2018 Q1 results Kicking off 2018 with accelerating momentum Mauricio Ramos, CEO Tim Pennington, CFO April 25 th , 2018 Millicom International Cellular S.A.
Disclaimer This presentation may contain certain “forward - looking statements” with respect to Millicom’s expectations and plans, strategy, management’s objectives, future performance, costs, revenue, earnings and other trend information. It is important to note that Millicom’s actual results in the future could differ materially from those anticipated in the forward-looking statements depending on various important factors. All forward-looking statements in this presentation are based on information available to Millicom on the date hereof. All written or oral forward-looking statements attributable to Millicom International Cellular S.A., any Millicom International Cellular S.A. employees or representatives acting on Millicom’s behalf are expressly qualified in their entirety by the factors referred to above. Millicom does not intend to update these forward-looking statements. This information was prior to this release inside information and is information that Millicom is obliged to make public pursuant to the EU Market Abuse Regulation. This information was submitted for publication, through the agency of the contact person set out above, at 22:00 CET on April 24 th 2018 2
1. CEO review Mauricio Ramos
Highlights Kicking off 2018 with accelerating momentum 1 Latam service revenue growth accelerated to 3.9% in Q1 2 Strategic revenue grew 12% and now accounts for 69% of service revenue 3 Mobile data grew 18%, fueled by 643k 4G net additions (a Q1 record) 4 Home grew 8%, fueled by record 91k HFC homes connected added in Q1 5 Mobile now growing, driving growth in every Latam country 6 Well underway in next step of transformation journey: digitalization 4
1 Revenue growth accelerated to 3.9% in Q1 Fastest growth rate in more than two years Latam service revenue growth %YoY growth, Q1 16 – Q1 18 3.9% 3.1% 2.9% 2.3% 0.9% -0.5% -1.3% -2.0% -2.3% Q1 16 Q2 16 Q3 16 Q4 16 Q1 17 Q2 17 Q3 17 Q4 17 Q1 18 5
2 Strategic businesses driving growth c.70% of our revenue is strategic and growing double-digits Strategic revenue grew 12%… … to c.70% of service revenue Contribution to Latam revenue growth year-on-year, Q1 2018 Latam strategic revenue as % of service revenue Q1 15 – Q1 18 Strategic revenue lines 3.9% 69% 52% Mobile data Home B2B Mobile legacy Q1 18 18% 8% 9% -12% Growth Q1 2015 Q1 2018 Weight 27% 23% 19% 31% 6
2 …three strategic businesses growing steadily Strategic businesses grew 12% in aggregate in Q1 2018 Mobile data Home Reported service revenue, $m, Q1 17 - Q1 18 353 302 346 289 336 282 279 277 320 302 Q1 17 Q2 17 Q3 17 Q4 17 Q1 18 Q1 17 Q2 17 Q3 17 Q4 17 Q1 18 23% 27% 18% 17% 17% 16% 18% Home 7% 7% 9% 7% 8% Mobile Data B2B Legacy 19% 31% B2B Legacy 442 247 240 425 424 237 420 228 224 394 Q1 17 Q2 17 Q3 17 Q4 17 Q1 18 Q1 17 Q2 17 Q3 17 Q4 17 Q1 18 2% 1% 6% 6% 9% -16% -15% -12% -9% -10% Constant currency growth YoY 7
3 Mobile is growing again, driven by data… Mobile revenue growing again as data growth more than offsets legacy voice decline Mobile data B2C mobile service revenue growth Latam % growth in local currency, Q1 16- Q1 18 Mobile data as % of Mobile B2C, Q1 17 - Q1 18 0.9% 0.2% -1.2% -0.9% 48% -2.9% 41% 33% -3.8% 25% -5.3% -5.6% -6.5% Q1 15 Q1 16 Q1 17 Q1 18 Q1 16 Q2 16 Q3 16 Q4 16 Q1 17 Q2 17 Q3 17 Q4 17 Q1 18 8
3 …a direct result of our investments in 4G Record 4G net additions - on track to meet FY guidance of 3m 4G network coverage expansion continues Network 4G data user net additions in Q1 18 Latam B2C Smartphone net new data users (000s) by quarter , Q1 16 – Q1 18 Latam 4G coverage in % of population covered 4G points of presence (PoP) Coverage PoP 6,958 59% 4,664 643 48% 392 Q1 17 Q1 18 Q1 17 Q1 18 9
4 Home net add intake accelerating strongly 91k new homes connected in Q1 2018 – on track to deliver FY guidance of 300k New HFC homes connected Latam HFC homes connected, net adds by quarter, Q1 16 – Q1 18 (000s) 91 63 31 Q1 16 Q1 17 Q1 18 Bundling ratio 1.80 2.31 on net adds 10
