Millicom International Cellular Annual Report 2021

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FY2021 Annual Report · Millicom International Cellular

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2021 Millicom Annual Report

MILLICOM INTERNATIONAL CELLULAR S.A.

Committed to ConnectivityM

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The empowering effect of connectivity
should never be underestimated.

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Connectivity has the power to bring families
together, educate children and inspire dreamers
to reach their full potential. It can open limitless
doors for businesses—to innovate more, grow
faster or aim higher, whether you’re a small
business owner or a CEO.

We’re committed to connectivity and
all that it empowers. And we’re proud
to provide the broadband and mobile
connections that make it possible.

Our purpose, to build the digital highways
that connect people, improve lives and
develop our communities, drives us in all
we do. We fulfill our purpose with a shared
passion for our customers and a tireless
commitment to doing what’s right—from
narrowing the digital divide to reducing our
greenhouse gas (GHG) emissions to catalyzing
economic growth in developing markets.

Eventually, everything connects. We strive to
make sure everyone connects, too.

Through our Tigo and Tigo Business brands,
we provide a wide range of digital services,
including high-speed data, cable TV, voice,
Mobile Financial Services and business
solutions. In 2021, we served customers in nine
Latin American markets—Bolivia, Colombia,
Costa Rica, El Salvador, Guatemala, Honduras,
Nicaragua, Panama and Paraguay—as well as
in Tanzania in Africa.

1 Unless otherwise indicated, all references to “U.S. dollars,” “dollars” or “$” are to the lawful currency of the United States of America

2 Formerly Carbon Disclosure Project

Millicom 2021 Annual ReportAbout This Report Our sixth fully integrated annual report combines our financial1 and Environmental, Social and Governance (ESG) performance to provide our stakeholders a comprehensive overview of our purpose, business strategies, performance, actions and impact. The report identifies and quantifies how we perform as a company to create business value, transform communities and protect our environment in alignment with the United Nations Sustainable Development Goals. We conduct bi-yearly materiality assessments to identify the issues of greater importance to our stakeholders. Our latest assessment (link) was conducted in 2020 and helped us better understand the impact of COVID-19 on our stakeholders’ perspectives. During 2020, we also conducted a gap analysis against investor-based frameworks, including the Task Force for Climate-related Financial Disclosures (TCFD), and investor rating agency questions, all of which continue to shape our disclosures. The content is also mapped against Global Reporting Index (GRI) and Sustainable Accounting Standards Board (SASB) standards and is aligned with our 2021 TCFD reporting, published in our CDP2 report. The GRI and SASB indexes can be found in: https://www.millicom.com/results/ar-2021/. This year, we evolved how we communicate ESG to better align with leading ESG reporting frameworks and to help stakeholders better understand our issue-specific approaches. You’ll see the results on our website and in this report. We will continue to incorporate findings from these and other assessments and approaches in future reports and to seek feedback from investors, customers, employees and community leaders to inform our ESG efforts. Learn more about our ESG reporting approach here.ERM Certification and Verification Services (ERM CVS) has conducted independent assurance of selected 2021 ESG data. To understand the scope, activities and conclusions of the assurance process, please see the ERM CVS Assurance Statement, on starting on pages 42.3

Note: Our Latin American (Latam) segment includes our Honduras joint venture as if it were fully consolidated, as this reflects the way our
management reviews and uses internally reported information to make decisions about operating matters. It also includes our Guatemala
operation.See also note A.1.2. in the notes to our audited consolidated financial statements for information regarding the acquisition of the
remaining 45% equity interests in our Guatemala joint venture business on November 12, 2021.We also report in this way to provide increased
transparency to investors in these operations.

Millicom 2021 Annual ReportWhat's Inside this ReportOverview04 Chairman’s Message05 Chief Executive Officer’s Message07 Our Year in Numbers08 Our Market Leadership09Our Purpose, Business Strategies and Performance10 Our Purpose12 Our Business Strategies and Performance 12 2021 Highlights 14 Chief Financial Officer’s Message 15 Our 2021 Financial Performance in Latin America 19 Advancing Our Business Strategy23 Risk management 25 Evolution of Risk 26 Risk Management Tables30Our ESG Approach and impact 33 ESG Performance Tables42 Assurance Letter44 Environment49 Society63 Corporate Governance 64 Chairman’s ReportFramework and Shareholder Governance 65 Corporate Governance Framework 65 Shareholders and Shareholders’ MeetingBoard Governance 68 Board of Directors and Board Committees 72 Board Profile: Skills and Experience 77 Board Program 79 Board Committees 80 I. Audit Committee 86 II. Compliance and Business Conduct Committee 88 III. Compensation Committee: Remuneration ReportManagement Governance 103 Millicom CEO and Executive Team 111 Directors’ Financial and Operating Report 112 Management Responsibility Statement113Disclaimers and Non-IFRS Reconciliations114 Forward Looking Statements115 Non-IFRS Measures117 Non-IFRS Reconciliations123Financial Statements 215Corporate Information4

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Chairman’s Message

As I reflect on the past year, I’m inspired
by how much we accomplished—both
in our financial performance and our
steadfast commitment to the people,
businesses and communities we
serve. Our unwavering commitment
to our business strategy paid off with
significant growth in all of our markets,
aided by strategic investments in our
network and operations.

We attribute our exceptional achievements to the
commitment of everyone at Millicom—from our CEO to our
Senior Leadership Team to each and every employee—to
fulfilling our purpose. We build the digital highways that
connect people, improve lives and develop communities. It
was true 30 years ago when we launched, and it’s just as true
today.

Throughout 2021, our company responded to Millicom’s risks,
challenges and opportunities with strong governance and
oversight. The Board approved our divestment from our Africa
business and the redeployment of capital into new growth
opportunities in Latin America. Alongside the acquisition
of the remaining 45% of our business in Guatemala, these
moves strengthened Millicom’s position as the region’s
leading telecom provider and put us on a path to strong,
sustainable growth.

The Board also provided oversight of Millicom’s ongoing
response to COVID-19, including adjusting our financial
structure and restarting shareholder remuneration in response
to our improved financial performance. After putting select
strategies and investments on hold in the early days of the
pandemic, we were able to execute our business strategy in
full force in 2021. More details about Millicom’s approach to
risk can be found starting on page 23 of this year’s report.

The Board believes a strong compliance culture is vital to the
success of our business—and we’re proud to be a leader on
ethics and compliance in our markets. Led by our Executive
and Legal, Ethics and Compliance Teams, we continued
developing and expanding our compliance program in 2021,
embedding ethical behaviors into every one of our daily
decisions and workflows.

We’re equally proud of the increased diversity on our Board.
With three new additions, we diversified by gender, age, identity
and nationality in 2021, as well as introduced new experiences,
backgrounds and business disciplines to our Board’s mix.
Diversity is one of the core pillars of our Sangre Tigo culture
and is a key strength for Millicom. We continued fostering a
DE&I mindset at all levels of Tigo this year, including providing
exciting and interactive training courses to help us create an
environment where every voice is heard and respected.

Finally, we reinforced our commitment to reducing the
environmental impact of Millicom’s operations, improving
information security and protecting our customers’ privacy.

These and many other accomplishments in 2021 connect
directly to the passionate and talented employees who
embody our Sangre Tigo corporate culture. We thank them for
their deep commitment to our purpose and their ability to rise
to every challenge and opportunity. They are the life force of
Tigo and we’re immensely proud of their dedication.

I also want to thank my fellow Board members for contributing
their business expertise and industry knowledge. And I want
to extend the entire Board’s gratitude to departing members
Tomas Eliasson and Lars-Åke Norling for their invaluable
contributions over the past several years.

Lastly, we want to thank you for being part of Millicom’s success
story. We look forward to continuing this journey with you.

José Antonio Ríos García
Chairman of the Board of Directors

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Chief Executive
Officer’s Message

If there’s one message I hope our
employees, investors and other
stakeholders take away this year, it’s
this: We deserve to be proud. After
a 2020 that tested our resilience in
ways we never could have anticipated,
Millicom performed exceptionally well
in 2021.

Our customers’ trust in Tigo is at an all-time high. We gained
market share throughout the year, posting strong gains in
every quarter. We affirmed our standing as Central America's
leading telecommunications provider by inking deals to
acquire full control of Tigo Guatemala and to divest in Africa.
Our investments in modernizing and expanding our Central
American networks have positioned us for sustained growth in
markets with untapped digital potential.

Perhaps most importantly, we demonstrated we have the
fortitude, capabilities, strategies, teams and culture to emerge
from a crisis stronger than we’ve ever been. And we did it
while remaining laser-focused on our purpose, which is to build
the digital highways that connect people, improve lives and
develop our communities.

I couldn’t be prouder. And I encourage our employees and
leaders to feel the same sense of pride when reflecting on our
accomplishments together.

Every business line and every country in Latin America
contributed to our outstanding performance. We added 3.1
million mobile customers and 415,000 HFC home customers
this year, strengthening our position as the leading telecom
provider in our markets. We also continued executing our
2021 investment plan, which included expanding our
Colombia mobile network and modernizing our mobile
networks in El Salvador, Honduras, Paraguay and Bolivia.

Our revenue for 2021 increased 10.7% to $4.6 billion1. After
making some difficult but necessary financial decisions last
year to maintain operating cash flow and reduce debt, our
improved financial position this year enabled us to invest an
additional 23%in capital expenditures, while also exceeding

our operating cash flow target for the year. We were able
to resume shareholder remuneration in Q3, repurchasing
approximately 1% of our shares outstanding.

Beyond our strong operating and financial performance, I’m
excited to introduce you to our new Environmental, Social and
Governance (ESG) framework, which represents a new way
of communicating our longstanding corporate responsibility
commitments and accomplishments. Our reason for the
transition is simple: we wanted to provide a more complete
picture of how social and environmental criteria play an
integral role in every part of our business.

Our new framework helps clarify our ESG commitments while
illustrating the intertwined relationship between our purpose,
business strategies and ESG principles. It’s vital that we tell
this story authentically.

In practice, this means measuring our success by financial
results, yes, but also how we contribute to the lives of our
employees and the people in the communities we serve, and
how we reduce our impact on the environment.

We made dramatic progress across our ESG agenda in 2021,
including committing to new Science-Based Targets to reduce
our greenhouse gas ("GHG") emissions in the coming years
and by joining Race to Zero, the UN-backed campaign aimed
at promoting a healthy, resilient, zero carbon recovery. See
our Environmental section on page 44 to read more about our
commitment.

The digital divide and a lack of digital literacy continue to
prevent as many as half the people in our markets from
fully participating in society. We responded with initiatives
like our partnership with Fundación Real Madrid, which will

Unfortunately, many of our markets are still burdened by
COVID-19. Throughout the pandemic, we’ve teamed up with
government and community leaders to keep connectivity
flowing and support the critical health needs of our
communities. We remain deeply committed to the health and
well-being of our employees and customers, as well as their
friends and families.

At Millicom, we believe doing good is good for our business,
and that our business itself is good for our communities. Our
Sangre Tigo culture is the beating heart of this belief. It’s how
we rose to the challenge in 2021, and how we’ll make Tigo
even better as we look to the future.

I’m thrilled to share this year’s annual report with you. As
you’ll see on the pages that follow, our strategies are honed,
our purpose is clear and our potential is far-reaching. Thank
you to everyone—our employees, our customers, our Board,
our community partners and our shareholders—for making
it so.

Finally, a special thanks to Tim Pennington, who will retire
from his role of Chief Financial Officer on April 1. Tim joined
the company in 2014 and played a leading role in steering the
company through a period of significant transformation. Tim's
stewardship and contributions extended well beyond the
finance function to touch every part of the business. He will be
missed, and we wish him well in this next chapter of his life.

Mauricio Ramos
Executive Director and Chief Executive Officer

increase digital access and literacy among vulnerable children
by bringing together the two things that children in Latin
America love most: fútbol and the internet.

We also continued to provide digital literacy and
entrepreneurship training to women and adolescent girls
in Latin America through our Conectadas program. We’re
particularly excited about our progress in El Salvador, where
more than 6,000 women received entrepreneurship training
through Conectadas, helping them capitalize on new
business opportunities. These and other efforts reinforce our
ongoing support of the UN Global Compact and Sustainable
Development Goals.

We want to do more than just connect our communities; we
want to be a conduit of investment capital for developing
economies. For example, we announced a plan to invest $250
million in Panama to boost local infrastructure and create
a new fintech hub. The hub will boost the local economy,
bring jobs to the country and serve our growing Tigo
Money business in the region. Additionally, we secured full
ownership of our Guatemala business in a transaction that is
immediately accretive to our cash flow and net income and
reflects our continued confidence in the thriving economy
of Guatemala and our renewed commitment to the digital
transformation of its society.

Internally, we remained focused on making Tigo a great
place to work. We strengthened our already strong diversity,
equity and inclusion (DE&I) programs this year, in our ongoing
quest to make sure every Tigo employee feels empowered
to contribute authentically. In that spirit, we established a
new and ambitious target of reaching gender parity by 2030,
including equal gender representation across the entire
organization, as well as in its upper management positions
globally.

A special thanks to Tim Pennington,
who will retire from his role of Chief
Financial Officer on April 1. He will
be missed, and we wish him well in
this next chapter of his life.

1 Financial results are presented on an IFRS basis and therefore do not consolidate the results from our Honduras joint venture. The results for our Guatemala subsidiary, are
consolidated as from November 12, 2021.

Millicom 2021 Annual ReportOur Year in Numbers
Financial, Operational and ESG Highlights

Financial Highlights ("IFRS")

Operational Highlights ("Latam")

Revenue ($m)

4G Mobile Data Users (m)

2019

2020

2021

$4,336

$4,171

$4,617

2019

2020

2021

Gross Profit ($m)

HFC Homes Passed (m)

2019

2020

2021

$3,135

$3,000

$3,316

2019

2020

2021

HFC Customer Relationships (m)

Financial results are presented on an IFRS basis and therefore excludes the
results from our Guatemala operations (until November 12, 2021 as explained
in Note A.1.2 to the Financial Statements) and Honduras joint ventures.

The following Indicators reflect Latam segment (with Honduras and
Guatemala).

» 4G Customers

» HFC Homes Passed

» HFC Customer Relationships

» Tigo Business Customers

Employees, contractors and ESG highlights reflect Latam and Africa.

2019

2020

2021

15.4

18.2

21.4

11.5

11.9

12.4

3.5

3.7

4.1

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

Millicom 2021 Annual Report8

Honduras
Mobile #1
BBI #1
Pay TV #1

Guatemala
Mobile #1
BBI #1
Pay TV #1

El Salvador
Mobile #1
BBI #2
Pay TV #2

Nicaragua
Mobile #1
BBI #2
Pay TV #3

Panama
Mobile #1
BBI #1
Pay TV #1

Costa Rica
BBI #3
Pay TV #2

Colombia
Mobile #3
BBI #2
Pay TV #2

Market Leadership

Our long-term focus on converging Tigo’s fixed and mobile services
throughout Latin America continues to pay dividends. Millicom’s
gains in recent years stem from organic increases in our market
share and investments in key acquisitions to further consolidate our
regional footprint.

We have invested more than $4.7 billion in Central America in the
past three years, starting with our acquisition of companies in
Panama and Nicaragua and our investment to assume full control
of Tigo Guatemala. These assets allowed us to expand our portfolio
of countries served and accelerate our fixed-mobile convergence
strategy in the region. We also continue to modernize and expand
our network in Latin America, with major infrastructure investments
in Colombia, El Salvador, Panama, Nicaragua, Paraguay, Bolivia
and Honduras. We are now the #1 or #2 mobile and/or broadband
provider in many of the markets we serve.

Modernization and expansion are key to making our network the
most accessible and modern in the countries we serve, with the
widest coverage area. Thanks to these and other investments, we’re
providing customers with the high-quality fixed and mobile services
they expect. And we’re meeting our own expectations to expand
Latin America’s digital highways and advance economic prosperity
in the region for years to come.

Bolivia
Mobile #2
BBI #1
Pay TV #1

Paraguay
Mobile #1
BBI #1
Pay TV #1

Millicom 2021 Annual ReportOur Purpose, Business Strategies
and Performance

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Our Purpose,
Business
Strategies and
Performance

Our Purpose, Business Strategies
and Performance

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

We are what we believe.
We believe in connecting. In bridging distances. In
strengthening the bonds that unite people across
communities, cities and continents.

We believe in helping businesses thrive. Whether
it's a clothing retailer, an app developer, a parts
manufacturer or a micro business owner, we
empower entrepreneurs and organizations to
compete in the 21st-century economy.

Our purpose is to build the digital highways that
power these connections. To inspire innovation
and enable education. To promote equity and
close the digital divide. To catalyze business
growth. To create a better future for all.

Everything we do extends from this purpose.

Our business strategies focus on areas with the
greatest economic potential, and areas where
our investments can have a transformative
impact. Our actions are a reflection of our values
as people. From reducing GHG emissions, to
increasing digital literacy among women and
children, to expanding coverage in neglected
communities, every one of our initiatives comes
from a drive to always do better. To always be
better. To provide value for our shareholders and
all those who share our ideals.

This is our story. This is our purpose.

Our Key Stakeholders
We engage a diverse group of stakeholders to inform
our purpose, strategies and actions—from the
customers who use our services, to the communities
we work in, to the employees and investors who make
everything we do possible. Here’s how we drive positive
outcomes for these groups.

Investors
We believe Millicom can serve as an investment
vehicle for development in Latin America, helping
us tap into the region’s tremendous potential and
strengthen Millicom’s business. As our fixed and
mobile networks reach more communities, we aim to
continually grow our revenue and cash flow to create
sustainable value for shareholders.

Customers
Our digital highways supply the resources that
empower individuals and organizations to aim higher
and discover what the world has to offer. We strive
to keep our products and services affordable so we
can continue to open doors to learning, employment,
commerce, entertainment, social interaction and
civic involvement.

Communities
We depend on the communities in Latam as
deeply as they depend on us. Through our strong
governance and ESG initiatives in areas such as
reducing our environmental footprint, safeguarding
privacy, closing the digital divide, empowering
women with technology skills and doing business
the right way, we minimize risks, create new social
and economic opportunities and reinforce Millicom’s
standing in the community.

Employees
We fulfill our purpose by sustaining an inclusive
corporate culture that attracts talented people,
values their diversity, inspires them to excel and
rewards their accomplishments. Our culture is driven
by what we call Sangre Tigo. It’s a shared belief in
the purpose behind our work, a collective passion for
making our customers the center of everything we
do, a tireless commitment to doing what’s right and
a deep sense of unity.

Millicom 2021 Annual ReportOur Purpose, Business Strategies
and Performance

“We believe that building digital highways in Latin America will
not only produce a great return for our investors, but also strong
social contributions to those economies. That’s why we believe
in the region.”

—Mauricio Ramos, CEO

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.

Opportunities
High-speed connectivity has become indispensable to our
customers and communities. The need for faster speeds and
always-on service will only grow as more businesses in our
markets embrace e-commerce and automation and adopt
hybrid work models for their employees. With our modern
network, market penetration and strategic framework, we
believe we help lead a digital transformation in our markets
and create sustained value for our shareholders.

We have other reasons for optimism in the region.
Remittances in countries like El Salvador, Guatemala and
Nicaragua number in the billions of dollars per year, indicating
a degree of economic stability that should bolster the region’s
recovery. While the pandemic blunted its momentum, the
middle class in Latin America had been growing steadily prior
to COVID-19 and will likely rebound, further stabilizing local
economies.

In addition, the population in Latin America is likely to be
more digitally savvy in the coming decades. Estimates say
around 162 million of the region’s 661 million citizens are
between the ages of 15 and 29, representing a significant
growth opportunity for digital providers. The numbers
suggest the transition may already be underway. While
digital adoption rates are low overall (see “Challenges” below),
annual growth rates for broadband and mobile are among the
highest in the world.

Challenges
Although Latin American economies are on the upswing,
the pandemic took a devastating toll on communities and
setbacks are possible. COVID-19 pushed millions into poverty
and gutted local health systems. Unemployment skyrocketed
and jobless rates remain high. Due to the fiscal restraints
created by the pandemic, many governments are struggling to
provide basic public services. We’ve grappled with this reality
the past two years, but our business has grown regardless.

The digital divide remains an obstacle. Many citizens in our
markets live below the poverty line and/or live in an area
that lacks broadband or mobile coverage. According to the
World Bank, fewer than 50% of Latin American households
have broadband access. The urban-rural divide is particularly
stark, with 67% of urban households connected vs. 23% of
rural households. Without internet access, these households
miss out on critical e-learning, telehealth and employment
opportunities and risk falling further behind.

We’re helping address this divide with initiatives across Tigo,
most notably our investments in expanding rural coverage. Our
partnership with Ericsson, for example, will extend network coverage
to an additional 2.5 million people in Bolivia, Paraguay and Honduras.

Uncertainties
COVID-19 remains a source of uncertainty in our markets.
Vaccination rates have been increasing in our markets and are
above 50% in Colombia, Costa Rica, El Salvador and Panama,
but remained below 30% in Guatemala. Government
responses to outbreaks vary widely. That said, as vaccine
access has been improving, most governments have stopped
imposing strict lockdowns, reducing the potential for social
unrest. We remain vigilant and ready to adapt should new
strains of the virus emerge and governments change course.

Our long-term success also hinges on the governments and
regulators that control the digital spectrum. The broadband
connectivity that Millicom provides is essential to private sector
investment and growth, as well as the delivery of healthcare,
education and other government services.

We ask regulators to advance their digital economies with
policies that prioritize affordable, long-term digital connectivity
for users and businesses. In return for this stability, we will
continue to invest hundreds of millions of dollars in the network
infrastructure to serve individuals and businesses with robust
speeds, expanded coverage areas and quality content. This
issue is at the heart of digital development in these countries
and is key to our strategic success.

Millicom 2021 Annual ReportOur Purpose, Business Strategies
and Performance

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 (see Spotlight on next page).

78%

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

With 415,000 new fiber-cable
subscribers in Latam

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

$922M

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

Millicom 2021 Annual ReportOur Purpose, Business Strategies
and Performance

SPOTLIGHT:

Millicom (Tigo) acquire full
control of Tigo Guatemala
On November 12, 2021, Millicom acquired the remaining 45%
equity interest in its prior joint venture businesses in Guatemala
(collectively, “Tigo Guatemala”) from our local partner for $2.2
billion in cash. As a result, Millicom owns a 100% equity interest in
Tigo Guatemala. The transaction is expected to be significantly and
immediately accretive to Millicom’s cash flow and net income and
to increase Millicom’s equity free cash flow1 by approximately $200
million before incremental financing costs.

With this transaction, Millicom consolidates its position as the
leading telecommunication service provider in Central America.

Guatemala

"The transaction is right in line with our stated inorganic capital allocation strategy, which
includes the acquisition of the remaining minority interests owned by third parties in our
operations, when those transactions can be executed in an accretive manner.

For Millicom, this new investment reflects our continued confidence in the thriving economy of
Guatemala and our renewed commitment to the digital transformation of its society. Hand in
hand with the vision and strong commitment of our team of more than 3,100 employees in the
country, we will continue to build the digital highways that connect people, improve lives, and
develop communities all throughout Guatemala.

With this transaction, we will transform the financial profile of Millicom, significantly increase
our cash flow and net income and greatly simplify our structure.”

Mauricio Ramos
Millicom CEO

1 Non-IFRS measure. Please refer to millicom.com/investors/reporting-center for non-IFRS disclosures and reconciliations to the nearest equivalent IFRS measures.

Millicom 2021 Annual Report
Our Purpose, Business Strategies
and Performance

CFO’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.

Economic activity continued to recover gradually in our markets
during 2021. Our countries continued to ease lockdowns
implemented at the beginning of the pandemic, remittances
from the U.S. to Central America sustained double-digit increases
and vaccines rolled out through the region. Our commitment
to delivering the best customer experience, including network
quality and reliability, resulted in rapid customer and revenue
expansion during the year. As a result, we returned to growth
across the business, and accelerated investments that we expect
will help drive faster growth in the future. We met or exceeded the
vast majority of our operating and financial targets for the year,
and our solid cash flow allowed us to successfully execute a $50
million share buyback program.

Strategically, 2021 was an important year as we continued to
divest out of Africa and invest capital into Latin America. During
2021 we disposed of our stake in AirtelTigo, liquidated our entire
position in Helios Towers and signed an agreement to dispose of
our Tanzania operations. In addition, we continued to focus on
Latin America. We acquired the remaining 45% equity interest
in our joint venture business in Guatemala from our local
partner for $2.2 billion in cash, which we expect to significantly
increase our cash flow and net income, while simplifying our
structure. The $2.2 billion bridge financing was provided by
a group of international banks. Millicom intends to refinance
the bridge with the planned issuance of approximately $1.5
billion of new long-term debt and approximately $750 million
of new equity via a rights offering (with preferential rights
for existing shareholders) expected for Q1 2022. Out of the
planned issuance of approximately $1.5 billion mentioned
above, on January 27, 2022, Comcel, our principal subsidiary
in Guatemala, completed the issuance of a new 10-year $900
million bond with a coupon of 5.125%.

Looking ahead, the investments we have made in 2021 and in
recent years have positioned Millicom to sustain solid customer
and revenue growth in every business unit and every country.
Meanwhile, as we near completion of major investment
projects, we anticipate lower levels of capital investment of
approximately $3 billion in total over the next three years, which
we expect should generate growing levels of operating cash
flow and equity free cash flow, that we intend to use toward
reducing our leverage toward our long term target of 2.0x and
to resume share buybacks, beginning in 2023.

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Group highlights1
Revenue for the year ended December 31, 2021, increased
10.7% to $4,617 million due to strong operational results in
all business lines and countries—compared to relatively weak
performance in the year ended December 31, 2020, at the
onset of the pandemic—as well as additional revenue from the
consolidation of our Guatemala operations in November 2021.

Operating expenses increased 11.4% as a result of higher sales
and marketing costs to support robust customer growth in 2021,
as compared with 2020 when strict lockdowns significantly
curtailed commercial activity.

Depreciation and amortization decreased 1.0%. Depreciation
decreased due to network modernization activities, which
accelerated the depreciation of older infrastructure in 2020. This
was offset by an increase in amortization from our decision to
transition the Cable Onda brand to Tigo in Panama, which took
effect in April 2021.

Share of net profit in our joint ventures in Guatemala (until
November 12, 2021) and Honduras increased by 22.6% due
to strong operational performance and lower financing costs
stemming from the reduction of debt in Guatemala.

As a result of these factors, operating income for the year
increased 47.5% to $659 million.

Interest expense decreased 15.0% to $531 million because of
lower debt levels, following repayment activities over the last year.

We prioritized net debt reduction in 2021, bringing proportionate
leverage down to 2.81x in the third quarter of the year from
3.20x at the end of 2020. Our leverage ended 2021 at 3.36x
also on a proportionate basis, impacted by the acquisition of our
equity interest in Guatemala. We will continue to prioritize net
debt reduction in 2022.2

Other non-operating expenses were $50 million in 2021, as
compared to an expense of $106 million in 2020. The expense in
2021 reflected foreign exchange losses and the change in value
of call option asset and put option liability in Panama while the
expense in 2020 reflected foreign exchange losses and the mark
to market of our equity investments in Jumia and Helios Towers.
The revaluation of our previously held interest in Guatemala
generated an income of $670 million in 2021.

Tax expense increased 85.7% to $189 million, mainly due to
improved profitability in 2021 compared with 2020.

As a result of the above factors, net profit for the year was $590
million, or a gain per share of $5.84.

2 This paragraph includes Non-IFRS measures. Please refer to the non-IFRS disclosures in this annual report for a description and for a reconciliation of non-IFRS measures.

Our Purpose, Business Strategies
and Performance

Our 2021 Financial
Performance in Latin
America3

Financial performance
key messages:

» Growth in all business lines and countries

» Acquisition of equity interest in cash
generative business in Guatemala

» Continued divesting out of Africa and
re-investing capital into Latin America

» Lowered average cost of debt and average

age of maturities extended

In 2021, our business continued to show its resilience, ending
the year with growth across our business lines and in every
country where we operate. In addition, we continued to
execute our capital allocation strategy of investing in Latin
America.

Commercial activity rebounded in our markets in 2021 as
mobility returned to the region. As a result, Latam service
revenue increased 6.7% organically compared with 2020.

In Mobile, which generates 59% of Latin American service
revenue (60% in 2020), service revenue increased 4.7% year-
over-year (1.1% decline in 2020), reflecting robust commercial
activity in prepaid and postpaid as mobility restrictions eased.
Our prepaid business experienced solid growth, as we saw
strong customer intake in markets where we have recently
invested in spectrum and in improving the network, such as
in Colombia and El Salvador. Our postpaid business returned
to growth in the second quarter of the year, buoyed by an
increase in customers migrating from prepaid to postpaid. As
a result, we grew our customer base by 3.1 million to end the
year with 44.9 million.

In our Cable and other fixed business, which generates 40%
of Latin American service revenue (39% in 2020), service
revenue increased 8.5% in 2021, an acceleration from the
4.5% decline in 2020. The increase mainly reflects increased
customer intake driven by demand for broadband services in

our markets, compared with 2020 when we saw a slowdown
in the cable business reflecting the many effects of the
pandemic, including our decision to implement basic lifeline
services to our customers who could no longer pay.

We continued to increase our footprint in Latin America,
passing an additional 524,000 homes on our HFC network, up
from 428,000 in 2020, ending the year with 12.4 million HFC
homes passed (11.9 million in 2020). Increased demand for
broadband services bolstered our new customer relationships,
and we added 415,000 net HFC customer relationships in
2021, up from 277,000 in 2020, ending the year with 4.1
million ($3.7 million in 2020). Strong customer growth resulted
in an increase in the penetration of our HFC network from
31% in 2020 to 33% in 2021.

In 2021, economic activity recovered in our markets, while
remittances from the U.S. to Central America sustained
double-digit growth year-on-year. Vaccination rates improved
to over 50% in Colombia, Panama, El Salvador and Costa Rica,
but were still below 30% in Guatemala. In the first half of the
year, we experienced spikes in the number of COVID cases
in some of our markets. However, governments generally
refrained from imposing strict lockdowns, choosing instead to
use curfews or voluntary quarantine programs, which had a
negligible effect on commercial activity.

All of our countries had positive service revenue growth during
2021, primarily driven by the return to commercial activity
as mobility restrictions lessened. El Salvador saw the highest
growth in the region, with service revenue up 14.4% in 2021,
compared to flat growth in 2020, as our mobile business
drove growth stemming from recent spectrum and network
investments in that country. Panama also had outstanding
performance propelled by the consumer mobile and home
businesses, with service revenue growing 7.3% in 2021.
Colombia also performed exceptionally well, with service
revenue up 6.2% organically in 2021 (1.1% decline in 2020).
We saw strong growth in all businesses lines in Colombia,
including our mobile business, where we have been rolling
out the 700 MHz spectrum acquired in 2019. Guatemala
continued to deliver strong results, driven by a healthy mobile
business and a growing home business; service revenue
grew 7.2% (3.1% in 2020). Our other markets all grew in
2021 compared to 2020 as mobility and commercial activity
improved.

Millicom 2021 Annual ReportOur Purpose, Business Strategies
and Performance

EBITDA in Latam increased 6.7% organically, an improvement
from a 3.7% decline in 2020, ending the year at $2,498
million. Positive EBITDA performance was primarily due to
strong top-line performance across the business, and lower
bad debt provisions compared with the previous year. EBITDA
increased in local currency year-on-year in all countries except
for Colombia and Paraguay. Colombia declined 2.4% as a
result of a significant increase in sales and marketing expenses
from strong mobile intake during the year. Paraguay declined
3.8%. reflecting investment in soccer content.

Capex in Latin America totaled $1,111 million in 2021, 18.0%
more than in 2020 as we accelerated investments in our
network across the region.

In Mobile, we invested heavily in the Colombia mobile
network expansion, as well as the modernization of our mobile
networks in El Salvador, Honduras, Paraguay and Bolivia.

These investments had a meaningfully positive impact on our
operational and financial performance for the year, especially
in Colombia and El Salvador. Overall, our 4G network covered
approximately 78% of the population of our markets at year-
end, up from 74% at the end of 2020.

In Home, we continued to invest in expanding our HFC
networks in Latam, where we passed 524,000 new homes
during year, mainly in Bolivia, Colombia and Nicaragua.
More importantly, we connected 415,000 new customers
as broadband and Pay TV penetration continued to drive
demand for our services during 2021.

The success of our results in 2021 and the resiliency of the
businesses has only made us more confident in the long-term
opportunity that we are pursuing.

Tim Pennington
Chief Financial Officer

3 These key messages refer to Latam (with our Honduras joint venture and our Guatemala operations as if they were fully consolidated) and include Non-IFRS measures. Please
refer to the non-IFRS disclosures in this annual report for a description and for a reconciliation of non-IFRS measures.

Our 2021 Financial Performance
in Latin America

Latam
($m)

9%
Paraguay

10%
Bolivia

23%
Colombia

6%
Other

7%
El Salvador

Revenue by
country

26%
Guatemala

9%
Honduras

10%
Panama

Mobile
$3,372m
54%

Revenue by
business

Other
$70m
1%

Equipment
Sales Revenue
$503m
8%

Cable and
other ﬁxed
$2,275m
37%

Service revenue
Organic decline +6.7%
$5,716m

EBITDA
Organic decline +6.7%
$2,498m

OCF
Organic decline +0.5%
$1,387m

Millicom 2021 Annual Report
Our Purpose, Business Strategies
and Performance

Our Markets in Numbers

1 Includes HFC, DTH, Copper and other technologies with the exception of Colombia that refers to HFC only.

2 EBITDA and EBITDA Margin and after organic growth are Non-IFRS measures. Please refer to the non-IFRS disclosures in this annual report for a descriptionand for a

reconciliation of non-IFRS measures.

Latam1

($m)

Paraguay

10%

Bolivia

23%

Colombia

Other

El Salvador

Mobile

$3,372m

54%

26%

Guatemala

Honduras

10%

Panama

Revenue by

country

Revenue by

business

Other

$70m

Equipment

Sales Revenue

$503m

Cable and

other ﬁxed

$2,275m

37%

Service revenue

Organic decline +6.7%

$5,716m

EBITDA

Organic decline +6.7%

$2,498m

OCF

Organic decline +0.5%

$1,387m

Our Markets in Numbers

Latam1

($m)

Paraguay

10%

Bolivia

23%

Colombia

Other

El Salvador

Revenue by

country

26%

Guatemala

Honduras

10%

Panama

Mobile
$3,372m

54%

Revenue by
business

Other
$70m

Equipment
Sales Revenue
$503m

Cable and
other ﬁxed
$2,275m

37%

Service revenue
Organic decline +6.7%
$5,716m

EBITDA
Organic decline +6.7%
$2,498m

OCF
Organic decline +0.5%
$1,387m

1 Includes HFC, DTH, Copper and other technologies with the exception of Colombia that refers to HFC only.

2 EBITDA and EBITDA Margin and after organic growth are Non-IFRS measures. Please refer to the non-IFRS disclosures in this annual report for a descriptionand for a

reconciliation of non-IFRS measures.

Latam1

($m)

Paraguay

10%

Bolivia

10%

Bolivia

23%

Colombia

23%

Colombia

Other

El Salvador

Revenue by

country

Revenue by

country

26%

Guatemala

26%

Guatemala

Honduras

10%

Panama

10%

Panama

Mobile

$3,372m

Mobile

$3,372m

54%

Revenue by

business

Revenue by

business

Other

$70m

Other

$70m

Equipment

Sales Revenue

Equipment

$503m

Sales Revenue

$503m

Cable and

other ﬁxed

Cable and

$2,275m

other ﬁxed

$2,275m

37%

Service revenue

Organic decline +6.7%

Service revenue

Organic decline +6.7%

$5,716m

EBITDA

Organic decline +6.7%

EBITDA

Organic decline +6.7%

$2,498m

OCF

Organic decline +0.5%

OCF

Organic decline +0.5%

$1,387m

ColombiaOthers $53mMobile $513m Cable and other fxed $752mService RevenueCABLE and other ﬁxed (’000) Home customer relationships1 1,615As of year end 2021+133Net additions+9.0%YOY growthMOBILE (’000)4G smartphone data users 5,456As of year end 2021 +1,488Net additions+37.5%YOY growthService revenue2 $mOrganic decline –1.1%EBITDA $mOrganic decline –2.4%EBITDA margins %34.0%202031.2%2021BoliviaMobile $342mCable and other fxed $268m Service RevenueCABLE and other ﬁxed (’000) Home customerrelationships1 676As of year end 2021 +112Net additions+19.8%YOY growthMOBILE (’000)4G smartphone data users 2,653As of year end 2021 +244Net additions+10.1%YOY growthOthers $2m$4572020$4412021$1,2582020$1,3192021Service revenue2 $mOrganic growth +6.3%EBITDA $mOrganic growth +7.4%EBITDA margins % 39.7%202040.0%2021$2322020$2492020$5752020$6122021Service revenue2 $mOrganic growth +3.8%EBITDA $mOrganic growth +2.6%EBITDA margins % 44.7%202043.9%2021$2472020$2592021$5162020$5482021Service revenue2 $mOrganic growth +7.3%EBITDA $mOrganic growth +9.6%EBITDA margins % 43.8%202044.4%2021$2562020$2812021$5672020$6082021Service revenue2 $mOrganic growth +14.4%EBITDA $mOrganic growth +18.7%EBITDA margins % 35.1%202036.3%2021$1372020$1622021$3482020$3982021Service revenue2 $mOrganic growth +7.3%EBITDA $mOrganic growth +10.3%EBITDA margins % 51.8%202053.6%2021$7782020$8572021$1,2732020$1,3652021Others $3mMobile $1,079mCable and other fxed $283m CABLE and other ﬁxed (’000) Home customerrelationships1675As of year end 2021+68Net additions+11.3%YOY growthMOBILE (’000)4G smartphone data users5,037As of year end 2021+425Net additions+9.2%YOY growthGuatemalaService RevenueOthers $6mMobile $440m Cable and other fxed $102m CABLE and other ﬁxed (’000)Home customerrelationships1188As of year end 2021+13Net additions+7.1%YOY growthMOBILE (’000)4G smartphone data users 2,401As of year end 2021+287Net additions+13.6%YOY growth+24.8%YOY growthHondurasService RevenueMOBILE (’000)4G smartphone data users1,252As of year end 2021CABLE and other ﬁxed (’000) Home customerrelationships1485As of year end 2021Others $4mMobile $236mCable and other fxed $368m+249Net additionsService Revenue+22Net additions+4.7%YOY growthOthers $1mMobile $250m Cable and other fxed $147m CABLE and other ﬁxed (’000) Home customerrelationships1288As of year end 2021+15Net additions+5.4%YOY growth+10Net additions+4.2%YOY growthMOBILE (’000)4G smartphone data users1,500As of year end 2021+240Net additions+19.0%YOY growth+9Net additions+29.9%YOY growth–41Net loses–3.9%YOY declineEl SalvadorService RevenueCABLE and other ﬁxed (’000) Home customerrelationships1249As of year end 2021Cable and other fxed$139mCosta RicaService RevenueMobile $192mCable and other fxed $32mCABLE and other ﬁxed (’000) Home customerrelationships141As of year end 2021MOBILE (’000)4G smartphone data users1,010As of year end 2021NicaraguaService RevenuePanamaService revenue2 $mOrganic growth 2.7%EBITDA $mOrganic decline –3.8%EBITDA margins % 46.4%202043.7%2021$2522020$2422021$5132019$5262021ParaguayMobile $323m Cable and other fxed $202m Service RevenueCABLE and other ﬁxed (’000) Home customerrelationships1 495As of year end 2021+42Net additions+9.4%YOY growthMOBILE (’000)4G smartphone data users2,138As of year end 2021+311Net additions+17.0%YOY growthOthers $1mColombiaOthers $53mMobile $513m Cable and other fxed $752mService RevenueCABLE and other ﬁxed (’000) Home customer relationships1 1,615As of year end 2021+133Net additions+9.0%YOY growthMOBILE (’000)4G smartphone data users 5,456As of year end 2021 +1,488Net additions+37.5%YOY growthService revenue2 $mOrganic decline –1.1%EBITDA $mOrganic decline –2.4%EBITDA margins %34.0%202031.2%2021BoliviaMobile $342mCable and other fxed $268m Service RevenueCABLE and other ﬁxed (’000) Home customerrelationships1 676As of year end 2021 +112Net additions+19.8%YOY growthMOBILE (’000)4G smartphone data users 2,653As of year end 2021 +244Net additions+10.1%YOY growthOthers $2m$4572020$4412021$1,2582020$1,3192021Service revenue2 $mOrganic growth +6.3%EBITDA $mOrganic growth +7.4%EBITDA margins % 39.7%202040.0%2021$2322020$2492020$5752020$6122021Service revenue2 $mOrganic growth +3.8%EBITDA $mOrganic growth +2.6%EBITDA margins % 44.7%202043.9%2021$2472020$2592021$5162020$5482021Service revenue2 $mOrganic growth +7.3%EBITDA $mOrganic growth +9.6%EBITDA margins % 43.8%202044.4%2021$2562020$2812021$5672020$6082021Service revenue2 $mOrganic growth +14.4%EBITDA $mOrganic growth +18.7%EBITDA margins % 35.1%202036.3%2021$1372020$1622021$3482020$3982021Service revenue2 $mOrganic growth +7.3%EBITDA $mOrganic growth +10.3%EBITDA margins % 51.8%202053.6%2021$7782020$8572021$1,2732020$1,3652021Others $3mMobile $1,079mCable and other fxed $283m CABLE and other ﬁxed (’000) Home customerrelationships1675As of year end 2021+68Net additions+11.3%YOY growthMOBILE (’000)4G smartphone data users5,037As of year end 2021+425Net additions+9.2%YOY growthGuatemalaService RevenueOthers $6mMobile $440m Cable and other fxed $102m CABLE and other ﬁxed (’000)Home customerrelationships1188As of year end 2021+13Net additions+7.1%YOY growthMOBILE (’000)4G smartphone data users 2,401As of year end 2021+287Net additions+13.6%YOY growth+24.8%YOY growthHondurasService RevenueMOBILE (’000)4G smartphone data users1,252As of year end 2021CABLE and other ﬁxed (’000) Home customerrelationships1485As of year end 2021Others $4mMobile $236mCable and other fxed $368m+249Net additionsService Revenue+22Net additions+4.7%YOY growthOthers $1mMobile $250m Cable and other fxed $147m CABLE and other ﬁxed (’000) Home customerrelationships1288As of year end 2021+15Net additions+5.4%YOY growth+10Net additions+4.2%YOY growthMOBILE (’000)4G smartphone data users1,500As of year end 2021+240Net additions+19.0%YOY growth+9Net additions+29.9%YOY growth–41Net loses–3.9%YOY declineEl SalvadorService RevenueCABLE and other ﬁxed (’000) Home customerrelationships1249As of year end 2021Cable and other fxed$139mCosta RicaService RevenueMobile $192mCable and other fxed $32mCABLE and other ﬁxed (’000) Home customerrelationships141As of year end 2021MOBILE (’000)4G smartphone data users1,010As of year end 2021NicaraguaService RevenuePanamaService revenue2 $mOrganic growth 2.7%EBITDA $mOrganic decline –3.8%EBITDA margins % 46.4%202043.7%2021$2522020$2422021$5132019$5262021ParaguayMobile $323m Cable and other fxed $202m Service RevenueCABLE and other ﬁxed (’000) Home customerrelationships1 495As of year end 2021+42Net additions+9.4%YOY growthMOBILE (’000)4G smartphone data users2,138As of year end 2021+311Net additions+17.0%YOY growthOthers $1mColombiaOthers $53mMobile $513m Cable and other fxed $752mService RevenueCABLE and other ﬁxed (’000) Home customer relationships1 1,615As of year end 2021+133Net additions+9.0%YOY growthMOBILE (’000)4G smartphone data users 5,456As of year end 2021 +1,488Net additions+37.5%YOY growthService revenue2 $mOrganic decline –1.1%EBITDA $mOrganic decline –2.4%EBITDA margins %34.0%202031.2%2021BoliviaMobile $342mCable and other fxed $268m Service RevenueCABLE and other ﬁxed (’000) Home customerrelationships1 676As of year end 2021 +112Net additions+19.8%YOY growthMOBILE (’000)4G smartphone data users 2,653As of year end 2021 +244Net additions+10.1%YOY growthOthers $2m$4572020$4412021$1,2582020$1,3192021Service revenue2 $mOrganic growth +6.3%EBITDA $mOrganic growth +7.4%EBITDA margins % 39.7%202040.0%2021$2322020$2492020$5752020$6122021Service revenue2 $mOrganic growth +3.8%EBITDA $mOrganic growth +2.6%EBITDA margins % 44.7%202043.9%2021$2472020$2592021$5162020$5482021Service revenue2 $mOrganic growth +7.3%EBITDA $mOrganic growth +9.6%EBITDA margins % 43.8%202044.4%2021$2562020$2812021$5672020$6082021Service revenue2 $mOrganic growth +14.4%EBITDA $mOrganic growth +18.7%EBITDA margins % 35.1%202036.3%2021$1372020$1622021$3482020$3982021Service revenue2 $mOrganic growth +7.3%EBITDA $mOrganic growth +10.3%EBITDA margins % 51.8%202053.6%2021$7782020$8572021$1,2732020$1,3652021Others $3mMobile $1,079mCable and other fxed $283m CABLE and other ﬁxed (’000) Home customerrelationships1675As of year end 2021+68Net additions+11.3%YOY growthMOBILE (’000)4G smartphone data users5,037As of year end 2021+425Net additions+9.2%YOY growthGuatemalaService RevenueOthers $6mMobile $440m Cable and other fxed $102m CABLE and other ﬁxed (’000)Home customerrelationships1188As of year end 2021+13Net additions+7.1%YOY growthMOBILE (’000)4G smartphone data users 2,401As of year end 2021+287Net additions+13.6%YOY growth+24.8%YOY growthHondurasService RevenueMOBILE (’000)4G smartphone data users1,252As of year end 2021CABLE and other ﬁxed (’000) Home customerrelationships1485As of year end 2021Others $4mMobile $236mCable and other fxed $368m+249Net additionsService Revenue+22Net additions+4.7%YOY growthOthers $1mMobile $250m Cable and other fxed $147m CABLE and other ﬁxed (’000) Home customerrelationships1288As of year end 2021+15Net additions+5.4%YOY growth+10Net additions+4.2%YOY growthMOBILE (’000)4G smartphone data users1,500As of year end 2021+240Net additions+19.0%YOY growth+9Net additions+29.9%YOY growth–41Net loses–3.9%YOY declineEl SalvadorService RevenueCABLE and other ﬁxed (’000) Home customerrelationships1249As of year end 2021Cable and other fxed$139mCosta RicaService RevenueMobile $192mCable and other fxed $32mCABLE and other ﬁxed (’000) Home customerrelationships141As of year end 2021MOBILE (’000)4G smartphone data users1,010As of year end 2021NicaraguaService RevenuePanamaService revenue2 $mOrganic growth 2.7%EBITDA $mOrganic decline –3.8%EBITDA margins % 46.4%202043.7%2021$2522020$2422021$5132019$5262021ParaguayMobile $323m Cable and other fxed $202m Service RevenueCABLE and other ﬁxed (’000) Home customerrelationships1 495As of year end 2021+42Net additions+9.4%YOY growthMOBILE (’000)4G smartphone data users2,138As of year end 2021+311Net additions+17.0%YOY growthOthers $1mMillicom 2021 Annual Report

Our Purpose, Business Strategies
and Performance

SPOTLIGHT:

Bolivia, El Salvador, Guatemala,
Honduras and Paraguay

Tigo Money paves the way for
financial inclusion
In Latin America, roughly 70% of citizens are unbanked or
underbanked, excluding them from traditional finance systems.
Our Tigo Money digital wallet provides a much-needed
alternative—one that’s well suited to Latin America’s young,
increasingly digital population.

