Millicom 2021 Annual Report

Our Purpose

We build the digital highways that connect people, improve lives and develop communities.

Opportunities, Challenges and Uncertainties in Our Markets

Millicom’s future is deeply rooted in Latin America. While many of our markets are still grappling with the pandemic, local economies are gradually recovering as businesses and governments learn to adapt to this new reality. The International Monetary Fund World Economic Outlook projects that our Latin American markets will grow by roughly 4.0% in 2022, above the regional average of 2.4%. But a lack of digital infrastructure threatens to hold these markets back. Accelerating the digital transition must be a priority for these countries’ economies to take the next step—and we’re laser focused on making it happen.

Our Business Strategies and Performance

Our purpose inspires our business strategies and drives their success. By shifting our focus in 2020 to keeping customers and employees safe and connected, we created the conditions for a robust 2021.

2021 Highlights

Our revenue grew 10.7% year-over-year, aided by stronger commercial activity and consolidation of Guatemala.

Our capital expenditures totaled 922 million, a 23% year-over-year increase that's fueling our customer growth.

With 415,000 new fiber-cable subscribers in Latam, the Tigo networks kept pace with the surge in demand for high-quality broadband.

Network enhancements expanded our Latam mobile coverage area to 78% in our markets.

Our Year in Numbers

Financial Highlights (“IFRS”)

Revenue ($m)

2019
2020
2021

Gross Profit ($m)

2019
2020
2021

Operational Highlights ("Latam")

4G Mobile Data Users (m)

2019
2020
2021

HFC Homes Passed (m)

2019
2020
2021

HFC Customer Relationships (m)

2019
2020
2021

345,000 Tigo Business accounts

20,687 full-time employees and approximately 12,000 contractors

Environmental, Social & Governance (“ESG”) Highlights (”Latam and Africa”)

112,737

Teachers trained through Maestr@s Conectad@s

158,881

Women who participated in our digital inclusion and training programs ("Conectadas")

84%

Percentage of Consumer Premise Equipment (CPE) recovered upon service termination or upgrades

Chief Financial Officer’s Message

2021 was a year marked by significant investment and growth and important strategic initiatives that will transform the financial profile of Millicom going forward.

READ THE FULL MESSAGE IN THE ANNUAL REPORT

Service revenue

Organic growth 6.7%

$5,716

EBITDA

Organic growth 6.7%

$2,498

OCF

Organic decline 0.5%

$1,387

Latam (%m)

Revenue By
Country

Revenue by
business

Advancing Our Business Strategy

The decisions we made in 2020 when COVID-19 hit, paved the way for strong growth in 2021. Customer trust in the Tigo brand hit at an all-time high, leading to more customer acquisitions. Our focus on cash flow generation and debt reduction enabled us to invest an additional 18.0% in capital expenditures in Latam this year, giving us critical momentum as we expanded our market reach. These investments also positioned us to meet the needs of our markets long term, as our coverage areas grow and demand for home, business and mobile connectivity increases.

Millicom’s business strategies are grounded in six interconnected areas.