Slides
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Q1 2025 Earnings Presentation
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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 prospects, are forward-looking statements. Such forward-looking statements involve a number of risks and uncertainties and are subject to change at any time. In the event such risks or uncertainties materialize, Millicom’s results could be materially adversely affected. In particular, there is uncertainty about global economic activity and inflation, the demand for Millicom's products and services, and global supply chains. The risks and uncertainties include, but are not limited to, the following: • global economic conditions, foreign exchange rate fluctuations and high inflation, as well as local economic conditions in the markets we serve, which can be impacted by geopolitical developments outside of our principal geographic markets, such as the armed conflict between Russia and the Ukraine and related sanctions; • potential disruptions due to health crises, including pandemics, epidemics, or other public health emergencies; geopolitical events, armed conflict, and acts by terrorists; • telecommunications usage levels, including traffic, customer growth and the accelerated transition from traditional to digital services; • competitive forces, including pricing pressures, piracy, the ability to connect to other operators’ networks and our ability to retain market share in the face of competition from existing and new market entrants as well as industry consolidation; • the achievement of our operational goals, environmental, social and governance targets, financial targets and strategic plans, including the acceleration of cash flow growth, the expansion of our fixed broadband network, the reintroduction of a share repurchase program and the reduction in net leverage; • legal or regulatory developments and changes, or changes in governmental policy, including with respect to the availability and terms and conditions of spectrum and licenses, the level of tariffs, laws and regulations which require the provision of services to customers without charging, tax matters, controls or limits on the purchase of U.S. dollars, the terms of interconnection, customer access and international settlement arrangements; • our ability to provide profitable mobile financial services in our Latin American markets; • adverse legal or regulatory disputes or proceedings; • the success of our business, operating and financing initiatives and strategies, including partnerships and capital expenditure plans; • our expectations regarding the growth in fixed broadband penetration rates and the return that our investment in broadband networks will yield; • the level and timing of the growth and profitability of new initiatives, start-up costs associated with entering new markets, the successful deployment of new systems and applications to support new initiatives; • our ability to create new organizational structures for the Tigo Money and Towers businesses and manage them independently to enhance their value; • relationships with key suppliers and costs of handsets and other equipment; • disruptions in our supply chain due to economic and political instability, the outbreak of war or other hostilities, public health emergencies, natural disasters and general business conditions; • our ability to successfully pursue acquisitions, investments or merger opportunities, integrate any acquired businesses in a timely and cost-effective manner, divest or restructure assets and businesses, and achieve the expected benefits of such transactions; • the availability, terms and use of capital, the impact of regulatory and competitive developments on capital outlays, the ability to achieve cost savings and realize productivity improvements; • technological development and evolving industry standards, including challenges in meeting customer demand for new technology and the cost of upgrading existing infrastructure; • cybersecurity threats, a security breach or other significant disruption of our IT systems or those of our business partners, suppliers or customers; • the capacity to upstream cash generated in operations through dividends, royalties, management fees and repayment of shareholder loans; and • other factors or trends affecting our financial condition or results of operations. A further list and description of risks, uncertainties and other matters can be found in Millicom’s Registration Statement on Form 20-F, including those risks outlined in “Item 3. Key Information—D. Risk Factors,” and in Millicom’s subsequent U.S. Securities and Exchange Commission filings, all of which are available at www.sec.gov. All forward-looking statements attributable to us or any person acting on our behalf are expressly qualified in their entirety by this cautionary statement. Readers are cautioned not to place undue reliance on these forward-looking statements that speak only as of the date hereof. Except to the extent otherwise required by applicable law, we do not undertake any obligation to update or revise forward-looking statements, whether as a result of new information, future events or otherwise. 2 2 Safe Harbor