In 2021, Tigo Money made major strides in making financial
products and services accessible to more customers.

In July, we announced a plan to invest $250 million in Panama to
build a regional fintech center and expand local infrastructure.
The hub will boost Panama’s economy and bring jobs to the
country, while allowing us to grow Tigo Money with in-house
resources—a win-win for customers and investors.

We also began creating more opportunities for consumers to use
Tigo Money. This includes making QR code payments available to
customers and initiating partnerships with key players to improve
our value proposition for our clients.

With Tigo Money, we’re empowering people to participate in
local economies while also strengthening our presence in Latin
America. At Tigo, doing good is good for business.

Bolivia, El Salvador,
Guatemala,
Honduras and
Paraguay

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. Here’s how we performed in each.

Expand Broadband
Demand for high-quality broadband continued to surge in
2021 as remote and hybrid work models became the norm
for many people and businesses. The Tigo cable network
kept pace by adding 415,000 new HFC home customers in
2021 in Latam, giving us a total of 4.1 million by the end of
Q4. Overall, we finished the year with 12.4 million HFC homes
passed and provided high-speed services to 33% of the
homes in our markets.

We also continue to modernize and expand our fiber-cable
network in anticipation of future growth. 2021 investments
like our new fiber infrastructure in Paraguay and Bolivia are
bringing high-speed connectivity to more people, including
remote communities traditionally cut off from the digital
economy.

MONETIZE MOBILEEXPAND BROADBANDDRIVE CONVERGENCEACCELERATE B2BGO DIGITALCUSTOMER CENTRICITYMillicom 2021 Annual Report
Our Purpose, Business Strategies
and Performance

Go Digital
Our investments in digital infrastructure are transforming
our business, giving Tigo customers more of what they
want and improving our efficiency company-wide. Digital
reloads of prepaid mobile services and digital payment
collections increased by 35% in 2021. Apps like One App and
Mi Tienda drove much of this increase by making it easier
for customers to recharge their phones or purchase Tigo
services from their mobile devices. Through e-care tools like
our Tigo bot, we continued automating many of our service
interactions, allowing us to shift the focus of our retail stores
from customer service to mobile postpaid sales. Finally, Tigo
Money continued its rapid ascent as a Tigo priority, ending the
year with 5.6 million customers in five Latam countries—an
increase of 13.5% compared with 2020 (see spotlight story
below).

Internally, we made significant progress on upgrading our
IT infrastructure and teams, increasing efficiency across our
business at less cost. With a digital-first mindset enabled by
a virtualized cloud architecture, we were able to eliminate
unnecessary administrative work, decommission outdated IT,
recruit more top talent and make more strategic use of our
resources.

SPOTLIGHT:

Bridging the Last Mile of
Connectivity
Many people in our markets live in remote villages with minimal
infrastructure. Bringing coverage to these areas often requires more
than just commitment. It takes a healthy dose of Sangre Tigo.

In 2021, we traveled through forests, up mountains and over
dangerous roads to install new cell towers and bring coverage to
underserved communities across Latin America.

Thanks to our efforts:

More than 400,000 Panamanians received mobile and digital
coverage through 179 new coverage points. Out of those,
150,000 received connectivity for the first time, including 70,000
people in the Guna Yala and Ngöbe-Buglé regions, which have a
multidimensional poverty index of 91%.

2,205 sites were updated and 1,296 sites were deployed in
Colombia, expanding our coverage area by 13,000 square
kilometers—an area 36 times the size of Medellin.

Each project helped close the digital divide a little more for
residents by giving them access to social, educational and economic
opportunities previously out of reach.

Drive Convergence
Our commitment to making Millicom the most modern and
expansive telecom network in the Latam region requires
infrastructure that can adapt seamlessly to the latest
innovations and market trends. In 2021, we continued
modernizing our Latam networks with projects to expand
our 4G capacity in Paraguay and Honduras, in addition to
completing upgrades to our El Salvador network. All told, we
added more than 550 new 4G sites to these markets and
added coverage to more than 500 towns.

We also announced a $135 million investment to further
modernize our mobile networks in Honduras, Paraguay and
Bolivia in partnership with Ericsson. As part of the project,
Ericsson will replace Tigo’s current 4G packet core with
the company’s dual-mode 5G core, paving the way for 5G
deployment across the continent. In addition to boosting our
network performance, we expect the investment to expand
our network coverage to an additional 712 municipalities and
2.5 million people across the three countries.

Colombia and
Panama

Millicom 2021 Annual Report
Our Purpose, Business Strategies
and Performance

Accelerate B2B
Our Tigo Business segment continued its strong growth
trajectory in 2021. We added approximately 46 thousands of
new accounts—a record 15% year-over-year increase—while
investing more than $100 million connecting and providing
digital solutions to new businesses, schools, hospitals and
universities in our markets. We also partnered with Amazon
Web Services to expand our portfolio of cloud solutions,
encourage business innovation and improve cybersecurity.
These solutions support our customers’ ongoing shift to
remote and hybrid work environments while preserving
network speed, reliability and security.

Small and medium-size entrepreneurs are fundamental to the
region’s long-term growth potential, which is why we continue
to offer services to help our SME customers cope with COVID.
These include putting services on hold free of charge to
certain businesses in Panama and providing minimal service
at low costs to certain of our Paraguayan customers. We also
extended our Ciclo de Conferencias Tigo Business program,
a series of free webinars and other learning resources to help
small business owners retool for success during and after the
pandemic.

Monetize Mobile
We ended 2021 with 44.9 million mobile customers, an
increase of 3.1 million compared with 2020. This includes
1.1 net additions in postpaid, with the vast majority of these
coming from Colombia, where our investments in spectrum,
network and distribution channels have extended our
reach and improved the customer experience. Our prepaid
subscriber base reached 38.9 million in 2021, a 5.6% year-
over-year increase. We currently offer 78% 4G coverage
for the 120 million people in the countries where we have a
presence.

We continued expanding access to self-service content
through our content supermarket and Tigo Sports, allowing
customers to watch their favorite content wherever and
whenever they want. This includes adding premium channels
like HBOMax and Paramount+ in 2021 and exclusive fútbol
programming using the Tigo Sports app. We also rolled out a
mobile edition of Amazon Prime video to prepaid customers—
the first mobile operator in Latin America. We ended 2021
with a total of 21.4 million 4G smartphone data users, that is,
giving 48% of our mobile customer base the ability to stream
content on the go.

400,000+

rural Panamanians received mobile and
digital coverage for the first time in 2021.

Millicom 2021 Annual ReportOur Purpose, Business Strategies
and Performance

Customer Centricity
We’re on a mission to streamline the Tigo customer
experience by empowering our customers to solve a wider
range of needs on their own. Digital self-service and e-care
tools like WhatsApp made it easier for customers to make
payments, check their balance and usage, get refills, report
outages and make service appointments without assistance.
We managed more than 400,000 monthly transactions
through WhatsApp in 2021. Customers performed more than
450,000 monthly transactions in the Tigo WiFi 360 app, which
gives customers full control over their WiFi network—including
parental approval over content streaming—on home set-top
boxes, computers and mobile devices. Overall, more than 10
million active users relied on our self-service and e-care apps
in 2021.

Tigo customers are enthusiastic about these and other
service improvements. Our approach to measuring
customer satisfaction evolved in 2021, as we moved from
a transactional focus to a more relational approach, which
we call our brand equity ecosystem. We believe this is a
better way to measure our strategic intent of best customer
experience. Our Net Promoter Score (NPS)—a measurement
of customers’ willingness to recommend Tigo products
and services—increased across the board in 2021. We now
have superior brand NPS scores in broadband in most of our
countries.

The increase is likely due to a range of factors, including
enhanced mapping of our customer journeys, our digital
self-service and e-care tools; operational and network
improvements; improved field, in-store and call center service;
and increased customer loyalty from our 2020 Lifeline
program, which preserved services for customers with unpaid
balances in the early stages of the pandemic.

To ensure ongoing improvement, we continuously monitor five
key customer satisfaction metrics in each of the nine countries
we serve in Latin America. By analyzing country-by-country
data rather than aggregate, we can better understand our
strengths and weaknesses in each market and make targeted
improvements. This information is shared with our board each
month.

10 million+

active users relied on our self-service
and e-care apps in 2021

Millicom 2021 Annual ReportOur Purpose, Business Strategies
and Performance

Risk Management
COVID-19 continues to affect the global economy and our
countries, communities, customers and employees—and
much of our focus remains on tackling the consequences of
this pandemic. However, the core elements of our strategy,
and the fundamental risks and opportunities connected to the
strategy, remain largely unchanged. The same holds true for
the underlying characteristics of our risk landscape and our
value proposition.

Our Risk Landscape
Our risk profile continues to evolve with our business strategy
firmly centered on the developing Latin American markets
and economies in which we operate. Our gradual shift of
capital over recent years from Africa to Latin America, and to
Guatemala in 2021, has significantly changed the risk profile of
the Group.

Our prudent decisions on capital allocation and cash flow
management in response to the COVID-19 pandemic,
and adaptation of business models and ways of working
protected our customers, communities and our business,
resulting in a strong recovery in 2021, and positioned us well
for further growth. The challenges of COVID-19 highlighted
the importance of our businesses as a central component of
digitalization and progress in our communities and countries.
This, as well as our leading positions in our markets, increasingly
subscription-based business, track record of customer growth,
and opportunities for expansion, including in our MFS business,
are all evidence of our sound business model.

Our infrastructure and information systems have remained
resilient and coped well with an increase in demand, particularly
related to data, as well as in detecting and defending against
an increasing number of cybersecurity threats.

Our Risk Appetite
Millicom operates its business in emerging markets with
potentially unpredictable political and economic environments
and a higher inherent level of risk compared to mobile and
cable businesses in more mature markets.

Our geographic portfolio, varied customer access points
(at home, at work and on the move), and suite of products
and services encompassing communication, information,
education, entertainment, financial services and other areas,
reduce our exposure to any individual country, product or
service.

Our governance and oversight structure, internal control
environment (including SOX compliance), risk-based decision-
making and compliance culture, and assurance processes
across our businesses enable us to reduce uncertainties and
contain risks in ways that many of our peers may not be able to.
Refer to the Governance Section of this report starting on page
63 for further information.

Consequently, while we have a higher inherent risk appetite
than many of our peers in the telecommunications and cable
industry, and a wider risk profile than many international
businesses, we only accept risks in our businesses and markets
to the extent that opportunities for sufficient returns exist,
and where we can design, implement and operate appropriate
systems and controls to manage those risks.

“Throughout 2021, our company responded to
Millicom’s risks, challenges and opportunities with
strong governance and oversight."

José Antonio Rios Garcia
Chairman of the Board of Directors

Millicom 2021 Annual ReportOur Purpose, Business Strategies
and Performance

Our Approach to Risk Management

Our enterprise-wide approach to risk has the following
key characteristics:
» Risk is linked with opportunity and is closely aligned with

strategic goals

» The Board of Directors sets Millicom's appetite for risk and

» Prioritizing risks based on likelihood of occurrence and
importance to the business, as measured by identified
and measured financial and non-financial criteria covering
operational, financial, reputational and human impacts of
the risk

monitors progress toward target risk levels

» Quantifying, measuring and monitoring using risk

indicators, with action plans to reduce gaps between current
and target risk levels

» Automated alerts and escalation for any potential breach of
appetite for key risks managed centrally and in each country

» Setting of clear, specific and owned actions that target the

potential impact or likely occurrence of risks, and monitoring
of effectiveness of those actions.

» Risks are actively managed to optimize the balance of risk
and reward, enhance value and protect against threats

» Our focus is on reduction of uncertainty to enhance

decision-making in strategy formulation and allocation of
capital and resources

Our methodology includes:
» Alignment of risk ownership and responsibility with

organizational goals and decision-making responsibility
from the Board and Executive Team to country General
Managers and heads of functions across the organization

» Alignment of risk appetite with strategic and operational goals

» A global framework and common methodology, tools and
processes in every location and function managed by a
central risk function

Millicom 2021 Annual Report25

Our Purpose, Business Strategies
and Performance

Evolution of Risk in 2021
2021 has seen many changes as our businesses adapted
and grew out of the instability and uncertainty created by
COVID-19. With the exit from Africa almost complete and with
full ownership of our Guatemala business since November
2021, our geographical and geopolitical profile is now firmly
centered in the Latin American markets in which we operate.

The mitigating actions and plans we put in place to protect
and help customers and employees set the foundation for
our rapid return to growth across all our markets in 2021,
and positioned us well to continue this growth in 2022 and
beyond.

The challenges we faced in 2020 tested the resilience and
agility of our people and networks. Having successfully
navigated these uncertain times, we continue to execute our
operational strategy and investor proposition plan.

Macroeconomic conditions in most of our markets showed a
significant improvement in 2021 compared with 2020 with
notably less uncertainty and volatility. New ways of working
and living and the global response to managing through the
pandemic led to a resumption of economic activity. Many
of the key actions we took in 2020, including protection of
employees, continuation of service to our most affected
customers, and reallocation of capital to growth opportunities
strongly contributed to the recovery of our business in 2021.
However, we remain cautious and continue to closely watch
the projections for recovery and GDP growth forecasts in Latin
America to shape our financial structure, capital expenditures
and debt management approach in the coming year.

We continued to invest in protecting our information systems
against potential cyberattacks as risks in this area continue to
rise. We also continued to enhance our protocols and planned
responses in the event that threats materialize. Cybersecurity
will continue to be an area that we pay particular attention to
as the frequency and type of threats continue to rise globally.

During 2021 we assessed the impact of climate
change on our businesses, both in terms of operational
resiliency and the extent to which our businesses
contribute to climate change. Although overall
exposures in this area for our businesses are relatively
limited, adverse weather events continued to increase
in likelihood in our countries (particularly in Central
America) and we expect this will continue in the future.
We continue to review our business practices to identify
and implement change to reduce or minimize impact
on climate change, including developing a path to
committing to carbon reductions (as described in more
detail in the section starting on page 30).

In addition to the above and elsewhere in this report,
we have highlighted key areas of risk and our mitigating
actions during 2021 in a table on the pages that follow.
More details can also be found in our Governance
section, starting on page 63, and in our most recent 20F
filing with the SEC.

Our Executive Team remained unchanged in 2021,
although our CFO has announced that he will retire
in 2022, and his replacement has already joined the
Company to allow an orderly transition. This helped us
to continue on the path set during 2020's pandemic
and to drive progress on both short- and longer-term
initiatives, including execution of our strategy, building
our culture and creating the future. With the three new
additions to our Board in May, Millicom now has more
experienced leadership in Latin America and in our fixed
line and content businesses.

While we manage and monitor many more risks within
the Millicom risk universe, we have highlighted the areas
of risk below that remained of key focus in 2021.

Millicom 2021 Annual ReportESG Performance Tables

Risk Management Tables

Risk

Mitigation and actions

Evolution in 2021 (likelihood
and impact of the risk
materializing)

Board Perspective

1. Strategy and strategic
direction:

Uncertainty in the formulation
and governance of an
appropriate and executable
strategy and strategic direction
that supports the vision of the
company. Inadequate processes
for gathering and analyzing
information in formulation of the
strategy

2. Portfolio management and
capital allocation:

Acquisition or retention of
businesses that are poorly aligned
to strategy, are overpriced, and/or
that generate lower-than-required
return on investment. Investment
and capital management that
enable the company to meet
its strategic objectives within
its financial and operational
capabilities.

3. Macro-economic conditions:

Volatility or uncertainty in
macroeconomic conditions (e.g.,
but not limited to: currency,
inflation, remittances); underlying
drivers impacting our markets
and the disposable income of
consumers; and the currencies in
which we generate and upstream
cash.

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Our strategy is based on our vision of
building digital highways that connect
people and communities in our target
markets. The events of 2020 and 2021
have reinforced our purpose. Our focus
on the six key pillars of our strategy
remains unrelenting, and we closely
track performance in execution of
our strategy with key financial and
operational indicators and monitor
external factors such as macro, political
and key demographics in our markets.

Our Board oversees and approves our
strategy and any refinements that may
be required.

Our purpose and strategy is set out
starting on page 19 .

We carefully consider opportunities to
acquire, merge, or divest businesses
based on market dynamics, portfolio
balance and opportunities for
long-term value creation, focused
on Latin America where we see the
best opportunities for future growth
and value creation. During 2021 we
successfully acquired the 45% interest
in our Guatemalan business from our
local partner and signed an agreement
to sell our Tanzanian business (our last
remaining African operation) .

See page 8 for more on our market
leadership.

Uncertainty remains around the longer
term macro situation in many of our
markets and populations, and how
this affects affordability of mobile and
fixed services, as well as competition.
However, demand for our services
returned strongly in 2021 supporting
our view of the necessity of effective
communication and connectivity in
modern day economies, and the digital
agenda of governments. In 2021 the
currencies of the countries in which we
generate cash remained relatively stable
against the US dollar, with the exception
of the Colombian Peso which declined
by 16% during the year.

We consider currency volatility in our
budgeting, forecasting, tax and treasury
management processes.

See page 12 for a review of the financial
performance in 2021

Impact

In 2021 the Company started to see the
benefits of staying on its strategic course
and key decisions taken during 2020.
Millicom’s strategy and strategic direction
remain firmly focused on serving customers
and communities today and building for
the future, with specific focus on its Latin
American markets.
The Company picked up its investment
in 2021 and continued to deliver on its
purpose and grow across all its markets
and businesses during 2021, a testament to
strong execution of a robust strategy.

The Board closely monitors capital allocation
against the organizations’ strategic and
operational goals and financial capacity.
Building convergent enabled businesses in
growth economies in Latin America is our key
strategic focus.
Acquiring full ownership of our Guatemalan
business and agreeing to sell our Tanzania
business were two key moments, to both
strengthen our portfolio and narrow our
focus on our core Latin American region.
as integration of the acquisitions made in
Central America in the last two year years;
and continuing roll-out, expansion and
upgrade of mobile and fixed data networks.

Currency fluctuations are a key risk inherent
to Millicom’s business and, while impacting
reporting and earnings in USD, do not
impact competitiveness or strategic aspects
of managing our local businesses. The
Guatemala acquisition with relative stability
of its currency against the US dollar has
improved the Groups overall currency risk
profile. The Group seeks to mitigate part of
this risk by aiming to borrow up to 40% of
total debt in local currency.
All of the countries in which Millicom
operates in Latin America experienced
economic growth in 2021 and are on track
for long-term GDP growth, rising disposable
income and levels of prosperity.
The Board oversees management’s
processes and controls governing financial
and macroeconomic risk against pre-
determined levels of risk appetite, and
carefully considers currency exposure in
portfolio and debt management.

Millicom 2021 Annual ReportESG Performance Tables

Risk Management Tables—continued

Risk

Mitigation and actions

Evolution in 2021 (likelihood
and impact of the risk
materializing)

Board Perspective

4. Political, civil and regulatory
environments:

Instability, unrest, or lack of
predictability in regulation or rule
of law in the countries in which
we conduct business. Uncertainty
in regulatory and tax rulings,
including indirect taxation and
regulatory pressure through tariffs,
taxes and service penalties.

5. Technical transformation and
convergence

Failure to identify / anticipate
drivers of technological change
together with adaptability and
resource to implement change.

Threat of cross-industry
convergence and further
commoditization of existing
products and services. Strategic
risk of ‘betting on the wrong
technology’ or ‘missing the
technology of the future’.

6. Competition and customer
experience:

Market structure, market position,
actions taken by competitors,
and customer experience have a
significant impact on attracting
and retaining customers. Lack
of attention to market and
customer needs or poor customer
experience negatively impact
the subscriber base, and operator
reputation.

Competition for mobile and
home subscribers continues to
increase, while prepaid customers
remain a large and important
contributor to revenue. Quality of
service, innovation and converged
offerings as key differentiating
factors

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We have both local and central teams
monitoring the political situation
in the countries where we operate,
and considering and assessing the
implications of evolving global political
trends for potential impact on our
businesses. We proactively engage
with organizations whose policies and
guidelines affect our businesses..
We implement impact analysis and
efficiency programs to offset the
impact of newly introduced or expected
changes in taxes and regulations. For
example, in 2021 we increased our focus
on reducing our carbon emissions and
announced our commitment to science-
based target setting related to climate
change.
We continue to watch the political
developments and consequences for our
Nicaraguan business, and implement
controls to manage risks in that country.

With fixed and mobile businesses in
each of our strategic markets, we have
the necessary building blocks for fixed /
mobile convergence, and in future 5G.

In 2021 we deployed over $1 billion in
expanding, developing and modernizing
our networks and infrastructure, to enable
customer growth and enhance customer
experience.

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To learn more about our business
strategy and convergence goals see
section starting on page 19.

With a focus on home penetration for
cable and 4G subscriptions, Millicom
also has partnerships with key content
and service providers such as Netflix and
Amazon, as well as exclusive broadcast
rights including football in many of our
markets.

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In 2021 we implemented relational net
promoter scoring (NPS) complementing
our existing transactional NPS to better
track customer satisfaction across all our
markets and services, and use this data
to refine and enhance our customers’
experiences. These operational KPIs
now form a fundamental part of our
performance management and employee
reward programs. See section starting on
page 88 on how NPS is included in short-
term incentives.

See section starting on page 19 to
learn more about tools, partnerships
and processes we have invested in to
improve customer experience and gain
insights. See page 8 for a summary of
the competitive landscape in our markets
and our position.

Impact

Political and regulatory risks for Millicom’s
businesses remain relatively high in many of
the countries in our footprint.
We expect this trend to continue with
governments seeking to increase sources
and levels of income to stimulate economic
activity in recovering from lower sources of
income during the pandemic.
The Board oversees Millicom’s interaction
with key governmental and regulatory
agencies, and promotes transparency and
predictability in regulation. The Board
monitors climate related risks and impact
and the Company's efforts in managing
its business sustainably within its social
responsibility programs.

Advancements in technology, and increasing
demand for more data and higher quality
services, are trends that continue to define
the telecommunications and media
industries. In 2021 we continued to expand
and modernize our networks to meet
growing demand and prepare for the future.
For instance in 2022 we plan that over half
of our new homes cable build will be Fiber to
the Home.
Millicom’s strategy seeks to balance its
short-term operating and financial goals
with key technological and transformational
investments that will ensure the business
remains strong and prepared for the medium
and long term.

In a world where demand for content,
access to information and communication
services is increasingly critical in enhancing
and improving lives, positive customer
experience is a vital attribute. This has been
further evidenced in 2020 with disruptions in
physical movement and interactions.

"Best Customer Experience" is one of the
key pillars of Millicom’s strategy and a key
differentiator in customer choice of operator.

Millicom’s comprehensive customer
satisfaction program in place facilitates a
continuous cycle of improvement across all
facets of customer experience in all operating
markets.

Millicom 2021 Annual ReportESG Performance Tables

Risk Management Tables—continued

Risk

Mitigation and actions

Evolution in 2021 (likelihood
and impact of the risk
materializing)

Board Perspective

7. Financial structure and
capacity

Millicom may be at a
disadvantage compared to
competitors in access to and cost
of capital. Financial constraints
including debt covenants, debt
service requirements and credit
ratings could negatively impact
our ability to execute on our
organic and inorganic growth
strategies.

8. Networks and infrastructure
resilience:

Disruptions to service, or
compromised ability to restore
services to customers in
acceptable time frames, can cause
loss of revenue, increase expenses
and have a negative impact on
customer experience.

9. Cybersecurity and data
protection:

Intrusion into systems or
networks and inappropriate
access to sensitive data could
have significant operational,
regulatory, legal and reputational
implications.

Failure to implement systems
and processes to prevent, detect,
repel and respond to information
security threats, and properly
manage data requests (e.g., from
governments and regulatory
authorities.

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We carefully manage our sources
and uses of capital to enable us to
responsibly meet the operating,
investing and financing needs of the
business.
We manage our debt maturity and
monitor opportunities for lowering
our cost of debt and increasing our
debt efficiency on an ongoing basis.
We diligently monitor and manage
headroom against our key covenants
and key aspects related to our credit
management program.
In 2021 we successfully refinanced a
number of our long-term bonds reducing
our average cost of debt and extending
maturities, returned around $50 million
to shareholders in a share buyback
program, and raised $2.15 billion of
finance to enable us to complete the
acquisition of our Guatemalan business.

Our network resilience controls and
mitigating activities include ongoing
vulnerability assessments, simulation
exercises and business continuity
management plans, which are tested
on a regular basis. This includes physical
risk resulting from the effects of climate
change in the form of natural disasters,
such as extreme weather events. Risk
surveys are performed in each country
every three- years on a rotational basis.
We develop our investment programs
with consideration of elements including
outage risks, external dependencies,
network redundancy, climate and
sustainability risks.
During 2021 our networks continued to
prove their resiliency and capability to
manage continuous increases in data
consumption. Our IT networks and
response systems identified and repelled
a number of cybersecurity attacks
during the year. See the following risk
for further details.

Our Global Information Security Office
and Global Security Operations Center
centrally manages and coordinates risk
mitigation related to cybersecurity and
data protection. We have implemented
processes and tools to identify and
respond to threats, test vulnerabilities,
and deployed training programs to raise
awareness and security consciousness
of employees. We have engaged third
parties to perform network penetration
testing and audits to identify
improvement opportunities and assist
with enhancing network security and
protection systems. Learn more on page
60 about the initiatives we implemented
in 2021 to improve protection of critical
systems, and ensure compliance with
relevant data protection rules.

Impact

Millicom’s financial structure is both a key
facilitator and inhibitor of its ability to grow
its business and create value.
The acquisition of our Guatemalan
business in November 2021 increased
our leverage and so the Board decided to
seek shareholder funding for part of the
acquisition cost. The Guatemalan business
is the highest cash generating business in
the Group and we expect it to accelerate the
reduction of leverage toward longer-term
target levels.
The Board closely monitors balance sheet
structure and the sources and uses of funds
in the business. Operating and equity
free cash flow, leverage, and shareholder
remuneration are key areas of focus of the
Board in approving the strategy, annual
budgets and monitoring results.

Millicom’s purpose to build the digital
highways that connect people, improve lives
and develop our communities, relies heavily
on the coverage, quality and availability of
its networks and infrastructure.
Capital allocation in expanding,
modernizing, maintaining and protecting
networks and vital infrastructure are critical
in the successful execution of Millicom’s
strategy.
The Board endorses acceleration or
increased investment in networks in pursuit
of opportunities, balanced with investment
in physical and digital controls to maintain
service and strengthen resiliency.

The threat and potential disruption from
cybersecurity attacks have become a
significant threat to the successful operation
of any organization, particular those that
rely on information systems to collect,
process and manage data. These threats
have only heightened in 2021 as business
continues in its reliance on networks,
communication systems, and the internet.
We faced three major attacks in 2021 with
no substantial impact on the business.
Innovation, technological advancements
and ever increasingly regulatory
requirements to capture and process data,
heighten risks in this area. In 2021 the
Board further expanded its oversight in
this area, reviewing Millicom's information
security enhancement program in both its
Compliance and Business Conduct, and Audit
Committees and with active engagement
in the Company's dedication of resources
and allocation of capital to strengthen
and continually improve its cyber control
environment.

Millicom 2021 Annual ReportESG Performance Tables

Risk Management Tables—continued

Risk

Mitigation and actions

Evolution in 2021 (likelihood
and impact of the risk
materializing)

Board Perspective

10. Licenses and spectrum:

The availability of licenses and
spectrum is limited, closely
regulated, and increasingly
expensive. Inability to obtain
the required quantity or band
of spectrum from regulators or
third parties at a price we deem
to be commercially acceptable,
could have significant negative
consequences for the operation of
our businesses.

11. People, workplace and well-
being:

The security environment within
many of the countries within our
geographical footprint sometimes
exposes our employees and
contractors to situations which
may subject them to physical,
psychological or emotional
harm. COVID-19 has resulted
in an elevated risk of illness for
many members of our workforce
(particularly our frontline
employees).

12. Conduct:

Actions and behaviors of our
employees, business partners
and other stakeholders impact
the Company’s reputation,
compliance with rules and
regulations and may impact our
ability to operate our businesses.

We have a carefully formulated
spectrum and license strategy and
management plan for each of our
markets.
We actively monitor and engage with
government and regulatory bodies on
spectrum and license related matters.
We often negotiate renewals/retention
in the initial allocation contracts and
we carefully consider opportunities
to acquire new spectrum based on
spectrum quality, fit with network needs,
and customer demand.
In recent years have successfully
obtained and renewed the spectrum we
need to continue to operate and expand
our businesses.

We manage the health, safety and well-
being of staff based on international
standards, industry best practices,
and advice and support from local
authorities. We have rolled out a
comprehensive proactive diversity and
inclusion program that promotes and
celebrates Sangre Tigo culture.
Since 2020 employee and customer
health and well-being became,
more than ever, a key element of our
purpose and responsibility. We have
now adapted working environments
and ‘gone’ digital and virtual in many
business areas to protect and support
our people.
More about our approach to employee
health, safety, and security is set out on
page 49.

Through clear policies, training and
monitoring activities, we ensure that all
our staff remain aware of the risks to
them as individuals and to the company
and know how to act if faced with risk in
these areas.
In 2021, we continued to roll out and
strengthen our compliance culture
programs and initiatives, including in the
areas of workplace behavior, our supplier
networks, and in our MFS business.
See page 86 for more business ethics
action items in 2021.

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Impact

The landscape related to spectrum and
licenses to operate is constantly changing,
particularly in our markets as governments
seek higher financial and consumer benefits
from spectrum auctions, competition
for lower spectrum bands, and industry
consolidation. In particular, in Colombia
there has been a high profile and public
discussion over spectrum pricing.
The Board oversees Millicom spectrum
strategy and is responsible for review and
approval of all significant spectrum and
license purchases.
Millicom actively engages with regulators
and governments on spectrum matters, and
promotes fair and transparent allocation and
pricing of spectrum and licenses.

It is the Sangre Tigo culture embodied in
our people that bring our vision to life. Every
day, thousands of Millicom employees and
contractors diligently work on building
the digital highways that provide services
benefiting our customers and communities.
In 2021 they have adapted and responded
and continue to grow in these ongoing
challenging times. The Board has monitored
the Company's approach to navigating
into, and continuing through uncertainties
with its employees and customer safety-first
approach.
We are proud of the importance placed on
ensuring that Millicom is a place where our
people feel safe, protected, supported and
accepted for who they are, in ways that
enable them to do well, and that enhance
their lives and the lives of those around
them.

Doing business the right way is a
fundamental and reinforced message in the
tone from the top in the organization.

The Board’s Compliance and Business
Conduct Committee maintains oversight
of Millicom’s Compliance program,
monitoring and endorsing initiatives that
strengthen controls and enhance the culture
of compliance in its business and with its
business partners.

Millicom 2021 Annual ReportESG Performance Tables

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Our ESG Approach
and Impact

Millicom’s purpose and business strategies are deeply
intertwined. As our market leadership grows through the
adoption of digital technologies, so does our ability to
fuel even greater environmental, social, educational and
economic opportunities.

ESG Performance Tables

Environmental, Social and
Governance Framework
Over this past year, our purpose and commitment came
together in a particularly powerful way, as COVID-19 disrupted
our lives and highlighted the vital importance of internet
connectivity. Looking back, it’s clear the pandemic accelerated
what had been a gradual but steady shift to a digital
economy. In the process, it brought renewed attention to the
millions of citizens who lack high-speed access to the internet.

To help address this digital divide, we’re working with schools
and community organizations on a number of fronts such
as skills-building resources and opportunities for economic
empowerment in underserved communities. We especially
focused on closing the homework gap by offering connected
learning solutions for remote classrooms and a range of
innovative digital learning tools with some of our flagship
initiatives Maestr@s Conectad@s and Conectadas.

Our Environmental, Social and Governance (ESG) framework
articulates our renewed approach to improving lives,
strengthening communities, reducing our environmental
impact, managing climate risks and governing our business
with integrity. Together, our ESG initiatives help us chart
a path for sustainable growth and create long-term value
for our stakeholders. Corporate Governance, Compliance
and Cybersecurity are covered in detail in the Corporate
Governance Report, starting on page 63.

In 2021, we evolved how we communicate ESG to better
reflect the relationships between our initiatives and our
business strategies. Aligned with leading ESG methodologies,
this new framework provides a more complete picture of
the work we do, helps our stakeholders better understand
our issue-specific approaches, and gives us a platform to
announce a bolder set of goals and commitments.

The framework mirrors the results of a follow up materiality
assessment we conducted in 2020 to better understand
the impact of COVID-19 on our stakeholders' perspectives.
The assessment revealed that many areas are of increasing
importance to our stakeholders, including climate change,
the digital divide and employee and contractor health and
wellness.

ESG at Millicom

O U R I M P A C T

O u r
z e M o b i l e

M o

S t r a t e g y

Build Cable

G o Digit a l

G O V E RNANCE

p li a

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S O C IETY

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Climate
Change & Energy
E-Waste and
Circular Economy

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Our purpose is to build the digital highways that connect
people, improve lives and develop our communities

Millicom 2021 Annual Report

ESG Performance Tables

Sustainable Development Goals
The 2030 Agenda for Sustainable Development, adopted
by all United Nations Member States in 2015, provides a
shared blueprint for peace and prosperity for people and
the planet, now and into the future. At its heart are the 17
Sustainable Development Goals (SDGs), which are an urgent
call for action by all countries - developed and developing- in
global partnership. They recognize that ending poverty and
other deprivations must go hand-in-hand with strategies
that improve health and education, reduce inequality, and
spur economic growth - all while tackling climate change and
working to preserve our oceans and forests.

We’ve measured our progress against the SDGs since 2018.
But in 2021, we stepped up our approach to assessing and
tracking our achievements. We started by digging deep into
the 169 targets set out by the SDGs, identifying where we
made the biggest impacts and whether we could quantify our
contributions with metrics.

We then went one step beyond by having Tigo operations in
all nine of our LATAM markets do the same for their respective
countries’ SDGs and targets. As part of the analysis, we
totaled up our impact in each market, giving us a sense for
how much we’re helping communities meet their individual
goals.

In addition to measuring our impact, the results are already
helping us focus our know-how and resources on the areas
where our contributions are making the biggest difference.
We believe this approach will move the needle for our
communities and help our partners better understand our
impact.

Visit https://www.millicom.com/what-we-stand-for/reporting/
to learn more about our approach.

At its heart are the 17 Sustainable Development Goals
(SDGs), which are an urgent call for action by all countries—
developed and developing—in global partnership.

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ESG Performance
Tables

We report our progress against our renewed ESG Framework, which includes
the public commitments established in the Five-Year CR plan built on our
2018 Materiality Assessment, and updated and adjusted as per our ongoing
engagements with internal and external stakeholders. Performance Tables1
have been redesigned to reflect the renewal of our ESG Framework.

Goals and targets that have been revised are flagged in the tables on the
following pages.

1 This report includes our Honduras joint venture as if it were fully consolidated, as this reflects the way our management reviews and uses internally reported information

to make decisions about operating matters. It also includes our Guatemala operation. Following our strategical decision to divest out of Africa, data for Tanzania is

disclosed for a reduced subset of Environmental and Compliance metrics.

Our acquired Telefonica operations in Nicaragua and Panama are included in the CR performance Tables as from 2020. Exclusions, where applicable, are detailed in

footnotes.

The majority of our performance data beginning on page 39 is for the period from October 1, 2020 to September 30, 2021, except where noted.

ESG Performance Tables

ESG public commitments overview

Environment

Topic

Our Goals

Target

Target
Year

What we did in 2021

Our performance/status

Enhance data quality and
standardization of calculation
and reporting of baselines and
targets to reduce carbon footprint
and achieve costs savings and
reduce carbon footprint.

Develop and implement a
comprehensive strategy for
climate change mitigation and
resilience for Tigo operations and
customers.

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2018 energy consumption, Scope 1
and Scope 2 baselines identified and
published by 2019.

2019

Not Applicable.

Design one pilot project for emissions
reduction and one for offsetting /
carbon pricing by 2020.

Fossil fuel consumption and energy
consumption reduction targets set
by 2021.

Comprehensive strategy for climate
change mitigation and resilience
for Tigo operations and customers
approved and announced by Q2
2022.

2020

Not Applicable.

2021 We have set and submitted our first

2022

near-term Science-Based Targets
(SBTs), pending validation for public
announcement, and already guiding
our energy and emissions reduction
strategy. In addition, we have joined the
Business Ambition for 1.5°C campaign -
the world’s largest and fastest-growing
group of companies that are aligning
with 1.5°C and helping to halve global
emissions by 2030, committing no
set net-zero targets according to the
Science-Based Target initiative Standard
by 2023.

streams, and reuse and recycling
of consumer devices.

y Manage and measure waste
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Reach 76% of Consumer Premise
Equipment ("CPE") end to end
recovery by 2024 (72% by 2021) .

2024 We surpassed our goal for 2021 as we

also processed the 2020 backlog.

Completed.

Completed. Target active internally,
pending validation for public
announcement.

We achieved 84% CPE end to end
recovery in the Latam region. This
is equivalent to over 3 million
recovered devices.1

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Environmental impact
assessments of all operations
executed by 2021, including issue
prioritization and remediation
plans.

Conduct an inventory of all waste
generated at operations and publish
related targets by 2020.

2020

Data standardization and target-setting
efforts were slowed down due to the
urgency of the pandemic.

In process.

Environmental impact assessments
executed, reviewed, revised,
standardized and with action plans
consolidated for regional execution
by January 2021.

2021 We have renewed ISO 14001

certification in all our operations. As
part of the standard's requirements,
environmental issues and aspects are
identified on an ongoing basis, along
with action plans to close identified
gaps.

In the recertification processes
conducted in 2021 no significant
gaps were identified.
Updated and standardized
environmental policies, guidelines
and processes are currently under
final review for publication.

1 Excludes Guatemala

Completed

In Progress

Refocused

Delayed

Millicom 2021 Annual Report

ESG Performance Tables

ESG public commitments overview—continued

Society
Society

Topic
Topic

Our Goals
Our Goals

Target
Target

Implement regional strategy
to advance digital literacy with
educational programs on basic
and advanced digital knowledge
and entrepreneurial skills.

Reach 400,000 women trained
through our digital inclusion program
by 2023.

Target
Target
Year
Year

2023

All countries complete research on
use of technology by children and
adolescents by Q4 2020.

All countries implement action plans
based on results of the research by
2020.

All operations implement CSAM
blocking mechanism by 2020.

2020

Conduct research programs
in each market on the use of
technology by children and
adolescents to tailor content
and adapt Child Online
Protection training based on
results and insights.

Continue our efforts to prevent
access to online Child Sexual
Abuse Material ("CSAM")
through our networks by
continuously implementing
blocking mechanisms region-
wide and advancing industry
initiatives.

Continue our programs to
reduce the gender gap in the
use of mobile technology.

What we did in 2021
What we did in 2021

Our performance/ Status
Our performance/ Status

Trained 158,881 women.
We have developed a regional
Conectadas App through which
participants will be able to access
trainings in all our markets. Initial roll
out in pilot phase was done in December
2021.

Refocused.
Upon revision during the pandemic and in
its aftermath, priorities were reassessed.
In view of the emerging needs, efforts
have been shifted towards the training
of teachers, to provide them with digital
skills for remote and hybrid learning.

6 out of our 9 Latam operations
currently have new system in place that
incorporated the blocking of CSAM sites.
Migration to new system is underway for
all operations.

Completed.

Refocused.

In progress

2020

GSMA extended the Connected Women
initiative until 2023

In progress

Close the digital gap in our Latam
operations by 2020 in line with
the acquired commitments
through Global System for Mobile
Communications Association's
("GSMA") connected Women
initiative.

Expand Child Online Protection
("COP") training program for our
employee volunteer program
by creating online training
platform in all our operations.

Online training platform live in all our
operations by 2020.

2020

By 2023 reach 120,000 volunteering
hours from COP-related programs.

2023

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Continue our COP education
program to reach more children,
adolescents, parents, teachers
and caregivers.

Reach, through our COP programs:
700,000 children and adolescents;
200,000 parents and caregivers;
70,000 teachers.

2023

Refocused

In progress

This target was refocused in 2019,
acknowledging the higher effectiveness
and engagement of in-person training.
Due to the ongoing mobility restrictions,
in-person activities have not yet been
resumed.

COP-related volunteering continues
to be predominantly virtual due to the
pandemic. This has resulted in a reduction
of available volunteering opportunities.
That said, our employees still provided
13,400 virtual volunteering hours for COP
programs.

2021 continued to be challenging for
the roll out of our program as lockdowns
remained in our countries. Our focus on
maestr@s conectad@s program allowed
us to support the training of teachers on
the use of digital tools for online classes
and helping children and adolescents to
understand the opportunities and risks of
being online.
We have partnered with the Real Madrid
Foundation to reach 11,200 children
and adolescents in their schools with
our Conectate Segur@ and Conectadas
programs starting in late 2021.
Despite the ongoing mobility restrictions
regionwide, we provided Child
Online Protection training to 22,891
children 112,737 teachers and 114,952
parents and caregivers. during 2021.

Conduct assessments in Latam
markets on socio-economic
conditions and technological
capabilities of women and girls
who are the beneficiaries of our
programs to measure benefits
achieved through trainings.

Measure impacts of
connectivity in communities
targeted by our programs
to assess improvements in
socioeconomic conditions of
beneficiaries, and optimize
program content and resource
allocation.

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o
connections to schools and
public institutions in vulnerable
communities throughout Latin
America through collaborative
partnerships with local
government and NGOs.

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All operations conduct assessments
focused on socioeconomic conditions
and technological capabilities of
women and girls by 2023.

2023

Efforts currently on hold due to the
dynamic nature of the ongoing
pandemic.

In progress

Design and roll out to operations
a regional impact measurement
methodology by 2020.

All countries implement an impact
measurement methodology related
to connectivity and digital inclusion
by 2022.

Provide internet to 1300 schools and
public institutions by 2023 reaching
our set commitment with the OAS
ICT Alliance.

2020 We have leveraged on previous research

done in our markets and will revise targets
considering the transition to post-covid
contexts.

Refocused

2022

Due to the pandemic this goal has been
delayed to better understand the impact
and role of connectivity during this
situation.

Refocused

2023

2267 schools and 586 public institutions
connected in our Latam operations.

Completed.

Completed

In Progress

Refocused

Delayed

Millicom 2021 Annual Report

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ESG public commitments overview—continued

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Society

Topic

Our Goals

Target

Build an inclusive work environment that is representative of our
workforce, the markets where we operate and the customers who we
serve.

Promote a culture of inclusion through policies, procedures, and regular
training, and activities that foster employee collaboration.

Enhance employee wellness and growth through policies, programs
and practices designed to support their aspirations professional and
personal development.

Target
Year

Annual

What we did in 2021

Our performance/ Status

During 2021 we implemented several
training to different audiences:
Unconscious bias webinar for Senior
Leaders, DE&I training and LGBQT panel
for all employees.
We established quantitative gender
targets as a company. We created
counsels to identify gaps operation by
operation and established a plan in how
to close the gaps globally. Targets will be
announced during the following weeks.
We reviewed wage gaps across the
organization and took measures to
correct where gaps were identified.
In addition, we reviewed annual salary
increases to ensure equity in pay
increases.

82% employees received the
training.

Set public 2030 Diversity, Equity
and Inclusion targets, announced in
early 2022.

GPTW 2021 survey shows that
we have higher engagement in
segments included in our DE&I
strategy.

Enhance due diligence
processes by including
sustainable procurement criteria
for Global strategic suppliers.

Ensure that 100% of Global strategic
suppliers obtain sustainability
assessment scores of 45 or greater
by 2023.

2023 We identified, among suppliers still below
a score of 45, corrective action plans that
can be implemented in order to close
existing gaps and reach or surpass that
target score.

27.5% of current strategic supplier
base have scores 45 or higher on
Ecovadis.

Extend related training to
procurement team.

Train 100% of procurement
staff in responsible supply chain
management issues related to our
core risks.

2023

As during 2020, the responsible supply
chain management training was
delivered in the form of e-learning, being
available both to corporate and local
offices’ Procurement employees.

92% of our Latam and HQ
Procurement teams received
Responsible Supply Chain training
in 2021.

Train all suppliers with Group
spend >$1.0m by 2023, and
measure their progress on
corrective action plans through
sustainable procurement
platform and audits.

Train all suppliers with Group spend
>$1.0m by 2023, and measure their
progress on corrective action plans
through sustainable procurement
platform and audits.

2023 We created an online sustainability

training through which we are increasing
our scope of suppliers reached. For 2021
we set out to reach 75% of our strategic
or critical suppliers. This online training
will become the standard training that
every new supplier must complete when
working with Millicom.

We surpassed the 2021 target,
reaching 76% of eligible suppliers.

Enhance due diligence
processes by including
sustainable procurement criteria
for Global strategic suppliers.

Vet all Global strategic suppliers
through our sustainable procurement
platform.

2023 We continued integrating our systems at

regional levels, achieving higher efficiency
and streamlining the Ecovadis vetting
process.

44% of the strategic suppliers in our
updated list have been vetted on our
sustainable procurement platform.