5 Every Latam country now growing Continued momentum in all of our largest Latam markets El Salvador (11%*) Guatemala (18%*) Honduras (10%*) Service revenue, year-on-year (%), Q1 16 – Q1 18 5.4% 5.7% 0.0% 0.0% -0.1% 3.5% 3.4% 2.1% -0.6% 2.7% 0.3% -1.6% -0.7% -0.8% -1.0% -1.4% -0.8% -1.6% -3.7% -4.8% -2.5% -6.4% -3.9% -4.3% -8.7% -4.8% -2.5% Q116 Q216 Q316 Q416 Q117 Q217 Q317 Q417 Q118 Q116 Q216 Q316 Q416 Q117 Q217 Q317 Q417 Q118 Q116 Q216 Q316 Q416 Q117 Q217 Q317 Q417 Q118 Bolivia (15%*) Colombia (23%*) Paraguay (22%*) 2.3% 9.1% 8.9% 7.8% 7.1% 2.2% 6.5% 6.1% 6.5% 5.5% 0.3% 0.6% 6.2% 4.5% 4.7% -0.2% -0.3% 2.6% 2.0% 3.3% 2.9% -1.9% 0.5% 2.1% -2.5% -0.8% -2.9% Q116 Q216 Q316 Q416 Q117 Q217 Q317 Q417 Q118 Q116 Q216 Q316 Q416 Q117 Q217 Q317 Q417 Q118 Q116 Q216 Q316 Q416 Q117 Q217 Q317 Q417 Q118 * Contribution to Latam proportionate service revenue in Q1 2018 11
6 Next steps in our journey Digital transformation will help drive sustainable EBITDA growth and FCF generation Turning opportunity into Free Cash Flow and shareholder value Opportunity Network Users Revenue EBITDA Cash Flow Leveraging our Building high Driving Subscription- Digital Superior FCF market speed data adoption and based and transformation growth leadership to networks stimulating data-centric to help drive meet pent-up usage operating demand for leverage 2.4 Homes fixed and Connected (m) 2.1 mobile data 2.0 15 million homes to pass 1.8 • +1m homes build Fixed broadband penetration* Equity FCF EBITDA per year Latam service revenue YoY Q1 Q1 Q1 Q1 36.4% ($m) Margin Honduras 11.0% 15 16 17 18 34.8% Bolivia 11.0% 7.5 4G 33.7% Paraguay 14.0% 356 Customers 32.8% El Salvador 23.0% 269 (m) • ~60% of population 235 3.8 covered with 4G Guatemala 31.0% Costa Rica 42.0% 1.3 -43 2014 2015 2016 2017 0.0 2014 2015 2016 2017 Colombia 48.0% Q1 Q1 Q1 Q1 15 16 17 18 * Source: Dataxis 12
6 Digitalization is changing how we do business Digitalization drives customer engagement Prepaid - engagement driving transaction growth Postpaid – engagement with 16% of subs 4x per month Unique Monthly Active Users Unique Monthly Active Users Unique Monthly Active Users Transactions (millions) (Percent of Postpaid Subs) (Growth) (Percent of Core Prepaid Customers) 34% 39% 74.1 16% 36% 15% 67% 10% 44.8 22% 12.3 Dec-15 Dec-16 Dec-17 Q1 16 Q1 17 Q1 18 Q1 16 Q1 17 Q1 18 Q1 16 Q1 17 Q1 18 13
2. CFO review Tim Pennington
1 Macro update Our markets continue to grow 2-4% with more stable FX GDP growth projections – 2018 COP appreciation in early 2018 Real GDP growth Daily closing rate Jan 17 – Apr 18 %, FY18e 3,100 El Salvador 2.1% 3,000 2,900 Guatemala 3.4% 2,800 COP USD FX 30d moving average Honduras 3.6% 2,700 Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr Colombia inflation still declining Costa Rica 3.8% Inflation annualized %, Jan 17 – Apr 18 Bolivia 4.0% 5.5% 5.2% 4.7% 4.7% 4.4% 4.1% 4.1% 4.1% 4.0% 4.0% 3.9% 3.7% 3.4% 3.4% Colombia 2.8% 3.1% Paraguay 4.0% Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar Source: Bloomberg IMF DataMapper: http://www.imf.org/external/datamapper/datasets/WEO/1 15
2 Key financial metrics – Q1 2018 Group service revenue up 3.6% EBITDA a and Margins Service Revenue a Capex b $m, Q1 17 – Q1 18 $m and %, Q1 17 – Q1 18 $m, Q1 17 – Q1 18 3.6% 1.5% +$9m 1,373 1,422 554 157 148 546 Q1 17 Q1 18 Q1 17 Q1 18 Q1 17 Q1 18 37.1% 36.5% a) Q1 17 numbers are adjusted to Q1 18 FX rates and exclude Senegal, Rwanda and Ghana 16 b) Excluding Senegal, Rwanda and Ghana, spectrum & license costs
2 Latam Solid growth returning to Latam Latam service revenue Latam OCF (Q1) $m, Q1 17 – Q1 18 $m and margin, Q1 17 – Q1 18 -3.1% +3.9% Latam EBITDA 363 $m and margin, Q1 17 – Q1 18 +1.3% 28.1% 1,288 26.3% 1,240 514 508 Q1 17 Q1 18 Q1 17 Q1 18 Q1 17 Q1 18 Capex / 38.1% 37.2% 10.0% 11.0% Revenue Notes: Growth rates are organic and exclude the impact of changes in FX rates, accounting, and new segmental presentation. Q1 2017 figures have been adjusted to reflect these organic growth rates. 17 Capex/revenue excludes spectrum & license costs
3 EBITDA – Q1 2018 Latam biggest contributor to EBITDA growth EBITDA evolution by region $ million, Q1 17 – Q1 18 +1.5% 0 1 7 +0.8% 4 554 546 542 Ebitda Q1 17 FX and other Ebitda Q1 17 LatAm Africa Corporate Ebitda Q1 18 (constant currency) 37.1% 36.5% as % of revenue Q1 17 numbers are adjusted to Q1 18 FX rates and exclude Senegal, Rwanda and Ghana 18
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