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3 3 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 measures are often expressed in organic constant currency terms to exclude the effect of changes in foreign exchange rates, the adoption of new accounting standards, and are proforma for material changes in perimeter due to acquisitions and divestitures. The non-IFRS financial measures are presented in this presentation as Millicom’s management believes they provide investors with an additional information for the analysis of Millicom’s results of operations, particularly in evaluating performance from one period to another. Millicom’s management uses non-IFRS financial measures to make operating decisions, as they facilitate additional internal comparisons of Millicom’s performance to historical results and to competitors' results, and provides them to investors as a supplement to Millicom’s reported results to provide additional insight into Millicom’s operating performance. Millicom’s Compensation and Talent Committee uses certain non-IFRS measures when assessing the performance and compensation of employees, including Millicom’s executive directors. The non-IFRS financial measures used by Millicom may be calculated differently from, and therefore may not be comparable to, similarly titled measures used by other companies - refer to the section “Non-IFRS Financial Measure Descriptions” for additional information. In addition, these non-IFRS measures should not be considered in isolation as a substitute for, or as superior to, financial measures calculated in accordance with IFRS, and Millicom’s financial results calculated in accordance with IFRS and reconciliations to those financial statements should be carefully evaluated. Non-IFRS Financial Measure Descriptions Service revenue is revenue related to the provision of ongoing services such as monthly subscription fees for mobile and broadband, airtime and data usage fees, interconnection fees, roaming fees, mobile finance service commissions and fees from other telecommunications services such as data services, short message services, installation fees and other value-added services excluding telephone and equipment sales. Adjusted EBITDA is operating profit excluding impairment losses, depreciation and amortization, gains/losses on fixed asset disposals, and early termination of leases. Adjusted EBITDA Margin represents Adjusted EBITDA in relation to revenue. Organic growth represents year-on-year growth excluding the impact of changes in FX rates, perimeter, and accounting. Changes in perimeter are the result of acquisitions and divestitures. Results from divested assets are immediately removed from both periods, whereas the results from acquired assets are included in both periods at the beginning (January 1) of the first full calendar year of ownership. Net debt is Debt and financial liabilities, including derivative instruments (assets and liabilities), less cash and pledged and time deposits. Leverage is the ratio of net debt over LTM (Last twelve month) Adjusted EBITDA less depreciation of right-of-use assets and Interest expense on leases, proforma for acquisitions made during the last twelve months. Capex is balance sheet capital expenditure excluding spectrum and license costs and lease capitalizations. Cash Capex represents the cash spent in relation to capital expenditure, excluding spectrum and licenses costs. Operating Cash Flow (OCF) is Adjusted EBITDA less Capex. Operating Free Cash Flow (OFCF) is Adjusted EBITDA, less cash capex, less spectrum paid, working capital and other non-cash items, and taxes paid. Equity Free Cash Flow (EFCF) is OFCF less finance charges paid (net), lease interest payments, lease principal repayments, and advances for dividends to non-controlling interests, plus cash repatriation from joint ventures and associates. Average Revenue per User per Month (ARPU) for our Mobile customers is (x) the total mobile and mobile financial services revenue (excluding revenue earned from tower rentals, call center, data and mobile virtual network operator, visitor roaming, national third parties roaming and mobile telephone equipment sales revenue) for the period, divided by (y) the average number of mobile subscribers for the period, divided by (z) the number of months in the period. We define ARPU for our Home customers as (x) the total Home revenue (excluding equipment sales and TV advertising) for the period, divided by (y) the average number of customer relationships for the period, divided by (z) the number of months in the period. ARPU is not subject to a standard industry definition and our definition of ARPU may be different from other industry participants. Please refer to our 2024 Annual Report for a list and description of non-IFRS measures.