Completed

In Progress

Refocused

Delayed

Millicom 2021 Annual Report

ESG Performance Tables

ESG public commitments overview—continued

Society

Topic

Our Goals

Target

Target
Year

What we did in 2021

Our performance/ Status

Consolidate and enhance
human rights policies and
practices covering privacy,
freedom of expression, supply
chain and vulnerable groups
to meet standards of United
Nations Guiding Principles on
Business and Human Rights.

Develop and deploy Human
Rights Impact Assessment
(HRIA) toolkit in all Latam
markets.

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Conduct Corporate and operations
Gap Assessment by Q3 2019.

2019

Completed.

Completed

Develop remediation plan to cover
gaps by Q4 2020 for implementation
under 5-year plan.

2020

The need for remediation plans
undergoing continuous review where
HRIAs have been conducted.

Our various human rights-related
processes, particularly those related
to Privacy, Freedom of Expression,
Supply Chain and vulnerable groups
have been implemented and
expanded in accordance with gaps
identified during Human Rights
Impact Assessments. related to the
implementation of Human Rights
Impact Assessments established.

Training on HRIA toolkit conducted
in all operations by Q4 2019.

2019

Training completed in countries where
HRIAs have been conducted. Remaining
operations received awareness building
training on topic and will receive the full
training as HRIA roll-out continues into
2022.

Conduct HRIAs in all operations by
Q4 2020.

2020

Completed HRIA in CO, PY, BO and NI.
Deferred to2022 for GT, PA, CR and SV.

In Process

Develop remediation plan to cover
findings of HRIAs by Q2 2021.

2021

No material issues were raised in the CO,
PY and BO or Ni HRIAs which required a
remediation plan.

Delayed

Training on HRIA toolkit conducted
in all operations by Q4 2019.

2019

Develop remediation plan to cover
gaps by Q4 2020 for implementation
under 5-year plan.

2020

The need for remediation plans
undergoing continuous review where
HRIAs have been conducted.

Conduct HRIAs in all operations by
Q4 2020.

2020

Completed HRIA in CO, PY, BO and NI.
Deferred to2022 for GT, PA, CR and SV.

Delayed

Develop remediation plan to cover
findings of HRIAs by Q2 2021.

2020

No material issues were raised in the CO,
PY and BO or Ni HRIAs which required a
remediation plan.

Completed

Roll out training on human
rights in all Latam markets by
2020.

Human rights training to CR Team by
Q4 2019 and extended to designated
business teams by Q4 2020.

Protect customer rights to
privacy and freedom of
expression.

Develop Grievance Mechanisms
for customer privacy or freedom of
expression issues by Q4 2019.

2020

Target met in 2021

Completed

2019

Framework for grievance mechanisms for
HQ and Operations levels completed.

Completed

Develop web-based, one-stop Privacy
Center for customers on company
policies, terms and conditions, and
practices relative to privacy and
freedom of expression by Q4 2019.

Develop Grievance Mechanisms
for customer privacy or freedom of
expression issues by Q4 2019.

2019

Completed. please visit (add url)

Completed

2019

Framework for grievance mechanisms for
HQ and Operations levels completed.

Completed

In Progress

Refocused

Delayed

Millicom 2021 Annual Report

ESG Performance Tables

ESG public commitments overview—continued

Governance

Corporate Governance is covered in detail in the Corporate Governance Report, starting on page 63. More information on
Compliance is included in the section for Compliance and Business Conduct Committee starting on page 86.

Topic

Our Goals

Target

Build a strong corporate culture
that seeks compliance excellence;
build an ethical business culture in
which employees at all levels are
committed to doing what is right and
upholding the Company’s values and
standards.

100% of GMs and executive teams
with compliance KPI built into
remuneration package by 2020.

100% of the above group plus their
direct reports with compliance KPI
built into remuneration package
by 2021.

Target
Year

2020

2021

95% of Compliance & Ethics training
for active employees yearly.

Annual

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Respond within 3 business
days to each Ethics Line
allegation submitted
through hotline.

Provide corrective action
recommendations for each
Ethics Line case
substantiated through the
investigation process.

Have a Compliance & Ethics Program
that is central to business strategy;
effectively embedded in the
business processes and procedures;
and focused on the actual impact
the company’s program has in the
countries where it operates as well
as on our employees, customers,
stakeholders and communities.

100% of operations with online
platform deployed and functional
for a high-quality program that
integrates preventive measures, key
controls, reporting mechanisms and
due diligence processes capable of
detecting and correcting misconduct
and wrongdoing.

Annual

2023

What we did in 2021

Our performance/ Status

91% of GMs have compliance KPIs
built into remuneration package.2

99% of employees completed the
Code of Conduct training.

An allegation is submitted to
the Ethics Line and subsequently
the date on which a response is
provided is recorded. Our current
average response time to Ethics
Line allegations is within 3 business
days of being submitted through
the hotline.

Where a concern or allegation
is substantiated, investigation
findings and recommendations for
corrective action are provided to the
appropriate review committee.

Both the forms and the Third Party
Due Diligence tool are standardized
and accessible for our Operations.

This is the fourth year we have tied
the GM Compliance objectives with
their bonuses.
Heatmap and KPIs scorecards have
been presented to the Board of
Directors as a way to assess progress
towards Compliance objectives.

Deployed the annual mandatory
training on Code of Conduct to all
operations and HQ employees..

Responded within 3 business days
to each Ethics Line allegations
submitted through hotline.

Provided corrective action
recommendations for each
substantiated Ethics Line case. The
corrective action is tracked through
completion.

This year we continued with the
automation of the Sponsorships,
Donations, and Government Official
Interaction forms for HQ and Latam.
We have a Third Party Due
Diligence platform that serves
both as a repository as well as a
process management tool to vet
vendors before being onboarded.
This tool also runs background
checks on existing vendors, based
on automated watch list, adverse
media, and law enforcement
searches.

2 Following our acquisition dated November 12, 2021, Tigo Guatemala has adopted our GM remuneration package, aligning with our 100% target for 2022.

Completed

In Progress

Refocused

Delayed

Millicom 2021 Annual Report

ESG Performance Tables

Our Performance
Our Performance
About our ESG metrics

2021 metrics have still been impacted by the ongoing COVID-19 pandemic (as 2020). Therefore some of the reported values may
reflect atypical variations.

Environment

E-waste recycled through responsible waste management program (tonnes)

KPI

Bolivia

Colombia

Costa Rica

El Salvador

Guatemala

Honduras

Nicaragua

Paraguay

Panama

Tanzania

Energy use3

2018

2019

2020

2021 (Latam only)

587

310

147

400

—

5,586

431

118

123

1,303

Not included

105

Not included

400

—

138

8,800

—

1,373

—

118

181

162

—

527

—

1,858

—

365

310

—

1,858

168

Not included

Total Energy Consumption / Sources of energy by asset type

2018

2019

to Latam only)

(Latam only)

2020 (Restated

2021

Base station and fixed network sites

Fuel (000 l)

Energy from fuel (MWh)

Grid Electricity (MWh)

Our fleet

Fuel (000 l)

Energy from fuel (MWh)

Data centers and offices

Fuel (000 l)

Energy from fuel (MWh)

Grid Electricity (MWh)

Shops

Fuel (000 l)

Energy from fuel (MWh)

Grid Electricity (MWh)

Total Energy Consumption (MWh)

Grid Electricity (MWh)

Fuel (000 l)

Energy from fuel (MWh)

Energy from renewable sources (MWh)4

Total Energy Consumption (MWh)

Emissions and e-waste overview

10,435

104,456

450,131

4,247

42,685

441,336

4,680

46,721

459,496

4,667

46,590

514,684

4,064

38,609

450

4,490

89,688

234

3,257

31,230

293

2,926

74,598

717

5,696

53,630

5,558

52,017

323

3,220

228

2,281

124,808

118,679

626

105

16,811

11,618

16,538

13,304

556,630

14,972

147,789

527,552

7,869

77,558

New KPI for 2021 New KPI for 2021

600,842

10,762

104,197

New KPI for
2021

704,419

605,110

705,039

646,667

10,464

100,993

18,772

766,432

Total weight of e-waste recycled through our responsible e-waste
management program (tonnes)

Scope 1 emissions (Tonnes of CO2e)

Scope 2 emissions (Tonnes of CO2e)6

Scope 3 emissions (Tonnes of CO2e)

% of operations set up on global responsible e-waste recycling program

1,957

39,181

140,605

N/A

16,371

20,553

137,754

3,994

100

2,436

33,6295

152,060

4,654

33,161

146,525

1,585,0577

2,202,250

100

3 Since Latam constitutes the baseline for our emissions reduction targets, 2020 figures have been restated accordingly, using updated emission factors for Scope 2 and including
fugitive emissions for Scope 1 from 2020 onwards. 2019 and 2018 figures have not been restated and include also Africa.

4 This metric refers to energy from renewable sources in addition to that inherent to each country's specific electricity grid- The different grid compositions are reflected in Scope 2
emissions through the different emission factors. used for calculation of GHG emissions due to grid electricity consumption.

5 Starting in our restated Scope 1 emissions for 2020, we include fugitive emissions using emission factors from “Refrigerant & other” worksheet in the condensed set of the 2021 UK
GHG Conversion factors set “Refrigerant & other” worksheet in the condensed set of the 2021 UK GHG Conversion factors set. Emissions from fuel (motor diesel and gasoline) are
calculated using World Resources Institute (2015) GHG Protocol tool for stationary combustion, version 4.1 and Mobile Combustion GHG Emissions Calculation Tool Version 2.6.

6 Emissions from electricity are calculated using Electricity Emission Factors from IEA, version 2020, except in the case of Colombia.

7 Scope 3 emissions for 2020 and 2021 have been calculated by an expert third party. The GHG accounting and reporting was based on the ‘The Greenhouse Gas Protocol: A
Corporate Accounting and Reporting Standard – Revised Edition’ (GHG Protocol) and the supplementary ‘Corporate Value Chain (Scope 3) Accounting and Reporting Standard’. The
calculations for the reporting years considered a diversity of data sources; for example: spend, model and number of devices purchased and sold, product’s life-cycle assessments
(LCA), LCA and environmentally-extended input-output (EEIO) databases, and the number of employees. Scope 3 emissions reported in the 2020 Annual Report were limited to air
travel emissions and have been restated in this current report to reflect the current scope under analysis.

Millicom 2021 Annual Report40

ESG Performance Tables

Our Performance—continued

Society

Diversity, equity and inclusion

KPI

% of women in managerial positions

% of women across our employee base

Supply Chain

KPI

% of strategic suppliers who signed the supplier code8

% of all suppliers who have signed the supplier code

% of procurement teams trained on responsible supply chain management

% of suppliers with Group spend >$1.0m trained on Millicom's ESG strategy and
requirements9

Health & Safety
KPI

% of operations certified against ISO 45001

Number of employee fatalities

Number of contractor fatalities

Number of H&S incidents reported10

Lost-time injury rate per 1000 employees

Absentee rate (%)11

Digital Education
KPI

Women enrolled in digital inclusion programs ("Conectadas")

Teachers who completed 100% of Maestr@s Conectad@s program

Number of children reached by COP training (´000)

% of operations in Latam blocking child sexual abuse content

Digital Inclusion & Social Investment
KPI

Monetary value of employee volunteering ($)

Volunteering hours14

Total cash contributions ($'000)

In-kind giving (at cost) ($'000)

Schools and public institutions connected to the internet

Year ended December 31,

2018

2019

2020

2021

2018

2019

2020

New KPI for 2021

2021 (Latam
only)

2018

New KPI for 2019

369

0.5

1.3

2019

100

1.97

1.34

2020

100

1.35

1.45

2021

100

0.83

1.97

2018

2019

2020

117,340

207,019

New KPI for
2020

360

480

91,340

137,019

543

2021

158,88112

112,73713

566

2018

2019

2020

2021

235,000

24,732

3,776

6,737

1,361

405,503

51,425

2,686

6,139

1,416

346,863

30,323

1,754

7,286

2,745

138,174

13,525

915

10,902

2,849

8 A supplier is considered strategic if they follow one or more of the following: significant spend, multi-year relationship in place or expected, products and services in a strategic
spend category, direct impact on delivery capability, potential impact on brand and reputation and difficulty of switching to alternative suppliers.

9 Suppliers considered for this training are those with a 2020 spend over $1M,, excluding related parties, competitors, utilities, and government entities. Suppliers with an
identified CSR robust program (Ecovadis score of 45 and above) are automatically considered trained.

10 H&S incidents are defined as incidents in which Millicom/ Tigo employees take one or more days of lost time due to injury.. Values from 2019 forward have been corrected for
comparability. 2019 incidents removed from the count include "near miss" and contractor incidents.

11 The absentee rate is the number of unplanned absences versus the average number of workdays in in the reporting period, expressed as a percentage.

12 As from 2021, this metric is reported on a calendar year basis as opposed to past reporting cycles, which went from October 1st to September 30 of the reporting year. An
additional 39,934 women were enrolled in digital inclusion programs between October 1st and December 31st, 2020, which were not included in the 2020 annual report, nor
in the above values.

13 As from 2021, this metric is reported on a calendar year basis as opposed to past reporting cycles, which went from October 1st to September 30 of the reporting year. An
additional 65,718 teachers completed the Maestr@s Conectad@s training between October 1st and December 31st, 2020, which were not included in the 2020 annual report,
nor in the above values.

14 As from 2019, it includes COP-related programs volunteering hours.

Millicom 2021 Annual ReportESG Performance Tables

Our Performance—continued

Fundamental Rights

KPI

Law enforcement requests15
Total number of law enforcement requests (Latam)

Law enforcement requests per type

Interception

Customer metadata

Mobile Financial Services ("MFS")

Major Events
KPI

Number of major events

Major events per type

Shutdown or restriction of services

Proposals for significant changes in local laws

Proposals for significant changes in technical or operational procedures

Disproportionate interception or customer data requests

Politically motivated messages

Other

GOVERNANCE

Ethics

KPI

% of employees who acknowledged the Code of Conduct

% of employees who have completed the Code training

% of procurement staff trained on Anti-Corruption

% of senior managers trained on Anti-Corruption

% of revenue from MFS subject to AML controls

% of operations (where) we conducted a compliance risk assessment

2019

2020

2021

40,132

37,007

53,420

2,121

37,497

514

2,304

34,203

500

2,645

50,176

599

Year ended December 31,

2019

2020

2021

Year ended December 31,

2018

2019

2020

2021

100

100
(Latam
only)

15 We classify law enforcement requests into three categories: interception, customer metadata, and customer financial data (related to the mobile money services or MFS
services we provide). These three categories encompass the vast majority of requests we receive. We report all other requests outside of the definitions as major events.

Millicom 2021 Annual Report42

Millicom 2021 Annual Report43

Millicom 2021 Annual ReportEnvironment

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Environment

Being good environmental stewards is a core element of fulfilling our
purpose. This is why, rooted in deep knowledge of our business and our
region, we deploy initiatives to make our digital highways as resilient
as possible, to operate with world-class standards and to work with
partners across our value chain to reduce our environmental footprint
and help others reduce theirs.

Environment

2021 Highlights

We have set and submitted our first near-term Science-Based
Targets to reduce our GHG emissions, and joined Business
Ambition for 1.5°C, with the objective of reaching

net zero emissions by 2050.

By modernizing 1,100 sites in Nicaragua, we consumed 20% to 25% less
electricity and saved more than 1.5 million KWh compared with last year.

84%

We recovered 84% of our CPE after people terminated or upgraded
their services, 12% more than our target for the year.

Panama

Colombia

In addition to the active Power Purchase Agreements in
Panama, we have begun the roll out of an innovative energy
sourcing model, with over a thousand new rural sites in
Colombia, as well as certified over 13 million KWh of this
operation’s 2021 grid electricity consumption as renewable.

Smarter designs helped us close 232 sites in Colombia,
reducing our electricity use and costs while increasing our
coverage area.

Millicom 2021 Annual Report46

Environment

Intergovernmental Panel on Climate Change (IPCC) Report
projects an escalating climate crisis unless we limit the global
temperature increase to 1.5°C compared with pre-industrial
levels.

The consequences of inaction will be severe: More frequent
and intense heat waves; more powerful hurricanes, flooding
and wildfires; continued sea level rise in coastal communities;
ocean warming that devastates marine ecosystems; and
the prospect of climate refugees fleeing drought and other
weather-related disasters.

Regionally, our Latin American markets are vulnerable to
climate-related disasters such as floods and hurricanes, which
are already taking a heavy toll on the region’s health and
infrastructure.

We spent much of 2021 assessing our business risk related to
climate change and inventorying our GHG emissions, with the
goal of developing a climate resilience strategy that can help
our business and communities prosper in the face of these
threats.

We’ve always worked collaboratively across our business to
use resources more efficiently and minimize our operating
waste. In early 2022, we amplified our commitment with the
announcement of new GHG emissions targets. In accordance
with the United Nations Sustainable Development Goals on
climate action, the new targets represent our most ambitious
commitment yet to reducing our environmental footprint.
Reaching our targets won’t be easy, but we’re excited by the
challenge and inspired by the progress we’ve already made.

Collectively, we believe these actions help us optimize our
business performance, reduce business risk, deliver improved
connectivity and service to our customers, and meet our
stakeholder expectations for environmental stewardship—all
core to how we fulfill our purpose each day.

Setting Science-Based Emissions
Targets
We’re constantly pursuing new strategies and technologies
to reduce our carbon footprint, and this year we formalized
our strategies into a single overarching commitment. In 2021,
we took a more ambitious approach, recalculating our 2020
Scope 1 and 2 emissions and performing a comprehensive
Scope 3 emissions inventory. This broader and fresh analysis
was the basis to develop a comprehensive mitigation strategy,
based on aggressive reduction targets.

Our Commitment
We have submitted our first near-term Science-Based Targets
for validation. Our ambition is to establish targets in line with
a maximum 1.5°C increase above pre-industrial levels for our
Scope 1 and 2 GHG emissions and a 2°C increase for Scope 3,
and to lay the groundwork for strong, coordinated action in
the region. Because we plan to be active participants in Latin
America's digital transformation to enable a thriving, resilient
economy, we aspire to go beyond these targets in the next
decade, joining the Business Ambition for 1.5°C campaign and
committing to achieving net zero emissions by or before 2050
in alignment with the Science-Based Targets initiative.

With these targets, we are joining other leading private sector
companies in pledging to slash our emissions within the next
decade. We anticipate even more ambitious targets in the
years to come, as we keep in mind the international coalition
of countries and companies aiming for net zero emissions by
2050.

Our strategies will encompass emissions from sources that
are under our control, emissions associated with our purchase
of electricity (Scope 2), and emissions from upstream and
downstream sources, including relevant suppliers and clients
(Scope 3).

Millicom 2021 Annual ReportEnvironment

A science-based
pathway to net zero
emissions

Millicom has joined the "Business Ambition
for 1.5°C campaign", formally committing
achieving net zero emissions per the
Science-Based Targets initiative standard
by or before 2050.

We use the strictest ambition levels available for our
Scope 1 and 2 emissions inventories and goals, as these
are the sources over which we have the most control. We
set a more conservative target for our Scope 3 emissions,
which are our most significant emissions drivers but where
our control is most limited. This will allow us the time
to form partnerships with authorities, competitors and
suppliers on integrated strategies for reducing emissions.

In the short-term, our mitigation strategies will include a
combination of energy efficiency, renewable energy and
market instruments. Many of these strategies are already
in operation, while others are in the planning stages. We
will report on these in more detail in future disclosures.

Energy Efficiency

By modernizing our network infrastructure, we’re delivering
more and better services to our mobile and broadband
customers while consuming less electricity.

SPOTLIGHT

Nicaragua

For example, we invested in
modernization upgrades for more
than 1,100 sites in Nicaragua in
2021. The new technology consumed
between 20% and 25% less electricity
than before the upgrades—higher
than our initial projections—saving
us more than 1.5 million KWh .
The new sites also require fewer
maintenance visits, saving substantial
amounts of fuel and labor.

1.5 million KWh

Electricity saved by modernizing
more than 1,100 sites in Nicaragua.

Millicom 2021 Annual ReportEnvironment

Likewise, we modernized more than 1,050 sites in Panama,
with efficiency figures in line with the savings from our
Nicaragua sites. Our Panama sites reduced our electricity
consumption by 0.9 million KWh.

In Colombia, we continued rolling out our 700 MHz network.
This smarter design expands our coverage area while reducing
the number of sites we need to serve customers. To date, we
have closed 232 sites, reducing our associated electricity use
and network costs.

Looking forward, we’re collaborating with local management
teams to identify other areas where we can reduce our energy
consumption and GHG emissions, as well as implement best
practices to reduce our environmental footprint. Measures
we’re considering include updating the cooling systems in our
data centers (e.g., using naturally cool air or water rather than
mechanical chillers), replacing legacy equipment with new
power-saving options, using hybrid fuel systems in off-grid
sites, and replacing diesel and gasoline vehicles with more
efficient options.

Renewable Energy
While renewable energy as a whole is on the upswing in Latin
America, regulatory roadblocks hinder our ability to purchase
renewable energy directly in many of our markets. That said,
renewable energy is a key linchpin of our emissions reduction
strategies. As governments begin to loosen restrictions on
energy-related public-private partnerships, we expect to
pursue renewable energy for our operations more aggressively.

In 2021, we entered year two of a Power Purchase Agreement
(PPA) for our Panama operation. Through this contractual
agreement between Millicom, third-party energy providers
and local utilities, we’re able to partially power our mobile
and fixed networks with local renewable energy sources,
avoiding up to 1,200 tonnes of CO2 emissions per year. We will
continue to negotiate new PPAs as they become available in
our regions. Furthermore, our Colombia operation has certified
over 13,000 MWh of their 2021 grid electricity consumption
through Renewable Energy Credits (RECs), a measure towards
decarbonizing our electricity consumption.

We’re also pursuing renewable energy installations at many of
our operational sites. We maintain an onsite solar capacity of
over 4,700 MWh for powering our base stations,

We're beginning to roll out innovative Energy as a Service
(EaaS) sourcing models for our mobile sites. After a successful
pilot in Honduras, we began the roll-out of four new EaaS
sites supplied with solar energy in rural Colombia the first of
over 1,200 sites to be deployed over the next 4 years. With
this new model, in which over 70% of our sites are off grid,
we're focusing on expanding our coverage while minimizing
our reliance on fossil fuels. We believe this will have a minimal
additional impact on our carbon footprint—a big step in
the decarbonization of our services. The full benefits of this
addition will build up as roll-out continues.

SPOTLIGHT

Costa Rica

As part of the Green
Initiatives, mentioned
above, Tigo Costa Rica
adopted

1,000 trees
with the
“ Asociación
Amigos de
Un Millón de
Árboles”.

Green Initiatives
We engage employees and customers in environmental initiatives
across our markets, helping improve resource efficiency, protect
and restore local ecosystems and reduce the impact of our
operations. Examples include:

»Cell phone recycling initiatives in Colombia, Guatemala,

Nicaragua and Panama

»Environmental volunteering program in Tigo Colombia

»Environmental literacy content in Tigo Bolivia’s EducaTigo channel

» Environmental volunteering planting native species with the

Million Trees Miami campaign.

E-Waste and the Circular Economy
As a broadband and mobile provider, e-waste from our CPE
is one of our biggest challenges—and one of our biggest
opportunities. Through our CPE Recovery Program, we aspire
to recover most or all of the equipment our customers use for
broadband or mobile connectivity should they terminate or
upgrade their services. Once recovered, the equipment is either
redeployed in the field or responsibly recycled.

Our results were hampered in 2020 by the COVID-19 pandemic,
but we rebounded strongly in 2021, recovering 84% of our
CPE—12% more than our target.

Our CPE Recovery Program is reducing our environmental
impact across the board. By reusing and recycling old
equipment rather than throwing it away, we accomplished the
following in 2021:

» Reused 617 tonnes of plastic.

» Avoided more than 1,4M cubic meters of water consumption,

the equivalent of 493 Olympic swimming pools.

» Avoided 2,158 tons of CO2 emissions

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Society

We believe in the power of the internet and technology
a essential tools for the development and growth of
communities individuals. In conducting our business,
we seek to maximize opportunities for creating positive
societal impacts and minimize potential risks within our
own activities and that of our value chain, respecting
fundamental rights and creating positive ripple effects
to further our purpose.

Society

2021 Highlights

5 0

Nearly 3,000

Guatemalan citizens

received a COVID-19 vaccine at our Tigo Plaza vaccination center—
designed, installed and launched by Tigo Guatemala volunteers over
two days.

More than 500 Tigo leaders and 16,905 employees received Diversity,
Equity & Inclusion training in 2021, putting us well on our way to our
goal of 100% participation.

11,200

In September, we joined forces with Fundación Real Madrid to support
69 social sports projects, giving 11,200 boys, girls and family members
access to new digital education opportunities.

6,000+ women
entrepreneurs in
El Salvador

Using digital skills learned in our Conectadas entrepreneurship
program, we provided entrepreneurship training to 6,000+ women
entrepreneurs in El Salvador.

Millicom 2021 Annual ReportSociety

Our People
Our purpose comes to life through the talent, energy and
dedication of our 20,687 employees and roughly 12,000
contractors. We rely on our people to embody Sangre Tigo—
the lifeblood that fuels our business success. Sangre Tigo is
not just one thing; it’s everything. It’s the exemplary service
an employee offers to a customer, making his or her day. It’s
the dedication shown by a technician installing a cell tower
atop a rugged mountain, bringing mobile service to a rural
village for the first time. It’s the love we have for one another
and our communities, which flashes each time a peer or
customer reaches out for help.

In turn, we strive to build a culture inside our company
that inspires our employees’ creativity, celebrates their
uniqueness, stokes their passions, and empowers them to
make a difference in people’s lives. We’re also continuously
working to improve our industry-leading diversity of talent
across the company, because we recognize that there’s
always more work to be done. Our goal is to empower the
workforce and storytellers of tomorrow by providing pathways
to technology and media careers. We have zero tolerance for
racism, xenophobia or any other form of discrimination and
we strongly support local and global initiatives – including
policy changes – that will advance equity, justice and equal
protections for all.

We owe much of our success in 2021 to the spirit of Sangre
Tigo, which inspired us to put the well-being of our employees
and customers first throughout the pandemic. We’re proud to
say that in addition to going all out to protect our employees’
health, we did not implement any restructuring programs
related to the pandemic or redundancies. What's more, we
retained more than 93% of our key talent over the same
period. Our faith in our employees was rewarded this year
with our highest-ever scores in our annual Great Place to
Work survey.

It’s this same spirit that drives us as we look to the future—
from our commitment to making Tigo a more inclusive
workplace to our transition to a hybrid work model, which
we believe will encourage both the human interaction
people need and the independence and flexibility modern
employees crave.

Great Place to Work®
Employee Trust in Millicom
at an All-Time High
Our Great Place to Work survey is our annual
opportunity to take the pulse of our employees.
We’re proud to say the 2021 survey produced our
best results ever. Our overall trust index reached
85, while all Tigo operations scored above 80
for the first time. More than 14,000 employees
participated in the survey.

The Tigo trust index has increased
four years straight.
We're committing to continue making
Tigo one of the greatest places to work
in Latin America.

Millicom 2021 Annual ReportSociety

SPOTLIGHT:
Sangre Tigo 2.0

PULSES

We are
ONE TIGO

TIGO runs
in our veins

We make it
happen the
right way

We give 1,000%
for our
customers

BEHAVIORS
» We have one purpose and

we make an impact

» We are inclusive

and united

» Together we win
» We value our differences
» We manage Tigo
assets as if they
were our own

» We are proud of

our company and
our history

» We are innovators
» We are fast and we
go the extra mile
» We are passionate
» We care for our
communities

» We lead by example and
we do what we preach
» We never compromise

our integrity

» We are transparent
and accountable
» We find solutions
and deliver results
» We see challenges
as opportunities

» Our customers are at the

center of everything we do

» We are direct, honest

and open

» We always do it right,

from the first time

» We make decisions based

on data insights
» We think, act and

live digital

Evolving Our Leadership Culture with Sangre Tigo 2.0
As our organization evolves, so does what we expect from our leaders.

In 2021, we sharpened our focus on leadership with the Tigo Leadership Model, which is intended to strengthen and
further codify our Sangre Tigo culture.
More than 100 of our top senior leaders helped create the model at the Tigo Leadership Summit in February. During the session,
leaders and managers from across Tigo’s operations determined the most relevant leadership attributes for our leaders and defined
the leadership behaviors required to fulfill our purpose.

In Q4, we introduced new Tigo leadership standards based on our model. In a session attended by 600 Tigo leaders, participants
were introduced to this new leadership framework and learned how to embody Sangre Tigo in their every action. Each country is
preparing to integrate these new standards within their operations in 2022.

We believe a culture is a living, breathing organism, and that it must be nurtured to thrive. With our new Tigo Leadership Model,
we're continuing to advance our culture and empowering our leaders to steer the organization into the future.

We’re often repaid for our belief in Sangre Tigo in surprising—and delightful—ways.

Check out this charismatic tune from Tigo Panama employee Edwin Cortes on how he defines Sangre Tigo.

Tigo Hybrid Work Model
Aided by advances in video conferencing and collaboration
software, remote and hybrid work styles became more
common at Tigo during the pandemic. Many of our
employees basked in the freedom, becoming more creative
and productive while achieving a better work-life balance.

We believe the future of work is flexible, adaptable and
forward-looking. After many months of analyzing how remote
work styles fit the type of work we do, we announced a new
Tigo hybrid work model in 2021. This new model allows
employees to switch fluidly between Tigo's premises and
employees' homes depending on their roles and the day-to-
day tasks required.

Employees and managers can decide when and where they’re
most productive, using the office as a destination to meet with
coworkers, find inspiration and exchange ideas that promote
collaboration and innovation. When working remotely, they’ll
have access to digital tools that are in step with how they
prefer to communicate, share and collaborate.

Some roles are dependent on equipment, information or
interactions only available at the workplace and thus will be
required to be on site full time, as determined by managers
and HR.

As one of the first telecom companies to move to a hybrid
model in the countries where we operate, we believe the
transformation will give us an edge in attracting talent,
strengthen our DE&I commitment, accelerate our innovation
and lead us to becoming a higher-performing organization.

Millicom 2021 Annual ReportSociety

Human Resources Transformation
Today’s business environment isn’t the same environment
that existed ten years ago, five years ago or even one year
ago. We are embarked on a journey to transform our HR
department, creating a digitally optimized model that’s agile,
innovative and adaptable to an ever-changing business world.
The transformation aims to improve the employee experience
on all fronts, from streamlining manual tasks, to empowering
leaders to build and develop teams, to freeing up time for
employees to focus on high-reaching goals so that teams
can focus their energy and efforts toward Tigo’s business
strategies and purpose: to build the digital highways that
connect people, improve lives and develop communities.

In 2021, we started rolling out the first phase of our new
Workday system, which encourages employees to be more
productive and strategic instead of bogging down in repetitive
tasks. We’ve since rolled out a number of additional modules
on core HR functions, including Recruitment & Onboarding,
Absence, Benefits, Core Compensation, Reporting and
Interfaces with Payroll. Phase two will include Performance,
Training, Succession Planning and Advance Compensation.
We’re also working toward giving our managers full visibility
on our talent, with specific dashboards and reports.

Having this information at our fingertips makes our
employees' and managers’ decisions more accurate and
efficient.

Diversity, Equity & Inclusion
Respect for all people is core to our Sangre Tigo culture.
We recognize that the strength of our company flows from
creating an inclusive environment that attracts talented
professionals with a broad array of backgrounds, experiences
and perspectives. When every employee feels empowered
to contribute authentically, the resulting innovation helps
ensure that our business, products and services reflect the full
spectrum of interests in our markets. One of our Sangre Tigo
pulses—We are one Tigo—embodies our commitment to
inclusivity and togetherness.

In 2021, we continued executing the diversity, equity and
inclusion (DE&I) strategy we’ve pursued the past several years
and formalized in 2020. Our strategy focuses on building a
more inclusive culture, with three specific pillars: Inclusive
Leadership, Inclusion, and Opportunities for All. Internally,
inclusion means "everybody has a voice."

Inclusive Leadership
Tigo leaders are committed to build a more diverse and
inclusive culture. This year, we reinforced this leadership
commitment in trainings, town halls, panels, and a series of
local initiatives, helping ensure that our employees had a
clear understanding of our evolving strategy and action plans
moving forward.

In DE&I trainings attended by nearly 500 Tigo leaders in
2021, we reflected on the role of inclusion in driving our
strategy and building our culture. We covered topics like
recognizing and overcoming implicit bias in the workplace
and developing the leadership skills to create more equitable
outcomes for all employees.

Sixty-plus Tigo leaders also participated in “Unconscious
Bias in Recruitment and Selection” training. This training
complemented our company-wide effort to recognize
and eliminate preconceived notions in the hiring process.
Strategies to accomplish this include introducing gender
neutral job descriptions, maintaining a diverse panel of
interviewers and posting all positions internally and externally.

39%

Of women in senior management positions
at Millicom as of December 31, 2021.

Millicom 2021 Annual ReportSociety

Awareness and training
In addition to leadership accountability, our 2021
DE&I approach centered on employee awareness and
communication. In the spirit of Sangre Tigo, we launched our
“We are one Tigo” campaign to raise awareness of diversity's
central role in our culture. "We are one Tigo" is not a one-time
initiative, but a genuine commitment to building a culture that
includes everyone.

We bolstered the campaign through town halls, panels and
conversations. Topics included what DE&I means at Tigo,
the issues faced by employees in the workplace, and the
responsibilities we have individually and as a group to create
an welcoming, inclusive work environment.

We also designed and implemented a training for all Tigo
employees that explored DE&I concepts and unconscious
bias in the workplace. We set a goal of training 100% of
our employees; as of December 2021, more than 16,905
employees had completed the training.

Giving employees a voice is critical to our DE&I efforts as we
seek to provide more meaningful support in the workplace.
In 2021, Tigo operations in multiple countries established
DE&I councils made up of 70-plus employees from diverse
backgrounds. These councils helped us identify specific gaps in
our DE&I approach and make targeted improvements in each
location. They also gave our employees the opportunity to
participate in and lead diversity initiatives at Millicom and put
our values into practice.

Initiatives pursued by various DE&I councils include
addressing the gender pay gap, empowering women in
technology fields, and advancing the rights of our LGBTQ+
employees by extending benefits to same-sex couples.

Opportunities for All
Our employees' differences are among our greatest sources
of strength. We embrace these differences by striving to
give everyone at Tigo the same opportunity for professional
success regardless of race, gender, gender identity, sexual
orientation, age, ethnicity, disability, appearance or beliefs.

In 2021, we continued to redesign and implement new
practices in recruiting and selection to reduce potential bias
in our hiring and talent development processes. This includes
creating gender-neutral job descriptions, empowering
a diverse panel of interviews to screen candidates and
encouraging hiring managers to provide feedback to internal
candidates that were not selected for new positions.

We also sought to level the playing field internally by
conducting pay equity analyses and implementing and
monitoring equal opportunity policies and practices.

In addition to reducing bias company-wide, we launched
initiatives to empower specific groups within Tigo. In
celebration of Women’s History Month, we hosted a Women’s
Empowerment webinar in March 2021 with guidance on how
women can close the gender gap in the tech field. The webinar

5 4

highlighted key concepts on leadership and equality, and
provided invaluable advice to young professionals navigating
the tech industry in a digitally powered era.

Moderated by journalist Carolina Amoroso, the webinar
featured our own Susy Bobenrieth, Millicom’s EVP Chief
Human Resources Officer, and Doreen Bogdan-Martin,
Director of the Telecommunication Development Bureau for
the International Telecommunication Union. Approximately
2,400 people attended the webinar.

Our journey to build a place where all employees feel like they
can be themselves continues. And we will continue to make
sure each and every employee appreciates that we're all part
of the journey.

SPOTLIGHT: LGBTQ+ awareness
LGBTQ+ employees make
their voices heard

It’s easy for members of the LGBTQ+ community to feel isolated in
Latin America’s culturally conservative social climate. But many of
our perceived differences melt away when we simply listen.

During Pride month in June, we hosted a global webinar featuring
a panel of five LGBTQ+ employees sharing their experiences and
personal stories. Close to 2,000 people participated in the webinar,
with the overarching message that you can be your authentic self
at Tigo.

Our webinar coincided with an internal and external LGBTQ+
awareness campaign, which highlighted several employees sharing
what inclusion and acceptance mean to them as Tigo employees:

" My greatest wish is that we can all achieve
love without prejudice. Love is too great to
be kept hidden in a closet.”
—Alexander Salazar Chaves,
Loyalty & Churn Analyst, Tigo Costa Rica

" I'm proud to be part of a company that's
diverse and inclusive … and that always
contributes to the world being a place
where everyone feels and accepted."
—Natalia Cardona,
Consumer Insights Manager, Tigo Honduras

“ Throughout my life I have discovered
different ways to raise my voice with pride,
and in Tigo I have found another place
where I can be proud of who I am!”
—Mario Vásquez,
Communications Specialist & Human Rights
and LGBTI Lifestyle Blogger, Tigo Nicaragua

Millicom 2021 Annual ReportSociety

Health & Safety
Our health and safety priority over the past two years has
been to keep our employees safe at all costs from COVID-19.
With the advent of vaccines, we were able to reopen our
offices and adjust our protocols, but always with an eye to
doing what’s best for employees individually and as a group.

In each country, we correlated our responses with the advice
of local health authorities and conditions on the ground.
The 2021 edition of the pandemic saw fewer government
lockdowns and more social mobility, but the number of
cases continued to increase but stabilized in the latter half of
2021, as vaccination rates in the populations of our countries
of operation rose. We monitored these situations closely and
tailored our health and safety protocols to both our corporate
guidelines and all applicable local guidelines for the workplace.

Our Health & Safety Teams maintained the enforcement of
COVID-19 safety protocols for workspace cleaning, personal
hygiene, issuance of personal protection equipment and social
distancing guidelines, as recommended by the World Health
Organization and U.S. Centers for Disease Control.

We also facilitated a number of programs in our markets to
educate employees on COVID-19 prevention and treatment
options, as well as emphasize the importance of vaccination
for our employees and their families.

Beyond dealing with COVID-19, we were able to obtain
recertification of ISO 45001 Health and Safety Standards and
ISO 14001 Environmental Standards in all our operations.

SPOTLIGHT: Guatemala

Tigo volunteers help vaccinate
nearly 3,000 Guatemalan citizens
Caring for our communities is fundamental to our Sangre Tigo
culture. So when the COVID-19 vaccine became available in
Guatemala, local Tigo employees and leadership jumped at
the chance to make it as easy as possible for the public to
get vaccinated.

In partnership with the Social Security Institute, employees from
across the company designed, installed and launched a public-
facing vaccination center within two days at the Tigo Plaza in
Guatemala City.

Nearly every department had a hand in the effort, including Tigo
People, Marketing, Administration, Supply Chain, IT, Operations
and Physical Security. The center is conveniently located near
several residential communities, giving local residents access to
the vaccine without having to travel to a nearby medical center.

The campaign was an unqualified success.

With the help of more than 95 Tigo volunteers, 2,833 members of the
public received their first and second doses of the Moderna vaccine.

Tigo Guatemala received more than 2,000 messages of gratitude
from the public, with 99% of the vaccinated themselves giving
the campaign high marks.

We prevented employee fatalities and major losses to our
workforce throughout 2021. Unfortunately, there were two
fatalities in our contracted services.

1,911 and 1,872

Employees vaccinated in Honduras
and Colombia respectively during Tigo
vaccination campaigns.

Vaccination Campaigns
Vaccines gave us a new tool in the fight against COVID-19, and we
took full advantage in 2021, gaining permission from several local
governments to provide onsite vaccinations for our employees.

Tigo Honduras, for example, sought and received authorization
from the country’s Social Security system, trade unions, the
Auditing Commission, and the private health system to perform
vaccinations onsite. Within four hours of receiving the approvals,
we had set up sites in our Tegucigalpa and San Pedro Sula offices.

All told, we vaccinated 1,911 of our Honduran employees. Nearly
80% of our Honduran employees are now fully vaccinated,
compared with approximately 25% of Hondurans as a whole.

Tigo Colombia followed a similar path, receiving approval from
both the government and the local businessman’s union to offer
onsite vaccinations.

Tigo Colombia vaccinated 1,872 employees during the
campaign, along with 428 family members and 327 third parties.

We believe vaccines are one of the most effective ways to
protect the health of our employees and their families, and we
will continue to encourage their use.

2,833

Guatemalan citizens vaccinated at
our Tigo volunteer-led vaccination
center in the Tigo Plaza.

Guatemala

Millicom 2021 Annual ReportSociety

Digital Education
We witness the life-changing power of digital connectivity
throughout all aspects of Millicom’s business. Never was this
more evident than during the COVID-19 pandemic, which
laid bare the importance of connectivity to social, civic and
economic participation.

However, such benefits remain frustratingly out of reach for
millions of people who are on the wrong side of the digital
divide because of disparities in education, income and access
to in-home or mobile technology networks.

That’s why in addition to expanding our networks to
provide better connectivity to more people, we partner with
organizations throughout Latin America to teach people of
all ages how to use the internet and safely harness the social,
educational and economic opportunities it provides.

By expanding affordable connectivity to more people on the
one hand and educating people how to take advantage of
that connectivity on the other, we’re accomplishing several
goals at once: Creating a more equitable landscape in which
people have the tools to fully participate in society; providing
the digital infrastructure for a sustainable economic recovery
in our markets; and building the digital customers of the
future that will sustain our growth.

Our Digital Education programs focus on three areas:

Digital ownership: We promote digital adoption in
communities so people can take advantage of the
opportunities the internet provides. This includes aiming to
keep customers connected when times are difficult, as we did
with our Lifeline program in the early days of the pandemic.

Online protection: We take action to protect children’s rights
and mediate children’s exposure to inappropriate content,
online predators, cyberbullying and online threats.

Empowering people to thrive in the digital economy:
We offer digital literacy and technology training to children,
adolescents, women and other groups, helping spark
innovation in the classroom and prepare participants for
future employment.

Conectadas
Launched in 2017, our Conectadas program provides digital
literacy and entrepreneurship training to women and
adolescent girls in Latin America, creating a springboard
for social and economic opportunity. To date, more than
575 thousand women and girls have been trained through
Conectadas.

In 2020, we deepened the program’s focus on
entrepreneurship by providing personalized technical
assistance to female Tigo Money sales agents in El Salvador.
Inspired by the success of the pilot, we took Conectadas
to the next level in 2021, sowing the seeds for women’s
empowerment throughout the country.

Approximately 400 Salvadoran women from the Tigo value
chain received entrepreneurship training this year, among
them Tigo Money agents and owners of points of sale and
activation from more than 60 municipalities. Roughly 700
Salvadoran microentrepreneurs and 5,000 Tigo clients also
participated, along with many Tigo Money users.

New allies and partners helped drive the expansion, including
the Economic Competitiveness Project of the United States
Agency for Development (USAID), the Business Foundation
for Social Action (FUNDEMAS), Banco Agrícola, Fedecrédito,
La Constancia, Belcorp, Vogue, UN Women and local media.

“I learned how to use WhatsApp Business and other digital tools
to contact our clients, send promotions, schedule meetings,
make customer billboards and organize my digital inventory.
I’m putting into practice everything I’ve learned and will
continue to do so.”

—Mayra Rivera, Tigo point of sale, Santa Tecla, La Libertad, El Salvador

Millicom 2021 Annual ReportSociety

Expanding Our Reach with the
Conectadas App
Women with work or child care responsibilities or who live
in remote locations often lack the time or means to attend
our Conectadas workshops. That’s why we began selectively
testing a new Conectadas app in December 2021 that will be
fully available next year. A digital version of our Conectadas
training, the app trains users on topics like basic internet
usage, personal finances and the effective use of digital tools
for business. We expect the app to help us reach thousands of
additional women in 2022 and beyond.

SPOTLIGHT: Honduras
Creating Opportunity for Kids in
High-Risk Communities
In Honduras’s marginalized communities, gangs often feel like
the only way out for children living in poverty.

The Genesis Project gives kids another option. Since arriving in
Honduras in 2015, the project has focused on motivating young
people to reject violence, develop tech skills, build life plans and
participate in the development of their communities.

Tigo Honduras reaffirmed our commitment to the Genesis Project
in 2021 through an agreement with the National Foundation
for Development of Honduras (FUNADEH) to provide free
connectivity and technological training to local youth.

Aligned with our purpose to connect people, improve lives and
develop communities, our aim is to further strengthen the
education of Honduran boys and girls by providing internet
access and digital education in high-risk communities.

To date, we’ve created opportunities for more than 13,900 young
Hondurans, including:

Providing free internet services to more than 20 Youth Outreach
Centers located in socially vulnerable communities.

Providing technology training in partnership with local and
national entities, giving participants the skills to pursue
employment or self-employment opportunities in tech.

Volunteering in the Youth Outreach Centers to share knowledge
on entrepreneurship, women’s empowerment and the responsible
use of information and communication technologies.

Maestr@s Conectad@s
Closing the digital skills gap is vital for children in Latin
American countries, yet many classrooms lack the tools or
resources to provide an effective digital education. We created
our Maestr@s Conectad@s (Connected Teachers) program
to help teachers develop and facilitate technology-based
curricula, giving students in our markets access to the same
educational opportunities as children in other parts of the
world.

We have trained more than 112,737 teachers in partnership
with the AHYU Foundation since 2019. The online workshops
are led by instructors experienced in the effective use of
technology in the classroom.

In November 2021, we organized the first regional Maestr@s
Conectad@s Congress. Twelve experts facilitated virtual
lectures on key topics such as Emotional Intelligence in the
Classroom, Teaching and Coaching, and Video Games in
Education. More than 33,000 teachers from all over Latin
America joined these sessions, which awarded them a digital
certification of participation.

Honduras

13,900

Honduran youth
who have received
free internet access
and/or learned
digital skills through
our participation in
Project Genesis.

Millicom 2021 Annual Report
5 8

Society

SPOTLIGHT: Bolivia
24-Hour EducaTigo Channel
Empowers Viewers with
Digital Skills

Only about 40% of Bolivian households have internet access,
preventing many Bolivian students, teachers and families from
acquiring the digital skills to participate in modern society.

We addressed this digital literacy gap in 2021 with the
launch of EducaTigo, the country’s first TV channel with
full-time educational content.

Launched in September 2021, EducaTigo airs curated content
focused on digital skills building, responsible internet use,
cybersecurity and other digital education topics. The channel
airs 24 hours a day on the Tigo Home cable network.

Programs include Patchers, a miniseries that instructs students
on the risks of digital technology; and Teaching in Digital
Skills, which offers tips for teachers on preparing children and
adolescents to succeed in the digital era.

Since its launch, EducaTigo has transmitted more than 30
educational programs and 16 educational capsules.

