity and judgment required in interpreting tax laws in developing countries[779](index=779&type=chunk)[780](index=780&type=chunk)[783](index=783&type=chunk) Consolidated Statement of Income Highlights | Metric (US$ millions) | 2022 | 2021 | 2020 | | :--- | :--- | :--- | :--- | | **Revenue** | 5,624 | 4,261 | 3,805 | | **Operating profit** | 915 | 619 | 402 | | **Net profit (loss) for the period** | 129 | 542 | (385) | | **Basic EPS ($)** | 1.27 | 4.59 | (2.68) | Consolidated Statement of Financial Position Highlights | Metric (US$ millions) | Dec 31, 2022 | Dec 31, 2021 | | :--- | :--- | :--- | | **Total Assets** | 14,198 | 15,141 | | **Total Equity** | 3,634 | 2,740 | | **Total Liabilities** | 10,565 | 12,401 |

Financial Data and Key Metrics Changes - Organic operating cash flow (OCF) growth was strong at 8.4%, with equity free cash flow totaling $171 million, consistent with company plans [4] - Service revenue increased by 2.3% in Q4 and 3.5% for the full year, with growth slowing in the second half due to macroeconomic conditions [5][13] - EBITDA for Q4 was $548 million, up 19% year-on-year, primarily due to the consolidation of Guatemala, while organic EBITDA grew by 1.8% [14] - Net debt decreased by $1 billion in 2022, ending the year at $5.8 billion, with a net debt to EBITDA ratio of 2.94x [18] Business Line Data and Key Metrics Changes - The mobile business grew over 3% for the year, driven by postpaid subscribers, which saw a 9% service revenue growth [6] - B2B service revenue grew more than 5% in 2022, accelerating from 1% in 2021, with a strong pipeline of new projects [26] - Home broadband experienced softer growth due to a shift in demand back to offices and a challenging macroeconomic environment [27] Market Data and Key Metrics Changes - Colombia's mobile service revenue grew by 15%, driven by a shift to postpaid and higher ARPU [8] - El Salvador and Nicaragua showed strong performance with service revenue growth of 7.5% and 5% respectively [35] - Bolivia's EBITDA declined by almost 12% due to regulatory changes and strikes affecting economic activity [95] Company Strategy and Development Direction - The company is focused on expanding its network and enhancing content offerings, including a deal with ViX for sports content [7] - Project Everest aims to achieve over $100 million in annual savings by the end of 2024, enhancing operational efficiency across all business areas [64][38] - The company plans to continue implementing price increases to catch up with inflation and improve ARPU [93] Management's Comments on Operating Environment and Future Outlook - Management acknowledged the impact of inflation and macroeconomic challenges but expressed confidence in the company's ability to execute plans and deliver results [24] - The company remains optimistic about long-term growth potential in residential broadband despite short-term challenges [27] - Management highlighted the importance of maintaining market share and competitive positioning in Guatemala and other key markets [69] Other Important Information - The company has made significant progress in its tower company carve-out, expecting the transaction to complete by the end of the year [11] - The company is actively monitoring macroeconomic conditions, with inflation peaking at 8.5% in July and falling to about 8% by December [12] Q&A Session Summary Question: What are the key levers for further free cash flow acceleration into next year? - Management indicated that price increases and Project Everest will be significant contributors to achieving the target of 10% organic OCF growth over the next three years [21] Question: Can you provide additional color on the competitive environment in the Guatemala mobile market? - Management noted that the competitive environment remains stable, with no significant deterioration in the prepaid market, allowing for sustained market share [69] Question: What is the company's stance on share buybacks in 2023? - Management confirmed that while share buybacks remain an ambition, the immediate focus will be on deleveraging and paying down debt due to the current economic environment [60] Question: How is the company managing pricing in different markets amid inflation? - Management acknowledged the challenges of passing on inflation to customers but emphasized ongoing efforts to adjust pricing strategies across various segments [86]

Millicom International Cellular S.A. (NASDAQ:TIGO) Q3 2022 Results Conference Call October 27, 2022 8:00 AM ET Company Participants Sarah Inmon - IR Mauricio Ramos - CEO Sheldon Bruha - CFO Conference Call Participants Stefan Gauffin - DNB Marcelo Santos - JPMorgan Soomit Datta - New Street Research Lucas Chavez - UBS Sarah Inmon Hello, everyone. Thanks for connecting to our video conference to discuss our Third Quarter 2022 Results. Before we begin, please take a moment to review the Safe-Harbor disclosure ...

| --- | --- | |--------------------------------------|-------| | | | | | | | Staying the course | | | Third Quarter 2022 | | | Mauricio Ramos, CEO | | | Sheldon Bruha, CFO | | | October 27th, 2022 | | | Millicom International Cellular S.A. | | 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 resu ...