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CEO Remarks
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Q1 2025 Highlights1 5 Sustaining strong commercial momentum and cash flow growth 1) EFCF, OCF margin and Leverage are non-IFRS measures. EFCF excludes proceeds and taxes related to tower disposals. 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 at www.millicom.com/investors/reporting-center. (2) HFC/FTTH customers 62k Home Net Adds2 36.7% OCF Margin 2.47x Leverage $135m EFCF (ex disposals) 214k in Q1 2024 262k Postpaid Net Adds -13k in Q1 2024 Up $172m YoY Within 2.0-2.5x target range34.9% in Q1 2024 (+1.8p.p)
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Q1 24 Q2 24 Q3 24 Q4 24 Q1 25 7.3 7.5 7.8 8.1 8.4 Mobile 6 Organic YoY growth (%) Mobile service revenue growth +14% Network Investment Q1 24 Q2 24 Q3 24 Q4 24 Q1 25 5.3% 4.7% 4.2% 4.2% 3.1% Postpaid mobile customers (millions), YoY growth Postpaid customer growth Pre-to-Post Migrations Fixed-Mobile Convergence Channel Productivity
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Home Q1 24 Q2 24 Q3 24 Q4 24 Q1 25 3,855 3,866 3,934 3,983 4,045 Home HFC/FTTH customer net additions (thousands) Strong net additions again in Q1 Home customer base Home HFC/FTTH customers (thousands), YoY growth -13 11 68 49 62 Q1 24 Q2 24 Q3 24 Q4 24 Q1 25 Network Investment Speed Upgrades Channel Productivity Fixed-Mobile Convergence 7 +4.9%
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B2B 1) Service Revenue and organic growth are non-IFRS measures. Please refer to the non-IFRS disclosures in this presentation for a description of non-IFRS measures. A reconciliation of non-IFRS measures to the nearest equivalent IFRS measures is available at www.millicom.com/investors/reporting-center 8 39 54 Q1 23 Q1 24 Q1 25 76 Q1 2023-Q1 2025 (US$ millions) and CAGR Digital service revenue1 B2B service revenue1 Q1 2023-Q1 2025 (US$ millions) and CAGR 208 226 Q1 23 Q1 24 Q1 25 255 Infrastructure Investment Digital Services Focus +4.2% CAGR Panama B2B Projects Panama B2B Projects +18.2% CAGR SME Growth Channel Productivity
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Colombia Home Note: Mobile service revenue and EBITDA year-on-year growth expressed in local currency. ARPU, EBITDA, EBITDA Margin, Capex and OCF are non-IFRS metrics. 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 at www.millicom.com/investors/reporting-center 9 1) Adjusted EBITDA Margin is a 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 at www.millicom.com/investors/reporting-center. 1,437 1,566 Q1 24 Q1 25 Postpaid mobile HFC/FTTH Customers (thousands) Q1 24 Q1 25 3.6 4.2 Service revenue growth acceleration and margin expansion Mobile postpaid customers (thousands), YoY growth Adjusted EBITDA margin Q1 24 Q1 25 36.5% 39.1% Adjusted EBITDA margin1 (%), YoY growth +2.6p.p.+15% Q1 24 Q1 25 0.0% 3.6% Organic service revenue growth (%), YoY growth Service revenue growth +9% +3.6p.p.
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172 177 168 175 190 Q1 24 Q2 24 Q3 24 Q4 24 Q1 25Q1 24 Q2 24 Q3 24 Q4 24 Q1 25 1.05 1.08 1.14 1.19 1.24 2,039 2,034 2,055 2,085 2,069 Q1 24 Q2 24 Q3 24 Q4 24 Q1 25 Guatemala 1) Mobile service revenue and OCF are non-IFRS measures. 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 at www.millicom.com/investors/reporting-center 10 Postpaid customers (millions), YoY growth Postpaid customer base OCF Mobile service revenue1 (GTQ billions), YoY growth Mobile revenue OCF1 ($ millions), YoY growth Reported Organic +19% +2.8% +1.5% +10.0% Efficiencies drive OCF up 10% to a new record
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Panama 1) Mobile service revenue and OCF are non-IFRS measures. 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 at www.millicom.com/investors/reporting-center 11 Postpaid customer base Adjusted EBITDA margin Q1 24 Q2 24 Q3 24 Q4 24 Q1 25 42.8% 47.8% 47.4% 50.0% 51.2% Mobile service revenue ($ millions), YoY growth Mobile service revenue 360 399 423 439 460 Q1 24 Q2 24 Q3 24 Q4 24 Q1 25 72 78 79 80 80 Q1 24 Q2 24 Q3 24 Q4 24 Q1 25 Adjusted EBITDA margin +28% Postpaid customers (thousands), YoY growth +12.2% Record Adjusted EBITDA margin of 51.2%