To expand EducaTigo's reach, Tigo Bolivia signed an agreement
with the Bolivian Space Agency to broadcast the channel on
the Bolivian satellite Tupac Katari. With the agreement, satellite
viewers can watch the free signal from anywhere in the world.

Conéctate Segur@
Young people have an almost limitless universe of learning,
entertainment and social opportunities available on the
Internet. But venturing online without the tools or experience
to recognize and avoid potential dangers can expose children
to considerable harm.

Tigo’s flagship program Conéctate Segur@ educates
children, parents, teachers and caregivers on the risks and
opportunities of digital technology, giving children a safe way
to learn, explore and grow using digital tools. More than half
a million children have been reached by the program from
its inception in 2016 through 2021, with most online and
in-person workshops facilitated by volunteers from our Acción
Tigo program.

Bolivia

Millicom 2021 Annual Report
Social

SPOTLIGHT:
Fundación Real Madrid
Connectivity and Fútbol
Come Together with Real
Madrid Partnership

Fútbol is life for many Latin American children. But can a telecom
company leverage children’s love of fútbol to promote online
safety and digital literacy?

It turns out Millicom can through a new partnership with
Fundación Real Madrid, the social work branch of one of the
world’s most celebrated fútbol teams.

In September 2021, Millicom and Fundación Real Madrid
joined forces to support 69 social sports projects in our nine
Latin America markets and the United States.

With this collaboration, more than 11,200 boys, girls and family
members served by the Fundación will have access to new digital
education opportunities over the five years of the partnership.

Kids will be trained on the responsible and productive use of the
internet; learn how to use digital tools and prevent cyberbullying;
and gain access to activities designed to empower women and
young people to succeed in the digital economy.

The 69 projects are just a starting point. Thanks to the combined
reach of the Fundación Real Madrid and Millicom, the number
of children served by the partnership is expected to grow
substantially, as Millicom’s social impact programs have reached
more than 200,000 children and teenagers since 2019.

Latin America
markets

11,200

Boys, girls and
family members
with access to new
digital education
opportunities
thanks to our
partnership with
Fundación Real
Madrid.

"It is greatly satisfying for the Real Madrid
Foundation to count on the collaboration of
Millicom-Tigo in the Americas to improve the lives
of children in need, through education in values,
sports and the use of technological tools."

—Emilio Butragueño, Director of Institutional Relations, Real Madrid F.C.

Millicom 2021 Annual Report
Society

Data Privacy
Privacy and Freedom of Expression
As one of the largest providers of digital services and content
in our markets, we take seriously our responsibility to respect
people’s dignity and safeguard their rights, including freedom
of expression (FoE) and privacy. This extends from how
we handle personal and confidential data for millions of
customers to the workplace standards we uphold with our
personnel and business partners.

To help us follow through on these commitments and identify
areas to improve, we regularly seek input from and share best
practices with experts, investors, NGOs, other companies and
the academic community.

Our Privacy Statement
Millicom’s global and country-specific websites provide users
with detailed information regarding our privacy practices.
Visitors can readily learn how we use, process and protect
personal data. We also provide transparent access to channels
and contact points for users to raise privacy concerns.
Furthermore, we trained approximately 18,000 individuals,
including direct and indirect personnel of Millicom and the
Tigo operations, on privacy and data protection basics in
2021.

Throughout the coronavirus pandemic, some governments
have requested customer data from us to help in their
efforts with contact tracing and other follow-up actions.
We adhered to our Privacy Statement and the terms of our
Law Enforcement Assistance and Major Events Guidelines in
handling all such inquiries. Learn more in the 2021 Millicom
Law Enforcement Disclosure Report.

Information Security
Our ongoing goal is to be #1 in data protection for our
industry. Our Global Chief Information Security Officer

6 0

oversees regional information security teams to ensure the
confidentiality, integrity and availability of all business-critical
systems and assets. The teams also identify potentially
detrimental threats and risks and are responsible for
safeguarding proprietary and personal customer information.

Additionally, the regional teams work closely with Millicom
business and technology leaders to ensure compliance with
corporate policies and regional regulatory requirements within
our various markets.

Processes are in place to regularly identify and assess threats,
and test vulnerabilities to our network and systems to
minimize the risk of security breaches. Our offices also conduct
annual training for employees on information security. In
2021, more than 80% of our employees participated in
security awareness training covering key threats, prevention
and company procedures. As phishing remains a major
threat, simulations are performed regularly to test employee
behavior, and improve our protection solution and response
process.

In 2021, we launched a new Asset Protection Initiative to
give us increased control of our sites and protect our fixed
assets. Our Security Team implemented new asset protection
protocols to protect network batteries, copper cabling and
other components used at our mobile and cable network
locations. In close coordination with Operations, local security
teams are able to monitor access to our sites by technicians,
as well as oversee equipment installations and repairs.

Security personnel from in-country Security Operations
Centers are able to track individuals who access our sites in
real time, as well as monitor the installation of specific assets
via serial numbers that have historically been susceptible to
loss.

In 2022, we plan to expand our asset protection protocols
to cover certain physical assets in our supply chain, prior to
installation at our network sites. We’re currently conducting a
pilot program in Paraguay to monitor network batteries.

Millicom 2021 Annual ReportSociety

Supply Chain
In a globalized, complex and interconnected world, the
importance of looking beyond our direct impacts and into
those of our supply chain cannot be understated. We do
business with over 7,500 suppliers of all sizes across all
markets where we operate in Latin America and, through
them, we have an indirect, yet far-reaching, societal impact,
which we seek to consciously address to create positive ripple
effects that impact our communities as a whole, through
better services, fair labor practices and robust environmental
stewardship. We aim to build long-term partnerships that are
mutually beneficial at Group and local level, and in accordance
with all our legal and compliance obligations, to do business
the right way.

We seek to work with businesses that understand and share
our values and standards to promote our business purpose in
every link of our supply chain. Our Supplier Code of Conduct
sets core expectations in the areas of health and safety,
environment, fair labor, ethics and compliance. As such, it is
regularly revised to ensure its relevance.

Since 2018, we’ve provided training to more than 500
suppliers on key ESG topics material to our business. In 2021,
we transitioned to an online training module for suppliers
considered as strategic, helping us reach a greater percentage
of suppliers. Through 2022 and 2023, we aim for all our
strategic suppliers to take part in the training as a prerequisite
for doing business with our company.

Using the platform and methodology of EcoVadis, a third-
party ratings provider, we evaluate suppliers in key ESG areas
such as environmental stewardship, labor and human rights,
ethics and sustainable procurement. The results enable us
to monitor supplier performance in these areas and how
suppliers are progressing over time. Please refer to the
"Performance Tables" section starting on page 33 for further
results from these evaluations.

"With the measures we adopted after the training, our
Ecovadis score went from 33 to 73 and the benefits for us
were multiple: we attracted customers that valued our strong
CR approach supported by a third party, and our staff’s
engagement increased. We took it as an opportunity; this is
a client that not only brings us business but also cares about
our company’s growth. I recommend my fellow suppliers to
take advantage of this space"

—José Chaves Barboza, Go Consultores

Millicom 2021 Annual ReportSupplier of software services. Took the training in Honduras in 2019.Governance

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Corporate
Governance

Corporate Governance, Compliance and Cybersecurity are covered in
detail in this Corporate Governance Report

Governance

Strong Governance: Independence
and Integrity

6 4

Chairman’s Report
Millicom’s Board of Directors (“the Board”) and its committees dealt with
many significant strategic, operational, regulatory and compliance-related
matters in 2021. These included:

• Reviewing and confirming strategic direction, along with related risks and

opportunities

• Continuing the program to exit the African business and redeploy capital

into growth opportunities in Latin America

• Acquiring the remaining 45% equity interest in the joint venture

businesses in Guatemala

• Analyzing and overseeing the ongoing response to COVID-19, including

financial structure, shareholder remuneration and cash flow management

• Overseeing the management of cybersecurity threats and control

environment improvements

• Considering sustainability issues and responses

Introduction
The Board is responsible for setting the Company's strategy,
risk appetite and operating goals, and for monitoring the
implementation of satisfactory controls in all relevant
areas, such as accounting, financial, legal, regulatory and
compliance. The Board also supervises management in
fulfilling its obligations and responsibilities, and continually
assesses the company's economic situation.

I would like to thank all of our Board members and Senior
Management for their commitment, dedication and
significant contributions in serving Millicom in 2021.

Board Changes
In May, following elections at the Company's annual general
meeting, we welcomed Mr. Bruce Churchill, Ms. Sonia Dulá
and Mr. Lars-Johan Jarnheimer to the Board as Non-Executive
Directors. The appointments bring Millicom a wealth of
operational and strategy experience in Latin America and the
telecommunication industry across the globe.

I would like to extend our gratitude to both Tomas Eliasson
and Lars-Åke Norling for their significant contributions to the
Board. Tomas Eliasson joined the Board in 2014 and served
as Chairman of the Audit Committee during his tenure,
overseeing the development of Millicom’s internal control
environment and its U.S. listing. Upon joining in 2018, Lars-
Åke Norling served as an invaluable member of the Board and
its Compensation Committee and Compliance and Business
Conduct Committee.

Enhancing Corporate Governance
The Company continues to enhance its management
and oversight of its operating businesses, with many key
functions and activities—including strategy, budgeting,
allocation of capital, and key decisions on operating activities
and significant issues—managed centrally, with direct
reporting to the Board and its committees. In addition, the
Company's central Legal, Ethics and Compliance, Internal
Control, Risk Management, IT Security, Health & Safety, and

Corporate Responsibility functions oversee activities in local
operations, providing policies and procedures and enhancing
methodologies, processes and reporting systems. Governance
has also been incorporated into the ESG ecosystem, bringing
an integrated approach that further strengthens our
corporate culture.

Diversity, Equity & Inclusion (DE&I)
DE&I is one of the core pillars of our Sangre Tigo culture.
Millicom relishes the increased diversity on the Board with
respect to gender, age, identity and nationality, as well as
depth of experiences, professional backgrounds and business
disciplines. The diverse people in our operating countries,
offices and headquarters comprise a key strength for Millicom.
As we continue to work on fostering the most diverse,
equitable and inclusive environment at all levels of TIGO, we
have provided exciting and interactive training courses that
further this mission. We're committed to making TIGO an
environment where all voices are heard and respected.

Compliance and Business Ethics
During 2021, we continued developing and expanding our
compliance program. Led by our Executive and our Legal,
Ethics and Compliance teams—and our culture of doing
things the right way—compliance was embedded in our daily
decisions and actions. Our Board believes this culture is a vital
strength that contributes to the success of our business and
meets the expectations of all our key stakeholder groups.
We are proud to be a leader in ethics and compliance in our
markets.

In our 31st year, we thank you for being part of Millicom's
success story and look forward to continuing this journey with
you.

José Antonio Ríos García
Chairman of the Board of Directors

Millicom 2021 Annual ReportGovernance

Corporate Governance Framework

Background
Millicom International Cellular S.A. (“Millicom” or the “Company”) is a public limited liability company (société anonyme) governed
by the Luxembourg Law of August 10, 1915, on Commercial Companies (as amended). The Company was incorporated on June 16,
1992, and registered with the Luxembourg Trade and Companies’ Register (Registre du Commerce et des Sociétés de Luxembourg)
under number B 40 630. The Millicom Group comprises Millicom and its subsidiaries, joint ventures and associates.

Millicom’s shares are listed on Nasdaq Stockholm, in the form of Swedish Depository Receipts; and on the Nasdaq Stock Market in
the U.S. since January 9, 2019, where Millicom is registered as a foreign private issuer.

Millicom’s Corporate Governance Framework is primarily based on the following legislation, principles and regulations:

Publication

Authority

Swedish Code of Corporate Governance

Guiding Principles

Philosophy

Comply or Explain

Luxembourg Law

EU Directives and Regulations

Nasdaq Stockholm Issuer Rule Book

Nasdaq Stock Market Rules

U.S. Securities Laws

Good Stock Market Practice

Legislation

Regulation

Comply

Guiding Principles

Corporate Citizenship

Within these frameworks, Millicom's Board develops and monitors internal guidelines and practices, as further described below, to
ensure the quality and transparency of Millicom's corporate governance.

Swedish Corporate Governance
Code
The Swedish Corporate Governance
Code (“Swedish Code”) promotes
good corporate governance to ensure
companies are run sustainably,
responsibly and efficiently. The Code
complements mandatory laws and
regulations and sets best practices that
go beyond regulatory requirements. The
Swedish Corporate Governance Board
opted for self-regulation, and adopted
a “comply or explain” philosophy.
Therefore, companies may deviate
from specific provisions, as long as they
disclose the deviation and explain why
they chose a different solution that is
more suitable for their size and specific
circumstances.

Compliance with Applicable Stock
Exchange Rules
Neither Nasdaq Stockholm’s Disciplinary
Committee, the Swedish Securities
Council, nor the Nasdaq Stock Market
reported any infringement of applicable
stock exchange rules or breach of good
practice on the securities market by
Millicom in 2021.

1. Shareholders and Shareholders’
Meeting
The shareholders’ meeting is Millicom's
highest decision-making body and a
forum for shareholders to voice their
opinions. Each shareholder has the
right to participate in the shareholders’
meeting and to cast one vote for every
share. Shareholders unable to attend
in person may exercise their rights
by proxy or vote in writing (by way of
proxies).

Millicom’s Articles of Association
(available on our website www.millicom.
com/our-company/governance/)
set the Annual General Meeting of
Shareholders (“AGM”) to be held in
Luxembourg within six months of the
close of the financial year.

Unless otherwise required under
Luxembourg Law, an extraordinary
general meeting (EGM) must be
convened to amend the Articles of
Association.

At the 2021 AGM, held virtually on May
4, 2021, shareholders approved all the
resolutions proposed by the Board,
including the following key items:

• the annual accounts and the

consolidated accounts for the year
ended December 31, 2020;

• the allocation of the profit of US
$56,066,101 to the profit or loss-
brought-forward account of Millicom;

• the discharge of all the current

and former Millicom Directors who
served at any point in time during the
financial year ended December 31,
2020, for the performance of their
mandates;

• the re-election of Ernst & Young S.A.,
Luxembourg as Millicom's external
auditor;

• the remuneration to the Board and

external auditor;

• the instruction to the Nomination

Committee;

• the share repurchase plan;

• the 2020 Remuneration Report;

• the senior management
remuneration policy; and

• the share-based incentive plans for

Millicom employees.

Further details can be found in
the convening notice for the AGM
(available in the Governance section
of the Millicom website: Shareholder
meetings).

On January 24, 2022, an Extraordinary
General Meeting (EGM) was convened
to increase the authorized share capital
and amend the articles of association
in preparation for the Rights Offering
described in the CFO message on
page 14. As the quorum required by
Luxembourg Law and the Company's
Articles of Association was not reached
(44.48% of the Company's share capital
was represented whereas 50% was
required), the EGM was reconvened and
held on February 28, 2022 . The EGM
held on this date resolved to increase
the Authorized Share Capital of the
Company from 133.3 million to 200
million ordinary shares with par value of.
$1.50 each.

Millicom 2021 Annual ReportGovernance

Millicom governance deviated in 2021 in relation to the Swedish Code in the following areas:

Code requirement

Millicom practice

Explanation

1.4–A shareholder, or a proxy representative of
a shareholder, who is neither a member of the
board nor an employee of the company is to be
appointed to verify and sign the minutes of the
shareholders’ meeting.

Minutes are signed by the Chairman of the
shareholders’ meeting (who is not a member of
the Board or an employee of the Company), the
meeting secretary and an appointed scrutineer.

Millicom is a legal entity incorporated in
Luxembourg and. as such, it follows Luxembourg
Law in connection with procedures and rules for
its shareholders’ meetings.

Share Repurchase Plans
During the period from August 2, 2021, to November 2, 2021, Millicom repurchased an aggregate amount of 1,369,284 shares (in
the form of Swedish Depository receipts) under the repurchase program announced on July 29, 2021, and in accordance with the
share repurchase plan approved at the 2021 AGM. No shares were repurchased under the share repurchase plan approved at the
2020 AGM that was valid until May 4, 2021.

Corporate Governance Structure

Millicom’s Corporate Governance structure comprises the following three levels:

1. Shareholders and representatives

of shareholders.

Shareholders’ meeting

Nomination Committee

2. Board of Directors and Committees

appointed by the Board from among
its members.

Board of Directors

Compliance and Business
Conduct Committee

Compensation Committee

Audit Committee

3. CEO and Executive management,

and its main functions managing
governance, risk, compliance and
ethics (including security),
corporate responsibility, controls.

Chief Executive Officer

Internal Audit

Executive Management Team

Compliance and
Business Ethics

Business Control

Legal and
Corporate
Governance

Risk Management

Environmental,
Social and
Governance

Nomination Committee
Millicom's Nomination Committee elected in October 2020 was reappointed in November 2021 and is comprised of:

Member

Mr. John Hernander

Mr. Jan Andersson

Mr. Staley Cates

Mr. Peter Guve

On behalf of:

Nordea Investment Funds

Swedbank Robur

Southeastern Asset Management

AMF Pensionsförsäkring AB

Mr. José Antonio Ríos García

Appointed by shareholders at the 2021 AGM

Position

Chairman

Member

Millicom 2021 Annual ReportGovernance

The Nomination Committee is appointed by the largest shareholders of Millicom. It is not a Board committee. Its role is to propose
resolutions regarding electoral and remuneration issues to the shareholders’ meeting in a manner that promotes the common
interest of all shareholders, regardless of how they are appointed. Nomination Committee members' terms of office typically begin
at the time of the announcement of the interim report (covering the period from January to September of each year) and end when
a new Nomination Committee is formed.

Under the terms of the Nomination Committee procedure, the committee consists of at least three members appointed by the
larger shareholders of the Company who choose to appoint a member and the Company's Chairman of the Board.

The Company's Articles of Association stipulate that the Nomination Committee rules and procedures of the Swedish Code of
Corporate Governance shall be applied for the election of Directors to the Company's Board of Directors, as long as such compliance
does not conflict with applicable mandatory law, applicable regulation or the mandatory rules of any stock exchange on which the
Company’s shares are listed.

Nomination Committee proposals to the AGM include, among others:

• Election and remuneration of Directors of the Board and the Chairman of the Board

• Appointment and remuneration of the external auditor

• Proposal of the Chairman of the AGM

Additional information on the procedure for appointment and role of the Nomination Committee is available on Millicom's website
at https://www.millicom.com/our-company/governance/nomination-committee/.

The table below sets out beneficial ownership of Millicom common shares, par value $1.50 each, by each person who beneficially
owns more than 5% of Millicom common shares at December 31, 2021.

Shareholder

Swedbank Robur Fonder AB

Dodge & Cox

Number of shares

7,157,892

5,177,873

% Shareholding

7.0

5.1

Footnote: Except as otherwise indicated, the holders listed above (“holders”) have sole voting and investment power with respect to all shares beneficially owned by them.
The holders have the same voting rights as all other holders of Millicom common stock. For purposes of this table, a person or group of persons is deemed to have “beneficial
ownership” of any shares, as of a given date, which such person or group of persons has the right to acquire within 60 days after such date. For purposes of computing the
percentage of outstanding shares held by the holders on a given date, any security which such holder has the right to acquire within 60 days after such date (including shares
which may be acquired upon exercise of vested portions of share options) is deemed to be outstanding, but is not deemed to be outstanding for the purpose of computing
the percentage ownership of any other person.

Promoting Board Diversity
Millicom’s Nomination Committee recognizes the importance of diversity for promoting strong corporate governance, competitive
advantage and effective decision-making. The Nomination Committee is responsible for periodically determining the appropriate
skills, perspectives and experiences required of Board candidates based on the Company’s needs and the current Board composition.
This determination will include knowledge, experience and skills in areas that are critical to understanding the Company and
its business; richness of views brought by different personal attributes such as gender, race, age and nationality; other personal
characteristics, such as integrity and judgment; and candidates’ commitment to the boards of other publicly held companies.

In its work, the Nomination Committee applies rule 4.1 of the Swedish Corporate Governance Code as its diversity policy.

Board Diversity Matrix (As of December 31, 2021)
Country of Principal Executive Offices “Home Country”:

Foreign Private Issuer

Disclosure Prohibited Under Home Country Law

Total Number of Directors

Part I: Gender Identity

Directors

Part II: Demographic Background

Underrepresented Individual in Home Country Jurisdiction

LGBTQ+

Did Not Disclose Demographic Background

Luxembourg

Yes

Female

Male

Non-Binary

Did Not Disclose Gender

Millicom 2021 Annual ReportGovernance

Female
33%

Gender of the
Board

7th year
1

5th year
1

3rd year
2

Tenure of
Directors

2nd year
2

Colombian
1

Male
67%

1st year
3

American
5

Nationalities

Brazilian
1

Danish
1

Swedish
1

6 8

2. Board of Directors and Board
Committees
The Chairman convenes the Board
and leads its work. The Chairman is
accountable to the Board and acts as
a direct liaison between the Board and
the management of the Company
through the CEO. Meeting agendas are
set with the CEO, and the Chairman
communicates Board decisions where
appropriate.

Role of the Board
The Board is responsible for approving
Millicom’s strategy, financial objectives
and operating plans, and for oversight
of governance. The Board also plans for
succession of the CEO and reviews other
senior management positions.

As set forth in the Company’s Articles
of Association, the Board must be
composed of at least six members. The
2021 AGM set the number of Directors
at nine, comprising a Chairman, a
Deputy Chairman and seven members.
The Board is composed of eight Non-
Executive Directors and one Executive
Director (who is also CEO of Millicom).

The Board selects the CEO, who is
charged with daily management of
the Company and its business. The
CEO is responsible for recruiting the
senior management of the Company.
The Board reviews plans for key senior
management positions; supervises,
supports and empowers the senior
management team; and monitors senior
managers' performance. In accordance
with the Swedish Code, the division of
work between the Board and the CEO
is set out in “The Rules of Procedure,
Instructions to the CEO and Reporting
Instructions” that was updated and
approved by the Board on May 4, 2021.

Further details on the roles and activities
of the various committees, as well as
their responsibilities and activities,
appear later in this section.

Powers and Limitations of the Board
Borrowing powers: The Board has
unrestricted borrowing powers on behalf
of, and for the benefit of, Millicom.

Time and age limit: No age limit
exists for being a Director of Millicom.
Directors mandates can be for a
maximum of six years before either
being re-elected or ending their
service. There are no restrictions on the
maximum continuous period that a
Director can serve. The current Directors
have been elected for a term starting on
the date of the 2021 AGM and ending

on the date of the 2022 AGM (i.e., for
approximately one year).

Restrictions on voting: No contract
or other transaction between the
Company and any other person shall
be affected or invalidated by the fact
that any Director, officer or employee
of the Company has a personal interest
in—or is a Director, officer or employee
of—such other person. However, the
following conditions apply:

• The contract or transaction must
be negotiated on an arm’s-length
basis on terms no less favorable to
the Company than could have been
obtained from an unrelated third
party; and, in the case of a Director,
he or she shall inform the Chairman
of his or her conflict of interest and
abstain from deliberating and voting
on any matters that pertain to
such contract or transaction at any
meeting of the Board.

• Any such personal interest shall be

fully disclosed to the Company by the
relevant Director, officer or employee
and, to the extent a Director is
involved, to the next general meeting
of shareholders.

Share Ownership Requirements
Non-Executive Directors are not
required to be shareholders of the
Company. Share ownership of Directors
is included in the Director biographies
set out on the following pages.

Roles
Chairman of the Board
The Chairman is elected by the AGM. If
the Chairman relinquishes the position
during the mandate period, the Board
elects a new Chairman from among its
members to serve until the end of the
next AGM.

Deputy Chairman of the Board
If elected by the Board, the Deputy
Chairman acts as a sounding board
and provides support for the Chairman.
The Deputy Chairman convenes Board
meetings in accordance with the
Company’s Articles of Association and
leads the Board's work in the event the
Chairman is unavailable or is excused
from a Board meeting. The Deputy
Chairman may act as an intermediary
in any conflicts among Board members
or between the Chairman and the CEO.
The Board can designate additional
roles and responsibilities of the Deputy
Chairman.

Millicom 2021 Annual ReportGovernance

Corporate Secretary
The Corporate Secretary is appointed
by the Board to ensure that Board
members have the proper advice
and resources for performing their
duties. The Corporate Secretary is
also responsible for organizing and
coordinating Board and committee
meetings and ensuring that the minutes
of those meetings reflect the proper
exercising of Board duties.

The Corporate Secretary is also
a confidante and resource to the
Board and senior management,
providing advice and counsel on Board
responsibilities and logistics.

Chief Executive Officer (CEO)
Together with the management team,
the CEO leads the development and
execution of the Company’s strategy,
with a view to creating shareholder
value and enacting the Company's
purpose. The CEO is responsible for
day-to-day activities and management
decisions, both operating and financial.
The CEO is a liaison between the Board
and management and communicates
to the Board on behalf of management.

against the Directors proposed by the
Nomination Committee. Shareholders
also may elect different Directors.

The Board has adopted the qualification
guidelines of an “independent director”
as defined by the Swedish Code, and
with consideration of the specific
independence requirements within the
Nasdaq Stock Market rules. A Director’s
independence is determined by a
general assessment of the Company or
its executive management based on the
Board's independence criteria.

The CEO also leads Millicom's
communications with shareholders,
employees, government authorities,
other stakeholders and the public.

Board Membership, Balance and
Independence
The Nomination Committee and the
Board periodically review the size and
balance of the Board to determine
whether any changes are appropriate.

At the AGM, held annually within six
months of the end of the financial
year, or at any other general meeting,
shareholders may vote for or

Independence of the Board

Board comprising nine members

Chairman, Deputy Chair and
seven members

Non-Executive Directors

Independent from the Company and its
Executive Management

Executive Director

89%
José Antonio Ríos García
Pernille Erenbjerg
Odilon Almeida
Bruce Churchill
Sonia Dulá
Lars-Johan Jarnheimer
Mercedes Johnson
James Thompson

11%
Mauricio Ramos

Millicom 2021 Annual ReportGovernance

Factors considered to determine the Directors’ independence (i) from the Company, executive management and (ii) the major
shareholders

Category

Managerial duties

Employment

Other services

Business relationship

Audit function

Cross directorships

Family relationship

Test

Is or has been the CEO of the Company or a closely related company within the past five years

Is or has been employed by the Company or a closely related company within the past three years

Receives a not-insignificant remuneration for advice or other services (beyond the remit of the
Board position) from the Company, a closely related company or a person in the executive
management of the Company

Has been in a significant business relationship or had other significant financial dealings with the
Company or a closely related company within the past year—as a client, supplier or partner; either
individually or as a member of the executive management team; or as a member of the Board or a
major shareholder in a company with such a business relationship with the Company

Is or has within the last three years been a partner at, or has, as an employee, participated in an
audit of the Company conducted by the Company’s or a closely related company’s current or then
auditor

Is a member of the executive management of another company, if a member of the board of that
company is a member of the executive management of the Company

Has a close family relationship with a person in the executive management of the Company, or
with another person named in the points above, if that person’s direct or indirect business with
the Company is of such magnitude or significance as to justify the opinion that the Board member
should not be considered independent

YES to any of the above in relation to the Company or the management of the Company:
=> Typically not independent from the Company or its executive management

Assessment

YES to any of the above in relation to a major shareholder:
=> Typically not independent from a major shareholder

Swedish Code’s independence provisions

Requirement

Compliant

The majority of Millicom’s Board must be independent from the Company and its
executive management team.

At least two of those independent Directors must also be independent from the
Company’s major shareholders.

The majority of the members of the Audit Committee are to be independent in relation
to the Company and its executive management. At least one of the members who is
independent in relation to the Company and its executive management is also to be
independent in relation to the Company’s major shareholders.

8 out of 9 Millicom Directors meet this criterion (89%)

All of Millicom’s Directors meet this criterion (100%)

All of Millicom's Audit Committee members meet this
criterion (100%)

The Chairman of the Board may chair the Compensation Committee. The other members
of the committee are to be independent of the Company and its executive management

All of Millicom's Compensation Committee members
meet this criterion (100%)

Nasdaq Stock Market rules

Requirement

Compliant

The Audit Committee must have at least three members, all of whom meet Nasdaq Stock
Market and U.S. Securities and Exchange Commission definitions of independence.

The four members of Millicom's Audit Committee all meet
this criterion (100%)

Millicom 2021 Annual ReportGovernance

Combined experience,
leadership and skillsets
of the Board

Media/
Entertainment/
Content
6

Cable and
Fixed line
services
1

Network/
Infrastructure
1

Financial/
Fintech
Sector
5

Industry

Technology
5

Others
5

Mobile/
Next-Gen
Platforms
3

Telecom
convergence
2

CFO
2

CEO
5

Member of
the Board
of a Listed
Company
8

Leadership
experience

Chairman
5

Governance and
sustainability
5

M&A
8

Strategy/
Transformational
Strategy
6

Operational/
Commercial
(Inc. Marketing
and Sales)
6

Cyber security/Data Protection 2
Internal Controls (SOX) 2
Compliance/Regulatory 2

Functional
areas

Financial
expertise
7

Risk
Management
7

Capital allocation
(Inc. Shareholder
Remuneration)
8

Latin America
6

EU/
Nordic
Countries
6

Territories

U.S.
8

Millicom 2021 Annual ReportGovernance

Board Profile: Skills and Experience

Mr. José Antonio Ríos García
Chairman, Non-Executive Director

Role: Re-elected as a Non-Executive Director and Chairman of the Board in May 2021; first appointed in
May 2017

Nationality: U.S., Spanish and Venezuelan citizen

Age: Born in 1945

Skills: Mr. Ríos brings significant experience and reputation at the forefront of the telecommunications
and electronics industries, including media, content and leading consumer technology businesses. Mr.
Ríos is a proven global business executive with over 30 years of leadership at multinational companies.

Experience: Currently, Mr. Ríos also serves as (i) Senior External Advisor to President and Board of
Directors of Celistics Holdings, a leading mobile payment platform and cellular top-up distribution
business providing intelligent solutions for the consumer technology industry across Latin America,
where he served as Chairman and CEO until September 2020, (ii) Board member (volunteer) of Up
with People (Charity), and (iii) Honorary Business Representative (Latin America) of International
Enterprise Singapore, among others. Previous senior management positions held by Mr. Ríos included:
(i) International President and Corporate VP of Global Crossing (entity later acquired by Level 3
Communications and then merged with Lumen Technologies), (ii) member of the Global Management
Committee of Telefónica, (iii) President and CEO of Telefónica Media, (iv) Vice President of Hughes
Electronics Corporation, (v) founding President and CEO of Galaxy Latin America (DirecTV Latin
America), and (vi) Chief Operating Officer and Corporate Vice President at the Cisneros Group of
Companies for 14 years, among others.

Education: Industrial Engineer, Andres Bello Catholic University

Independence: Independent from the Company, its executive management and its major shareholders

Millicom shareholding at January 31, 2022 (including holdings by closely related persons):
18,634 shares

Ms. Pernille Erenbjerg
Deputy Chair, Non-Executive Director

Role: Re-elected as a Non-Executive Director and Deputy Chair of the Board in May 2021; first appointed
in January 2019

Nationality: Danish citizen

Age: Born in 1967

Skills: Ms. Erenbjerg brings years of experience operating a converged provider of communication
and entertainment services and driving transformational processes in complex organizations, both
organically and through M&A.

Experience: Currently, Ms. Erenbjerg also serves as Chair of the Board of Nordic Entertainment Group;
Deputy Chair of Genmab, a Danish international biotechnology company; and a Non-Executive Board
member of RTL Group, Europe's largest broadcaster. Previous roles include: (i) member of the Board and
member of the Audit Committee of Nordea, the largest financial services group in the Nordic region, (ii)
President and Group Chief Executive Officer of TDC, the leading provider of integrated communications
and entertainment solutions in Denmark and Norway, and (iii) Chief Financial Officer and Executive Vice
President of Corporate Finance at TDC, among others.

Education: MSc in Business Economics and Auditing, Copenhagen Business School

Independence: Independent from the Company, its executive management and its major shareholders

Millicom shareholding at January 31, 2022 (including holdings by closely related persons):
12,936 shares

Millicom 2021 Annual ReportGovernance

Board Profile: Skills and Experience—continued

Mr. Odilon Almeida
Non-Executive Director

Role: Re-elected as a Non-Executive Director in May 2021; first appointed in May 2015

Nationality: U.S. and Brazilian citizen

Age: Born in 1961

Skills: Mr. Almeida strengthens the Millicom Board with decades of experience in the financial services,
fintech and consumer goods sectors. His leadership style is anchored in value creation and business
turnarounds involving retail and digital transformation, organic growth and successful M&A in the U.S.,
Europe, Middle East, Africa, Latin America and the Caribbean.

Experience: Mr. Almeida is the President and Chief Executive Officer of ACI Worldwide Inc., a global
leader in electronic payment systems. Previous roles include: (i) President of Western Union Global
Money Transfer, where he led Western Union’s global consumer omni-channel business across more
than 200 countries and territories, (ii) Operating Partner at Advent International, one of the world's
largest private equity funds, (iii) Chief Marketing Officer and Vice President of Digital Ventures at
BankBoston (now Bank of America), (iv) Chief of Staff at Coca-Cola Company, and (v) Personal Care
Director and Marketing Manager at Colgate-Palmolive, among others.

Education: Bachelor of Civil Engineering, Maua Engineering School in São Paulo, Brazil; Bachelor of
Business Administration, University of São Paulo; MBA with specialization in Marketing, Getulio Vargas
Foundation in São Paulo. Mr. Almeida further advanced his education at IMD Lausanne, the Wharton
School and Harvard Business School

Independence: Independent from the Company, its executive management and its major shareholders

Millicom shareholding at January 31, 2022 (including holdings by closely related persons):
11,497 shares

Mr. Bruce Churchill
Non-Executive Director

Role: Elected as a Non-Executive Director in May 2021

Nationalities: U.S. citizen

Age: Born in 1957

Skills: Mr. Churchill brings over 30 years of operational and strategy experience in the media industry,
including senior management roles in Latin America.

Experience: Currently, Mr. Churchill serves on the Board of Wyndham Hotels and Resorts, one of the
largest hotel franchises in the world, where he also chairs the Compensation Committee. Previously,
he was the President of DIRECTV Latin America, LLC, from 2004 to 2015 and served as Chief Financial
Officer of DIRECTV from January 2004 to March 2005. Prior to joining DIRECTV, he served as President
and Chief Operating Officer of STAR TV. He also served as a Non-Executive Director on the Board of
Computer Sciences Corp from 2014 to 2017.

Education: MBA, Harvard Business School; Bachelor of Arts in American Studies, Stanford University

Independence: Independent from the Company, its executive management and its major shareholders

Millicom shareholding at January 31, 2022 (including holdings by closely related persons):
2,604 shares.

Millicom 2021 Annual ReportGovernance

Board Profile: Skills and Experience—continued

Ms. Sonia Dulá
Non-Executive Director

Role: Elected as a Non-Executive Director in May 2021

Nationalities: U.S. and Mexican citizen

Age: Born in 1961

Skills: Ms. Dulá brings a wealth of experience from the investment banking, technology and media
industries, plus deep Latin America expertise.

Experience: Currently, Ms. Dulá serves as an Independent Director on the Boards of (i) Hemisphere
Media Group Inc., a publicly traded media company targeting the Spanish-language television and
cable network business in the U.S., (ii) Acciona, S.A., a global renewable energy company, where she also
serves on the Audit Committee, and (iii) Huntsman Corporation, a publicly traded global manufacturer
and marketer of chemicals. Previously, she served as (i) Vice Chairman, Latin America at Bank of
America Merrill Lynch, (ii) an Independent Director of Prisa, S.A., a leading education, media and
communications company in Spain and Latin America, (iii) CEO of Grupo Latino de Radio (Grupo Prisa),
(iv) Founder and CEO of Internet Group of Brasil, (v) Director General at Telemundo Studios Mexico, and
(vi) Goldman Sachs, where she began her career as an investment banker.

Education: MBA, Stanford Graduate School of Business; Bachelor of Arts in Economics, Magna Cum
Laude, Harvard University

Independence: Independent from the Company, its executive management and its major shareholders

Millicom shareholding at January 31, 2022 (including holdings by closely related persons):
2,604 shares

Mr. Lars-Johan Jarnheimer
Non-Executive Director

Role: Elected as a Non-Executive Director in May 2021

Nationalities: Swedish citizen

Age: Born in 1960

Skills: Mr. Jarnheimer has a track record of successfully developing and delivering strategies for
promoting and selling products and services to consumers in highly competitive environments of
complex and regulated businesses, including in the telecommunications and media industries.

Experience: Currently, Mr. Jarnheimer serves as (i) Chairman of the Board of Telia Company, a
telecommunications group with presence in Nordic and eastern European countries, (ii) Chairman of
the Board of INGKA Holding B.V. (Ikea), (iii) Chairman of Egmont, a leading Nordic media company,
and (iv) Deputy Chairman of the Board of SAS AB, a Swedish-listed aviation company, among others.
He has also held various executive positions, including (i) President and CEO of Tele 2 and (ii) CEO of
Comviq GSM, among others.

Education: Bachelor of Science in Business Administration and Economics, Lund and Växjö University

Independence: Independent from the Company, its executive management and its major shareholders

Millicom shareholding at January 31, 2022 (including holdings by closely related persons):
7,656 shares

Millicom 2021 Annual ReportGovernance

Board Profile: Skills and Experience—continued

Ms. Mercedes Johnson
Non-Executive Director

Role: Re-elected as a Non-Executive Director in May 2021; first appointed in May 2019

Nationalities: U.S. and Argentinean citizen

Age: Born in 1954

Skills: Ms. Johnson brings years of experience at technology-oriented multinational and U.S.-listed
companies in various leadership roles.

Experience: Currently, Ms. Johnson serves on the Boards of three other Nasdaq or NYSE-listed
technology companies: (i) Synopsys, a provider of solutions for designing and verifying advanced silicon
chips, where she also chairs the Audit Committee; (ii) Teradyne, a developer and supplier of automated
semiconductor test equipment; and (iii) Analog Devices, a multinational semiconductor company
specializing in data conversion, signal processing and power management technology. Previously, she
served as (i) Chief Financial Officer of Avago Technologies (now Broadcom) and (ii) Chief Financial
Officer at LAM Research Corporation, among others.

Education: Degree in Accounting, University of Buenos Aires

Independence: Independent from the Company, its executive management and its major shareholders

Millicom shareholding at January 31, 2022 (including holdings by closely related persons):
8,159 shares

Mr. James Thompson
Non-Executive Director

Role: Re-elected as a Non-Executive Director in May 2021; first appointed: in January 2019

Nationalities: U.S. citizen

Age: Born in 1961

Skills: Mr. Thompson brings extensive experience in investment management, contributing to the
Board’s discussions on Millicom’s long-term strategy and capital allocation.

Experience: Currently, Mr. Thompson is a private investor at Kingfisher Family Office, where he manages
a portfolio focused on value-oriented investments. He is also a Non-Executive Director of C&C Group
plc, serving on the Audit Committee and as Chair of its ESG Committee. Previously, he was a Managing
Principal at Southeastern Asset Management, where he was responsible for the firm's operations.
Between 2001 and 2006, Mr. Thompson opened and managed Southeastern Asset Management’s
London research office.

Education: MBA, Darden School, University of Virginia; Bachelor in Business Administration, University of
North Carolina

Independence: Independent from the Company, its executive management and its major shareholders

Millicom shareholding at January 31, 2022 (including holdings by closely related persons):
15,566 shares

Millicom 2021 Annual ReportGovernance

Board Profile: Skills and Experience—continued

Mr. Mauricio Ramos
Executive Director

Role: Re-elected as Executive Director in May 2021; first appointed in June 2020

Nationalities: U.S. and Colombian citizen

Age: Born in 1968

Skills: Mr. Ramos brings his experience as CEO of Millicom, a position he has held since April 2015. During
his tenure, he has designed, proposed and implemented the present strategy of the Millicom group,
transforming the Company into a fixed internet and mobile business with a focus on Latin America.
Under Mr. Ramos’ leadership, Millicom solidified its company purpose “to build the digital highways that
connect people, improve lives and develop communities” and built a strong corporate culture described
as Sangre Tigo.

Experience: Mr. Ramos is also (i) a member of the Board of Directors of Charter Communications (U.S.),
(ii) Chair of the Digital Communications Industry Community (World Economic Forum), (iii) Chair of
the U.S. Chamber’s U.S.-Colombia Business Council (USCBC), and (iv) Commissioner at the Broadband
Commission for Sustainable Development. Previously, he was President of Liberty Global’s Latin
American division, a position he held from 2006 until February 2015. During his career at Liberty Global,
Mr. Ramos held several leadership roles, including positions as Chairman and CEO of VTR in Chile, Chief
Financial Officer of Liberty’s Latin American division, and President of Liberty Puerto Rico.

Education: Lawyer and Economist, Los Andes University

Independence: Not independent from the Company and its executive management, independent of
the Company’s major shareholders

Millicom shareholding at January 31, 2022 (including holdings by closely related persons):
232,562 shares

Millicom 2021 Annual ReportGovernance

The Board’s annual program includes:

1. Company strategy and strategic direction

2. Operating and financial performance review; budget

3. Governance, legal and compliance matters

4. External affairs; sustainability and other ESG-related matters

5. Organizational structure and corporate culture

Summary of Board
Activities in 2021

Immediately after the AGM, the Board of
Directors held a meeting and agreed on
key governance matters, the calendar and
an annual program consisting of specific
areas of focus on which the Board has a
role to oversee and advise the Company.

Specific projects and topics arise in the
normal course of business and are added
to the program of the Board; some of
these are handled by specific Board
committees.

6. External financial reporting

7. Risk management

8. Capital structure and shareholder remuneration policy

9. Merger, acquisitions and divestments; joint ventures

10. Board performance self-evaluation

11. Human resource matters

12. Reports from committees

Millicom 2021 Annual ReportGovernance

Board Program and Areas of Focus in 2021

Board annual program

1. Strategic review

Focused actions

• Discussed, reviewed and approved the strategy

2. Operating and financial performance
review

• Discussed priorities and challenges for each of the operations, including development of MFS,
cable and mobile data businesses, efficiency measures and capital expenditure allocation

• Discussed with the Executive Team industry and geographic trends and the operational and

financial strategy for each region, including the portfolio strategy

• Monitored challenges, threats, opportunities and other consequences of the coronavirus

pandemic on the business and strategy

• Reviewed and approved spectrum acquisition, updated 2021 budget, and discussed and

approved the 2022 budget

3. Corporate governance, legal and
compliance matters

• Made revisions and updates to governance documents (Board and committee charters,

procedural rules and instructions to the CEO as well as the authority matrix)

4. ESG; sustainability and other external
affairs related matters

5. Organizational structure and corporate
culture

6. External financial reporting and non-
financial performance

• Elected the Deputy Chair and Committee Chairs and members

• Oversaw the development of the ESG strategy

• Reviewed the external affairs strategic framework and implementation activities

• Periodically reviewed the political situation by market, with a specific focus on election
periods, international relations and advice on related risk management requirements

• Reviewed regulatory and engagement challenges

• Reviewed climate-related risks and impact of the business on climate change

• Participated in performance reviews of the Executive Team and of the management,

organizational and reporting structures

• Oversaw succession planning for the Executive Team

• Reviewed cultural initiatives, including Sangre Tigo, and DE&I developments

• Held regular meetings with external auditors to review financial health of the Company

• Reviewed 2020 Annual Report and 20-F, including the 2020 Consolidated Financial
Statements of the Group and standalone 2019 financial statements of Millicom
International Cellular S.A.

• Reviewed quarterly earnings releases and 2021 interim consolidated financial statements

• Approved corporate finance strategy, including refinancing of Group and local bonds to

extend maturity and lower average cost of debt

7. Risk management

• Participated in the annual risk reassessment and reviewed the key risks facing the Group and

its approach to managing risks

• Set the risk appetite of the Group

8. Capital structure and shareholder
remuneration policy

• Approved refinancing of Group and local bonds to extend maturity and lower average cost of

debt

• Recommended changes to the shareholder remuneration policy and approved share

repurchase plan

9. Mergers, acquisitions, disposals and joint
ventures

• Discussed acquisition and disposal developments across the Group, including approval of

transactions such as the acquisition of the minority stake in the Guatemalan business, sale
of the African businesses and sale of non-core investments

10. Board performance self-evaluation

• Completed an annual self-evaluation of combined Board performance and individual

11. HR matters

• Evaluated the performance and approved the compensation of the CEO

performances and reported to the Nomination Committee

12. Reports from committees

• Regularly reviewed reports from Audit Committee, Compliance and Business Conduct

• Oversaw succession planning for the Executive Team, including recruitment of and selection

of the incoming CFO

Committee, and Compensation Committee on recent activities

• Discussed Nomination Committee Director appointment proposals

Millicom 2021 Annual ReportGovernance

Induction and Training
Millicom provides incoming Board
members with information on their
roles and responsibilities, the Board's
operating procedures and Millicom’s
business and industry. We provide
access to governance documents,
policies and procedures; meeting
materials; and Company information
through a secure online tool, in
meetings set with the Executive Team,
and through ongoing dissemination of
information.

Millicom provides training on topics such
as anti-bribery and corruption, ethics,
independence and insider trading.
In addition, new Board members
received an introductory ethics and
compliance training in 2021. The Board

regularly receives detailed reports on
specific areas that support Directors'
understanding of Millicom’s business
and operating environment.

Directors typically participate in at least
one annual visit to Millicom’s operations
to learn about the characteristics of
the local market, see aspects of the
business in operation, participate in
social and corporate responsibility
projects, and interact with local
management. Due to the coronavirus
pandemic, market visits planned in
2020 and 2021 have been postponed
to 2022.

Board Effectiveness
The Board conducts an annual
performance review process, wherein
each Board member’s personal
performance is also reviewed. This
involves assessing Board and committee
actions and activities against the
Board’s mandate, as determined in the
Board Charter, and the mandates of its
various committees.

In 2021, the Board used a questionnaire
to assess its performance against the
Board's key duties, its composition and
processes, and the performance of
individual Board members. The results
of the evaluation were presented to the
Nomination Committee. In addition,
the Nomination Committee continued
the engagement with an international
consultancy firm to assist in an
assessment of the composition of the
Board, now and for the future.