Financial Data and Key Metrics Changes - Service revenue reached $1.3 billion, up 39% year-on-year due to the Guatemala acquisition; organic growth was 4.5% [18] - EBITDA was $577 million, up 68% year-on-year due to the consolidation of Guatemala; organically, EBITDA grew 4.6% [21] - Operating cash flow (OCF) more than doubled to $322 million in Q2, with organic OCF down less than 1% [24] Business Line Data and Key Metrics Changes - Mobile business grew almost 5%, with postpaid contributing significantly, growing 9% year-on-year [18] - B2B service revenue accelerated to over 5%, with every country contributing to the strong performance [13] - Home business grew 3.5%, slightly below expectations due to a shift to broadband-only subscriptions and increased price competition [7] Market Data and Key Metrics Changes - Colombia led service revenue growth at 8.5%, driven by mobile business growth of nearly 18% [19] - El Salvador and Nicaragua maintained strong momentum with approximately 7% growth [20] - Guatemala showed 1% growth, with positive signs in handset sales growing over 20% [21] Company Strategy and Development Direction - The company is focused on creating separate entities for its infrastructure and fintech assets to unlock value [4] - Plans to invest around $1 billion annually in CapEx, with no expected spike due to 5G investments [40] - The company aims to grow organic operating cash flow by about 10% on average over the next three years [10] Management's Comments on Operating Environment and Future Outlook - Management remains confident in delivering on commitments despite macroeconomic challenges, including inflation and potential recession risks [3] - The company expects to generate cumulative equity free cash flow of $800 million to $1 billion over the next three years [4] - Management highlighted resilience in cash flow generation, even amid rising inflation and currency volatility [22] Other Important Information - The company completed a rights offering to fund the Guatemala transaction and repaid a $450 million bridge loan [25] - The company is cooperating with a Department of Justice subpoena received in April, emphasizing its commitment to compliance [45] Q&A Session All Questions and Answers Question: Cash flow outlook for H2 - Management confirmed strong OCF growth expected in H2, with incremental OCF anticipated to positively impact equity free cash flow levels [33][34] Question: CapEx and 5G investment cycle - Management indicated no significant CapEx spike expected due to 5G, with ongoing investments within the $1 billion annual CapEx envelope [39][40] Question: Update on DOJ subpoena - Management stated they are cooperating fully with the DOJ regarding the subpoena received in April, with no further developments to report [45] Question: Impact of inflation and competition in Colombia - Management expressed confidence in Colombia's performance despite inflation and competition, citing strategic shifts and new market access [46][50] Question: Changes in Bolivia's commercial strategy - Management clarified that the loss of prepaid subscribers in Bolivia was a strategic decision to focus on higher ARPU customers [53] Question: B2B growth drivers - Management noted broad-based growth in B2B across all countries, driven by cloud and digital services, particularly in the SME sector [56][60]

[Item 1 Press Release: Millicom (TIGO) completes its rights offering with issuance of new shares](index=3&type=section&id=Item%201%20Press%20Release%3A%20Millicom%20%28TIGO%29%20completes%20its%20rights%20offering%20with%20issuance%20of%20new%20shares) This press release details Millicom's successful rights offering, resulting in the issuance of new shares and an increase in its share capital and voting rights [Rights Offering Results and New Share Issuance](index=3&type=section&id=Rights%20Offering%20Results%20and%20New%20Share%20Issuance) Millicom successfully completed its rights offering, with **70,357,088 shares fully subscribed** and two tranches of new share issuances in June 2022, significantly increasing the company's share capital Rights Offering Results and Capital Increase | Metric | Value | Date | | :-------------------------------- | :-------------------------------- | :--------- | | Total Shares Fully Subscribed | 70,357,088 | June 17, 2022 | | New Shares Issued (1st Tranche) | 69,318,977 | June 17, 2022 | | Capital Increase (1st Tranche) | USD 103,978,465.50 | June 17, 2022 | | New Shares Issued (2nd Tranche) | 1,038,111 | June 28, 2022 | | Capital Increase (2nd Tranche) | USD 1,557,166.50 | June 28, 2022 | | Par Value per Share | USD 1.50 | N/A | [Updated Share Capital and Voting Rights](index=3&type=section&id=Updated%20Share%20Capital%20and%20Voting%20Rights) Following the rights offering, Millicom's total issued share capital increased to **USD 258,144,457.50**, represented by **172,096,305 shares**, with total voting rights aligning with the total shares Updated Share Capital and Voting Rights Overview | Metric | Value | | :----------------------------------------------- | :------------------- | | Total Issued Share Capital | USD 258,144,457.50 | | Total Shares Issued | 172,096,305 | | Par Value per Share | USD 1.50 | | Total Voting Rights | 172,096,305 | | Shares Held by Company (Voting Rights Suspended) | 1,229,092 | [About Millicom](index=3&type=section&id=About%20Millicom) Millicom is a leading provider of fixed and mobile telecommunications services across Latin America, operating under the TIGO® and Tigo Business® brands and serving approximately **50 million customers** - Millicom is a leading provider of fixed and mobile telecommunications services in Latin America[11](index=11&type=chunk) - The company operates under the TIGO® and Tigo Business® brands, offering digital services such as TIGO Money (mobile financial services), TIGO Sports (local entertainment), TIGO ONEtv (pay TV), high-speed data, voice, and business-to-business solutions (cloud and security)[11](index=11&type=chunk) Millicom Company Overview | Metric | Value (as of March 31, 2022) | | :-------------------------- | :-------------------------------- | | Employees | Approximately 20,000 | | Mobile & Fiber-Cable Customers | Around 50 million | | Fiber-Cable Homes Passed | Close to 13 million | | Founded | 1990 | | Headquarters | Luxembourg |

| --- | --- | |------------------------------------------------------------|-------| | | | | First Quarter 2022 Continued growth in all business lines | | | | | | Mauricio Ramos, CEO Sheldon Bruha, CFO April 28 th , 2022 | | | Millicom International Cellular S.A. | | 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, ...

Millicom International Cellular S.A. (NASDAQ:TIGO) Q1 2022 Earnings Conference Call April 28, 2022 8:00 AM ET Company Participants Mauricio Ramos – President, CEO & Executive Director Sheldon Bruha – Chief Financial Officer Michel Morin – Vice President, IR Conference Call Participants Marcelo Santos – JPMorgan Soomit Datta – New Street Research Vitor Tomita – Goldman Sachs Andres Coello – Scotia Bank Michel Morin Hello everyone, and welcome to our First Quarter 2022 Results Conference Call. Before we begin ...