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Strategic Project Update 12 Lati International sale › Closed Nicaragua sale to SBA in Q1 › Remaining SBA closings expected mid-2025 › Signed agreement to sell Lati Paraguay to Atis Group – closing expected in Q2 Towers Costa Rica Millicom proposed acquisition of Coltel › Regulatory approval process ongoing › Closing expected late 2025 Colombia Combination with Liberty Latin America › Regulatory approval process ongoing › Closing expected late 2025 Costa Rica Transactions expected to improve ROIC
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Q1 2025 Financial Review
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177 1 -38 Q1 24 -42 Q1 25 -37 135 Financial Highlights1 1) Group financial information does not include Honduras, which is not consolidated. Service Revenue, Adjusted EBITDA and EFCF are non-IFRS measures. 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 at www.millicom.com/investors/reporting-center 2) Organic growth rates exclude the impact of FX movements and are non-IFRS measures. 3) EFCF excludes disposals net of taxes 14 Equity free cash flow3 of $135min Q1 2025 EFCF ($m) and Q1 2025 growth YoY ($)Adjusted EBITDA ($m) and Q1 2025 growth YoY (%) EFCF3Adjusted EBITDAService Revenue Service Revenue ($m) and Q1 2025 growth YoY (%) 632 636 Q1 24 Q1 25 Reported Organic2 +0.6% +6.9% +$172m 1,285 Q1 24 Q1 25 1,376 -6.6% 0.0% Adj. EBITDA margin 42.5% 46.3% Disposals FX B2B Projects & other
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Guatemala (27%2) Bolivia (7%) Colombia (26%) Panama (13%) Paraguay (10%) Service revenue1 ($m), and YoY growth 346 334 Q1 24 Q1 25 150 93 Q1 24 Q1 25 137 131 Q1 24 Q1 25 Q1 24 Q1 25 187 172341 349 Q1 24 Q1 25 Q1 2025 Service Revenue by Country Others3 (16%) 219 213 Q1 24 Q1 25 Local currency growth 1) Service Revenue is a 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 at www.millicom.com/investors/reporting-center. (2) Percent of Group Service Revenue. (3) Includes El Salvador, Nicaragua and Costa Rica. 15 +2.2% +0.9% Reported growth -3.6% +3.6% -7.9% -38.4%-4.4% +3.6% -3.1% +3.4% B2B Projects
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130 133 Q1 24 Q1 25 215 222 Q1 24 Q1 25 69 69 Q1 24 Q1 25 65 43 Q1 24 Q1 25 90 92 Q1 24 Q1 25 Guatemala (34%2) Panama (14%) Adjusted EBITDA1 ($m), and YoY growth Q1 2025 Adjusted EBITDA by Country Colombia (20%) Paraguay (10%) Bolivia (7%) 100 101 Q1 24 Q1 25 Others3 (15%) Adj. EBITDA margin Local currency growth (1) Adjusted EBITDA and Adjusted EBITDA margin are Non-IFRS measures. 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 at www.millicom.com/investors/reporting-center. (2) Percent of Group Adjusted EBITDA. (3) Includes El Salvador, Nicaragua and Costa Rica. 16 +3.2% +1.9% Reported growth +2.7% +10.4% +2.8% +0.6% +9.0% -33.2% +0.1% 54.9% 39.1% 51.2% 46.4% 51.2% 44.5% 54.0% 36.5% 42.8% 42.6% 48.3% 42.7% +12.0%
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636 177 135 23 Adjusted EBITDA Cash Capex Spectrum Paid Working Capital & Other Taxes Paid Finance Charges Lease Payments Honduras Repatriation EFCF Disposals Net Proceeds EFCF (Ex Disposals) -114 -36 -77 -66 -107 -82 -42 Q1 Equity Free Cash Flow and Leverage1 17 (1) The metrics on this page are non-IFRS measures. 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 at www.millicom.com/investors/reporting-center. (2) Cash capex includes proceeds from asset sales of $64 million in Q1 2025 and $39 million in Q1 2024. Excluding these from both years, cash capex would have increased $7 million year-on-year. +4 Change YoY +192 +42 +116 -28 +26 -10 +8 +168 Most items contributing to improved EFCF 5,174 5,275 Q4 24 Q1 25 Net Debt +101 2.42x 2.47x Leverage $ millions +172 Shareholder Remuneration 170 119 Q1 25 Dividends Buyback 289