Board Meetings/Attendance at Regularly Scheduled Meetings of the Board in the 2021 Financial Year

Director

Mr. José Antonio Ríos García

Ms. Pernille Erenbjerg

Mr. Odilon Almeida

Mr. Bruce Churchill

Ms. Sonia Dulá

Mr. Lars-Johan Jarnheimer

Ms. Mercedes Johnson

Mr. Mauricio Ramos

Mr. James Thompson

Attendance

Former Directors (until May 2021)

Mr. Tomas Eliasson

Mr. Lars-Åke Norling

Overall attendance

Meeting Attendance

9 of 9

7 of 7

6 of 7

7 of 7

9 of 9

74/75

1 of 2

2 of 2

77/79

100

Board Committees
Written charters set out the objectives, limits of authority, organization and roles and responsibilities of the Board and each of its
committees. The charters are available at www.millicom.com/our-company/governance/board-committees/. Details of Board roles
and responsibilities, activities in 2021 and Directors’ emoluments are set out on the following pages.

Millicom 2021 Annual Report8 0

I wish to extend special thanks to my
colleagues for their support of and
commitment to the activities of the
committee. I look forward to continuing
our mandate through the 2022 AGM.
In addition, our deep appreciation
goes to both Tomas Eliasson and
Pernille Erenbjerg for their significant
contributions to the fulfillment of our
duties in recent years.

Ms. Mercedes Johnson
Chair of the Audit Committee

Governance

I. Audit Committee
I am pleased to present the Audit
Committee’s report for 2021. As
directed by our Charter, we convened
five formal meetings during the financial
year to satisfy our established set of
responsibilities.

As economic conditions improved in
our markets, our business saw a gradual
recovery in 2021. These trends—as well
as other drivers of risk like technological
advancements, new legal requirements
and environmental changes—were key
areas of focus and shaped the Audit
Committee’s agenda for the year.
Once again, we directed our attention
to the impact of M&A on our financial
statements with the acquisition of the
minority stake in Guatemala and the
disposals in Africa.

Supported by the guiding principles
established by management in response
to the pandemic and periodic updates
on the strength of the business, the
Audit Committee honed in on risk
oversight in the areas of internal
controls, cyber-security, supply chain
disruptions and other external threats,
some of which are exacerbated by the
work-from-home environment.

Our Internal Audit Team assisted the
committee by adjusting their assurance
activities to the new risk profile and
re-prioritizing programs to provide
consulting services where appropriate.
Heightened attention was given
to assessing the Company’s cyber
defenses in light of the growing risks in
this area.

In addition to tracking important
regulatory developments in financial
reporting, the committee monitored
tax obligations, new debt issuance
and refinancing activities, as well as
the evolution of the Company’s risk
management programs.

The committee also increased its
emphasis on the evolving need for
disclosures of ESG performance metrics
and targets. The committee focused its
efforts on overseeing the design and
testing of controls used to verify the
accuracy of these reports.

Millicom 2021 Annual ReportGovernance

Audit Committee Membership and Attendance at Regularly Scheduled Meetings in 2021

Audit Committee

Position

Ms. Mercedes Johnson

Chair*

Mr. Bruce Churchill

Ms. Sonia Dulá

Mr. James Thompson

Attendance

Member

Mr. Tomas Eliasson

Former Chair

Ms. Pernille Erenbjerg

Former Member

Overall attendance

*Designated as having specific accounting competence as per the EU Directive.

First appointment

May 2019

May 2021

January 2019

May 2014

January 2019

Meetings/
attendance

5 of 5

3 of 3

2 of 3

5 of 5

14 of 15

2 of 2

1 of 2

18 of 20

100

In addition, the Chairman of the Board,
Mr. José Antonio Ríos García, attended
all Audit Committee meetings.

Appointment and Role of the Audit
Committee
The Audit Committee is composed
solely of Non-Executive Directors, all of
whom were independent Directors in
2021. Members are appointed to ensure
there is a mixture of relevant experience
in both finance and broader commercial
matters. The Board is confident that the
collective experience of the members
enables them to act as an effective
Audit Committee. The Audit Committee
is also satisfied that it has the expertise
and resources available to fulfill its
responsibilities.

The Board has delegated responsibility
to the Audit Committee for overseeing
the robustness, integrity and
effectiveness of financial reporting,
risk management, fraud reporting,
SOX, internal controls, internal audit
and external audit processes, and
pre-approval of certain audit and
non-audit services provided by the

external auditor. The Audit Committee
also oversees the establishment
of accounting-related policies and
procedures, the procedure for dealing
with certain other types of complaints
or concerns, and compliance with
related laws and regulations.

The Audit Committee focuses on
compliance with financial requirements,
accounting standards and judgments;
appointment, oversight and
independence of the external auditors
and appointment and oversight of
certain other accounting firms that
may be retained from time to time;
transactions with related parties
(including major shareholders); the
effectiveness of the Internal Audit
function; the Group’s approach to risk
management; and ensuring an efficient
and effective system of internal
controls.

Ultimate responsibility for reviewing and
approving Millicom’s Annual Report and
accounts remains with the Board.

The Chief Executive Officer, Chief
Financial Officer, Chief Accounting

Officer, Head of Internal Audit, Head
of Business Controls, Head of Risk
Management, and representatives from
the Company's external auditor EY are
invited to attend committee meetings.
The Secretary of the committee is the
Group Company Secretary.

The Audit Committee Chairman
prepares the meeting agenda in
conjunction with the Chief Financial
Officer. Regular private sessions are
held, attended only by Audit Committee
members and the external auditor,
to provide an opportunity for open
dialogue without management present.

At each regularly scheduled meeting,
the Audit Committee receives reports
from the Chief Financial Officer, the
external auditor, and the heads of
Internal Audit, Business Controls and
Risk Management. Additional reports
are submitted by other officers of
the Company as required. The Audit
Committee received the required
information from the external auditor
in accordance with Luxembourg
regulations.

Millicom 2021 Annual ReportGovernance

Summary of Areas of Focus and Actions in 2021

Governance

• Reviewed and amended the Audit Committee Charter, Internal Audit Charter and Risk Management

Charter

Financial reporting

• Reviewed key accounting and reporting issues at each meeting, including those related to the COVID-19

External auditor

pandemic

• Reviewed and approved each quarter’s earnings release; the 2020 annual earnings release; the Annual

Report and 20-F together with the consolidated financial statements; the 2021 half-year earnings release;
and each quarter's interim financial statements

• Reviewed the latest accounting developments and their effect on the financial statements, including the
impact by acquisition of the remaining 45% of our business in Guatemala
• Reviewed the alternative performance measures policy

• Received reports from the external auditor at each meeting in compliance with EU regulations covering
important financial reporting, accounting and audit issues; this includes receiving updates on SEC
guidelines regarding COVID-19

• Reviewed and approved all non-audit services rendered by the external auditors

• Approved the 2021 external audit strategy and fees and the proposed approach to address the challenges

posed by the pandemic

• Considered the results of control testing performed by the external auditor in accordance with Section 404

of the Sarbanes-Oxley Act of 2002

• Reviewed the performance of the external auditor and its independence, including monitoring the nature

and approving the fees of non-audit services

• Held regular meetings with the external auditor without the Chief Executive Officer or any other member of

the executive management present

Internal audit activities

• Approved the 2021 Internal Audit plan and the reprioritization of work to address new and emerging risks

Financing, treasury and tax

• Reviewed the Group’s tax strategy and structure and approved the tax policy

such as cybersecurity, ESG matters or impacts by the COVID-19 pandemic

• Reviewed internal audit findings arising from the delivery of the 2021 audit plan

• Approved the updated Group treasury and related policies, including policies on hedging and financial risk

management

Risk management

• Provided guidance and oversight over risk management processes

Business controls and SOX

• Reviewed alignment of top risks with strategy and recommended risk appetite

• Reviewed regular risk reports and risk management remediation plans

• Reviewed the results of the Group’s first year Sarbanes-Oxley attestation and discussed proposals for
improvement; in particular, the committee considered the Sarbanes-Oxley implementation plan for
businesses in Panama and Nicaragua

• Considered the impact of working from home and other changes brought about by the pandemic on the
robustness of the internal control environment; reviewed the actions of the Group's Information Security
Team to the changing cyber risk landscape

• Received and reviewed findings and recommendations regarding the design and operating effectiveness of
internal controls over financial reporting based on the cycle of management testing of internal controls

Fraud management

• Reviewed fraud policies and quarterly fraud reports, as well as proposed actions to remediate identified

cases

Revenue assurance

• Received regular updates on revenue assurance activities

• Reviewed trends and actions taken to minimize loss and revenue leakage

Related party transactions

• Reviewed related party transactions

Millicom 2021 Annual ReportGovernance

2021 Meetings
The Audit Committee held five regular
meetings, mainly coinciding with key
dates in Millicom’s external reporting.

Financial reporting
The Audit Committee reviewed earnings
releases and financial statements for
each quarter. Comprehensive reports
from management and the external
auditors highlighted the significant
judgmental accounting issues for the
attention of the committee. Important
reporting and disclosure topics under
both EU and U.S. listing requirements
were addressed.

Significant issues considered by the
Audit Committee in relation to the
financial statements for the year ended
December 31, 2021 included:

1. Acquisition of full control in
Guatemala – refer to note A.1.2. of the
consolidated financial statements
On November 12, 2021, Millicom
closed the agreement to acquire the
remaining 45% equity interest in its
joint venture business in Guatemala
(collectively, "Tigo Guatemala") from
the local partner for $2.2 billion in cash,
assuming full control of the business.

The investment in Tigo Guatemala
changed from equity accounting to full
consolidation from the November 12,
2021, acquisition date.

The purchase accounting is still
provisional at December 31, 2021,
particularly in respect to the evaluation
of certain tangible assets.

The committee reviewed and agreed
with the accounting treatment
proposed.

2. Africa divestiture –

A. Ghana disposal – refer to note A.2 of
the consolidated financial statements
On April 19, 2021, the Group announced
that it had signed a definitive
agreement to sell its ownership in
AirtelTigo to the government of Ghana.
The sale was subsequently completed
on October 13, 2021.

As part of the closing conditions, the
partners agreed to contribute, each, up
to $37.5 million for the reimbursement
of certain local bank facilities. Millicom
recorded a charge for such contribution
in the statement of income under "Profit
(loss) from other joint ventures and
associates, net."

The committee concurred with the
decision to fully impair the above
mentioned contribution totaling $37.5
million. The carrying value of the Ghana
JV was already nil.

B. Tanzania disposal – refer to note H of
the consolidated financial statements
On April 19, 2021, Millicom agreed to
sell its entire operations in Tanzania to a
consortium led by Axian, a pan-African
group that was part of the consortium
that acquired Millicom’s operations
in Senegal in 2018. The Group is still
awaiting the necessary regulatory
approvals to complete the disposal.

The Audit Committee concurred with
the above decision, until all regulatory
approvals are obtained.

C. Equity investments in Helios Towers
– refer to note C.7.3. of the consolidated
financial statements
As part of the Company’s divestiture
strategy in Africa, in 2020 and 2021
Millicom has been selling its remaining
shareholding in the tower infrastructure
company Helios Towers.’ Millicom sold
its final stake of 7.6% (representing 76
million shares) in June 2021 for $163
million, triggering a net loss on disposal
of $15 million recorded under ‘other
operating income (expenses), net,’ as
the sale price was below the market
value price as of March 31, 2021.

The Committee agreed with the
accounting treatment and presentation
of the transactions.

3. Debt exchange – refer to note
C.3.1. of the consolidated financial
statements
In September 2021, Millicom
exchanged $302.1 million of the
6.625% Notes due 2026 for $307.5
million of the 4.5% Notes due 2031 (at
a 101.812% exchange ratio).

Millicom has recognised a gain from this
exchange, derived from applying the
"modification accounting" under IFRS
9 to this exchange for approximately
$15 million (recorded in the line
“Interest and other financial income”).
Transaction costs attributable to this
exchange amount to approximately
$4 million, and are amortized over the
remaining life of the Notes due 2031.

4. Impairment testing – refer to note
E.1.6. of the consolidated financial
statements
The Audit Committee received
detailed impairment analysis from
management, including sensitivities.
The committee also considered
additional sensitivity analysis presented
by the external auditor.

The results of impairment testing
continue to support the existing
carrying value of goodwill and other
long life assets and no impairment was
necessary. The Audit Committee agreed
with the conclusions.

5. Tax provisions and contingencies –
refer to note G.3.2. of the consolidated
financial statements
The Group operates in many countries
where the tax and legal system is less
mature and may be less predictable.
Therefore, a number of matters relating
to tax contingencies require judgment
as to the likely probability of cash
outflow or the potential amount of any
outflow. The Audit Committee received
regular reports from the Group Tax
Director as to the status of each of
these matters, the likely outcome, the
provision required, if any, and proposed
disclosure in the financial statements.
The external auditor also presented an
analysis of judgmental tax matters.

Millicom 2021 Annual Report8 4

Fraud Risk
The Audit Committee received and
reviewed quarterly fraud reports in
accordance with the Group’s fraud
policy.

External Audit Effectiveness
The quality and effectiveness of the
external audit matter greatly to the
Audit Committee. A detailed audit plan
outlining the key risks and proposed
geographical coverage is prepared and
discussed with the Audit Committee at
the start of each annual audit cycle. This
year the plan also addressed questions
from the committee regarding the
external auditor's reassessment of risks
in light of the pandemic and actions
taken to maintain audit quality during
home working.

The committee assessed audit quality
by referring to the standard of the
reports received, the caliber of senior
members of the audit team and
the level of challenge provided to
executive management, in addition
to management feedback provided to
the Audit Committee. This feedback
allows the committee to monitor and
assess the performance of the external
auditor as part of a recommendation
to the Board regarding the auditor's
appointment. This was particularly
important in 2020 given the launch of
the external audit tender.

Governance

Management Disclosure Committee
To assist with all matters related to
earnings releases, financial statements
and other market disclosures, Millicom
has a Management Disclosure
Committee comprising senior
management from Finance, Legal,
Compliance, Communications, Investor
Relations and other functions as
and when required. The Disclosure
Committee identifies and considers
disclosure matters in market releases,
including releases that may contain
material financial information.

Risk Management
The Audit Committee received
regular reports on the Group’s risk
management framework and process
from the Management Risk Committee,
as well as reports on changes to
significant risks at the operational and
Group levels and how these risks are
managed. Further information is set out
in the Risk Management section of this
Annual Report.

In addition, the Audit Committee
reviewed financial risk, tax risks, policy
and strategy, treasury policy and risks,
and Group insurance coverage.

Internal Controls
The committee received the results of
management's testing of key controls
and testing by the external auditors.
Management concluded that the Group
had maintained effective internal
controls over financial reporting.

A debrief of the Sarbanes-Oxley
implementation program was held. The
committee also reviewed and approved
the planned scope of the 2021 program
and approach to testing of key controls.

The Audit Committee discussed the
impact on internal controls of the
COVID pandemic and home working
protocols that extended throughout

2021. Decisive management actions
and prior investments in technology to
better facilitate the operation of internal
controls meant that we were able to
maintain a strong control environment.

The committee reviewed regular reports
on the results of management testing of
key controls and the progress made to
address any control gaps.

Internal Audit
Execution of the 2021 Internal
Audit Plan provided the Executive
Management Team and the Audit
Committee with an independent view
of the effectiveness of Millicom’s
internal control environment and
governance processes. The plan was
developed to ensure alignment with
the strategic risks of the Millicom Group
as well as consideration of the overall
Group strategy, input from senior
management, external audit findings
and Internal Audit’s knowledge of the
business.

The Audit Committee approved the
2021 Internal Audit Plan, which was
composed of assurance and advisory
projects. The plan was primarily
executed by the in-house Internal Audit
Team, with support from specialists at
one of the “Big 4” accounting firms. At
each meeting, the Audit Committee
received a report on internal audit
activities, progress against the plan,
updates to the plan and results of
the audits completed in the period,
including associated recommendations
and management action plans where
findings had been identified.

Information Security
The Audit Committee received analysis
from the Group Chief Information
Security Officer on the impact on cyber
risk and the plans enacted to protect
employees as they transition to a
remote working model.

Millicom 2021 Annual Report85

Governance

Auditor Independence
The Audit Committee has policies
to maintain the independence of
the external auditor and to govern
the provision of audit and non-audit
services. The policies and approval
process of non-audit services and
audit-related services comply with
SEC independence rules and with the
latest EU and local regulations. Under
these rules, the Audit Committee pre-
approves a list of services that can be
rendered by the audit firm. If services to
be rendered are pre-approved in nature,
management can approve them when
requested (following an established
authority matrix) and present them to
the Audit Committee on a quarterly
basis for formal approval. If services
to be rendered are not pre-approved,
they should be pre-approved by the
Chairman of the Audit Committee when
requested and then submitted to the
next full Audit Committee for formal
approval. A schedule of all non-audit
services with the external auditor is
reviewed at each meeting.

For the year ended December 31, 2021,
the Audit Committee approved fees for
audit and audit-related services of $6.6
million, together with fees for non-audit
work of $0.5 million.

In compliance with independence rules,
the previous audit partner rotated off
the audit in 2019 and the current audit
partner will rotate off the audit of the
consolidated financial statements as of
December 31, 2025, at the latest.

Audit tendering
Millicom first appointed EY as external
auditor of the Company for the year
ended December 31, 2012, following a
competitive tender. Based on the most
restrictive EU audit regulations and
applicable Luxembourg Law, EY would
have to rotate off the audit by 2032
(20 years after initial appointment)
at the latest with a mandatory tender
for the audit by 2022 (10 years after
initial appointment). In that respect,
during the fourth quarter of 2020, the
Audit Committee led the mandatory
tendering process for the selection of
the external audit firm for the integrated
audit of the Group's consolidated
financial statements for the year
ending December 31, 2022, and made
a recommendation for consideration
by the Nomination Committee in early
2021 on the date EY was reappointed.

Millicom 2021 Annual ReportGovernance

in a clear and understandable manner,
so that the organization, at all levels,
was apprised of both risks and controls
that are in place. Similarly, we used data
collected in our platforms to develop
action plans and attack potential root
causes.

As we focused on the most pressing risks
in 2021, we did not neglect the main
elements of our compliance program,
including, for example, our annual
training for the entire company that
covered, among other topics, our Code
of Conduct, our Speak Up campaign,
our anti-corruption policies and our anti-
money laundering (AML) program.

And despite the pandemic, we
continued to build and refine our ethics
and compliance program in 2021.
For instance, we revised our Code of
Conduct, as well as our AML, Speak Up
and anti-corruption policies in order to
adapt to the current risk landscape and
adopt best practices. We also completed
a robust risk assessment exercise.

Our Company leadership continued its
relentless commitment to maintaining
our Sangre Tigo culture, with the
application of ethics and compliance in
our everyday interactions. Sangre Tigo
signifies high integrity, zero tolerance
for any form of corruption and a
commitment to doing business the right
way.

On behalf of the Board, I would like to
reconfirm our commitment to a culture
of ethics and strong compliance that
leads to success for the business and
pride for our company.

We are proud to be a compliance
leader in our markets and look forward
to engaging our customers and
stakeholders by making it happen the
right way.

Mr. Odilon Almeida
Chairman of the Compliance and Business
Conduct Committee

II. Compliance and Business
Conduct Committee
We started 2021 with purpose
and an eye toward progressing
the development of the ethics and
compliance program, including
continuing to enhance its reach to
better help our employees do the
right thing in the right way. As such,
we continued enhancing our three
strategic focus points: Embed &
Entrench; Communication; and Data
Analytics. By immersing the Compliance
function in the Company's business
processes, the team is better suited to
detect and advise on potential risks
in real time. The Compliance function
also disseminated its messages in
conjunction with other departments

Compliance and Business Conduct Committee Membership and Attendance 2021

Committee

Mr. Odilon Almeida

Ms. Sonia Dulá

Ms. Mercedes Johnson

Attendance

Mr. Lars-Åke Norling

Overall attendance

Position

Chairman

Member

First appointment

November 2015

May 2021

June 2020

Former Member

May 2018

Meeting
Attendance

4 of 4

3 of 3

4 of 4

11 of 11

1 of 1

12 of 12

100

In addition, the Chairman of the Board, Mr. José Antonio Rios Garcia, attended all of the meetings of the Compliance and Business
Conduct Committee.

Appointment and Role of the
Compliance and Business Conduct
Committee
Millicom’s Compliance and Business
Conduct Committee oversees the
Group's ethics and compliance
program, and reports on and makes
recommendations to the full Board
regarding the Group’s compliance
programs and standards of business
conduct. More specifically, the
Compliance and Business Conduct
Committee:

• Monitors the Group’s ethics and
compliance program, including the
activities performed by the Ethics &
Compliance Team and its interaction
with the rest of the organization

• Monitors the investigations resulting
from cases brought through the Group’s
ethics line or otherwise

• Oversees allocation of resources and
personnel to the compliance area

• Assesses the Group’s performance in
the compliance area

• Ensures that the Group maintains
proper standards of business conduct

• Oversees the cyber security risks.

Management representatives invited
to attend the Compliance and Business
Conduct Committee include the Chief
Executive Officer, Chief Legal and
Compliance Officer, Chief Financial
Officer, Chief Technical Innovation
Officer, Chief External Affairs Officer, VP
Ethics & Compliance, VP Internal Audit,
Chief Information Security Officer, and
Head of Risk Management.

Millicom 2021 Annual ReportGovernance

Summary of Committee Activities in 2021
The committee Chairman prepares the agenda in conjunction with the Chief Legal and Compliance Officer. During meetings,
the committee reviews the status of the ethics and compliance program, compliance-related issues, strategic responses (such as
investigations) to any alleged violations of law or policy, AML initiatives, and any internal audit reports and remediation plans that
concern the ethics and compliance program.

The CEO and Executive Team are committed to our Sangre Tigo and are actively involved in fostering a culture of ethics and
compliance from the top across all our lines of business.

Summary of Areas of Focus and Action Items in 2021

Compliance program elements
reviewed

• Refined third-party management through a centralized due diligence program

• Reviewed anti-corruption program policies and automated procedures, including those covering new

and emerging areas of risk and strengthening of the overall program

• Revised compliance policies and procedures and communication to the whole organization

• Reviewed training completion rates on Company compliance policies as part of select managers' KPIs

• Continued reviewing results of the compliance framework by Internal Audit as well as remediation

actions and status

• Improved communication campaigns on various compliance subjects

• Hired head of Compliance Strategic Response and one new compliance officer

• Integrated compliance program within the recently acquired entities in Central America.

• Incorporated compliance factors into executives’ incentive programs for the fourth consecutive year;

bonus awards are tied to achievement of compliance KPIs

• Supported Speak Up campaign by continuing to encourage employees through communication and
training campaigns to use the system to report issues of perceived non-compliance with our policies
and values

• Strengthened investigations team: further developed central investigations resources and enhanced

regional investigation tools

• Implemented corrective action framework for all operations

• Continued to align investigation procedures across the countries

• Continued effective case management, including by taking reasonable steps after detection of

misconduct

Reporting and investigations

Global anti-money laundering
(AML) program

• Implemented a new transaction monitoring tool in Paraguay and Bolivia.

• Continued global AML training and communications efforts, including the monthly AML Bulletin and

specialized, targeted training for local AML teams and operations' upper management

• Continued to perform and enhance quarterly rounds of the AML risk assessments in all operations,

including LATAM and Africa

• Implemented new AML Risk Control Self-Assessment in all MFS LATAM operations to help us develop

additional risk mitigation processes; this process is conducted quarterly

• Analyzed and enhanced the transaction monitoring process, resulting in the improvement of several

key metrics for risk mitigation

Information Security and
Cybersecurity

• Review of the Information Security Framework and Governance structures

• Review of the Information Security Program including identity and access management, vulnerability

management, patch management and multi-factor authentication

• Review of results and improvement plans related to the NIST cybersecurity audit

• Received reports on cybersecurity incidences and responses

Millicom 2021 Annual ReportGovernance

8 8

For the whole Millicom Group, 60%
of the annual bonus is based on three
financial measures: service revenue,
EBITDA and operating cash flow after
leases (OCFaL).

Of the remaining 40%, 10% is allocated
to customer satisfaction—measured
using Net Promoter Score (NPS)—and
30% is based on individual strategic
objectives.

Incentives are subject to performance
measures and are regularly reviewed
to ensure they remain aligned with the
Group’s strategy and are stretching
appropriately.

In addition, the CEO and EVPs are
required to comply with minimum
shareholding requirements. The CEO
is required to build and maintain
a shareholding with a value of at
least 400% of base salary, a level he
maintained in 2021. This encourages
our top leaders to take a longer-term
view on positive business performance
in alignment with Company and
shareholder interests.

The Group delivered a strong set of
results in challenging and uncertain
circumstances. The Group exceeded
the performance target for each of the
financial targets in 2021, reflecting a
strong operational performance driven
by exceptional customer additions
and strong cost control. Millicom
accomplished his while continuing to
invest in further growth.

The Compensation Committee
believes that in 2021, the CEO showed
exceptional leadership of the business
and our people, particularly during the
extraordinary times that we have faced
over the last 18 months. The CEO’s
contribution exceeded the expectations
of the Board and reflect a step change
in our progress towards being the
leading provider of digital highways
in Latin America. Based on the overall
performance against the financial
measures and individual strategic
objectives, the CEO received
a cash bonus of $2,164,230 for
2021 and shares of $2,164,230
deferred over three years (DSP).

The Compensation Committee
reviewed the outcomes in the context
of underlying performance—
notwithstanding that the financial
targets were set at a time of significant
uncertainty—and the Board is
satisfied that the outcomes for Group
financial performance and individual
strategic objectives are warranted. As
a result, the Compensation Committee
determined that no exercise of
discretion was required to adjust the
targets or outcomes.

By contrast, awards under the FY 2019
Performance Share Plan, which are
subject to a three-year performance
period ending December 31, 2021,
were disappointing. The committee
used adjusted service revenue growth,
adjusted cash flow (OCFaL) growth
and Relative TSR as its performance
measures. The Group partially met
the service revenue growth target
only, resulting in an award of 7.6%. No
discretion was exercised in this case
either.

During the year, the Compensation
Committee reviewed the base salaries
and incentive opportunities for the
CEO, who received a 1.5% increase to
$1,185,140 as of April 1, 2021. There
was no increase in 2020. We have
reduced the LTI opportunity for 2022
and made a corresponding increase
in the share component of the STI.
The CEO’s total combined incentive
opportunity remains unchanged.

However, this year the Board introduced
a one-time Market Stock Unit (MSU)
award linked entirely to the share price
performance. As a result, a material
amount of the total reward is linked
to share price performance—either
relative to peers (TSR for the LTI) or
absolute levels of stock price (MSU).

Under the MSU plan, the CEO’s target
award is $8 million spread over two
years, subject to a share price of $43.09
for the 2022 Tranche and $47.00 for the
2023 Tranche. The maximum award will
only be made if the share price reaches
$52.77 in 2022 and $57.57 in 2023. The
cash award will not be made until 2023
and 2024 respectively. Based on the
2021 closing share price, the total award
would be approximately $2.72 million.

III. Compensation Committee

I am pleased to present the 2021
Remuneration Report.

The key remuneration outcomes for
the year and plans for the coming
year are summarized below. Further
detail is provided in the Annual
Remuneration Report.

The Compensation Committee
meets regularly to review executive
compensation and other HR-related
matters to ensure competitiveness
across our markets. We have a ‘pay for
performance’ compensation philosophy.
This encompasses both short-term
and long-term incentives. The plans
maintain a strong link to Millicom’s
performance and are fully aligned with
Millicom’s culture.

Remuneration consists of a base salary
and various benefits and pension
arrangements. The policy also provides
for a high variable element through
an annual short-term incentive (STI)
bonus plan paid in cash and deferred
shares (DSP) and a long-term incentive
plan (LTI). The variable elements of
remuneration are subject to stretching
performance measures (financial and
operational). For the Chief Executive
Officer (CEO) and Executive Vice
Presidents (EVPs), the majority of total
compensation is variable, with a high
proportion paid in shares.

The Compensation Committee believes
the structure of our incentives reinforces
the alignment of management
and shareholder interests through
performance linkage, payment in shares
and extended time horizons for vesting.

Any annual bonus for the CEO and EVPs
are paid at least 50% in shares that
vest over three years. Awards under the
Performance Share Plan are fully paid in
shares and cliff vest after three years.

Millicom 2021 Annual ReportGovernance

The Annual Remuneration Report,
together with this letter, is subject to
an advisory vote at the 2022 Annual
General Meeting (AGM). At the 2021
AGM, 78.79% of shareholders voted
in favor of the Remuneration Policy.
We have engaged extensively with
shareholders in the light of this vote
and to reflect shareholder concerns,
primarily over the introduction of the
time-vested Restricted Share Units
(RSUs) in the 2021 PSP. In response
to this feedback, we have removed
the RSU for 2022 and reverted to full
performance-based LTI awards. This
differs from U.S. practice but reflects
concerns expressed to me and my
colleagues by shareholders. We have
also reduced the LTI opportunity for
2022 and made a corresponding increase
in the share component of the STI.

There were no other changes to the
remuneration policy and the Board is
confident that the policy has operated
as intended over the year. A summary
of the elements of executive pay for
2021 is set out on page 92.

The proposed revisions to the 2022
compensation plan include:

We have changed the NPS measure for
the annual bonus from transactional
to relational to better reflect our
performance compared to our peers in
the market.

We removed RSUs from the
Performance Share Plan, as mentioned
on page 99.

With the forthcoming rights issue we
will need to make adjustments to the
existing unvested share plans, including
the DSP, PSP and MSU.

The Compensation Committee is
committed to ongoing consultation with
shareholders and their advisory groups.

On behalf of the Board, I hope you
find the FY 2021 Remuneration Report
informative.

Ms. Pernille Erenbjerg
Chair of the Compensation Committee

2. Compensation Committee’s Report
This report describes the remuneration philosophy—and related policy and guidelines—as well as the governance structures and
processes in place. It also sets out the remuneration of Directors, as well as compensation of global senior management for the
current and prior financial reporting years.

2.1 Role of the Compensation Committee
The Compensation Committee monitors and evaluates (i) programs for variable remuneration to senior management, including
both ongoing programs and those that have ended during the year; (ii) the application of the guidelines for remuneration to the
Board and senior management established at the shareholders' meeting; and (iii) the current remuneration structures and levels in
the Company. The Compensation Committee makes recommendations to the Board regarding the compensation of the CEO and
his direct reports; approves all equity plans and grants; and manages Executive Team succession planning. Final approval of the
CEO remuneration requires Board approval.

The evaluation of the CEO is conducted by the Compensation Committee. The evaluation criteria and the results of the evaluation
are then discussed by the Chairman with the entire Board. In 2021, the Board concluded that the CEO provided exceptional
leadership in helping the Company take advantage of the recovery market opportunity and exceeding all financial and operational
targets for the year. In evaluating his performance, the Board took into account the manner in which he rapidly refocused the
business from revenue growth to protecting customers, employees and cash flow. Together with meeting the financial targets
discussed below, the CEO received $2,164,230 in cash and $2,164,230 granted in deferred shares that vest over three years for
the Company’s 2021 performance. The Chairman of the Board conveyed the results of the review and evaluation to the CEO. The
senior management remuneration policy was approved by the shareholders at the AGM in May 2021, and will be presented for
approval at the AGM to be held in May 2022.

2.2 Compensation Committee Charter
The Group’s Compensation Committee Charter can be found on our website under the Board Committees section and covers
overall purpose/objectives, committee membership, committee authority and responsibility, and the committee’s performance
evaluation.

Millicom 2021 Annual ReportGovernance

9 0

2.3 Compensation Committee Membership and Attendance 2021
Committee

Position

First Appointment

Meeting Attendance

Ms. Pernille Erenbjerg

Mr. Lars-Johan Jarnheimer

Mr. James Thompson

Attendance

Mr. Lars-Åke Norling

Overall Attendance

Chairman

Member

January-19

May-21

January-19

Former Member

May-19

5 of 5

3 of 3

5 of 5

13 of 13

2 of 2

15 of 15

100

In addition, the Chairman of the Board, Mr. José Antonio Rios Garcia, attended all of the regularly scheduled meetings of the
Compensation Committee.

2.4 Areas Covered in 2021
The Compensation Committee met five times in 2021 and was primarily focused on reward and management motivation and
retention in the face of the unprecedented operating environment.

Topic

Commentary

Bonus (STI) and performance reports

• Reviewed and approved the Global Senior Management Team's 2020 performance reports

and individual Executive Team payouts for STI/LTI (cash/equity)

• Reviewed and approved 2021 short-term variable compensation targets

Compensation review

• Approved all payments for Executive Team members

• Reviewed executive remuneration and governance trends and developments

• Reviewed and approved the peer group for the Executive Team benchmarking

• Approved changes to CEO and Executive Team compensation elements based on market

competitiveness

Share-based incentive plans

• Approved the 2018 LTI (PSP) vesting

• Reviewed and approved all equity grants

• Reviewed and approved the 2021 share units plan (DSP and PSP) rules

• Reviewed and approved the 2021 long-term variable compensation targets

• Approved the one-off Market Stock Units (MSU) long-term incentive plan for a selected

group of employees

• Reviewed the replenishment of the treasury share balance reserved for share-based incentive

plans

• Reviewed share ownership guidelines and the compliance of each covered employee

• Reviewed performance and projections of outstanding LTI plans (2019, 2020 and 2021)

• Reviewed equity plans participant turnover

Global reward strategy and executive
remuneration review

• Reviewed remuneration/C&B philosophy and strategy

Variable pay design

• Discussed and approved STI and LTI design for 2022

Other

• Reviewed and approved STI and LTI performance measures for 2022

• Reviewed and approved exceptional items, new hire equity grants, etc.

• Reviewed Executive Team’s severance payouts in a change of control

• Reviewed and discussed results of 2022 "Say on Pay"

• Reviewed changes to the Swedish Corporate Governance Code

Compensation Committee governance

• Reviewed and approved the Compensation Committee annual meeting cycle and calendar

• Reviewed the Compensation Committee Charter

• Updated Executive Compensation dashboard

• Reviewed and approved the use of an external compensation consultant

Millicom 2021 Annual Report
Governance

3. Our Compensation Philosophy and Core Principles
The philosophy, guidelines, objectives and policy applicable to remuneration of the Global Senior Management Team were
approved by the shareholders (item 22) of the AGM held on May 4, 2021.

3.1 Core Principles
The Compensation Committee worked using the following objectives for the Global Senior Management Team's compensation.

What we strive for

Competitive and fair

Drive the right behaviors

Shareholder alignment

Pay for performance

Transparency

Market competitive and representative
remuneration

Retention of key talent

What it means

Levels of pay and benefits to attract and retain the right people

Reward policy and practices that drive behaviors supporting our Company strategy and business
objectives

Variable compensation plans that support a culture of entrepreneurship and performance, and
incorporate both short-term and longer-term financial and operational metrics strongly correlated to the
creation of shareholder wealth. Long-term incentives are designed to maintain sustained commitment and
ensure the interests of our Global Senior Management Team are aligned with those of our shareholders.

Total reward structured around pay in line with performance, providing the opportunity to reward strong
corporate and individual performance. A significant proportion of top management's compensation is
variable (at risk) and based on measures of personal and Company performance directly attributable to
short-term and longer-term value creation.

Millicom is committed to expanding external transparency, including disclosure around pay for
performance, links to value creation, etc. We are also investing in HR information systems to facilitate
measurement and internal communications related to incentive composition, including performance
metrics, pay equity, goal setting and pay-for-performance relationships.

Compensation is designed to be market competitive and representative of the seniority and importance
of roles, responsibilities and geographical locations of individuals (with the majority of the Global Senior
Management Team roles located in the U.S.)

Variable compensation plans include a significant portion of share-based compensation, the payout of
which is conditional on future employment with the Company for three-year rolling periods, starting on
the grant date

Executive management to be "invested"

The Global Senior Management Team, through Millicom’s share ownership guidelines, is required to
reach and maintain a significant level of personal ownership of Millicom shares

To drive the right behaviors and ensure expectations are aligned, we communicate clearly to our employees what we do and do not
do when it comes to compensation. A summary is set out in the table below:

What we do

Align pay and performance

Designate a substantial majority of executive pay as at risk, based on a mix of absolute and
relative financial and share price performance metrics

Impose limits on maximum incentive payouts

Engage in a rigorous target-setting process for incentive metrics

Set our STI threshold to pay only at 95% and higher levels of performance

Maintain robust share ownership guidelines for our top 50 executives

Provide “double-trigger” change-in-control provisions in equity awards

Maintain clawback policies that apply to our performance-based incentive plans

Retain an independent compensation consultant

What we don't do

Create special executive prerequisites

Hedge Company stock by executives

Provide dividends or dividend equivalents on
unearned PSUs or RSUs

Offer tax gross-ups related to change in control

Millicom 2021 Annual Report
Governance

3.2 Elements of Executive Pay
Compensation for the Global Senior Management Team in 2021 comprised a base salary, a short-term incentive (STI) plan and a
long-term incentive (LTI) plan, together with pension contributions and other benefits (e.g., healthcare).

Salary

Pay element

Purpose

Maximum opportunity

Purpose and link to strategy

Designed to be market competitive to attract
and retain talent

No absolute maximum has been set for
Executive Team salaries. The committee
considers increases on a case-by-case basis
based on peer comparison. Pay increases
usually reflect a combination of roles and
responsibilities, local market conditions and
individual performance.

Operational execution

STI

Pay element

Paid monthly in cash in U.S. dollars or the home
currency of the executive

Reviewed by the Compensation Committee
every March

The Compensation Committee aims to set
salaries for the Executive Team at the median of
the peer group.

Purpose

Payout opportunity

The STI links reward to key business targets (70%) and individual
contribution (30%).

With less than 95% achievement of business targets, the
award falls to 0%. The threshold achievement is 95% of
the target, resulting in a payout of 80%. The opportunity
is 200% for the achievement of 104% for service revenue,
106% for EBITDA and 107% for OFCFaL.

The STI aligns with shareholders’ interests through the provision
of 50% of the payment delivered in share units deferred over three
years (DSP) for the senior leadership team. The DSP is awarded upon
achieving the performance targets, with 30% paid after one year,
30% after the second year and 40% after the third year of the grant
date.

The target achievement for:
CEO – 200%
CFO – 150%

Purpose and link to
strategy

These plans help incentivize and motivate leadership to execute
strategic plans in operational decision-making and achieve short-
term performance goals, impacting Company performance and
enhancing its value.

Maximum achievement:
CEO – 400%
CFO – 300%

The financial and operational targets are;

•

Service revenue

EBITDA

Operating free cash flow after leases (OFCFaL)

Transactional Net Promoter Score (tNPS)

•
2021 GATEWAY: All Operations to have implemented a robust and stable
Relational NPS measurement platform by year end (in addition to the
achievement of tNPS targets). At individual level (Operations), if gateway is
not reached there will be no payout on the NPS component, regardless of tNPS
achievement. For Corporate, if any one of the Operations fails to meet the
gateway, there will be no payout on the NPS component

•

Personal performance

20%

10%

30%

Benchmarking

Our STI is a key component of the Millicom Group culture. We
benchmark to peer companies within the U.S. and Latin America.

Each year the Compensation Committee determines the
annual STI opportunity for the Executive Team.

Millicom 2021 Annual Report

Governance

LTI

Pay element

Purpose and link to
strategy

Operational
execution

Purpose

Payout opportunity

The LTI links an important part of overall Global Senior Management
Team compensation with the interests of our shareholders.

This plan aligns the Global Senior Management Team's longer-
term incentives with the longer-term interests of shareholders,
encouraging long-term value creation and retention.

Millicom emphasizes the One Team mentality by maintaining unified
goals and objectives in the long-term incentive program for the
Global Senior Management Team, with the purpose of driving the
successful achievement of three-year performance goals designed to
enhance long-term value of the Company.

The LTI is a performance-based share units plan (PSP) whereby
awarded share units fully vest at the end of a three-year period,
subject to achievement against performance measures and
fulfillment of conditions.

LTI payouts are typically in share units and based on company three-
year cash flow and revenue targets approved by the Compensation
Committee and the Board, in addition to shareholder return.

Performance share units plan (PSP) and RSU component

The weights for the PSP component are:

• Service revenue: 15%
• OFCFaL (operating free cash flow): 30%*
• Relative TSR: 20%
• Time Vested RSUs: 35%

The PSP and RSU component pays out/is settled in shares
at the end of three years.

*Since the 2021 LTI, we use OCFaL (operating cash flow after leases)
in lieu of OFCFaL (operating free cash flow after leases) and include
a portion of the grant as RSUs following U.S. market practice. These
will also vest at the end of the corresponding three-year period.

Market Stock Units (MSU) is a special one time stock-based
performance plan to be settled in cash. The plan offers pro-rata
vesting in two tranches (50% in June 2022 and 50% in June 2023),
payable one year after vesting subject to continuous employment.

The number of MSUs is determined on the basis of a share price at
inception of $43.09 for Tranche 2022 (10%) and $47.00 for Tranche
2023 (20%). The awards are payable only after an additional
12-month employment period post vesting.

For financial metrics, achieving less than 80% of the
target results in a payout of 0%. In the event the Company
achieves between 80% and 120% of the target, the
corresponding portion of the grant will be adjusted in linear
pro rata of the achievement, starting at a payout of 0% at
an achievement of 80% up to a maximum value of 200%
if the target achievement is 120% or higher. For TSR, no
award is granted for performance below the peer group
median. If the Company achieves a TSR performance at
the median or above of a pre-determined peer, the grant
will be adjusted in linear pro rata of the achievement
starting at a payout of 100% up to a maximum value of
200% for a target achievement of 120% or higher.

For the 2021 LTI, we granted 35% of the respective amount
for each eligible employee as time-vested RSUs. Because
of their lower volatility, RSUs help strengthen the retention
component in the LTI plan and cushion exogenous impacts,
such as the COVID pandemic.

The target achievement (including the RSU element) for:
CEO – 480%
CFO – 175%

The maximum achievement (including the RSU element)
for:
CEO – 792%
CFO – 288%

At the vesting date, the value of the MSU is determined
by the 30-trading day average share price ending on
June 30, 2022 for Tranche 2022, and the 30-trading day
average share price ending on June 30, 2023, for Tranche
2023. For each tranche, the payment is made in cash 12
months after the respective dates, subject to continuous
employment. For every participant, payment is capped
at 150% of their Target MSU Award Value set up for each
tranche.

Participants of the MSU plan were required to forfeit their
awards under LTI 2019 and LTI 2020 in respect of the
financial targets (service revenue growth and operating cash
flow), provided that the TSR component continues to be
active for these schemes.

Benchmarking

Our LTI is a key component of the Millicom Group culture.

For executives, we benchmark to peer companies within the U.S.

Each year the Compensation Committee determines the
annual LTI opportunity for the Executive Team.

Millicom 2021 Annual Report
Governance

Company Performance

Time Vested RSUs

OCFal

Service Revenue

Relative TSR

Min

Target

Max

Min

Target

Max

Min

Target

Max

WEIGHT

30%

15%

20%

35%

In addition, the Board uses retention schemes to ensure continued retention of key individuals during periods of uncertainty.

3.3 Other Employment Terms
and Conditions
Notice of termination: If the employment
of a member of Millicom’s Executive
Team is terminated, a notice period of
up to 12 months potentially applies.
The Board regularly reviews best
practices in executive compensation
and governance and revises policies and
practices when appropriate. Millicom's
change-in-control agreements for
eligible executives include "double-
trigger" provisions, which require an
involuntary termination (in addition
to change in control) for accelerated
vesting of awards.

Deviations from the policy and
guidelines: In special circumstances,
the Board may deviate from the
above policy and guidelines; for
example, providing additional variable
remuneration in the case of exceptional
performance.

As mentioned in the previous Annual
Report, the committee did not change
any of the performance measures
or targets for any of the “in-flight”
incentive plans, STI or LTI.

For the 2021 STI/LTI plans, we
established targets from the beginning
of the year—although forecasting due
to the pandemic was still challenging—
and did not make any adjustments
during the year.

The committee geared the design
of those plans to motivate our
management teams in the hardest-hit
countries to seize such opportunities
and "kick back" into growth by
incentivizing our employees to strive for
excellence. This design has been quite
successful, as it has helped substantially
improve our financial KPIs.

Since the start of the COVID-19
pandemic, we have not implemented
any restructuring programs, and we
chose not to furlough or implement
redundancies, helping us retain
approximately 93% of key talent during
this period.

3.4 Other Executive Compensation
Policies

Millicom’s clawback policy requires
its Board of Directors’ Compensation
Committee to seek recovery of incentive
compensation awarded or paid to
those officers covered under the policy,
in the event the committee finds the
restatement of Millicom’s audited and
published financial statements results in
compensation in excess of what would
have been paid based on the restated
operating and financial performance.

In addition, the Company’s insider
trading policy prohibits any hedging
or speculative transactions in the
Company’s shares, including the use of
options and other derivatives. It also
prohibits directors and employees from
selling the Company’s stock short.

4. Key Developments for 2021
During 2021, we were attentive to
the ongoing impact of the COVID-19
pandemic and continued focusing on
protecting the health of employees,
customers and partners. We worked on
several health and safety initiatives,
including providing vaccinations to our
employees; structuring return-to-office
schemes that prioritize health and
safety (such as hybrid approaches);
delaying office re-openings where
vaccines were not widely available; and
other cautionary measures.

Millicom 2021 Annual ReportGovernance

4.1 Key Elements of 2021 CEO and CFO Pay
In 2021, the key elements of the CEO and CFO compensation, in line with the remuneration policy, were as follows;

Salary
(USD) *

Short-Term Incentive

Long-Term
Incentive

Pension

Benefits

MSU Plan

Mauricio Ramos
(CEO)

$1,189,187

Tim Pennington
(CFO)**

$709,949

200% of
Base Salary
delivered:

Performance
Measures:

150% of
Base Salary
delivered:

Performance
Measures:

50% in Cash Bonus PSP award of 480%

50% in Share
Units over 3
years vesting
30%/30%/40%

60% Financial

10% Customer

30% Personal

of salary with
3-year cliff vesting
(35% delivered in
time vested shares
and the remaining
portion based
on performance
shares)

50% in Cash Bonus PSP award of 175%

50% in Share
Units over 3
years vesting
30%/30%/40%

60% Financial

10% Customer

30% Personal

of salary with
3-year cliff vesting
(35% delivered in
time vested shares
and the remaining
portion based
on performance
shares)

Private
healthcare

15% of salary

Life insurance

Car Allowance

Each of the two
tranches have a
target payment
opportunity of
USD 4 Million

Private
healthcare

15% of salary

Life insurance

Car Allowance

Each of the two
trances have a
target payment
opportunity of
USD 800K

*CEO / CFO Salary as of December 2021.