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2025 Financial Targets1 18 1 2 Equity Free Cash Flow around $750 million Leverage below 2.5x at year-end 2025 (1) The 2025 targets exclude net proceeds and any impact from strategic initiatives, such as the planned disposal of Lati International, S.A. and the planned transactions in Colombia and Costa Rica. Equity free cash flow and leverage are non-IFRS measures. 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 at www.millicom.com/investors/reporting-center. Proposed annual dividend of $3.00 per share Intent to sustain or grow every year
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Q&A
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Selected P&L data $ million Q1 2025 Q1 2024 % Var Revenue 1,374 1,487 (7.6)% Equipment, programming and other direct costs (316) (382) 17.4% Operating expenses (423) (473) 10.7% Depreciation & amortization (297) (334) 11.0% Share of net profit in Honduras JV 13 13 1.3% Other operating income 72 13 NM Operating profit 423 324 30.8% Net financial expense (161) (164) 1.7% Other non-operating income 28 (7) NM Profit before tax 290 153 90.0% Taxes (71) (71) (0.5)% Minority interests (26) 10 NM Discontinued operations — — NM Net income (Loss) 193 92 110.2% EPS ($ per share) 1.14 0.54 112.8% . Key Observations B C A Group Consolidated Financial Statements Group Financial Highlights – Q1 2025 20 • Q1 2025 impacted by weaker FX, especially in Bolivia • Q1 2024 benefited from B2B projects that did not repeat in Q1 2025 • One-time gains on sale of assets in Colombia and Nicaragua • Foreign exchange gains in Bolivia • Improved profitability in Colombia • Includes approximately $95 million of one-off gains A B C D E D E F F
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1) Fully swapped currency As of Q1 25 Average maturity 4.4 Years Average cost of debt 6.2% Debt Maturity Schedule Cable Onda $557m 4.500% Telecel $290m 5.875% 28s $360m 5.125% 29s $616m 6.250% 31s $775m 4.500% Comcel $744m 5.125% 21 32s $450m 7.375% SEK 2.25bn SOFR + 3.496%1
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As of March 31, 2025 • Capital Structure 22 Debt profile** 22*El Salvador's official unit of currency is the U.S. dollar, while Panama uses the U.S. dollar as legal tender. Our local debt in both countries is therefore denominated in U.S. dollars but presented as local currency (LCY). ** Does not Include vendor & license financing. Banks & Others 23% Local 40% Variable 17% OpCos Bonds 21% HQ Bonds 56% Fixed or Swapped 83% USD 60% 5Y or more 49% Less than 5Y 51% Latam 58% HQ 42%
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Paraguay: Gross: $516m Net: $496m Leverage: 2.04x Nicaragua: Gross: $0m Net: $(6)m Leverage: -0.06x 23 Panama: Gross: $734m Net: $716m Leverage: 2.24x Net Debt1,2 by country Guatemala: Gross: $1,233m Net: $1,179m Leverage: 1.46x El Salvador: Gross: $67m Net: $51m Leverage: 0.28x Costa Rica: Gross: $148m Net: $144m Leverage: 3.40x Bolivia: Gross: $87m Net: $51m Leverage: 0.22x 1) As of March 31, 2025. Gross Debt & Net Debt excludes leases. Millicom has provided guarantees covering 100% of the gross debt in Costa Rica and 100% of gross debt in El Salvador. 2) Beginning in Q4 2023, we have amended our definition of Leverage to conform with the most common practice among peers. Lev erage is now defined as the ratio of net debt over LTM (Last twelve month) Adjusted EBITDA, with the latter further adjusted by subtracting depreciation of right-of-use assets and Interest expense on leases, proforma for acquisitions made during the last twelve months. Colombia: Gross: $562m Net: $538m Leverage: 1.33x Corporate: Gross: $2,425m Net: $2,106m Group: Gross: $5,772m Net: $5,275m Leverage: 2.47x Honduras (not consolidated): Gross: $368m Net: $327m Leverage: 1.14x