**CFO Compensation paid in Pounds GBP and for purposes of this report converted to USD using December Closing Forex (0.7392 GBP/USD).

4.2 Summary of Total CEO/CFO Compensation
The compensation for the CEO and CFO is summarized in the table below:

In USD

Base Salary

Fringe Benefits**

Pension Expense

Total Fixed

Annual Bonus***

Deferred Share Units***

LTIP****

Total Annual Variable

Annual Compensation

MSU Plan*****

Total 2021 Compensation

% Annual Fixed

% Annual Variable

Mauricio Ramos (CEO)

Tim Pennington (CFO)*

2021

2020

2021

2020

1,185,140

87,551

284,243

1,556,934

2,164,320

5,630,400

9,959,040

11,515,974

8,000,000

19,515,974

13.52%

86.48%

1,173,000

82,225

284,520

1,539,745

1,301,131

5,630,400

8,232,662

9,772,407

—

9,772,407

15.76%

84.24%

707,532

46,362

106,130

860,024

969,079

1,237,889

3,176,047

4,036,071

1,600,000

5,636,071

21.31%

78.69%

669,757

37,600

100,464

807,821

508,896

1,200,964

2,218,756

3,026,577

—

3,026,577

26.69%

73.31%

*CFO compensation is paid in GBP and, for the purposes of this report, converted to USD using December Closing Forex for each period.

**Fringe benefits include car allowance, life and disability insurance, and medical and dental insurance.

***The sum of the annual bonus and deferred share units is the total for the short-term incentive award for the performance period. 2021 STI is to be paid and
granted in Q1 2022.

****LTIP is performance share units granted in 2021.Calculated based on the average Millicom closing share price on the Nasdaq in the US for the three-month period
ending December 31, 2021.

*****MSU plan: Our stock-based MSU performance plan is settled in cash. Pro-rata vesting occurs in two tranches (50% in June 2022 and 50% in June 2023), payable one year
after vesting subject to continuous employment. The number of MSUs is determined on the basis of a share price at inception of $43.09 for Tranche 2022 (10%) and $47.00 for
Tranche 2023 (20%). The awards are payable only after an additional 12-month employment period post vesting.

Millicom 2021 Annual ReportGovernance

Excluding the MSU, the CEO’s reported pay increased from $9.8 million to $11.5 million, a 17.3% increase that reflected the
significantly improved financial performance compared to the more-depressed 2020 outturn. The MSU was added as an additional
incentive to improve the share prices over two years. At target, the scheme could pay the CEO $8 million for achieving a share price
of $43.09 by July 2022 and $47.00 by July 2023. The mark-to-market total value of the MSU for the CEO is approximately $3 million
based on 2021 closing share price. The MSU is settled in cash.

Realized Pay Supplemental Table

In USD

Base Salary

Car Allowance

Pension Expense

Total Fixed

Annual Bonus Paid*

Deferred Share Units Vested**

LTIP Vested***

Total Variable Paid

Total Realized Paid

% Fixed

% Variable

Mauricio Ramos (CEO)

2021

2020

1,185,140

15,000

284,243

1,484,383

1,301,131

930,836

1,457,988

3,689,955

5,174,339

28.69%

71.31%

1,173,000

15,000

284,520

1,472,520

1,427,497

932,141

1,553,984

3,913,622

5,386,143

27.33%

72.66%

*Annual bonus paid is the cash portion for the short-term incentive award for the performance period in that calendar year (i.e., the 2021 column displays the amount paid in
Q1 2021 from 2020 performance).

**Deferred share units vested are the shares vested from the pro-rata vesting of the three years prior (i.e., the 2021 column displays the amount vested in Q1 2021: 30% from
2020 grant, 30% from 2019 grant and 40% from 2018 grant.

***LTIP vested are the shares vested from the cliff vesting of the LTI granted three years prior (i.e., the 2021 column displays the amount vested in Q1 2021 from 2018 grant.

The total short-term award for the CEO, CFO and other senior leadership team is split 50% in cash and 50% in share units deferred
over a three-year period (DSP). The compensation for the CEO and CFO is heavily weighted to variable compensation in the form of
share units vesting over a three-year period. As a result, total compensation as shown in the previous table may differ significantly
relative to the actual realized compensation in any given year. The table below compares CEO total compensation to his actual
realized compensation in the last three years.

2021 CEO Compensation

4.3 Performance on STI 2021
As in previous years, the annual bonus is determined by a mixture of business performance and individual performance factors.
The business performance factors included measures of service revenue, earnings before interest, tax, depreciation and
amortization (EBITDA), operating free cash flow after leases (OFCFaL), and a customer satisfaction metric based on Net Promoter
Score achievement. For this year's plan, we started to migrate from a transactional NPS to a relational NPS metric. Thus, we
included a gateway decision to ensure that payment on the transactional NPS component only takes place if the preparedness for
the relational NPS was reached before year’s end. The use and relative weighting of financial performance target measures under
the variable compensation rules are equal for all employees regardless of seniority or area of operation. This includes the CEO and
the senior leadership team.

Reported Pay (millions)

Realized Pay (millions)

$19.5

$8.9

$9.8

$5.2

$5.4

$5.2

2019

2020

2021

2019

2020

2021

Base Pay STI–Bonus Share Awards Other Compensation MSU

Total Cash Vesting Previous Awards

Notes
-In average approximately 73% of CEO compensation is delivered in form of share
-In average realized pay has been 47% of Reported Pay

Millicom 2021 Annual ReportGovernance

Base
Salary

Target
Percentage

Business
Performance Factors

Individual
Performance Amounts

Annual Incentive
Amount

For the CEO and senior leadership team, a portion of the STI is paid in the form of deferred share units with a three-year pro-rated
vesting, strengthening our pay-for-performance and retention incentives.

For 2021, the achievement of performance targets is set out in the table below;

2021 STI—Group Results for a Meets Personal Performance

Flow after Leases =
EBITDA—Lease payments
Cash Out—CapEx =/–
Operating Working Capital—
Tax paid (excl deferred tax).

For the CEO and other eligible DSP participants, the issuance of share units under the DSP is subject to shareholder approval at
Millicom’s AGM of shareholders. For employees not participating in the DSP, or to the extent that the DSP is not approved by the
AGM, the STI will be implemented as a cash-only bonus program.

Under the 2021 STI, 2022 DSP share units are granted in Q1 2022 and will vest (generally subject to the participant still being
employed by the Millicom group) 30% in Q1 2023, 30% in Q1 2024 and 40% in Q1 2025. The vesting schedule is unchanged from
the 2021 DSP.

4.4 LTI (PSP)
This section reviews the LTI 2019 performance, which vested in January 2022 and paid out in Q1 2022 to one non- executive
participant. It also reviews the LTI 2021 plan granted in 2021 to 41 participants, including the CEO and CFO.

Base
Salary

Target
Percentage

Performance Performance
(75%) + rTSR (25%)

LTI Payout

Target Opportunity

Company Performance

Service Revenue40%106.0%EBITDAOFCFalNPSPersonal PerformanceNPS:(Operational Free Cash Net Promoter Score) measures the willingness of customers to recommend a company’s products or services to others.Performanceratings:-ExceptionallyExceeds-Exceeds-Meets-Partially Meets-Doesn’tMeet20%20%20%10%30%OFCFal: Service Revenue:Is revenue related to the provision of ongoing services, excluding telephone and equipment sales.EBITDA:Is operating proﬁt excluding impairment losses, depreciation & amortization, and gain/losses on ﬁxed asset disposals.STI 2021100%target range $5.86B$5.35B $6.64BX167%40%107.5%target range $2.54B$2.27B $2.39BX40%127.0%target range $0.54B$0.47B $0.50BX17%107.0%target range 110%95% 100%X30%100.0%target range 60%0% 30%–MeetsXMillicom 2021 Annual ReportGovernance

4.4.1 LTI (PSP) 2019 Performance
The LTI 2019 plan vested in January 2022 with an award of 7.6%. The outturn of LTI 2019 has been audited by Ernst & Young in
respect of the financial performance measures and by Towers Watson for the TSR.

For LTI 2019, the achievement of performance targets is set out in the table below:

2019 Long Term Incentive (LTI)—Three Year Plan

Notes: Relative TSR considered the following peers: America Movil, Telefonica, TIM Brazil, TEF Brazil, Entel Chile, Lilac

The PSP 2019 did not meet the criteria for vesting for the CEO and CFO awards:

Name

Mauricio Ramos
(CEO)

Tim
Pennington(CFO)

Type of
award

Basis of award

Face value of
award

Number of share
units granted

End of
performance
period

Achievement

Number of shares
vested

LTI19

400% of salary

$4,600,000

77,111

Dec-21

LTI19

175% of salary

$1,132,957

18,992

Dec-21

—%

—

Deviations from the guidelines: In special circumstances, the Board may deviate from the above guidelines, such as providing
additional variable remuneration in the case of exceptional performance. In these instances, the Board will explain the reason
for the deviation at the following AGM. For the LTI in this review—PSP 2019, PSP 2020 and PSP 2021—no discretion has been
exercised and none of the performance or other conditions have been changed.

4.4.2 Award LTI 2021
A new plan was issued in 2021 in accordance with the remuneration policy guidelines, designed to drive shareholder value through
a focus on service revenue growth, cash flow generation and relative total shareholder return against a relevant peer group. The PSP
2021 plan was approved by shareholders at the 2021 AGM:

Metric

Weighting

Performance target

Performance measure

Service revenue

OFCF

TSR

15%

30%

20%

Time Vested RSUs

35%

Target growth

A specific 3-year Cumulative Growth target

The Company TSR relative to a peer group between
2021 and 2023

At median - target payout; below median - nil; 20%
above median - max

The peer group for the PSP 2021 is: America Movil, TIM Brazil, TEF Brazil, Entel Chile, Lilac, Telecom Argentina, Grupo Televisa,
Megacable.

For the CEO and CFO, the award of LTI 2021 is summarized below:

Name

Mauricio Ramos
(CEO)

Tim Pennington
(CFO)

Type of award

PSU - 3 years

Cliff Vesting

PSU - 3 years

Cliff Vesting

Basis of award

480% of salary (35% in
time vested shares)

175% of salary (35% in
time vested shares)

Face value of
award

Number of
share units
granted

End of performance
period

$5,630,400

159,941

December 2023

$1,237,889

35,164

December 2023

OFCFaL0%0.0%50%25%25%STI 2019100%target range 12%8% 10%X7.6%7.6%86.0%target range 4.8%3.3% 4%X0%0.0%target range Median + 20%Median No Payment}XOFCAL: Operational Free Cash Flow Flow after Lease = EBITDA—Lease payment Cash Out-CapEx =/– Operating WorkingCapital—Tax paid (excl)deferred tax).Service Revenue: is revenuerelated to the provision of ongoing services excluding telephone and equipment sales.r-TSR:Company’s Relative TSR—Compound annual growth rate.Service RevenueOFCFaLMillicom 2021 Annual ReportGovernance

4.4.3 MSU Grant 2021
For the CEO and CFO, the 2021 MSU award is summarized below:

Name

Type of award

Basis of award

Face value of award (USD)

End of performance period

Payout date

Mauricio Ramos (CEO)

MSU – Tranche 1 payout
June 2023

MSU – Tranche 2 payout
June 2024

Tim Pennington (CFO)

MSU – Tranche 1 payout
June 2023

MSU – Tranche 2 payout
June 2024

Target payout if share
price reaches $43.09 by
July 2022

Target payout if share
price reaches $47.00 by
July 2023

Target payout if share
price reaches $43.09 by
July 2022

Target payout if share
price reaches $47.00 by
July 2023

$ 4,000,000

July 2022

July 2023

$ 4,000,000

July 2023

July 2024

$ 800,000

July 2022

July 2023

$ 800,000

July 2023

July 2024

As noted above, the Board believed it was necessary to introduce an additional one-off performance vested equity plan to incentivize
senior management to improve the share price. The retention plan has been awarded to a selected group of executives, including the
CEO and CFO. The plan is based on MSU and is a performance-based scheme where the outcome is dependent on the share price at
the time of vesting. The MSU is settled in cash. We have retained 97% of all executives made eligible under this plan.

5. Remuneration Approach for 2022
For 2022, the Board has proposed continuing with a consistent framework of STI and LTI, with a few changes explained below. We
have removed the RSU component from the LTI, thus reducing the LTI opportunity for 2022, and made a corresponding increase in
the share component of the STI, where the grant amounts are driven by annual performance but still provide a retention element
through three-year pro-rata vesting (30%, 30%, 40%).

For the CEO, the at-target and maximum remuneration for 2022 is set out below*:

At Target
At Target

Shares
Shares
71%
71%

Cash
Cash
28%
28%

Beneﬁts
Beneﬁts
0.8%
0.8%

Fixed
Fixed
16%
16%

At Maximum
At Maximum

Shares
Shares
78%
78%

Cash
Cash
22%
22%

Beneﬁts
Beneﬁts
0.4%
0.4%

Fixed
Fixed
9%
9%

At Target
At Target

Variable
Variable
84%
84%

At Maximum
At Maximum

Variable
Variable
91%
91%

*CEO earnings opportunity 2022 target analysis (excludes MSU).

At target, CEO compensation is paid 71% in share units and 84% in variable compensation.

At maximum, CEO compensation is paid 78% in share units and 91% in variable compensation.

Millicom 2021 Annual ReportGovernance

10 0

5.1 Summary of Key Changes for 2022
We made two small changes to the 2022 remuneration plans, with a continued focus on pay for performance and incentivizing the
retention of key talent.

For the 2022 STI, we will fully transition our NPS metric from a transactional focus to a relational approach. We believe this will be a
more stringent way to measure our strategic intent to deliver the best customer experience.

For the LTI 2022, the structure of the award remains consistent with 2021, with only one change. As the business context is
stabilizing and per feedback from our key shareholders, we reverted to 100% performance shares for our LTI plan. We made a
corresponding increase in the share component of the STI, where the grant amounts are driven by annual performance but still
provide a retention element through three-year pro-rata vesting (30%, 30%, 40%).

Base
Salary

Target
Percentage

Performance Performance
(70%) + rTSR (30%)

LTI Payout

Target Opportunity

Company Performance

6. Sundry

6.1 Summary of Outstanding Awards

Opening
Balance

During the Year

Closing
Balance

Performance
Period

Award
Grant
Date

Vesting
Date

Award
Share
Price in
USD

Outstanding
Balance
as of Dec.
2020

Share Units
Granted in
2021

Shares
Vested in
2021

Forfeited in
2021

Outstanding
Balance as of
Dec. 2021

Award
Details -
Plan Name

2018 DSP

2019 DSP

2020 DSP

2021 DSP

2017

2018

2019

2020

1/1/2018 1/1/2021

1/1/2019 1/1/2022

1/1/2020 1/1/2023

1/1/2021 1/1/2024

2018 PSP

2018-2021

3/1/2018 3/1/2021

2019 PSP

2019-2022

3/1/2019 1/1/2022

2020 PSP

2020-2023

3/1/2020 1/1/2023

2021 PSP

2021-2024

1/1/2021 1/1/2024

2018 DSP

2019 DSP

2020 DSP

2021 DSP

2017

2018

2019

2020

1/1/2018 1/1/2021

1/1/2019 1/1/2022

1/1/2020 1/1/2023

1/1/2021 1/1/2024

2018 PSP

2018-2021

3/1/2018 3/1/2021

2019 PSP

2019-2022

3/1/2019 1/1/2022

2020 PSP

2020-2023

3/1/2020 1/1/2023

2021 PSP

2021-2024

1/1/2021 1/1/2024

Name

Plan Type

Deferred
Share Plan

Performance
Share Plan

Deferred
Share Plan

Performance
Share Plan

Mauricio
Ramos
(CEO)

TOTAL
Mauricio
Ramos
(CEO)

Tim
Pennington
(CFO)

TOTAL Tim
Pennington
(CFO)

$66.11

$59.65

$45.86

$35.20

$66.11

$59.65

$45.86

$35.20

$66.11

$59.65

$45.86

$35.20

$66.11

$59.65

$45.86

$35.20

7,161

17,508

31,126

—

36,963

69,576

77,111

122,768

—

159,941

7,161

7,504

9,338

—

38,942

—

30,634

57,833

92,076

—

10,004

21,788

36,963

—

19,278

30,692

—

159,941

325,250

196,904

62,945

180,543

278,666

4,711

6,537

13,657

—

14,457

17,890

18,992

26,186

—

35,164

4,711

2,801

4,097

—

10,013

—

7,877

14,244

19,640

—

3,736

9,560

14,457

—

4,748

6,546

35,164

87,973

49,621

21,622

41,761

74,211

Millicom 2021 Annual ReportGovernance

6.2 Summary of Shares Owned vs. Target
Millicom’s share ownership policy sets out the Compensation Committee’s requirements for the Global Senior Management Team to
retain and hold a personal holding of common shares in the Company to align their interests with those of our shareholders. All share
plan participants in the Global Senior Management Team are required to own Millicom shares to a value of a percentage of their
respective base salary as of January 1 of each calendar year.

For that purpose, we continue to uphold our share ownership requirements for our top 50 roles:
Global Senior Management Level

% of Annual Base Pay

101

CEO

CFO

EVPs

General Managers and VPs

For the CEO and CFO:

400

200

100

Awarded
unvested subject
to performance
conditions

Awarded unvested
not subject to
performance
conditions

Shares required to
be held as % salary

Number of shares
required to be
held

Number of
beneficially
owned shares

Shareholding
requirement met

Mauricio Ramos
(CEO)

Tim Pennington
(CFO)

209,911

46,458

68,755

27,753

400%

200%

133,285

232,562

40,188

70,095

Yes

Unless this requirement is met each year, no vested Millicom shares can be sold by the individual.

6.3 Details of Share Purchase and Sale Activity
During 2021, neither the CEO nor the CFO purchased nor sold any Millicom shares.

6.4 Historic CEO and CFO Pay

CEO Remuneration*

CFO Remuneration*

Group EBITDA

Average remuneration on FTE basis of employees of parent
company**

2020 vs. 2019

2021 vs. 2020

Information Regarding 2021 (USD)

9.2%

(4.2)%

(1.4)%

0.5%

17.8%

33.4%

5.9%

3.6%

USD$M19.5

USD$M4.0

USD$B2.5

USD$25,280

*Year-over-year remuneration comparison compares total compensation column in 4.2 summary of total CEO/CFO compensation of this report (excludes MSU).

**Average remuneration on a full-time equivalent basis of employees of the Millicom Group other than the CEO, reported by each individual operation as of Dec 31, 2021.

6.5. Board Compensation

Governance of Director Remuneration
Decisions on annual remuneration of Directors (“tantièmes”) are reserved by the Articles of Association to the general meeting of
shareholders. Directors are prevented from voting on their own compensation. Resolution 17 of the AGM on May 4, 2021, approved
the Director remuneration from the date of the 2021 AGM to the date of the AGM in 2022.

2021 Director Remuneration
During early 2021, in proposing Director remuneration, the Nomination Committee received input from an external compensation
advisor—including market and peer benchmarking—and considered the frequency of meetings and complexity of Millicom’s
business and governance structures. After considering these and other relevant aspects, the Nomination Committee proposed
keeping the structure and amount of remuneration for each role for the Non-Executive Directors the same as the prior year.

a) Non-Executive Director Remuneration
Remuneration of the Non-Executive Directors comprises an annual fee and shares denominated in U.S. dollars. The remuneration
is 100% fixed. Non-Executive Directors do not receive any fringe benefits, pensions or any form of variable remuneration. No
remuneration was paid to any of the Non-Executive Directors in 2021 or 2020 from any other undertakings within the Millicom
Group.

b) Executive Director Remuneration
Executive Directors do not receive any remuneration in their capacity as Directors.

Millicom 2021 Annual ReportGovernance

Approval of 2021 Director Remuneration
The Nomination Committee’s proposal for Director remuneration was approved at the AGM on May 4, 2021.

Name of Director

Year (i)

Cash-based fee
($000's)

Share-based fee (ii)
($000's)

Total
($000's)

102

Mr. José Antonío Rios García

Chair of the Board

Ms. Pernille Erenbjerg

Deputy Chair of the Board
Chair of the Compensation Committee

Mr. Odilon Almeida

Chair of the Compliance and Business Conduct

Mr. Bruce Churchill A,

Ms. Sonia Dulá A, CBE

Ms. Mercedes Johnson A, CBE

Chair of the Audit Committee

Mr. Lars-Johan Jarnheimer C

Mr. James Thompson A, C

Former Directors

Mr. Tomas Eliasson (until May 2021)

Mr. Lars-Åke Norling C, CBE (until May 2021)

Total

2021

2020

2021

2020

2021

2020

2021

2020

2021

2020

2021 (iii)

2020

100

122.5

72.5

107.5

62.5

687.5

637.5

200

150

100

950

850

300

250

272.5

175

172.5

185

207.5

185

162.5

185

195

175

1,637.50

1,487.00

(i) Remuneration covers the period from May 4, 2021, to the date of the AGM in May 2022 as resolved at the shareholder meeting on May 4, 2021 (2020: for the period from

June 25, 2020, to May 4, 2021).

(ii) Share-based compensation for the period from May 4, 2021, to May 2022 was based on the average closing price of Millicom shares for the three-month period ended April

30, 2021, and represented a total of 24,737 shares (2020: 32,358 shares).

A Member of Audit Committee

C Member of Compensation Committee

CBEMember of Compliance and Business Ethics Committee

(iii) Total remuneration for the period from May 4, 2021, to May 2022 after deduction of applicable withholding tax at source comprising 73% in shares and 27% in cash (2020:

71% in shares and 29% in cash).

6.6 2021 AGM Vote

Director Remuneration

47,398,168

97.05%

55,994

0.11%

Senior Management Remuneration Guidelines and Policy

38,482,068

78.79%

8,894,385

18.21%

1,384,841

1,462,550

2.84%

2.99%

Votes For

Votes Against

Abstentions

Millicom 2021 Annual ReportGovernance

Millicom CEO and Executive Team

CEO

Mr. Mauricio Ramos

Position

CEO

103

Role and responsibilities

• Leading the development and execution of the Company’s strategy

• Overseeing day-to-day activities and management decisions, both operating and financial
• Acting as liaison between the Board and management of the Company
• Leading the Executive Team

Mr. Mauricio Ramos
Chief Executive Officer and Executive Director

Mauricio joined Millicom in April 2015 as CEO and was elected as an Executive Director in June 2020.

Previously, he was President of Liberty Global’s Latin American division from 2006 until February
2015. Mauricio held several leadership roles at Liberty Global, including Chairman and CEO of VTR in
Chile, Chief Financial Officer of Liberty’s Latin American division and President of Liberty Puerto Rico.

Currently, Mauricio is (i) a member of the Board of Directors of Charter Communications (U.S.), (ii)
the Chair of the U.S. Chamber’s U.S.-Colombia Business Council (USCBC), (iii) a commissioner of the
Broadband Commission for Sustainable Development and (iv) a member of the Presidential Advisory
Council of the INCAE business school.

He is a dual Colombian and U.S. citizen who received Economics and Law degrees and a
postgraduate degree in Financial Law from Universidad de Los Andes in Bogota.

MILLICOM SHAREHOLDING AT JANUARY 31, 2022: 232,562 shares

Millicom’s Executive Team members support the CEO in the day-to-day operation and management of the Group, within their
specific areas of expertise. The team meets at least once a month and more frequently when required. Millicom’s Executive Team is
as follows:

Executive

Team

Role responsibilities

Mr. Tim Pennington

Chief Financial Officer

Mr. Sheldon Bruha

Incoming Chief Financial Officer

Mr. Esteban Iriarte

Chief Operating Officer–Latam

Mr. Xavier Rocoplan

Chief Technology and Information Officer

Mr. Karim Lesina

Chief External Affairs Officer

Mr. Salvador Escalón

Chief Legal and Compliance Officer

Ms. Susy Bobenrieth

Chief Human Resources Officer

Finance and financial planning; financial performance
reporting, including external financial reporting;
budgeting, forecasting and monitoring expenditures
and costs; implementation and enhancement of
related controls; risk management; oversight of the
African business.

As described above upon retirement of Mr. Pennington
on April 1, 2022

Operations and development of the Latin American
businesses

Networks, information technology, procurement and
cybersecurity within the Group

Government relations, regulatory affairs, corporate
communications, corporate responsibility and
corporate security

Legal and corporate governance matters, including
oversight, identification and management of legal
issues, risks and claims of the Group; legal aspects of
mergers and acquisitions and other corporate and
commercial transactions; data privacy; compliance
matters such as ethics, anti-bribery, anti-corruption,
anti-money laundering and related compliance
programs

Human resources matters, including talent acquisition
and management, compensation, and diversity, equity
and inclusion

Millicom 2021 Annual ReportGovernance

10 4

The profiles of the CFO and Executive Team members are provided below:

Mr. Tim Pennington
Senior Executive Vice President, Chief Financial Officer

Tim joined Millicom in June 2014 as Senior Executive Vice President and Chief Financial Officer.

Previously, he was the Chief Financial Officer at Cable and Wireless Communications plc, Group
Finance Director for Cable and Wireless plc and CFO of Hutchison Telecommunications International
Ltd, based in Hong Kong. Tim served as Finance Director of Hutchison 3G (UK), Hutchison
Whampoa’s British mobile business. He also has corporate finance experience as a Director at Samuel
Montagu & Co. Limited and as Managing Director of HSBC Investment Bank within its Corporate
Finance and Advisory Department.

Tim is a currently a member of the Board of Directors of Euromoney Institutional Investor plc.

He is a British national and holds a Bachelor of Arts (Honors) degree in Economics and Social Studies
from the University of Manchester.

MILLICOM SHAREHOLDING AT JANUARY 31, 2022: 70,095 shares

Mr. Sheldon Bruha
Executive Vice President, Incoming Chief Financial Officer

Sheldon joined Millicom in January 2022 and will take over as Chief Financial Officer when Tim
Pennington retires on April 1, 2022.

Prior to joining Millicom, he was the Chief Financial Officer at Frontier Communications, one of the
largest fixed-line communication providers in the U.S., where he successfully helped navigate the
business through its financial restructuring. Prior to joining Frontier, he held several senior financial
leadership roles at Cable & Wireless, including Head of Corporate Development, where he led the
strategic transformation and reshaping of the company prior to its sale to Liberty Latin America. He
also held senior financial leadership roles at CDI Corp. Sheldon started his career at Lehman Brothers,
holding senior investment banking positions in its New York and London offices focusing on the
telecommunications industry.

He is an American national and holds a a Bachelor of Science (Honors) degree in Business
Administration from Washington University.

MILLICOM SHAREHOLDING AT JANUARY 31, 2022: no shares

Millicom 2021 Annual ReportGovernance

105

Mr. Esteban Iriarte
Executive Vice President, Chief Operating Officer, Latin America

Esteban was appointed as Executive Vice President and Chief Operating Officer (COO), Latin America
in August 2016.

Previously, Esteban was General Manager of Millicom’s Colombian businesses where, in 2014, he led
the merger and integration of Tigo and the fixed-line company UNE. Prior to leading Tigo Colombia,
Esteban was head of Millicom’s regional Home and B2B divisions. From 2009 to 2011, he was CEO
of Amnet, a leading service provider in Central America for broadband, cable TV, fixed-line and data
services, which Millicom acquired in 2008.

Currently, Esteban is a member of the Board of Directors of Sura Asset Management, one of Latin
America’s leading financial groups.

Esteban is from Argentina. He received a degree in Business Administration from the Pontificia
Universidad Catolica Argentina (Santa Maria de los Buenos Aires) and an MBA from the Universidad
Austral in Buenos Aires.

MILLICOM SHAREHOLDING AT JANUARY 31, 2022: 45,679 shares

Mr. Xavier Rocoplan

Executive Vice President, Chief Technology and Information Officer

Xavier joined the Executive Team as Chief Technology and Information Technology Officer in
December 2012.

Xavier started at Millicom in 2000 and initially served as CTO in Vietnam and subsequently Southeast
Asia. In 2004, he became CEO of Paktel, Millicom's subsidiary in Pakistan, where he launched Paktel’s
GSM operation and led the process that concluded with the disposal of the business in 2007. Xavier
then served as head of Corporate Business Development, where he managed the disposal of various
Millicom operations in Asia, the monetization of Millicom infrastructure assets (towers), and numerous
spectrum acquisitions and license renewal processes in Africa and in Latin America.

Xavier is a French national. He holds a Master's in Engineering from Ecole Nationale Supérieure des
Télécommunications de Paris and a Master's in Economics from Université Paris IX Dauphine.

MILLICOM SHAREHOLDING AT JANUARY 31, 2022: 51,506 shares

Mr. Karim Lesina
Executive Vice President, Chief External Affairs Officer

Karim joined the Executive Team as Executive Vice President, Chief External Affairs Officer in November
2020.

Previously, he held the position of Senior Vice President, International External and Regulatory Affairs
at AT&T, directing the internal international and regulatory affairs teams, as well as the external and
regulatory affairs teams across four international affiliates: Turner, Warner Media, AT&T Latin America
and Direct TV. Prior to AT&T, Karim led the corporate affairs team at Intel as the Government Affairs
Manager for Europe, Africa and the Middle East. Rounding out a strong portfolio, he acquired extensive
agency experience through his work with multinational public relations and communications firms at
the commencement of his career.

Born in Dakar (Senegal), Karim is an Italian-Tunisian national and has a Master’s in Economics of
Development at the Catholic University of Louvain-la-Neuve.

MILLICOM SHAREHOLDING AT JANUARY 31, 2022: no shares

Millicom 2021 Annual ReportGovernance

10 6

Mr. Salvador Escalón
Executive Vice President, Chief Legal and Compliance Officer

Salvador became General Counsel in 2013, Executive Vice President in July 2015 and Chief Legal and
Compliance Officer in 2020.

Salvador joined Millicom as Associate General Counsel Latin America in April 2010. From 2006 to 2010,
Salvador was Senior Counsel at Chevron Corporation, with responsibility for legal matters related to
Chevron’s downstream operations in Latin America. Previously, he practiced at the law firms Skadden,
Morgan Lewis and Akerman Senterfitt.

Salvador is an American national. He holds a J.D. from Columbia Law School and a B.B.A. in Finance
and International Business from Florida International University.

MILLICOM SHAREHOLDING AT JANUARY 31, 2022: 49,591 shares

Ms. Susy Bobenrieth
Executive Vice President, Chief Human Resources Officer

Susy joined the Executive Team as Executive Vice President Chief Human Resources Officer in 2017.

Susy is a global human resource professional with over 25 years of experience in major multinational
companies, including Nike, American President Lines and IBM. As an ex-Nike executive, she
has extensive international knowledge and proven results in leading large-scale organizational
transformations, driving talent-management agendas and leading teams. She possesses deep
international experience, having lived and worked in Mexico, the U.S., Brazil, the Netherlands and Spain.

Susy is an American national with Chilean heritage. She earned a degree from the University of
Maryland, University College in 1989.

MILLICOM SHAREHOLDING AT JANUARY 31, 2022: 4,536 shares

Millicom 2021 Annual ReportGovernance

Management Governance
The Group seeks to embed governance
activities in the daily operations of
all businesses and in its corporate
functions. The role of the Group’s
Governance functions is to set policies
and procedures in accordance with
our obligations and international best
practices. These functions then ensure
policies and procedures are embedded
in our businesses and serve to monitor
compliance.

Each function has clear reporting lines
through to the Executive Team and
the CEO. Functions report to the Board
committees, as previously described,
based on the responsibilities of each
committee.

Internal Audit
Group has a dedicated Internal Audit
function to provide independent
assurance over all businesses and
corporate functions through a program
of risk-based internal audits.

Internal Audit reports to the Audit
Committee of the Board with a
dotted line to executive management.
This function identifies areas for
improvement, assigns management
actions and monitors implementation
progress.

In Colombia, where Millicom has a
non-controlling local partner, there is a
local internal audit team whose head
is appointed by Millicom's business
partner. Millicom's Head of Internal
Audit provides input into the local
internal audit plan to ensure appropriate
risk coverage and participates in the
local Audit Committee meetings.

Prior to the full acquisition of
Guatemala, Internal Audit coordinated
with the local partner to define the
scope for the annual internal audit
plan, which was executed by a Big
4 accounting firm. Internal Audit
oversaw the execution of such projects,
and reported on results, as well as
participated in local Audit Committee
meetings.

Business Control
The Board is responsible for the Group’s
system of internal control, which is
designed to manage, rather than
eliminate, the risk of failure to achieve
business objectives. This system can
only provide reasonable, but not
absolute, assurance against material
misstatement or loss. The concept of

reasonable assurance recognizes that
the cost of control procedures should
not exceed the expected benefits.

the development of our internal Center
of Excellence for control testing based in
El Salvador.

107

Responsibility for maintaining effective
internal controls is delegated to the CEO
and the Executive Team with oversight
provided by the Audit Committee.
The Executive Team is supported by
a dedicated Business Control team
responsible for the Internal Control
framework. Each country also has its
own dedicated local Business Control
team responsible for monitoring and
development of the local internal
control environment.

Following the completion of the
second-year controls attestation under
the Sarbanes-Oxley Act for the 2020
financial year, we focused in 2021
on efficiencies in internal controls
over financial reporting through
simplification and centralization. We
also worked on ensuring the controls
we rolled out in the Telefonica-acquired
operations in Nicaragua and Panama in
2020 are efficient and sustainable.

In order to support our Sarbanes-Oxley
program, we run a Group Steering
Committee comprising members of
the Executive Team and other senior
management. The committee oversees
the program, evaluates the findings of
management testing and ensures the
availability of appropriate resources.

Business Control teams continue to
place themselves at the heart of Group
efficiency and transformation programs
to ensure that robust internal controls
are an integral consideration in each
program.

Monitoring Systems
Aligned with our Sarbanes-Oxley
program, we operate a program of
management testing of key financial
controls. Monthly management testing
covering both business processes and
IT general controls was administered
through three main phases—walk
through, interim and roll-forward—
which allowed greater alignment with
our external auditor Ernst & Young (EY).
In fact, 2021 was the first year that EY
placed reliance on management testing
(25%). The testing results, including
remediation actions where required,
were reported and discussed with the
Executive Team, the Sarbanes-Oxley
Steering Committee and the Audit
Committee. During 2021, we completed

We have enhanced the use of our
Governance, Risk and Compliance
tool and started migrating non-key
control activities to the platform. This
central tool, which is used by control
owners in all operations in the Group,
has improved the efficiency and
quality of our internal controls and
proved invaluable as teams moved to
work remotely during the COVID-19
pandemic.

Fraud Management and Reporting
Business Control is responsible for
fraud risk management. We continued
our education activities, including an
awareness campaign aligned with
International Fraud Awareness Week in
November 2021.

Each operation prepares a quarterly
fraud report and presents a summary
to the Audit Committee, along with a
description of the key actions taken.
Quantitative and qualitative thresholds
govern the reporting of individual fraud
incidents to the Group CFO, CEO and
Audit Committee.

Internal Control over Financial
Reporting
The management of Millicom is
responsible for establishing and
maintaining adequate internal control
over financial reporting. This process
is designed to provide reasonable
assurance regarding the reliability of
financial reporting and the preparation
of financial statements for external
reporting purposes in conformity with
International Financial Reporting
Standards. Due to their inherent
limitations, internal controls over
financial reporting may not prevent or
detect misstatements.

Management has assessed the
effectiveness of internal control over
financial reporting as of December
31, 2021, and concluded that it was
effective. The foregoing assessment
does not constitute and is not meant to
be an assessment of Millicom’s internal
control over financial reporting for
purposes of the U.S. Securities Exchange
Act of 1934, as amended.

Millicom 2021 Annual ReportGovernance

How ESG is governed

Role

As part of the External
Affairs function, ESG
oversees, advises and
makes recommendations
to Management
regarding our ESG
strategies and activities.

Board of Directors

Chief Executive Officer

10 8

Executive Management
Team sponsors for
managing ESG

EVP Chief Legal and
Compliance Officer

EVP
Chief External
Affairs Officer

EVP
Chief Technology
and Information
Officer

EVP Chief
Human
Resources
Officer

Senior
Management

Corporate
Compliance

Corporate
Anti-Money
Laundering

Corporate
Governance

Sustainability,
Climate Change,
Education

Procurement
and Supply
Chain
Management

Responsible
supply chain
management

Corporate
Information
Security

Corporate
Security & Crisis
Management

Health, Safety
and Environment

Diversity, Equity,
and Inclusion

Risk Management
The Risk Management function
identifies, analyzes, measures and
monitors Millicom’s risks. The Chief Risk
Officer is responsible for providing risk
owners at the central functional and
country levels with a methodology and
the tools needed to balance risk with
return. A Management Risk Committee,
comprising members of the Executive
Team and functions responsible for
key risk, meets on a regular basis to
provide oversight on the evolution of
risk and the approach taken to manage
risk. The Chief Risk Officer also reports
to the Executive Team and the Audit
Committee. The Audit Committee,
on behalf of the Board, oversees risk
management activities.

Our risk assessment processes and the
principal risks managed by the Group
are set out in the Risk Management
section of this annual report.

Ethics and Compliance
Our corporate ethics and compliance
program is central to our business
strategy and is effectively embedded in
the business processes and procedures.
Our program integrates preventive
measures, key controls, reporting
mechanisms and due diligence
processes with the aim of preventing,

detecting, as well as correcting
misconduct and wrongdoing. We
measure the actual impact of this
program on our employees, customers,
stakeholders, and communities in the
countries where we operate.

Our Ethics & Compliance function
consists of global and local resources
responsible for the Group’s corporate
compliance, anti-money laundering
and compliance strategic response
programs. We also have a Compliance
Officer in each market.

Management and Governance of
Compliance Activities
Millicom strives to build a strong
corporate culture that seeks compliance
excellence, and in which employees at
all levels are committed to doing what
is right and upholding the Company’s
values and standards. As we continue
to evolve, in 2021 we revised our
Code of Conduct, as well as our AML,
anti-corruption and Speak Up policies.
In the same vein, we continued to
evaluate our progress in 2021 by
including compliance questions in our
Great Place to Work survey. We also
evaluated our own compliance risks by
conducting a robust risk assessment in
the organization.

We enhanced ethics and compliance
knowledge through consolidated

digital training provided in English and
Spanish. Employees received mandatory
training on the Code of Conduct,
anti-corruption and anti-bribery and
AML policies in order to reinforce the
most important compliance concepts,
influence employee behavior, and
prevent misconduct through practical
examples. We also provided targeted
face-to-face training in addition to the
digital training program.

Our Compliance Communication Plan
for 2021 included weekly newsletters
that highlighted the latest corporate
enforcement actions, lessons learned,
monthly campaigns on various
compliance policies, and the celebration
of the annual Corporate & Ethics
Compliance Week in November 2021.

Aligned with our Sangre Tigo motto, and
for the fourth year in a row, executive
financial incentives and rewards
included compliance goals, and clear
KPIs were built into the remuneration
package of our General Managers.

We continued monitoring enhanced
risks during the pandemic, namely
fraud by third parties, requests
for donations and more frequent
government touchpoints as they
reached out to private industry to
request aid.

Millicom 2021 Annual Report10 9

Governance

Speak Up Policy and Issue
Management
Continuing our compliance
enhancements and evolution, we
updated our Speak Up policy, included
Speak Up in our training program and
included a Speak Up campaign in our
communications program. We have
a team dedicated to following up on
concerns that arise through Speak Up
and are committed to addressing any
such concerns in a fair, impartial and
efficient manner.

The Executive Team and the
Compliance and Business Conduct
Committee of the Board received
regular updates on cases raised through
the Ethics Line or other channels, and
the Audit Committee is updated on
matters that may impact financial
reporting or the internal control
environment.

ESG
For the fifth consecutive year, we
included extensive data on our ESG
activities in our Annual Report. The
integral approach and impact to ESG
is explained in the Our ESG Approach
and Impact section starting on page
30. As we navigate the second year
of a global pandemic, we reaffirm the
synergy between digital highways and
sustainability as enabling a business
model that positively impacts society
and the environment and promotes
responsibility.

Millicom’s ESG strategy leads the
company to further integrate
sustainability within Millicom's business
operations. It does so by implementing
best-in-class policies and processes
for ESG governance; coordinating
ESG activities and performance
across business functions as well as
with HQs; and publishing ESG-related
performance metrics, data and
information in our Annual Report. Our
Annual Report continues to promote
transparency toward investors and
other key stakeholders on ESG risks and
opportunities.

The ESG team constantly engages
with internal and external stakeholders
to ensure Millicom understands
and addresses core ESG issues and

objectives, bringing tangible benefit
to communities in the delivery of its
services.

Stakeholder engagement occurs
through a biennial materiality
assessment and through ongoing
interaction with our key stakeholders.

ESG Governance
The Board oversees the Government
Relations, Regulatory Affairs and ESG
functions, which fall under the umbrella
of External Affairs. This structure
embodies the depth and materiality
of these topics and the importance
of monitoring their interconnected
risks and opportunities. ESG portfolio
management is managed by the
Executive Vice President (EVP) Chief
External Affairs Officer and his team.
The EVP Chief External Affairs Officer
reports directly to the CEO and is
accountable for delivering updates on
the ESG strategy to the Board. ESG
progress and implementation reports
and issue management updates to the
Executive Team take place monthly,
either through the EVP Chief External
Affairs Officer or directly in specific
cases.

Health, Safety, Environment and
Security Services
With the continuation of the COVID-19
global pandemic in 2021, our Health
& Safety teams' primary objective
remains to protect our employees
and support our global operations.
Our Health & Safety teams maintain
the enforcement of COVID-19 safety-
related protocols for our workforce,
including workspace cleaning,
personal hygiene, issuance of personal
protection equipment and social
distancing guidelines as recommended
by the World Health Organization and
U.S. Centers for Disease Control (CDC).
Additionally, the Health & Safety teams
have worked on numerous projects in
our countries of operation to promote
and educate employees on COVID-19
prevention and treatment options, as
well as the importance of vaccination
for our employees and their families.
We have sponsored vaccination drives
in our countries, ensuring our employees
and their family members have access
to vaccines.

Apart from dealing with the COVID-19
pandemic, the Health & Safety and
Environment teams were able to
obtain recertification of ISO 45001
Health and Safety Standards and
ISO 14001 Environmental Standards
in all our operations. In addition, we
have expanded implementation of
our energy efficiency programs to
administrative and retail facilities in all
of our operations.

The Health & Safety teams oversee
the implementation of policy and
Group standards in health, safety
and environment, as well as facilities
management, fleet management and
fuel and energy resources. The Health &
Safety teams also provide effective and
efficient solutions to support our CDP
(formerly Carbon Disclosure Project) and
environmental energy efficiency plans.

Throughout 2021, we prevented
employee fatalities and major losses to
the Group. Unfortunately, there were
two fatalities in our contracted services.

Our Security teams are responsible for
the safety and protection of our people,
facilities and assets. During this period,
we continued the implementation of
initiatives focused on protecting assets
and mitigating losses of material and
equipment at our network locations.
Implementation of these initiatives
has resulted in yearly loss reductions
of assets in El Salvador, Costa Rica,
Colombia and Paraguay. The Security
teams will continue to promote asset
protection and collaborate with our
Operations teams on this initiative.

The Executive Vice President of Human
Resources oversees the Health, Safety,
Environment and Security functions.

Business Continuity
Management of business continuity
is positioned within the overall Risk
Management function of the group,
with each operating company having
designated Business Continuity
Managers. A global business continuity
policy has been developed and
implemented, together with supporting
standards.

Business continuity plans are reviewed
and periodically tested each year to
ensure coverage of the most important
threats.

Millicom 2021 Annual ReportGovernance

Crisis Management
Our global and operational business
continuity and crisis management
system is designed to address
significant disruptions that might
affect critical day-to-day activities.
With respect to crisis management,
our streamlined and complementary
planning between Group and country-
level operations proved effective when
country lockdowns and emergency
orders restricting travel and movement
impacted our operations. Additionally,
crisis management planning was utilized
on two different occasions in response
to political turmoil and civil unrest in
some of the countries where we operate.

Risk assessment is a continuous
activity that starts with a business
impact analysis of all critical services
and processes that require a disaster
recovery and business continuity plan.
After performing a risk assessment
on all critical assets identified in the
analysis, we address every relevant
operational threat in a formal risk
mitigation plan.

Millicom crisis management defines the
proper response to, and management
of, an intense, unexpected and
unstable situation that disrupts normal
operations and has highly undesirable
outcomes that require extraordinary
measures to restore normal operations.
Crisis management aims to protect the
safety of our staff, our reputation and
our ability to deliver continuous and
reliable service to customers, while also
maintaining our contractual, legal and
regulatory compliance.

In parallel, Millicom has physical security
and loss-prevention standards that set
minimum acceptable levels of critical
site protection, as defined by industry
best practices. All activities undergo
monitoring and compliance activities

110

Information Security
Our Global Chief Information Security
Officer (CISO) manages the information
security program and reports to the
EVP Chief Technology and Information
Officer. The CISO is responsible for
identifying, managing and mitigating
technology-centric risks throughout the
company.

The CISO oversees regional Information
Security teams to ensure the
confidentiality, integrity and availability
of all business-critical systems and
assets. Other responsibilities include
identifying potentially detrimental
internal and external threats and
risks and safeguarding proprietary
and personal customer information.
Additionally, the regional teams
work closely with Millicom business
and technology leaders to ensure
compliance with corporate policies and
regional information security-related
regulatory requirements within the
various countries where we conduct
business.

The CISO meets regularly with the
Compliance and Business Conduct
Committee and Audit Committee to
ensure appropriate risks are elevated
and addressed.

2021 continued with a high-level
attack volume with a marked increase
specifically in email-based phishing
attacks or ransomware. This has been
addressed through phishing awareness
and training initiatives, as well as
reinforcing the protection of our critical
assets.

During 2021, the global Information
Security team focused on the
identification, management and
reporting of risk throughout the
enterprise.

• Risk management: We focused on
consolidating and detailing our risk
register, at Group and local levels, to
ensure the adequacy and prioritization
of the actions taken. Additional effort
was made to reinforce the management
of third-party risks, using more stringent
criteria to assess new solutions
supporting the digitalization of our
environment.

• Global Security Operations Center
expansion: We continued to increase
the visibility of the corporate Security
Operations Center, further expanding
monitoring deeper into all critical
networks and gaining additional
visibility. Additionally, we accelerated
the integration of Guatemala into the
regional solution, which will continue in
2022.

• Development of a global vulnerability
management program: We are
scanning our global environment
monthly to monitor the remediation
of vulnerabilities across the region.
The regional solution now covers all
operations except Guatemala, where
the migration will happen in Q1 2022.
Preventative evaluation of risks and
reinforcement of our infrastructure was
made to address the multiple zero-day
vulnerabilities or vulnerabilities used in
attacks reported publicly.

Millicom 2021 Annual ReportGovernance

Directors’ Financial and Operating Report

111

Group Performance
In 2021, total revenue for the Group
was $4,617 million and gross profit was
$3,316 million, a margin of 71.8%. 2021
figures also include additional revenue
from the Guatemala operations since
their consolidation from November 12,
2021.

Operating expenses represented 36.3%
of revenue, a slight increase compared
with the 36.1% in 2020 as a result of
increased sales and marketing costs
to support robust customer growth,
as compared with 2020 when strict
lockdowns significantly curtailed
commercial activity.

Operating profit was up 47.5% to $659
million, a 14.3% margin, affected by
strong operational performance and
by the consolidation of our operations
in Guatemala. Depreciation was
also higher last year due to network
modernization activities of older
infrastructure.

Net financial expenses were $507
million, a decrease of $104 million
compared with last year. The decrease
was mainly due to lower debt levels,
following repayment activity over the
last year.

The revaluation of our previously held
interest in Guatemala generated a gain
of $670 million in 2021.

Profit before taxes was $732 million,
reflecting the higher operating profit,
lower interest expense and the effect of
the revaluation gain described above,
partially offset by other non-operating
expenses of $50 million mainly related
to foreign exchange losses.

The net tax charge was $189 million,
leaving a net profit from continuing
operations of $543 million for the year.

As a result, our net profit for the year,
after discontinued operations, was $542
million. The share of losses of non-
controlling interests was $48 million,
reflecting our partners' share of net
results in our subsidiaries in Colombia
and Panama.

The net profit for the year attributable
to Millicom owners was $590 million, an
earnings per share of $5.84.

Share Capital
At December 31, 2021, Millicom had
101.7 million issued and paid-up
common shares of par value $1.50
each, of which 1,538,256 were held
by the Company as treasury shares
(2020: 526,134). During the year, the
Company acquired 1,369,284 shares
through its share repurchase program.
It issued approximately 434,000
shares to management and employees
under the share-based plans, and
issued approximately 25,000 shares
to Directors as part of their annual
remuneration.

Distribution to Shareholders and
Proposed Distributions
Our shareholders-approved the
proposal from the Board not to pay a
dividend in 2021. No dividend was paid
in 2020.

On July 29, 2021, the Group announced
the launch of a share repurchase
program of up to the lower of SEK 870
million (approximately $100 million) in
aggregate purchase price, or 5 million
Swedish Depositary Receipts. The
purpose of the repurchase program is
to reduce Millicom's share capital, or
to use the repurchased shares to meet
obligations arising under Millicom´s
employee-share-based incentive
programs. Under this repurchase
program, Millicom repurchased
1,369,284 shares in 2021, for a total
amount of approximately $50 million,
paid in cash. On December 17, 2021,
the Group announced the conclusion
of this share repurchase program as it
works towards a rights offering planned
for Q1 2022 to fund the Guatemala
transaction.

Financial Risk Management
Objectives and Policies
Millicom’s financial risk management
policies and objectives, together with
a description of the various risks and
hedging activities undertaken by the
Group, are set out in Section D, financial
risk management, of the consolidated
financial statements.

Internal controls and risk management
on the preparation of the consolidated
financial statements are covered in Our
Governance section starting on page
63.

Non-Financial Information
Non-financial information—such as
environmental, social, and governance
—are integrated throughout this report
and in our Disclaimers section starting
on page 113.

Management and Employees
In recent years, the Group has
developed many key functions and
improved support to local operations,
including in the areas of procurement,
network development, marketing, IT,
HR, compliance and finance.

At December 31, 2021, the Group’s
headcount from continuing operations
reached approximately 21,000 as of
December 31, 2021 and 2020.

Outlook1
In 2022, we plan to accelerate
expansion of our fixed network to reach
one million additional homes, of which
over half are expected to be deployed
using fiber-to-the-home (FTTH)
technology. We expect the cost of this
accelerated network deployment will
be more than offset by a moderation
of our investments in our mobile
networks, as we are now in the final
stages of significant modernization
and expansion projects undertaken
over the past 24 months. Over the
next three years, we aim to grow
operating cash flow by approximately
10% per year on average, and we are
targeting cumulative equity free cash
flow generation after leases and after
spectrum of between $800 million and
$1.0 billion.

Millicom 2021 Annual ReportGovernance

112

Risks and Uncertainty Factors
The Group operates in an industry and
markets that are characterized by rapid
change and are subject to macro-
economic, competitive and political
uncertainty. These conditions create
opportunities as well as a degree of risk.
Many of the inherent underlying risks
in these markets—including regulatory
change (such as tariff controls and
taxation), currency fluctuations
and underlying macroeconomic
conditions—affect the level of
disposable income as well as consumers’
attitudes and demand for our products
and services.

Subsequent Events
On January 27, 2022, our principal
subsidiary in Guatemala, Comcel,
completed the issuance of a new
10-year $900 million Bond with a
coupon of 5.125%. Proceeds from
this bond as well as cash were used
to repay a significant portion of the

bridge financing that was used to fund
the acquisition of the remaining 45%
equity interest in our Tigo Guatemala
operations. As of February 8, 2022,
a balance of $450 million remained
unpaid under the initial $2.15 billion
bridge loan agreement.

On January 13, 2022, we completed
the issuance of a new 5-year
sustainability bond raising SEK 2.25
billion (approximately $252 million)
at a fully swapped rate of SOFR plus
3.496%. Proceeds will be used to fund
investments in accordance with the
Company's sustainability framework.
This bond has been fully hedged against
foreign exchange fluctuations.

In January 2022, Colombia Movil
S.A. repaid a $100 million syndicated
loan, which was initially due in 2024.
Cross currency swaps used to hedge
the previous interest and principal on
the previous loan for $50 million were
terminated. The outstanding amount of
$50 million remains fully swapped.

In January 2022, Millicom received
$11 million from Etisalat as earn-out
income related to the purchase of Zantel
in 2015. This settlement was considered
as an adjusting event and recorded
in 'other operating income' in the
statement of income.

On February 28, 2022, the extraordinary
general meeting of shareholders of
Millicom resolved to authorize the
Board of Directors of Millicom to
increase the authorized share capital
of the Company from $199,999,800
divided into 133,333,200 shares, with
a par value of $1.50 per share, to
$300,000,000 divided into 200,000,000
shares, with a par value of $1.50 per
share.

José Antonio Ríos García
Chairman of the Board of Directors
Luxembourg, March 1, 2022

1Our outlook includes references to non-GAAP measures which are further defined and described in the Group’s Annual Report.

Management Responsibility Statement
We, Mauricio Ramos, Executive Director and Chief Executive Officer, and Tim Pennington, Chief Financial Officer, confirm to the
best of our knowledge that these 2021 consolidated financial statements—which have been prepared in accordance with the
International Financial Reporting Standards as adopted by the European Union—give a true and fair view of the assets, liabilities,
financial position and profit or loss of the Millicom Group and the undertakings included in the consolidation taken as a whole. We
also confirm to the best of our knowledge that the Directors’ report includes a fair review of the development and performance of
the business; the position of the Millicom Group; and the undertakings included in the consolidation taken as a whole, together with
a description of the principal risks and uncertainties that the Group faces.

Mauricio Ramos
Executive Director and Chief Executive Officer

Tim Pennington
Chief Financial Officer

Luxembourg, March 1, 2022

Millicom 2021 Annual ReportDisclaimers and Non-IFRS
Reconciliations

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Disclaimers
and Non-IFRS
Reconciliations

Disclaimers and Non-IFRS
Reconciliations

Disclaimers

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 the spread of the COVID-19 virus and the impact it may have on Millicom's operations, the demand for Millicom's products
and services, global supply chains and economic activity in general. The risks and uncertainties include, but are not limited to, the
following:

114

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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. To the extent COVID-19 adversely
affects Millicom's business and financial
results, it may also have the effect of
heightening many of the risks described
in Millicom's filings.

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.

• Global economic conditions and

• The success of our business and

foreign exchange rate fluctuations as
well as local economic conditions in
the markets we serve

operating and financing initiatives
and strategies, including partnerships
and capital expenditure plans

• Potential disruption due to diseases,
pandemics, political events, piracy
or acts by terrorists, including the
impact of the COVID-19 outbreak
and the ongoing efforts throughout
the world to contain it

• Telecommunications usage levels,

including traffic and customer growth

• Competitive forces, including pricing
pressures, 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

• Legal or regulatory developments and
changes, or changes in governmental
policy, including with respect to
the availability of spectrum and
licenses, the level of tariffs, laws
and regulations that require the
provision of services to customers
without charging or the ability to
disconnect such services during the
COVID-19 pandemic, tax matters, the
terms of interconnection, customer
access, and international settlement
arrangements

• Adverse legal or regulatory disputes or

proceedings

• 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

• Relationships with key suppliers,
and costs of handsets and other
equipment

• Our ability to successfully pursue

acquisitions, investments or merger
opportunities, integrate any acquired
businesses in a timely and cost-
effective manner, 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, and 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

• The capacity to upstream cash

generated in operations through
dividends, royalties, management
fees and repayment of shareholder
loans

• Other factors or trends affecting

our financial condition or results of
operations

115

Disclaimers and Non-IFRS
Reconciliations

Non-IFRS Measures
This report 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 and the adoption of new
accounting standards and are pro forma
for material changes in perimeter due to
acquisitions and divestitures. The non-
IFRS financial measures are presented in
this report, as Millicom’s management
believes they provide investors with
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 shares
these non-IFRS financial measures
with investors as a supplement to
Millicom’s reported results in order to
provide additional insight into Millicom’s
operating performance. Millicom’s
Remuneration 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. Millicom’s financial results
calculated in accordance with IFRS
and reconciliations to those financial
statements should be carefully
evaluated.

Alternative Performance Measure
description
Service revenue is revenue related to
the provision of ongoing services such
as monthly subscription fees, 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.

EBITDA is operating profit excluding
impairment losses, depreciation and
amortization and gains/losses on fixed
asset disposals. In respect to the LATAM
or Africa segments, this information
is available after the allocation of
corporate costs and inter-company
eliminations.

EBITDA after leases (EBITDAaL)
represents EBITDA excluding lease
interest and principal repayments.

EBITDA margin represents EBITDA in
relation to revenue.

Proportionate EBITDA is the sum of the
EBITDA in every country where Millicom
operates, including its Guatemala and
Honduras joint ventures, pro rata for
Millicom’s ownership stake in each
country.

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
less cash and pledge and time deposits.

Net financial obligations is net debt plus
lease liabilities.

Proportionate financial obligations is the
sum of the net financial obligations in
every country where Millicom operates,
including its Guatemala and Honduras
joint ventures, pro rata for Millicom’s
ownership stake in each country.

Leverage is the ratio of net financial
obligations over LTM (last 12 months)
EBITDA, pro forma for acquisitions
made during the last 12 months.

Leverage after leases is the ratio of net
debt over LTM EBITDA after leases, pro
forma for acquisitions made during the
last 12 months.

Proportionate leverage is the ratio of
proportionate net financial obligations
over LTM proportionate EBITDA, pro
forma for acquisitions made during the
last 12 months.

Proportionate leverage after leases is
the ratio of proportionate net debt over
LTM EBITDA after leases, pro forma
for acquisitions made during the last 12
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.

Millicom 2021 Annual Report116

flow, underlying net debt, underlying
leverage, etc., include Guatemala and
Honduras as if fully consolidated.

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 in our Latin
America segment as (x) the total home
revenue (excluding equipment sales, TV
advertising and equipment rental) 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 to other industry participants.

Disclaimers and Non-IFRS
Reconciliations

Operating cash flow (OCF) is EBITDA
less Capex.

Operating free cash flow (OFCF) is OCF
less changes in working capital and
other non-cash items and taxes paid.

Equity free cash flow (EFCF) is OFCF less
finance charges paid (net), less advances
for dividends to non-controlling
interests, plus dividends received from
joint ventures.

Equity free cash flow after leases
(EFCFaL) is EFCF, less lease principal
repayments.

Operating profit after tax displays the
profit generated from the operations of
the Company after statutory taxes.

Return on invested capital (ROIC) is
used to assess the Group’s efficiency at
allocating the capital under its control
and is defined as operating profit after
tax, including Guatemala and Honduras
as if fully consolidated, divided by the
average invested capital during the
period.

Average invested capital is the capital
invested in the company operation
throughout the year and is calculated
with the average of opening and closing
balances of the total assets minus
current liabilities (excluding debt, joint
ventures, accrued interests, deferred and
current tax, cash as well as investments
and non-controlling interests), less
assets and liabilities held for sale.

Underlying measures, such as
underlying service revenue, underlying
EBITDA, underlying equity free cash

Millicom 2021 Annual ReportDisclaimers and Non-IFRS
Reconciliations

117

Non-IFRS reconciliations

Reconciliation from Reported Growth to Organic Growth for the Latam segment

Latam Segment

($ millions)

A- Current period

B- Prior year period

C- Reported growth (A/B)

D- Accounting change impact

E- Change in Perimeter impact

F- FX impact

G- Other

H- Organic Growth (C-D-E-F-G)

Revenue

Service Revenue

EBITDA

OCF

FY 2021

FY 2020

FY 2021

FY 2020

FY 2021

FY 2020

FY 2021

FY 2020

6,220

5,843

6.4%

—

—%

(0.3)%

(0.1)

6.9%

5,843

5,964

(2.0)%

—

3.9%

(3.8)%

—%

(2.1)%

5,716

5,377

6.3%

—

—%

(0.3)%

(0.1)%

6.7%

5,377

5,514

(2.5)%

—

4.0%

(3.9)%

(0.1)%

(2.5)%

2,498

2,360

5.9%

—

—%

(0.2)%

(0.6)%

6.7%

2,360

2,418

1,387

1,418

(2.4)%

(2.2)%

—

3.8%

(3.5)%

1.0%

(3.7)%

—

—%

(0.4)%

(1.4)%

(0.5)%

1,418

1,416

0.2%

—

5.6%

(6.0)%

2.1%

(1.4)%

Reconciliation from Reported Growth to Organic Growth for the Africa segment
Africa Segment

Revenue

Service Revenue

EBITDA

($ millions)

A- Current period

B- Prior year period

C- Reported growth (A/B)

D- Accounting change impact

E- Change in Perimeter impact

F- FX impact

G- Other

H- Organic Growth (C-D-E-F-G)

FY 2021

FY 2020

FY 2021

FY 2020

FY 2021

FY 2020

357

366

(2.7)%

—

—%

(0.1)%

0.1

(2.7)%

366

382

(4.0)%

—

—%

(0.5)%

0.2%

(3.7)%

357

366

(2.7)%

—

—%

(0.1)%

0.1%

(2.7)%

366

382

111

125

(4.0)%

(11.0)%

—

—%

(0.5)%

0.2%

(3.7)%

—

—%

(0.3)%

(1.8)%

(9.0)%

125

117

6.9%

30.7%

—%

(31.0)%

5.0%

2.1%

Reconciliation from Reported Growth to Organic Growth for the main Latam markets
Service Revenue ($ millions)

FY 2020

FY 2021

Organic

Guatemala

Colombia

Paraguay

Honduras

Bolivia

Panama

El Salvador

Nicaragua, Costa Rica & Eliminations

1,365

1,319

1,273

1,258

526

548

612

608

398

342

513

516

575

567

348

328

Latam

5,716

5,377

7.3%

6.2%

2.7%

3.8%

6.3%

7.3%

14.4%

—

6.7%

(0.1)%

(1.2)%

(0.1)%

2.6%

—

N/A

(0.3)%

Accounting

Perimeter

Other

Reported

—

N/A

—

— (0.1)%

— (0.2)%

—

N/A

—%

—

N/A

(0.1)%

7.2%

4.8%

2.4%

6.2%

6.3%

7.3%

14.4%

N/A

6.3%

EBITDA ($ millions)

FY 2021

FY 2020

Organic

Accounting

Perimeter

Other

Reported

Guatemala

Colombia

Paraguay

Honduras

Bolivia

Panama

El Salvador

Nicaragua, Costa Rica, Corp
Costs & Eliminations

857

441

242

259

249

281

162

778

457

252

247

232

256

137

—

Latam

2,498

2,360

10.3%

(2.4)%

(3.8)%

2.6%

7.4%

9.6%

18.7%

N/A

6.7%

(0.1)%

(1.2)%

(0.5)%

2.5%

—

N/A

(0.2)%

—

N/A

—

N/A

—%

—

0.1%

0.3%

(0.1)%

—

N/A

(0.6)%

10.2%

(3.5)%

(4.0)%

5.0%

7.4%

9.6%

18.7%

N/A

5.9%

Millicom 2021 Annual ReportDisclaimers and Non-IFRS
Reconciliations

ARPU reconciliations

Latam Segment - Mobile ARPU Reconciliation

Mobile service revenue ($m)

Mobile Service revenue ($m) from non Tigo customers ($m) *

Mobile Service revenue ($m) from Tigo customers (A)

Mobile customers - end of period (000)

Mobile customers - average (000) (B) **

Mobile ARPU (USD/Month) (A/B/number of months)

*Refers to production services, MVNO, DVNO, equipment rental revenue, call center revenue, national roaming, equipment sales,

visitor roaming, tower rental, DVNE, and other non-customer driven revenue.

**Average of the last five quarters.

Latam Segment - Home ARPU Reconciliation

Home service revenue ($m)

Home service revenue ($m) from non Tigo customers ($m) *

Home service revenue ($m) from Tigo customers (A)

Customer Relationships - end of period (000) **

Customer Relationships - average (000) (B) ***

Home ARPU (USD/Month) (A/B/number of months)

118

2021

2020

3,372

(31)

3,341

44,881

43,292

6.4

3,220

(36)

3,185

41,734

39,658

6.7

2021

2020

1,655

(35)

1,620

4,893

4,757

28.4

1,509

(33)

1,477

4,545

4,405

27.9

*TV advertising, production services, equipment rental revenue, call center revenue, equipment sales and other non customer driven revenue.

**Represented by homes connected all technologies (HFC + Other Technologies + DTH & Wimax RGUs).

***Average of the last five quarters.

Reconciliation Net financial obligations to EBITDA to Proportionate net financial obligations to EBITDA as of December 31, 2021 and
December 31, 2020.

Debt Information - 31 December 2021

Financial obligations

EBITDA

Proforma

$ millions

Millicom Group (IFRS)

Plus: Guatemala

Plus: Honduras

Less: Corporate Costs

Underlying Millicom Group (Non-IFRS)

Less: 50% Minority Stake in Colombia

Less: 33% Minority Stake in Honduras

Less: 20% Minority Stake in Panama

Less: 1.5% Minority Stake in Tanzania

Gross

Cash

Net

Adjustments*

EBITDA

Leverage

8,911

930

7,981

1,639

747

2,385

3.34x

340

—

9,251

545

113

195

—

969

105

—

301

—

8,282

440

100

174

747

259

2,615

220

—

2,615

3.17x

Proportionate Millicom Group (Non-IFRS)

8,392

831

7,562

2,251

3.36x

*Related to Guatemala acquisition completed on November 12, 2021

Net Underlying Financial obligations of Millicom Group (Non-IFRS) includes $1,228 of leases, as of December 31, 2021.

31 December 2020

$ millions

Millicom Group (IFRS)

Plus: Guatemala

Plus: Honduras

Less: Corporate Costs

Underlying Millicom Group (Non-IFRS)

Less: 50% Minority Stake in Colombia

Less: 45% Minority Stake in Guatemala

Less: 33% Minority Stake in Honduras

Less: 20% Minority Stake in Panama

Less: 1.5% Minority Stake in Tanzania

Proportionate Millicom Group (Non-IFRS)

Financial obligations

Gross

Cash

Net

EBITDA

Leverage

6,711

642

400

—

7,753

565

289

133

195

6,565

875

187

—

1,122

106

—

894

3.90x

2.67x

5,837

455

339

—

6,631

459

204

113

178

1,495

778

247

(33)

2,487

228

350

5,670

1,773

3.20x

Net Underlying Financial obligations of Millicom Group (Non-IFRS) includes $1,312 of leases, as of December 31, 2020.

Millicom 2021 Annual ReportDisclaimers and Non-IFRS
Reconciliations

Foreign Exchange rates used to support FX impact calculations in the above Organic Growth reconciliations

119

Bolivia

Colombia

Costa Rica

Guatemala

Honduras

Nicaragua

Paraguay

Ghana

Tanzania

BOB

COP

CRC

GTQ

HNL

NIO

PYG

GHS

TZS

CAPEX Reconciliation

Capex Reconciliation

Consolidated:

Additions to property, plant and equipment

Additions to licenses and other intangibles

Of which spectrum and license costs

Total consolidated additions

Of which capital expenditures related to corporate offices

Latin America Segment

Additions to property, plant and equipment

Additions to licenses and other intangibles

Of which spectrum and license costs

Latin America Segment total additions (Underlying)

Capex excluding spectrum and license costs

Africa Segment

Additions to property, plant and equipment

Additions to licenses and other intangibles

Of which spectrum and license costs

Africa Segment total additions

Capex excluding spectrum and license costs

Underlying

Latam capex excluding spectrum and license cost

Africa capex excluding spectrum and license cost

Capital expenditures related to corporate offices

Underlying capex excluding spectrum and license costs

Average FX rate (vs. USD)

End of period FX rate (vs. USD)

2021

2020

YoY

2021

2020

YoY

6.91

3,756

625

7.74

24.12

35.17

6,790

5.94

2,313

6.91

3,695

590

7.73

24.65

34.34

6,758

5.75

2,312

—

(1.6)%

(5.6)%

(0.1)%

2.2%

(2.4)%

(0.5)%

(3.2)%

—%

6.91

3,981

645

7.72

24.43

35.52

6,886

6.18

2,305

6.91

3,433

617

7.79

24.20

34.82

6,900

5.87

2,319

—

(13.8)%

(4.3)%

1.0%

(1.0)%

(2.0)%

0.2%

(5.1)%

0.6%

FY 2021

FY 2020

787

164

951

649

520

421

1,169

FY 2021

FY 2020

949

212

1,161

1,111

816

629

504

1,445

941

FY 2021

FY 2020

—

FY 2021

FY 2020

1,111

1,162

—

941

989

Millicom 2021 Annual Report
Disclaimers and Non-IFRS
Reconciliations

Operating Free Cash Flow Reconciliation

Cash Flow Data

Net cash provided by operating activities

Purchase of property, plant and equipment

Proceeds from sale of property, plant and equipment

Purchase of intangible assets and licenses

Proceeds from sale of intangible assets

Net purchase/proceeds for property, plant and equipment and intangible assets

(Less) Proceeds from sale of towers part of tower sale and leaseback transactions

(Less) Purchase of spectrum and licenses

(Less) Finance charges paid, net

Operating free cash flow

Equity Free Cash Flow Reconciliation

Cash Flow Data

Net cash provided by operating activities

Purchase of property, plant and equipment

Proceeds from sale of property, plant and equipment

Purchase of intangible assets

Purchase of spectrum and licenses

Finance charges paid, net

Operating free cash flow

Interest (paid), net

Free cash flow

Dividends received from joint ventures (Guatemala and Honduras)

Dividends paid to non-controlling interests

Equity free cash flow

Lease Principal Repayments

Equity free cash flow after leases

OCF (EBITDA- Capex) Reconciliation

Latam OCF Underlying

Latam EBITDA

(-) Capex (Ex. Spectrum)

Latam OCF

Africa OCF

Africa EBITDA

(-) Capex (Ex. Spectrum)

Africa OCF

Corporate OCF

Corporate EBITDA

(-) Capex (Ex. Spectrum)

Corporate OCF

Underlying OCF

Underlying EBITDA

(-) Capex (Ex. Spectrum)

Underlying OCF

120

FY 2021

FY 2020

956

(740)

(135)

—

(865)

—

491

619

821

(622)

(202)

—

(815)

—

101

551

657

FY 2021

FY 2020

956

(740)

(135)

491

619

(491)

128

(6)

135

(137)

(2)

821

(622)

(202)

101

551

657

(551)

106

(5)

172

(116)

FY 2021

FY 2020

2,498

1,111

1,387

2,360

941

1,418

FY 2021

FY 2020

111

125

FY 2021

FY 2020

(4)

(5)

FY 2021

FY 2020

2,615

1,162

1,453

2,487

989

1,497

Millicom 2021 Annual ReportDisclaimers and Non-IFRS
Reconciliations

Guatemala and Honduras Financial Information (unaudited)

Until 2015, Millicom group results included Guatemala and Honduras on a 100% consolidation basis. Since 2016, Honduras has
been treated as joint ventures and has been consolidated using the equity method. Also since 2016 and until November 12, 2021,
Guatemala was a joint venture and has been consolidated using the equity method.

To aid investors in tracking the evolution of the Company’s performance over time, we provide the following indicative unaudited
financial statement data for the Millicom group as if our Guatemala and Honduras joint ventures had been fully consolidated.

121

Income statement data FY 2021

($millions)

Revenue

Cost of sales

Gross profit

Operating expenses

EBITDA

EBITDA margin

Depreciation & amortization

Share of net profit in joint ventures

Other operating income (expenses), net

Operating profit

Net financial expenses

Revaluation of previously held interests

Other non-operating income (expenses), net

Gains (losses) from associates

Profit (loss) before tax

Net tax credit (charge)

Profit (loss) for the period

Non-controlling interests

Profit (loss) from discontinued operations

Net profit (loss) for the period

Millicom (IFRS)

Guatemala and
Honduras JVs*

Eliminations

Underlying (non-
IFRS)

4,617

(1,302)

3,316

(1,677)

1,639

35.5%

(1,196)

210

659

(507)

670

(50)

(39)

732

(189)

543

—

590

1,955

(433)

1,522

(545)

977

50.0%

(403)

—

574

(76)

—

(1)

—

498

(119)

379

(169)

—

210

—

(210)

—

(210)

—

(210)

—

(210)

—

(210)

6,572

(1,735)

4,837

(2,222)

2,615

39.8%

(1,599)

—

1,023

(583)

670

(51)

(39)

1,020

(308)

712

(121)

—

590

* Millicom began consolidating our Guatemala operation as from November 12, 2021.

Millicom 2021 Annual ReportDisclaimers and Non-IFRS
Reconciliations

Balance Sheet data FY 2021

($millions)

Assets

Intangible assets, net

Property, plant and equipment, net

Right of Use Assets

Investments in joint ventures and associates

Other non-current assets

Total non-current assets

Inventories, net

Trade receivables, net

Other current assets

Restricted cash

Cash and cash equivalents

Total current assets

Assets held for sale

Total assets

Equity and liabilities

Equity attributable to owners of the Company

Non-controlling interests

Total equity

Debt and financing

Other non-current liabilities

Total non-current liabilities

Debt and financing

Other current liabilities

Total current liabilities

Liabilities directly associated with assets held for sale

Total liabilities

Total equity and liabilities

Millicom IFRS

Honduras JV

Underlying (non-
IFRS)

122

7,721

3,198

1,008

618

307

12,852

405

719

203

895

2,286

15,139

2,583

157

2,740

6,900

1,014

7,914

2,011

2,474

4,485

—

12,399

15,139

478

312

(596)

(5)

241

102

—

343

(43)

(148)

(190)

267

338

123

196

—

534

343

8,199

3,510

1,061

302

13,094

440

730

216

934

2,388

15,482

2,541

2,550

7,166

1,085

8,252

2,084

2,596

4,681

—

12,932

15,482

Cash Flow Data FY 2021

($millions)

Profit (loss) before taxes from continuing operations

Profit (loss) for the period from discontinued operations

Profit (loss) before taxes

Net cash provided by operating activities (incl. discontinued ops)

Net cash used in investing activities (incl. discontinued ops)

Net cash from (used by) financing activities (incl. discontinued ops)

Exchange impact on cash and cash equivalents, net

Net (decrease) increase in cash and cash equivalents

Cash and cash equivalents at the beginning of the period

Effect of cash in disposal group held for sale

Cash and cash equivalents at the end of the period

Millicom IFRS

Guatemala and
Honduras JVs*

Underlying
(non-IFRS)

732

—

731

956

(2,703)

1,777

(10)

875

—

895

288

—

288

794

(543)

(459)

—

(208)

247

—

1,020

—

1,019

1,749

(3,246)

1,318

(9)

(188)

1,122

—

934

* Millicom began consolidating our Guatemala operation as from November 12, 2021.

Millicom 2021 Annual Report123

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Financial
Statements

INDEX TO FINANCIAL STATEMENTS

Audited Consolidated Financial Statements of Millicom International Cellular S.A. at
December 31, 2021 and 2020 and for the Years Ended December 31, 2021, 2020 and 2019

Independent auditor’s report ................................................................................................................124

Consolidated statement of income for the years ended
December 31, 2021, 2020 and 2019 .................................................................................................... 130

Consolidated statement of comprehensive income for the years ended
December 31, 2021, 2020 and 2019 .................................................................................................... 131

Consolidated statement of financial position at December 31, 2021 and 2020 ..................... 132

Consolidated statement of cash flows for the years ended
December 31, 2021, 2020 and 2019 .................................................................................................... 134

Consolidated statement of changes in equity for the years ended
December 31, 2021, 2020 and 2019 .................................................................................................... 136

Notes to the audited consolidated financial statements ..................................................................... 138

124

Independent auditor’s report

To the Shareholders of
Millicom International Cellular S.A.
2, rue du Fort Bourbon
L-1249 Luxembourg

Report on the audit of the consolidated financial statements

Opinion

We have audited the consolidated financial statements of Millicom International Cellular S.A. (“the Group”)
included on page 130 to page 214, which comprise the consolidated statement of financial position as at
December 31, 2021, the consolidated statement of income, the consolidated statement of comprehensive
income, the consolidated statement of cash flows and the consolidated statement of changes in equity for the
year then ended, and a summary of significant accounting policies and other explanatory information.

In our opinion, the accompanying consolidated financial statements give a true and fair view of the consolidated
financial position of Millicom International Cellular S.A. as at December 31, 2021, and of its consolidated
financial performance and consolidated cash flows for the year then ended in accordance with International
Financial Reporting Standards (“IFRS”) as adopted by the European Union.

Basis for opinion

We conducted our audit in accordance with EU Regulation N° 537/2014, the Law of 23 July 2016 on the audit
profession (the “Law of 23 July 2016”) and with International Standards on Auditing (“ISAs”) as adopted for
Luxembourg by the “Commission de Surveillance du Secteur Financier” (“CSSF”). Our responsibilities under the
EU Regulation Nº 537/2014, the Law of 23 July 2016 and ISAs are further described in the “Responsibilities of
the “réviseur d’entreprises agréé” for the audit of the consolidated financial statements” section of our report.
We are also independent of the Group in accordance with the International Ethics Standards Board for
Accountants’ Code of Ethics for Professional Accountants (“IESBA Code”) as adopted for Luxembourg by the
CSSF together with the ethical requirements that are relevant to our audit of the consolidated financial
statements, and have fulfilled our other ethical responsibilities under those ethical requirements. We believe that
the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

Key audit matters

Key audit matters are those matters that, in our professional judgment, were of most significance in our audit of
the consolidated financial statements of the current period. These matters were addressed in the context of the
audit of the consolidated financial statements as a whole, and in forming our opinion thereon, and we do not
provide a separate opinion on these matters.

120

Millicom 2021 Annual Report125

1. Revenue recognition

Risk Identified

The Group’s revenue consists of mobile and data telephony services, corporate solutions, fixed-line broadband,
fixed-line telephone, cable TV and mobile financial services to retail and business customers. Revenue from
these services is considered a significant risk due to the complexity of the Group’s systems and processes used
to record revenue and the risks associated with recognition and measurement of revenue, arising from the
diversity and constant evolution of tariff plans, marketing offers, and discounts provided to customers. This
required an increased extent of audit effort, including the need for us to involve professionals with expertise in
information technology (IT), to identify, test, and evaluate the Group's systems, software applications, and
automated controls.

Our answer

Our audit procedures over revenue included, among others:

◦ We assessed the overall IT control environment and the IT controls in place, assisted by our information

technology professionals.

◦ We evaluated the design and tested the operating effectiveness of controls around access rights, system
development, program changes and IT dependent business controls to establish that changes to the
system were appropriately authorized, developed, and implemented including those over: set-up of
customer accounts, pricing data, segregation of duties and the linkage to usage data that drives revenue
recognition.

◦ We tested the end-to-end reconciliation from the billing systems to the general ledger.
◦ We tested journal entries processed between the billing systems and general ledger.
◦ We obtained a sample of customer contracts, including modifications to the contracts, and compared

customer contract terms to the revenue systems.

◦ We assessed the adequacy of the Group’s disclosures included in Note B.1.1. in respect to the accounting

policies on revenue recognition.

2. Uncertain tax positions

Risk Identified

The Group’s operations are subject to income taxes in various jurisdictions resulting in different subjective and
complex interpretation of local tax laws as uncertainty prevails in the emerging market economies in which
Millicom is operating. In addition, the global tax environment worldwide continues to evolve and becomes more
complex. Management exercises judgment in assessing the level of provision required for taxation when such
taxes are based on the interpretation of complex tax laws. The future actual outcome of the decisions
concerning these tax exposures may result in materially higher or lower amounts than the accrual included in
the accompanying consolidated financial statements.

121

Millicom 2021 Annual Report126

Our answer

Our procedures included, amongst others:

• We obtained an understanding of and evaluating the design and testing the operating effectiveness of the

Group’s controls relating to uncertain tax positions.

• We tested controls over management’s identification of uncertain tax positions and its application of the
recognition and measurement principles, including management’s review of the inputs and calculations of
uncertain tax positions.

• We evaluated the assumptions the Group used to develop its uncertain tax positions and related

unrecognized income tax benefit amounts by jurisdiction.

• We compared the estimated liabilities for unrecognized tax positions to similar positions in prior periods and
assessed management’s consideration of current tax treatments and litigation and trends in similar positions
challenged by tax authorities.

• We assessed the historical accuracy of management’s estimates of its unrecognized tax positions by

comparing the estimates with the resolution of those positions.

• We involved our tax professionals to assist us in evaluating the application of relevant tax laws and the

Group’s interpretation of such laws in its recognition determination

• We tested the completeness and accuracy of the underlying data used by the Group to calculate its

uncertain tax positions.

• We evaluated the adequacy of the Group’s disclosures included in Note G.3.2. in relation to these tax

matters.

3. Impairment testing of Goodwill

Risk Identified

Under EU-IFRSs, the Group is required to annually test the amount of goodwill for impairment. This annual impairment
test was significant to our audit because the balance of USD 4,884 million as of December 31, 2021 is material to the
consolidated financial statements. In addition, the Group’s assessment process includes significant judgments and is
based on assumptions derived from the Group’s business plans, which are affected by expected future market or
economic conditions. The impairment testing involved complex auditor judgment due to the significant assumptions
used to determine the recoverable values of each of the Group’s cash-generating units.

Our answer

Our audit procedures included, amongst others:

• We obtained an understanding of and evaluating the design and testing the operating effectiveness of the Group’s

controls over its impairment testing.

• We tested controls over management’s evaluation of the significant assumptions used in the discounted cash

flows to develop the recoverable values of each of the Group’s cash-generating units.

• We inspected the business plans and evaluating the methodology used.
• We involved our valuation specialists to assist with our audit procedures to test the discounted cash flows and
management’s valuation methodologies and assumptions discussed above which were used to determine the
recoverable values of the Group’s cash-generating units.

• We asked our valuation specialists to assist us in assessing whether the underlying assumptions used by

management were consistent with publicly available information and external market data.

• We assessed the completeness and accuracy of the underlying data through our inspection of and comparison to

historical information.

• We evaluated the adequacy of the Group’s disclosures included in Note E.1.5. in relation to goodwill.

122

Millicom 2021 Annual Report127

4. Accounting for business combination

Risk Identified

The Group acquired control over the remaining 45% equity interests in its former joint venture in Guatemala
(“Tigo Guatemala”) as of November 12, 2021. Since this date, the Group fully consolidates Tigo Guatemala. The
acquisition was accounted for under the method of purchase accounting. Millicom is currently determining the
fair values of Tigo Guatemala’s identifiable assets and liabilities, and the purchase accounting is still provisional
as of December 31, 2021.

Auditing the Company’s accounting for its acquisition of Tigo Guatemala was complex due to the overall
significance of the acquisition and the estimation uncertainty in determining the provisional values and the
related disclosures to be included in the consolidated financial statements as of December 31, 2021. For
instance, the Company estimated the provisional values based on the current carrying values of intangibles as
identified at the date of the deconsolidation of Tigo Guatemala and the commencement of the accounting for the
investment under the equity method in a prior year.

Our answer

Our audit procedures included, amongst others:

• We evaluated the design and testing the operating effectiveness of the Group’s controls over its accounting

for business combinations.

• We tested controls over management’s evaluation of the purchase contract for terms and conditions that
would impact the accounting for the acquisition, controls over the determination of the provisional values to
be included as of December 31, 2021 and controls over the disclosures related to the acquisition.

• We inspected the purchase contract and evaluating the terms and conditions and management’s accounting

for such terms and conditions in its purchase accounting.

• We tested the underlying data used by the Group to determine the provisional values based on the current
carrying values of intangibles as identified at the date of the deconsolidation of Tigo Guatemala and the
commencement of the accounting for the investment under the equity method in a prior year.

• We evaluated the adequacy of the related disclosures in Note A.1.2 to the consolidated financial statements.

Other information

The Board of Directors is responsible for the other information. The other information comprises the information
included in the consolidated management report on page 111 and the accompanying corporate governance
statement on pages 63 to 110 but does not include the consolidated financial statements and our report of
“réviseur d’entreprises agréé” thereon.

Our opinion on the consolidated financial statements does not cover the other information and we do not
express any form of assurance conclusion thereon.

In connection with our audit of the consolidated financial statements, our responsibility is to read the other
information and, in doing so, consider whether the other information is materially inconsistent with the
consolidated financial statements or our knowledge obtained in the audit or otherwise appears to be materially
misstated. If, based on the work we have performed, we conclude that there is a material misstatement of this
other information, we are required to report this fact. We have nothing to report in this regard.

Responsibilities of the Board of Directors and of those charged with governance for the consolidated
financial statements

The Board of Directors is responsible for the preparation and fair presentation of the consolidated financial
statements in accordance with IFRS as adopted by the European Union, and for such internal control as the
Board of Directors determines is necessary to enable the preparation of consolidated financial statements that
are free from material misstatement, whether due to fraud or error.

123

Millicom 2021 Annual Report128

The Board of Directors is also responsible for presenting and marking up the consolidated financial statements
in compliance with the requirements set out in the Delegated Regulation 2019/815 on European Single
Electronic Format, as amended (“ESEF Regulation”).

In preparing the consolidated financial statements, the Board of Directors is responsible for assessing the
Group’s ability to continue as a going concern, disclosing, as applicable, matters related to going concern and
using the going concern basis of accounting unless management either intends to liquidate the Group or to
cease operations, or has no realistic alternative but to do so.

Those charged with governance are responsible for overseeing the Group’s financial reporting process.

Responsibilities of the “réviseur d’entreprises agréé” for the audit of the consolidated financial
statements

The objectives of our audit are to obtain reasonable assurance about whether the consolidated financial
statements as a whole are free from material misstatement, whether due to fraud or error, and to issue a report
of the “réviseur d’entreprises agréé” that includes our opinion. Reasonable assurance is a high level of
assurance, but is not a guarantee that an audit conducted in accordance with EU Regulation N° 537/2014, the
Law of 23 July 2016 and with the ISAs as adopted for Luxembourg by the CSSF will always detect a material
misstatement when it exists. Misstatements can arise from fraud or error and are considered material if,
individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users
taken on the basis of these consolidated financial statements.

As part of an audit in accordance with EU Regulation N° 537/2014, the Law of 23 July 2016 and with ISAs as
adopted for
Luxembourg by the CSSF, we exercise professional judgment and maintain professional skepticism throughout
the audit. We also:

•

Identify and assess the risks of material misstatement of the consolidated financial statements, whether due
to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence
that is sufficient and appropriate to provide a basis for our opinion. The risk of not detecting a material
misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion,
forgery, intentional omissions, misrepresentations, or the override of internal control.

•

• Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are
appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of
the Group’s internal control.
Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates
and related disclosures made by the management.
Conclude on the appropriateness of management’s use of the going concern basis of accounting and,
based on the audit evidence obtained, whether a material uncertainty exists related to events or conditions
that may cast significant doubt on the Group’s ability to continue as a going concern. If we conclude that a
material uncertainty exists, we are required to draw attention in our report of the “réviseur d’entreprises
agréé” to the related disclosures in the consolidated financial statements or, if such disclosures are
inadequate, to modify our opinion. Our conclusions are based on the audit evidence obtained up to the date
of our report of the “réviseur d’entreprises agréé”. However, future events or conditions may cause the
Group to cease to continue as a going concern.
Evaluate the overall presentation, structure and content of the consolidated financial statements, including
the disclosures, and whether the consolidated financial statements represent the underlying transactions
and events in a manner that achieves fair presentation.
Assess whether the consolidated financial statements have been prepared, in all material respects, in
compliance with the requirements laid down in the ESEF Regulation.

•

• Obtain sufficient appropriate audit evidence regarding the consolidated financial information of the entities
or business activities within the Group to express an opinion on the consolidated financial statements. We
are responsible for the direction, supervision and performance of the Group audit. We remain solely
responsible for our audit opinion.

We communicate with those charged with governance regarding, among other matters, the planned scope and
timing of the audit and significant audit findings, including any significant deficiencies in internal control that we
identify during our audit.

124

Millicom 2021 Annual Report
129

We also provide those charged with governance with a statement that we have complied with relevant ethical
requirements regarding independence and communicate to them all relationships and other matters that may
reasonably be thought to bear on our independence, and where applicable, related safeguards.
We also provide those charged with governance with a statement that we have complied with relevant ethical
requirements regarding independence and communicate to them all relationships and other matters that may
From the matters communicated with those charged with governance, we determine those matters that were of
reasonably be thought to bear on our independence, and where applicable, related safeguards.
most significance in the audit of the consolidated financial statements of the current period and are therefore
From the matters communicated with those charged with governance, we determine those matters that were of
the key audit matters. We describe these matters in our report unless law or regulation precludes public
most significance in the audit of the consolidated financial statements of the current period and are therefore
disclosure about the matter.
the key audit matters. We describe these matters in our report unless law or regulation precludes public
Report on other legal and regulatory requirements
disclosure about the matter.

We have been appointed as “réviseur d’entreprises agréé” by the General Meeting of the Shareholders on May
Report on other legal and regulatory requirements
04, 2021 and the duration of our uninterrupted engagement, including previous renewals and reappointments, is
10 years.
We have been appointed as “réviseur d’entreprises agréé” by the General Meeting of the Shareholders on May
04, 2021 and the duration of our uninterrupted engagement, including previous renewals and reappointments, is
The consolidated management report on page 111 is consistent with the consolidated financial statements and
10 years.
has been prepared in accordance with applicable legal requirements.
The consolidated management report on page 111 is consistent with the consolidated financial statements and
The accompanying corporate governance statement on pages 63 to 110 is the responsibility of the Board of
has been prepared in accordance with applicable legal requirements.
Directors. The information required by article 68ter paragraph (1) letters c) and d) of the law of 19 December
2002 on the commercial and companies register and on the accounting records and annual accounts of
The accompanying corporate governance statement on pages 63 to 110 is the responsibility of the Board of
undertakings, as amended, is consistent with the consolidated financial statements and has been prepared in
Directors. The information required by article 68ter paragraph (1) letters c) and d) of the law of 19 December
accordance with applicable legal requirements.
2002 on the commercial and companies register and on the accounting records and annual accounts of
undertakings, as amended, is consistent with the consolidated financial statements and has been prepared in
We have checked the compliance of the consolidated financial statements of the Group as at December 31,
accordance with applicable legal requirements.
2021 with relevant statutory requirements set out in the ESEF Regulation that are applicable to the financial
statements. For the Group, it relates to:
We have checked the compliance of the consolidated financial statements of the Group as at December 31,
2021 with relevant statutory requirements set out in the ESEF Regulation that are applicable to the financial
•
statements. For the Group, it relates to:
•
•
•
In our opinion, the consolidated financial statements of the Group as at December 31, 2021, identified as
ar2021mic, have been prepared, in all material respects, in compliance with the requirements laid down in the
ESEF Regulation.
In our opinion, the consolidated financial statements of the Group as at December 31, 2021, identified as
ar2021mic, have been prepared, in all material respects, in compliance with the requirements laid down in the
We confirm that the audit opinion is consistent with the additional report to the audit committee or equivalent.
ESEF Regulation.

Financial statements prepared in valid xHTML format;
The XBRL markup of the consolidated financial statements using the core taxonomy and the common rules
on markups specified in the ESEF Regulation.
Financial statements prepared in valid xHTML format;
The XBRL markup of the consolidated financial statements using the core taxonomy and the common rules
on markups specified in the ESEF Regulation.

We confirm that the prohibited non-audit services referred to in EU Regulation No 537/2014 were not provided
We confirm that the audit opinion is consistent with the additional report to the audit committee or equivalent.
and that we remained independent of the Group in conducting the audit.
We confirm that the prohibited non-audit services referred to in EU Regulation No 537/2014 were not provided
Other matter
and that we remained independent of the Group in conducting the audit.

The corporate governance statement includes the information required by article 68ter paragraph (1) of the law
Other matter
of 19 December 2002 on the commercial and companies register and on the accounting records and annual
accounts of undertakings, as amended.
The corporate governance statement includes the information required by article 68ter paragraph (1) of the law
of 19 December 2002 on the commercial and companies register and on the accounting records and annual
accounts of undertakings, as amended.

Ernst & Young
Société anonyme
Ernst & Young
Cabinet de révision agréé
Société anonyme

Cabinet de révision agréé
Bruno di Bartolomeo

Bruno di Bartolomeo

Luxembourg, 01 March 2022

Millicom 2021 Annual ReportConsolidated financial statements for the years ended
December 31, 2021, 2020 and 2019

130

Consolidated statement of income for the years ended December 31, 2021,
2020 and 2019

Notes

2021(i)

2020

2019

(US$ millions)

Revenue ....................................................................................................................

Cost of sales ..............................................................................................................

Gross profit .............................................................................................................

Operating expenses .................................................................................................

B.1.

B.2.

Depreciation ............................................................................................................

E.2.2., E.3.

Amortization ............................................................................................................

E.1.3.

Share of profit in joint ventures ..............................................................................

Other operating income (expenses), net ................................................................

Operating profit .....................................................................................................

A.2.

B.2.

B.3.

Interest and other financial expenses .....................................................................

C.3.3., E.3.

Interest and other financial income ........................................................................

Revaluation of previously held interests in Guatemala ..........................................

C.3.1.

A.1.2.

Other non-operating (expenses) income, net ........................................................

B.5., C.7.3.

Profit (loss) from other joint ventures and associates, net .....................................

A.3.

Profit (loss) before taxes from continuing operations .....................................

Tax (charge) credit, net ............................................................................................

B.6.

Profit (loss) from continuing operations ............................................................

Profit (loss) from discontinued operations, net of tax ............................................

E.4.2.

Net profit (loss) for the period .............................................................................

Attributable to:

Owners of the Company ..........................................................................................

Non-controlling interests ........................................................................................
Earnings (loss) per common share for profit (loss) attributable to the owners
of the Company

A.1.4.

Basic and diluted (US$ per common share) (ii)

— from continuing operations ...............................................................................

— from discontinued operations ............................................................................

— Total ....................................................................................................................

B.7.

4,617

(1,302)

3,316

(1,677)

(878)

(318)

210

659

(531)

670

(50)

(39)

732

(189)

543

—

542

590

(48)

5.84

—

5.84

4,171

(1,171)

3,000

(1,505)

(890)

(318)

171

(12)

446

(624)

—

(106)

(1)

(271)

(102)

(373)

(12)

(385)

(344)

(41)

(3.28)

(0.12)

(3.40)

4,336

(1,201)

3,135

(1,604)

(825)

(275)

179

(34)

575

(564)

—

227

(40)

218

(120)

154

149

0.92

0.56

1.48

(i)

Tigo Guatemala is fully consolidated since the acquisition of the remaining 45% shareholding on November 12, 2021. See note A.1.2. for further details.
As a result, numbers might not be directly comparable with previous years' figures.

(ii)

There are no dilutive potential ordinary shares.

The accompanying notes are an integral part of these consolidated financial statements.

Millicom 2021 Annual ReportConsolidated financial statements for the years ended
December 31, 2021, 2020 and 2019

131

Consolidated statement of comprehensive income for the years ended
December 31, 2021, 2020 and 2019

2021 (i)

2020

2019

(US$ millions)

Net profit (loss) for the year ................................................................................................................

542

(385)

154

Other comprehensive income (to be reclassified to statement of income in subsequent
periods), net of tax:

Exchange differences on translating foreign operations ..................................................................

Change in value of cash flow hedges, net of tax effects ....................................................................

Other comprehensive income (not to be reclassified to the statement of income in
subsequent periods), net of tax:

Remeasurements of post-employment benefit obligations, net of tax effects ................................

Total comprehensive income (loss) for the period .......................................................................

Attributable to:

Owners of the Company .....................................................................................................................

Non-controlling interests ....................................................................................................................

Total comprehensive income for the period arises from:

Continuing operations ........................................................................................................................

Discontinued operations ....................................................................................................................

(52)

509

565

(57)

509

—

(19)

(1)

(2)

(407)

(360)

(48)

(395)

(12)

(4)

(16)

—

133

131

(i)

The accompanying notes are an integral part of these consolidated financial statements.

Millicom 2021 Annual ReportConsolidated financial statements for the years ended
December 31, 2021, 2020 and 2019

132

Consolidated statement of financial position at December 31, 2021 and 2020

Notes

December 31,
2021(i)

December 31,
2020

(US$ millions)

ASSETS

NON-CURRENT ASSETS

Intangible assets, net .....................................................................................................................

Property, plant and equipment, net ..............................................................................................

Right of use assets ..........................................................................................................................

Investments in joint ventures ........................................................................................................

Investments in associates ..............................................................................................................

Contract costs, net ..........................................................................................................................

Deferred tax assets .........................................................................................................................

Derivative financial instruments ....................................................................................................

Amounts due from non-controlling interests, associates and joint ventures .............................

Other non-current assets ...............................................................................................................

E.1.

E.2.

E.3.

A.2.

A.3.

F.5.

B.6.

D.1.2.

G.5.

7,721

3,198

1,008

596

180

3,403

2,755

895

2,642

197

TOTAL NON-CURRENT ASSETS ...................................................................................................

12,852

10,114

CURRENT ASSETS

Inventories ......................................................................................................................................

Trade receivables, net ....................................................................................................................

Contract assets, net ........................................................................................................................

Amounts due from non-controlling interests, associates and joint ventures .............................

F.2.

F.1.

F.5.

G.5.

Prepayments and accrued income ................................................................................................

Current income tax assets ..............................................................................................................

Supplier advances for capital expenditure ...................................................................................

Equity investments .........................................................................................................................

C.7.3.

Other current assets .......................................................................................................................

Restricted cash ...............................................................................................................................

Cash and cash equivalents .............................................................................................................

TOTAL CURRENT ASSETS .............................................................................................................

C.5.

Assets held for sale .........................................................................................................................

E.4.2.

TOTAL ASSETS ..............................................................................................................................

405

168

104

—

302

203

895

351

206

149

160

181

199

875

2,286

—

15,139

2,307

12,422

(i)

The assets and liabilities of Tigo Guatemala are fully consolidated since the acquisition of the remaining 45% shareholding on November 12, 2021. See
note A.1.2. for further details. As a result, numbers might not be directly comparable with previous years' figures.

The accompanying notes are an integral part of these consolidated financial statements.

Millicom 2021 Annual ReportConsolidated financial statements for the years ended
December 31, 2021, 2020 and 2019

133

Consolidated statement of financial position at December 31, 2021 and 2020

Notes

December 31,
2021 (i)

December 31,
2020

(US$ millions)

EQUITY AND LIABILITIES

EQUITY

Share capital and premium ......................................................................................................

C.1.

Treasury shares .........................................................................................................................

Other reserves ...........................................................................................................................

C.1.

Retained profits ........................................................................................................................

Net profit (loss) for the year attributable to equity holders ....................................................

Equity attributable to owners of the Company ..................................................................

Non-controlling interests .........................................................................................................

A.1.4.

TOTAL EQUITY .........................................................................................................................

LIABILITIES

NON-CURRENT LIABILITIES

Debt and financing ...................................................................................................................

Lease liabilities ..........................................................................................................................

C.3.

C.4.

Derivative financial instruments ..............................................................................................

D.1.2.

Amounts due to non-controlling interests, associates and joint ventures ............................

Payables and accruals for capital expenditure ........................................................................

Provisions and other non-current liabilities ............................................................................

Deferred tax liabilities ...............................................................................................................

G.5.

E.1.

F.4.2.

B.6.

628

(60)

(594)

2,019

590

2,583

157

2,740

5,904

996

—

435

364

214

630

(30)

(562)

2,365

(344)

2,059

215

2,274

5,578

897

485

328

209

TOTAL NON-CURRENT LIABILITIES .......................................................................................

7,914

7,540

CURRENT LIABILITIES

Debt and financing ...................................................................................................................

Lease liabilities ..........................................................................................................................

Put option liability ....................................................................................................................

Derivative financial instruments ..............................................................................................

Payables and accruals for capital expenditure ........................................................................

Other trade payables ................................................................................................................

C.3.

C.4.

C.7.4.

D.1.2.

Amounts due to non-controlling interests, associates and joint ventures ............................

G.5.

Accrued interest and other expenses ......................................................................................

Current income tax liabilities ...................................................................................................

Contract liabilities .....................................................................................................................

Provisions and other current liabilities ....................................................................................

TOTAL CURRENT LIABILITIES ................................................................................................

F.5.

F.4.1.

Liabilities directly associated with assets held for sale ...........................................................

E.4.2.

TOTAL LIABILITIES ..................................................................................................................

TOTAL EQUITY AND LIABILITIES ...........................................................................................

1,840

171

290

—

452

347

539

128

546

4,485

—

12,399

15,139

113

123

262

345

334

311

445

511

2,608

—

10,148

12,422

(i)

The accompanying notes are an integral part of these consolidated financial statements.

Millicom 2021 Annual ReportConsolidated financial statements for the years ended
December 31, 2021, 2020 and 2019

134

Consolidated statement of cash flows for the years ended December 31, 2021,
2020 and 2019

Notes

2021(i)

2020

2019

(US$ millions)

Cash flows from operating activities (including discontinued operations)

Profit (loss) before taxes from continuing operations .......................................................

Profit (loss) before taxes from discontinued operations ....................................................

E.4.2.

Profit (loss) before taxes .......................................................................................................

Adjustments to reconcile to net cash:

Interest expense on leases ..................................................................................................

Interest expense on debt and other financing ...................................................................

Interest and other financial income ....................................................................................

Adjustments for non-cash items:

Depreciation and amortization ..........................................................................................

Share of net profit in joint ventures ....................................................................................

A.2.

(Gain) loss on disposal and impairment of assets, net ...................................................... B.2., E.4.2.

Share-based compensation ...............................................................................................

C.1.

732

—

731

131

400

(23)

1,196

(210)

(6)

Revaluation of previously held interest in Guatemala .......................................................

A.1.2.

(670)

Loss from other joint ventures and associates, net ............................................................

Other non-cash non-operating (income) expenses, net ...................................................

A.3.

B.5.

Changes in working capital: .............................................................................................

Decrease (increase) in trade receivables, prepayments and other current assets, net .....

Decrease (increase) in inventories ......................................................................................

Increase (decrease) in trade and other payables, net .........................................................

Increase (decrease) in contract assets, liabilities and costs, net .........................................

Total changes in working capital ....................................................................................

Interest paid on leases .........................................................................................................

Interest paid on debt and other financing .........................................................................

Interest received .................................................................................................................

Taxes paid ............................................................................................................................

Net cash provided by operating activities .........................................................................

Cash flows from (used in) investing activities (including discontinued operations):

(93)

(5)

(81)

(140)

(355)

(127)

956

Acquisition of subsidiaries, joint ventures and associates, net of cash acquired .............

A.1.

(2,000)

Financing exit from the Ghana joint venture .....................................................................

A.2.2.

Net proceeds from disposal of subsidiaries and associates, net of cash disposed ...........

Purchase of intangible assets and licenses ........................................................................

Purchase of property, plant and equipment .....................................................................

E.1.4.

E.2.3.

Proceeds from sale of property, plant and equipment .....................................................

E.3.

Proceeds from disposal of equity investments, net of costs ..............................................

Dividends and dividend advances received from joint ventures ....................................

Transfer to pledge deposits .................................................................................................

A.2.2.

C.5.3.

Cash (used in) provided by other investing activities, net ...............................................

D.1.2.

(37)

(135)

(740)

163

(33)

(271)

(12)

(283)

156

468

(13)

1,208

(171)

—

106

(43)

(6)

(2)

(151)

(411)

(142)

821

—

(202)

(622)

197

—

218

276

157

408

(20)

1,111

(179)

(40)

—

(227)

(119)

(61)

(2)

(172)

(141)

(344)

(114)

801

(1,014)

—

111

(171)

(736)

237

—

Net cash used in investing activities ...................................................................................

(2,703)

(495)

(1,502)

Cash flows from financing activities (including discontinued operations):

Millicom 2021 Annual ReportConsolidated financial statements for the years ended
December 31, 2021, 2020 and 2019

135

Notes

2021(i)

Proceeds from debt and other financing ...........................................................................

Repayment of debt and other financing ............................................................................

Loan repayment from (advanced to) joint venture ............................................................

Lease capital repayment ......................................................................................................

C.6.

G.5.

C.6.

Advances and dividends paid to non-controlling interests

A.1./A.2.

Share repurchase program ..................................................................................................

Dividends paid to owners of the Company ........................................................................

C.2.

Net cash provided by (used in) financing activities ..........................................................

Exchange impact on cash and cash equivalents, net .........................................................

Net (decrease) increase in cash and cash equivalents .....................................................

Cash and cash equivalents at the beginning of the year ...................................................

Effect of cash in disposal group held for sale .....................................................................

E.4.2.

Cash and cash equivalents at the end of the year .............................................................

3,113

(1,335)

193

(137)

(6)

(50)

—

1,777

(10)

875

—

895

2020

1,470

2019

2,900

(1,744)

(1,157)

(193)

(116)

(5)

(10)

(598)

(17)

(289)

1,164

875

—

(107)

(13)

—

(268)

1,355

(8)

645

528

(9)

1,164

(i) The cash flows of Tigo Guatemala are fully consolidated since the acquisition of the remaining 45% shareholding on November 12, 2021. See note A.1.2.

for further details. As a result, numbers might not be directly comparable with previous years' figures.

The accompanying notes are an integral part of these consolidated financial statements.

Millicom 2021 Annual ReportConsolidated financial statements for the years ended
December 31, 2021, 2020 and 2019

136

Consolidated statement of changes in equity for the years ended December 31,
2021, 2020 and 2019

Number
of
shares
(000’s)

Number of
shares held
by the Group
(000’s)

Share
capital
(i)

Share
premium
(i)

Treasury
shares

Retained
profits(ii)

Other
reserves
(iii)

Total

Non-
controlling
interests

Total
equity

(US$ millions)

Balance on January 1, 2019 ... 101,739

(914)

153

482

(81)

2,525

(538)

2,542

251

2,792

Total comprehensive income
for the period ............................

Dividends (iv) .............................

Dividends to non controlling
interests .....................................

Purchase of treasury shares
(vii) .............................................

Share based compensation (v) .

Issuance of shares under
share-based payment schemes

Effect of restructuring in
Tanzania (vi) ..............................

—

Balance on December 31,
2019 .......................................... 101,739

Total comprehensive income
for the year ................................

Dividends (iv) .............................

Dividends to non controlling
interest .......................................

Purchase of treasury shares ......

Share based compensation (v) .

Issuance of shares under
share-based payment schemes

—

Balance on December 31,
2020 .......................................... 101,739

Total comprehensive income
for the year ................................

Dividends (iv) .............................

Dividends to non controlling
interests .....................................

Purchase of treasury shares(vii)

Share based compensation(v) ..

Issuance of shares under
share-based payment schemes

Change in scope of
consolidation (viii) .....................

—

Balance on December 31,
2021 .......................................... 101,739

—

(132)

—

465

—

(2)

—

(12)

—

149

(267)

(19)

—

131

(267)

—

(12)

(27)

—

(25)

—

(8)

(18)

—

(1)

—

133

(267)

(1)

(8)

—

(581)

153

480

(51)

2,372

(544)

2,409

271

2,680

—

(467)

—

521

—

(2)

—

(19)

—

(344)

—

(15)

—

(360)

—

(16)

(11)

(26)

(48)

—

(8)

—

(407)

—

(8)

(16)

(526)

153

478

(30)

2,020

(562)

2,059

215

2,274

—

(1,471)

459

—

(2)

—

(56)

—

590

—

(5)

(25)

—

(25)

—

565

—

(54)

(5)

(57)

—

(3)

—

509

—

(3)

(54)

(5)

(1,538)

153

476

(60)

2,609

(594)

2,583

157

2,740

(i)

(ii)

Share capital and share premium – see note C.1.

Retained profits – includes profit for the year attributable to equity holders, of which $486 million (2020: $310 million; 2019: $306 million) are not
distributable to equity holders.

(iii) Other reserves – see note C.1.

Millicom 2021 Annual Report137

Consolidated financial statements for the years ended
December 31, 2021, 2020 and 2019

(iv) Dividends – see note C.2.

(v)

Share-based compensation – see note C.1.

(vi)

Effect of the restructuring in Tanzania A.1.2.

(vii) During the year ended December 31, 2021, Millicom repurchased 1,369,284 shares (2020: 350,000 shares), for a total amount of $50 million (2020: 10
million, 2019: nil) and withheld approximately 102,000 shares (2020: 117,000) for settlement of tax obligations on behalf of employees under share-
based compensation plans.

(viii) Cloud 2 Nube S.A. was a subsidiary owned by the Group at 55% and already fully consolidated as Millicom had control over it. As a result, in
accordance with IFRS 10, the acquisition of the remaining 45% in Cloud 2 Nube S.A. has been treated as an equity transaction and non-controlling
interests amounting to less than $1 million were transferred to the Group's equity against a purchase consideration of $5 million.

The accompanying notes are an integral part of these consolidated financial statements.

Millicom 2021 Annual ReportNotes to the Consolidated Financial Statements
For the years ended December 31, 2021, 2020 and 2019

Introduction

Corporate Information

138

Millicom International Cellular S.A. (the “Company” or “MIC S.A.”), a Luxembourg Société Anonyme, and its subsidiaries, joint
ventures and associates (the “Group” or “Millicom”) is an international telecommunications and media group providing digital
lifestyle services in emerging markets, through mobile and fixed telephony, cable, broadband, Pay-TV in Latin America (Latam) and
Africa.

The Company’s shares are traded as Swedish Depositary Receipts on the Stockholm stock exchange under the symbol TIGO_SDB
(formerly MIC SDB) and, since January 9, 2019, on the Nasdaq Stock Market in the U.S. under the ticker symbol TIGO. The Company
has its registered office at 2, Rue du Fort Bourbon, L-1249 Luxembourg, Grand Duchy of Luxembourg and is registered with the
Luxembourg Register of Commerce under the number RCS B 40 630.

On November 14, 2019, Millicom's historical principal shareholder, Kinnevik AB, distributed its entire (approximately 37% of
Millicom's outstanding shares) shareholding in Millicom to its own shareholders through a share redemption plan. Since that date,
Kinnevik is no longer a related party or shareholder in Millicom.

On February 25, 2022, the Board of Directors authorized these consolidated financial statements for issuance.

Business activities

Millicom operates its mobile businesses in Latin America (Bolivia, Colombia, El Salvador, Guatemala, Honduras, Nicaragua, Panama
and Paraguay), and in Africa (Tanzania).

Millicom operates various cable and fixed line businesses in Latin America (Bolivia, Colombia, Costa Rica, El Salvador, Guatemala,
Honduras, Nicaragua, Panama and Paraguay). Millicom also provides direct to home satellite service in most of its Latam countries.

On November 12, 2021, Millicom announced that it has closed the previously-announced agreement to acquire the remaining 45%
equity interest in its joint venture business in Guatemala (collectively, "Tigo Guatemala"). As a result, Millicom owns 100% equity
interest in Tigo Guatemala and fully consolidates it since that date. As a result, the statements of income, cash flows and financial
position in these consolidated financial statements might not be directly comparable with previous years' figures.

When preparing and disclosing its segment information, the Group includes Honduras and Guatemala in the Latin America (Latam)
segment figures as if they are fully consolidated by the Group, as this reflects the way management reviews and uses internally
reported information to make decisions (see note B.3. Segmental information). The Tigo Guatemala acquisition has no impact on the
way we present our Latin America segment because it included our Guatemala joint venture as if it was already fully consolidated.

Millicom also provides Mobile Financial Services (MFS) and holds small minority investments in other businesses such as micro-
insurance (Milvik).

COVID-19 - Qualitative and quantitative assessment on business activities, financial situation and economic
performance

Impact on our markets and business

During 2021, economic activity recovered in our markets as most countries eased the lockdowns implemented at the beginning of
the pandemic, and remittances from the U.S. to Central America sustained double-digit growth year-on-year. Meanwhile,
vaccination rates were above 50% in Colombia, Costa Rica, El Salvador and Panama and were below 30% in Guatemala. Some
countries experienced spikes in the number of COVID cases during the last semester, but governments generally refrained from
imposing strict lockdowns, choosing instead to use curfews or voluntary quarantine programs, which had a negligible effect on
commercial activity.

As of December 31, 2021, and for the year ended December 31, 2021, management did not identify any significant adverse
accounting effects as a result of the pandemic.

Millicom 2021 Annual Report139

Notes to the Consolidated Financial Statements
For the years ended December 31, 2021, 2020 and 2019

IFRS Consolidated Financial Statements

Basis of preparation

These financial statements have been prepared in accordance with International Financial Reporting Standards as issued by the IASB
(IFRS). They are also compliant with International Financial Reporting Standards as adopted by the European Union. This is in
accordance with Regulation (EC) No 1606/2002 of the European Parliament and of the Council of July 19, 2002, on the application of
international accounting standards for listed companies domiciled in the European Union.

The financial statements have been prepared on an historical cost basis, except for certain items including derivative financial
instruments (measured at fair value) and financial instruments that contain obligations to purchase own equity instruments
(measured at the present value of the redemption price).

This section contains the Group’s significant accounting policies that relate to the financial statements as a whole. Significant
accounting policies specific to one note are included within that note. Accounting policies relating to non-material items are not
included in these financial statements.

Consolidation

The consolidated financial statements of the Group comprise the financial statements of the Company and its subsidiaries as of
December 31 of each year. The financial statements of the subsidiaries are prepared for the same reporting year as the Company,
using consistent accounting policies.

All intra-group balances, transactions, income and expenses, and profits and losses resulting from intra-group transactions are
eliminated.

Foreign currency

Financial information in these financial statements are shown in the US dollar presentation currency of the Group and rounded to
the nearest million (US$ million) except where otherwise indicated. The financial statements of each of the Group’s entities are
measured using the currency of the primary economic environment in which each entity operates (the functional currency). The
functional currency of each subsidiary, joint venture and associate reflects the economic substance of the underlying events and
circumstances of these entities. Except for El Salvador where the functional currency is US dollar, the functional currency in other
countries is the local currency.

The results and financial position of all Group entities (none of which operate in an economy with a hyperinflationary environment)
with functional currency other than the US dollar presentation currency are translated into the presentation currency as follows:

(i) Assets and liabilities are translated at the closing rate on the date of the statement of financial position;

(ii)

Income and expenses are translated at average exchange rates (unless this average is not a reasonable approximation of the
cumulative effect of the rates prevailing on the transaction dates, in which case income and expenses are translated at the
dates of the transactions); and

(iii) All resulting exchange differences are recognized as a separate component of equity (currency translation reserve), in the

caption “Other reserves”.

On consolidation, exchange differences arising from the translation of net investments in foreign operations, and of borrowings and
other currency instruments designated as hedges of such investments, are recorded in equity. When the Group disposes of or loses
control or significant influence over a foreign operation, exchange differences that were recorded in equity are recognized in the
consolidated statement of income as part of gain or loss on sale or loss of control and/or significant influence.

Goodwill and fair value adjustments arising on acquisition of a foreign operation are treated as assets and liabilities of the foreign
operation and translated at the closing rate.

Millicom 2021 Annual ReportNotes to the Consolidated Financial Statements
For the years ended December 31, 2021, 2020 and 2019

14 0

The following table presents functional currency translation rates for the Group’s locations to the US dollar on December 31, 2021,
2020 and 2019 and the average rates for the years ended December 31, 2021, 2020 and 2019.

Exchange Rates to the
US Dollar

Functional Currency

2021 Year-
end Rate

2020 Year-
end Rate

Change %

2021
Average
Rate

2020
Average
Rate

Change %

2019
Average
Rate

Bolivia ........................ Boliviano (BOB)
Colombia ................... Peso (COP)
Costa Rica ................... Costa Rican Colon (CRC)

El Salvador ................. US dollar
Ghana ......................... Cedi (GHS)
Guatemala ................. Quetzal (GTQ)
Honduras ................... Lempira (HNL)
Luxembourg .............. Euro (EUR)
Nicaragua ................... Cordoba (NIO)
Panama ...................... Balboa (B/.) (i)
Paraguay .................... Guarani (PYG)
Sweden ...................... Krona (SEK)
Tanzania ..................... Shilling (TZS)
United Kingdom ........ Pound (GBP)

6.91

3,981

645

n/a

6.18

7.72

24.43

0.88

35.52

n/a

6,886

9.05

2,305

0.74

6.91

3,433

617

n/a

5.87

7.79

24.20

0.82

34.82

n/a

6,900

8.23

2,319

0.73

— %

(13.8) %

(4.3) %

n/a

(5.1) %

1.0 %

(1.0) %

(6.9) %

(2.0) %

n/a

0.2 %

(9.1) %

0.6 %

(1.0) %

6.91

3,756

625

n/a

5.94

7.74

24.12

0.85

35.17

n/a

6,790

8.59

2,313

0.73

6.91

3,695

590

n/a

5.75

7.73

24.65

0.87

34.34

n/a

6,758

9.16

2,312

0.77

— %

(1.6) %

(5.6) %

n/a

(3.2) %

(0.1) %

2.2 %

3.4 %

(2.4) %

n/a

(0.5) %

6.6 %

— %

6.2 %

6.91

3,296

588

n/a

5.33

7.71

24.59

0.89

33.12

n/a

6,232

9.43

2,304

0.78

(i) the balboa is tied to the United States dollar at an exchange rate of 1:1.

New and amended IFRS accounting standards

The following new or amended standards have been adopted by the Group and did not have any significant impact on the Group’s
accounting policies or disclosures and did not require retrospective adjustments.

•

Amendment to IFRS 16, 'Leases' - COVID 19 Rent Concessions - effective for annual periods starting on June 1, 2020. While the
Group has implemented this amendment already in 2020, the IASB (in March 2021) extended its initial application beyond June
30, 2021, by one additional year.

Amendments to IFRS 9, IAS 39, IFRS 7, IFRS 4 and IFRS 16 - Interest Rate Benchmark Reform - Phase 2 - effective for annual
periods starting on January 1, 2021. The amendments provide temporary reliefs which address the financial reporting effects
when an interbank offered rate (IBOR) is replaced with an alternative nearly risk-free interest rate.

Main reliefs provided by the Phase 2 amendments relate to:

•

Changes to contractual cash flows: That is, when changing the basis for determining contractual cash flows for
financial assets and liabilities required by the reform this will not result in an immediate gain or loss in the income
statement but in an update of the effective interest rate (or an update in the discount rate to remeasure the lease
liability as a result of the IBOR reform), and;

Hedge accounting: That is, allowing hedge relationships that are directly affected by the reform to continue, though
additional ineffectiveness might need to be recorded.

The Group has inventoried financial assets or liabilities (including lease liabilities), as well as hedging instruments, with IBOR
features and concluded that it was not significantly exposed to this reform.

The following changes to standards not yet effective are not expected to materially affect the Group:

•

Amendments effective for annual periods starting on January 1, 2022:

•

IFRS 3 'Business Combinations' - Reference to Conceptual Framework.

IAS 16 'Property, Plant and Equipment' - Proceeds before intended use.

IAS 37 'Provisions, Contingent Liabilities and Contingent Assets' - Cost of fulfilling a contract.

Annual improvements to IFRS Standards 2018-2020, affecting IFRS 1, IFRS 9, IFRS 16 and IAS 41.

•

Amendments effective for annual periods starting on January 1, 2023:

Millicom 2021 Annual ReportNotes to the Consolidated Financial Statements
For the years ended December 31, 2021, 2020 and 2019

141

•

Amendments to IAS 1, 'Presentation of Financial Statements' : These amendments clarify that liabilities are classified
as either current or non-current, depending on the rights that exist at the end of the reporting period. The
amendments also clarify what IAS 1 means when it refers to the ‘settlement’ of a liability. The IASB also issued
'Disclosure of Accounting Policies' with amendments that are intended to help preparers in deciding which
accounting policies to disclose in their financial statements (not yet endorsed by the EU).

IFRS 17, ‘Insurance contracts’

Amendments to IFRS 17, ‘Insurance contracts’(not yet endorsed by the EU).

IAS 8, 'Accounting Policies, Changes in Accounting Estimates and Errors' - Definition of accounting estimates (not yet
endorsed by the EU).

The following changes to standards are effective for annual periods starting on January 1, 2023 (not yet endorsed by the EU) and their
potential impact on the Group consolidated financial statements is currently being assessed by Management:

•

Amendments to IAS 12, 'Income Taxes: Deferred tax related to Assets and liabilities arising from a Single Transaction' -
These amendments clarify that the initial recognition exception does not apply to the initial recognition of leases and
decommissioning obligations. These amendments apply prospectively to transactions that occur on or after the
beginning of the earliest comparative period presented. In addition, an entity should apply the amendments for the
first time by recognising deferred tax for all temporary differences related to leases and decommissioning obligations
at the beginning of the earliest comparative period presented.

Millicom 2021 Annual ReportNotes to the Consolidated Financial Statements
For the years ended December 31, 2021, 2020 and 2019

Judgments and critical estimates

142

The preparation of IFRS financial statements requires management to use judgment in applying accounting policies. It also requires
the use of certain critical accounting estimates and assumptions that affect the reported amounts of assets and liabilities, and
disclosure of contingent assets and liabilities at the date of the financial statements, and the reported amounts of revenue and
expenses during the reporting period. These estimates are based on management's best knowledge of current events, actions and
best estimates as of a specified date, and actual results may ultimately differ from these estimates. Areas involving a higher degree of
judgment or complexity, or areas where assumptions and estimates are significant to the financial statements are disclosed in each
note and are summarized below:

Judgments

Management apply judgment in accounting treatment and accounting policies in preparation of these financial statements. In
particular, a significant level of judgment is applied regarding the following items:

•

Acquisitions – measurement at fair value of existing and newly identified assets, including the measurement of property,
plant and equipment and intangible assets (e.g. particularly the customer lists being sensitive to significant assumptions as
disclosed in note A.1.2.), liabilities, contingent liabilities and remaining goodwill; the assessment of useful lives (see notes
A.1.2., E.1.1., E.1.5., E.2.1.);

Impairment testing – key assumptions related to future business performance, perpetual growth rates and discount rates
(see notes E.1.2., E.1.6., E.2.2.);

Revenue recognition – whether or not the Group acts as principal or as an agent, when there is one or several
performance obligations and the determination of stand-alone selling prices (see note B.1.1.);

Contingent liabilities – whether or not a provision should be recorded for any potential liabilities (see note G.3.);

Leases – In determining the lease term, including the assessment of whether the exercise of extension or termination
options is reasonably certain and the corresponding impact on the selected lease term (see note E.3.);

Control – whether Millicom, through voting rights and potential voting rights attached to shares held, or by way of
shareholders’ agreements or other factors, has the ability to direct the relevant activities of the subsidiaries it consolidates,
or jointly direct the relevant activities of its joint ventures (see notes A.1., A.2.);

Discontinued operations and assets held for sale – definition, classification and presentation (see notes A.4., E.4.1.) as
well as measurement of potential provisions related to indemnities;

Deferred tax assets – recognition based on likely timing and level of future taxable profits together with future tax
planning strategies (see notes B.6.3.and G.3.2.);

Defined benefit obligations – key assumptions related to life expectancies, salary increases and leaving rates, mainly
related to UNE Colombia (see note B.4.3.).

Estimates

Estimates are based on historical experience and other factors, including reasonable expectations of future events, including the
effects of the COVID-19 pandemic. These factors are reviewed in preparation of the financial statements although, due to inherent
uncertainties in the evaluation process, actual results may differ from original estimates. Estimates are subject to change as new
information becomes available and may significantly affect future operating results. Significant estimates have been applied in
respect of the following items:

•

Accounting for property, plant and equipment, and intangible assets in determining fair values at acquisition dates,
particularly for assets acquired in business combinations and sale and leaseback transactions (see notes A.1.and E.2.1.);

Useful lives of property, plant and equipment and intangible assets (see notes E.1.1., E.2.1.);

Provisions, in particular provisions for asset retirement obligations, legal and tax risks (see note F.4.);

Tax liabilities, in particular in respect of uncertainty over income tax treatments (see note F.4.);

Revenue recognition (see note B.1.1.);

Impairment testing including weighted average cost of capital ("WACC"), EBITDA margins, Capex intensity and long term
growth rates (see note E.1.6.);

Millicom 2021 Annual ReportNotes to the Consolidated Financial Statements
For the years ended December 31, 2021, 2020 and 2019

143

•

For leases, estimates in determining the incremental borrowing rate for discounting the lease payments in case interest
rate implicit in the lease cannot be determined (see note E.3. );

Estimates for defined benefit obligations (see note B.4.2.);

Accounting for share-based compensation in particular estimates of forfeitures and future performance criteria (see notes
B.4.1., B.4.3.).

A. The Millicom Group

The Group comprises a number of holding companies, operating subsidiaries and joint ventures with various combinations of
mobile, fixed-line telephony, cable and wireless Pay TV, Broadband Internet and Mobile Financial Services (MFS) businesses. The
Group also holds other small minority investments in other businesses such as micro-insurance (Milvik).

A.1. Subsidiaries

Subsidiaries are all entities which Millicom controls. Millicom controls an entity when it is exposed to, or has rights to variable returns
from its investment in the entity, and has the ability to affect those returns through its power over the subsidiary. Millicom has
power over an entity when it has existing rights that give it the current ability to direct the relevant activities, i.e. the activities that
significantly affect the entity’s returns. Generally, control accompanies a shareholding of more than half of the voting rights
although certain other factors (including contractual arrangements with other shareholders, voting and potential voting rights) are
considered when assessing whether Millicom controls an entity. For example, although Millicom holds less than 50 % of the shares in
its Colombian businesses, it holds more than 50 % of shares with voting rights. The contrary may also be true (e.g. Honduras where
we own 66.7% of the shares but there is a super majority requirement at the board for decisions about the relevant activities of the
operation). Our main subsidiaries are as follows:

Millicom 2021 Annual ReportNotes to the Consolidated Financial Statements
For the years ended December 31, 2021, 2020 and 2019

144

Entity

Latin America

Country

Activity

Telemovil El Salvador S.A. de C.V. ................................. El Salvador

Mobile, MFS, Cable, DTH

Millicom Cable Costa Rica S.A. ...................................... Costa Rica

Cable, DTH

Telefonica Celular de Bolivia S.A. ................................. Bolivia

Mobile, DTH, MFS, Cable

Telefonica Celular del Paraguay S.A. ............................ Paraguay

Mobile, MFS, Cable, Pay-TV

Cable Onda S.A (i). ........................................................ Panama

Cable, Pay-TV, Internet, DTH,
Fixed-line

Grupo de Comunicaciones Digitales, S.A. (formerly
Telefonica Moviles Panama, S.A.)(ii) .............................

Panama

Mobile

December
31, 2021
% holding

December
31, 2020
% holding

December
31, 2019
% holding

In %

100

In %

100

In %

100

Telefonia Celular de Nicaragua S.A. (ii) ........................ Nicaragua

Mobile

100

Colombia Móvil S.A. E.S.P. (iii) ...................................... Colombia

UNE EPM Telecomunicaciones S.A.(iii) ......................... Colombia

Edatel S.A. E.S.P. (iii) ...................................................... Colombia

Mobile
Fixed-line, Internet, Pay-TV,
Mobile
Fixed-line, Internet, Pay-TV, Cable 50-1 share 50-1 share 50-1 share

50-1 share 50-1 share 50-1 share

Comunicaciones Celulares S.A. (iv) (v) ......................... Guatemala

Mobile, MFS

Navega.com S.A. (iv) (v) ................................................ Guatemala

Cable, DTH

Africa

MIC Tanzania Public Limited Company ....................... Tanzania

Mobile, MFS

Zanzibar Telecom Limited ............................................ Tanzania

Mobile, MFS

Unallocated

Millicom International Operations S.A. ........................ Luxembourg Holding Company

Millicom International Operations B.V. ........................ Netherlands

Holding Company

Millicom LIH S.A. ........................................................... Luxembourg Holding Company

MIC Latin America B.V. .................................................. Netherlands

Holding Company

Millicom Africa B.V. ....................................................... Netherlands

Holding Company

Millicom Holding B.V. ................................................... Netherlands

Holding Company

Millicom International Services LLC ............................. USA

Services Company

Millicom Services UK Ltd .............................................. UK

Services Company

Millicom Spain S.L. ........................................................ Spain

Holding Company

100

98.5

100

98.5

100

98.5

100

(i)

Acquisition completed on December 13, 2018. Cable Onda S.A. is fully consolidated as Millicom has the majority of voting shares to direct the relevant
activities. See note A.1.2..

(ii) Companies acquired during 2019. See note A.1.2..

(iii) Fully consolidated as Millicom has the majority of voting shares to direct the relevant activities.

(iv) Acquisition completed on November 12, 2021(see Note A.1.2.). Millicom now owns 100% equity interest in Tigo Guatemala compared to 55% before the

transaction. While Millicom owned more than 50% of the shares in these entities and had the right to nominate a majority of the directors of each of
these entities, key decisions over the relevant activities were taken by a super majority vote. This effectively gave either shareholder the ability to veto
any decision and therefore neither shareholder had sole control over the entity. Therefore, the operations of these joint ventures were accounted for
under the equity method. See note A.2.1..

(v)

Tigo Guatemala is made up of the 2 entities in the table above, but also by the following less material entities: Comunicaciones Corporativas S.A.
(“COMCORP”), Servicios Innovadores de Comunicación y Entretenimiento S.A. (“SICESA”), Distribuidora de Comunicaciones de Occidente S.A.
(“COOCSA”), Distribuidora de Comunicaciones de Oriente S.A. (“COORSA”), Distribuidora Internacional de Comunicaciones S.A. (“INTERNACOM”),
Servicios Especializados en Telecomunicaciones S.A. (“SESTEL”), Distribuidora Central de Comunicaciones, S.A. (“COCENSA”) and Cloud 2 Nube S.A.
("C2N").

A.1.1. Accounting for subsidiaries and non-controlling interests

Subsidiaries are fully consolidated from the date on which control is transferred to Millicom. If facts and circumstances indicate that
there are changes to one or more of the elements of control, a reassessment is performed to determine if control still exists.
Subsidiaries are de-consolidated from the date that control ceases. Transactions with non-controlling interests are accounted for as

Millicom 2021 Annual ReportNotes to the Consolidated Financial Statements
For the years ended December 31, 2021, 2020 and 2019

145

transactions with equity owners of the Group. Gains or losses on disposals of non-controlling interests are recorded in equity. For
purchases from non-controlling interests, the difference between any consideration paid and the relevant share acquired of the
carrying value of net assets of the subsidiary is also recorded in equity.

A.1.2. Acquisition of subsidiaries and changes in non-controlling interests in subsidiaries

Scope changes 2021

On November 12, 2021, Millicom announced that it has closed the previously-announced agreement to acquire the remaining 45%
equity interest in its joint venture business in Guatemala (collectively, "Tigo Guatemala") from its local partner for $2.2 billion in cash.
The acquisition has been financed through a bridge facility (see note C.3).

Millicom is currently determining the fair value of Tigo Guatemala identifiable assets and liabilities, however, this purchase
accounting is still provisional at December 31, 2021, particularly in respect of the evaluation of the tangible, intangible assets, right
of use assets and lease liabilities. For the purpose of the valuation of the intangible assets (excluding goodwill), the provisional
numbers are based on the current carrying values of intangibles as identified at the date of the deconsolidation of Tigo Guatemala
and the commencement of the accounting for the investment under the equity method. Out of these intangibles (excluding
goodwill), the brand is currently recorded at $848 million and is expected to have an indefinite useful live (see note E.1).

At acquisition date - November 12, 2021

Provisional fair values
(100%) ($ millions)

Intangible assets (excluding goodwill) .........................................................

1,294

Property, plant and equipment ....................................................................

Right of use assets .........................................................................................

Other non-current assets ...............................................................................

Current assets (excluding cash) ....................................................................

Trade receivables ...........................................................................................

Cash and cash equivalents ............................................................................

547

189

245

199

Total assets acquired ..................................................................................

2,521

Lease liabilities ...............................................................................................

Other debt and financing ..............................................................................

Other liabilities ...............................................................................................

Total liabilities assumed .............................................................................

Fair value of assets acquired and liabilities assumed, net - A ...............

Purchase consideration (45%) - B ..................................................................

Implied fair value (100% of business) - C ......................................................

Carrying value of our investment in joint venture at acquisition date - D ..

Goodwill arising on change of control - B+D-A=E ..................................

Revaluation of previously held interests - C-B-D=F (i) ..................................

Total provisional goodwill - E+F=G ...........................................................

205

417

280

901

1,620

2,195

4,877

2,013

2,588

670

3,258

(i)

The acquisition has been determined as a business combination achieved in stages, requiring Millicom to remeasure its 55% previously held equity
investment in Tigo Guatemala at its acquisition date fair value ($2,683 million); the resulting gain has been recognized in the statement of income
under the line "Revaluation of previously held interests" and is included in the goodwill calculation (see above).

The goodwill is attributable to the workforce and the high profitability of Tigo Guatemala. It is currently not expected to be tax
deductible. From November 12, 2021 to December 31, 2021, Tigo Guatemala contributed $223 million of revenue and a net profit of
$43 million to the Group. If Tigo Guatemala had been acquired on January 1, 2021 incremental revenue for the year 2021 would have
been $1.38 billion and incremental net profit for the same period of $147 million. Acquisition related costs included in the statement
of income under operating expenses were immaterial.

Millicom 2021 Annual Report146

Notes to the Consolidated Financial Statements
For the years ended December 31, 2021, 2020 and 2019

Scope changes 2020

There were no material acquisitions in 2020.

Scope changes 2019

1. Telefónica CAM Acquisitions

On February 20, 2019, MIC S.A., Telefónica Centroamérica and Telefónica, S.A. entered into 3 separate share purchase agreements
(the “Telefónica CAM Acquisitions”) pursuant to which, subject to the terms and conditions contained therein, Millicom agreed to
purchase 100% of the shares of Telefónica Móviles Panamá, S.A., a company incorporated under the laws of Panama, from Telefónica
Centroamérica (the “Panama Acquisition”), 100% of the shares of Telefónica de Costa Rica TC, S.A., a company incorporated under
the laws of Costa Rica, from Telefónica (the “Costa Rica Acquisition”) and 100% of the shares of Telefonía Celular de Nicaragua, S.A., a
company incorporated under the laws of Nicaragua, from Telefónica Centroamérica (the “Nicaragua Acquisition”). While Millicom
completed both acquisitions in Nicaragua and Panama, it announced on May 2, 2020 that it had terminated the Share Purchase
Agreement in relation to the Costa Rica Acquisition (see note G.3.1.). The aggregate purchase price for the Telefónica Panama and
Nicaragua Acquisitions was $1.08 billion, which has been subject to purchase price adjustments - see below.

Acquisition related costs for Nicaragua and Panama acquisitions included in the statement of income under operating expenses
were approximately $16 million for the year 2019.

The impact of the finalization of Nicaragua and Panama's purchase accounting on the 2019 Group statement of income is immaterial
and, therefore, no adjustments were made on comparative figures in that respect.

Further details of Nicaragua and Panama acquisitions are provided below.

a) Nicaragua Acquisition

This transaction closed on May 16, 2019 after receipt of the necessary approvals and, since that date, Millicom holds all voting rights
into Telefonía Celular de Nicaragua, S.A. ("Nicaragua") and controls it. On the same day, Millicom paid an original cash consideration
of $437 million, which was adjusted to $430 million as of December 31, 2019 and finally adjusted to $426 million in 2020. For the
purchase accounting, Millicom determined the final fair values of Nicaragua's identifiable assets and liabilities based on transaction
and relative fair values. The purchase accounting was finalized by May 16, 2020 and has not materially changed since December 31,
2019, with the exception of the final price adjustment.

The goodwill is currently not tax deductible, and is attributable to expected synergies and convergence with our legacy fixed
business in the country, as well as to the fair value of the assembled work force. For convenience purposes, the acquisition date was
set on May 1, 2019 as there were no material transactions from this date to May 16, 2019. From May 1, 2019 to December 31, 2019,
Nicaragua contributed $144 million of revenue and a net profit of $5 million to the Group. If the acquisition had occurred on January
1, 2019 incremental revenue for the Group for the twelve-month period ended December 31, 2019 would have been $219 million
and incremental net loss for that period would have been $16 million, including amortization of assets not previously recognized of
$12 million (net of tax).

Key assumptions used in fixed assets valuation

The following valuation methods and key estimates were used for the valuation of the main classes of fixed assets:

Major class of assets

Spectrum

Customer lists

Valuation method
Market approach -
Market comparable
transactions
Income approach -
Multi-Period
Excess Earnings
Method

Land and buildings

Market approach

Core network

Cost approach

Key assumption 1

Key assumption 2

Key assumption 3

Discount rate : 14%

Terminal growth rate:
2.5%

Estimated duration: 14
years

Discount rate: 14-15%

Economic useful life
(range): 10-30 years

Economic useful life
(range): 5-27 years

Monthly Churn rate:
From 1.2% for B2B to
2.9% for B2C

Price per square meter:
from $2 to $57
Remaining useful life
(minimum) : 1.7
years

EBITDA margin: ~ 36%
to 41%

N/A

b) Panama Acquisition

Millicom 2021 Annual ReportNotes to the Consolidated Financial Statements
For the years ended December 31, 2021, 2020 and 2019

147

This transaction closed on August 29, 2019 after receipt of the necessary approvals and, since that date, Cable Onda, which is 80%
owned by Millicom, holds all voting rights in Grupo de Comunicaciones Digitales, S.A., formerly Telefónica Móviles Panamá, S.A.
("Panama") and controls it. On the same day, Cable Onda paid an original cash consideration of $594 million to acquire 100% of the
shares of Panama, finally adjusted to $587 million during Q3 2020. No non-controlling interests are recognized at acquisition date as
Cable Onda acquired 100% of the shares of Panama. However, non-controlling interests are recognized on Panama's results from the
date of acquisition.

For the purchase accounting, Millicom determined the fair value of Panama's identifiable assets and liabilities based on transaction
and relative fair values. During 2020, the Group completed the policy alignment and evaluation in respect of the right-of-use assets
and lease liabilities, the property plant and equipment, as well as their related effect on the final valuation of the other fixed assets.

The goodwill is currently not tax deductible and is attributable to expected synergies and convergence with Cable Onda, as well as
to the fair value of the assembled work force. For convenience purposes, the acquisition date was set on September 1, 2019. From
September 1, 2019 to December 31, 2019, Panama contributed $80 million of revenue and a net profit of $6 million to the Group. If
Panama had been acquired on January 1, 2019 incremental revenue for the Group for the twelve-month period ended December 31,
2019 would have been $158 million and incremental net profit for that period would have been $1 million, including amortization of
assets not previously recognized of $3 million (net of tax).

As mentioned above, the impact of the finalization of Panama's purchase accounting on the 2019 Group statement of income was
immaterial and, therefore, no adjustments were made on comparative figures in that respect.

Key assumptions used in fixed assets valuation

The following valuation methods and key estimates were used for the valuation of the main classes of fixed assets:

Major class of assets

Valuation method

Key assumption 1

Key assumption 2

Key assumption 3

Customer lists

Income approach -
Multi-Period
Excess Earnings
Method

Discount rate:
9.8-10.8%

Monthly Churn rate:
~3.8% in average

EBITDA margin: ~
41.5%

Property, plant and equipment

Cost approach

Economic useful life
(range): 3-27 years

Remaining useful life
(minimum): 3-27 years

N/A

2. Tanzania restructuring

In October 2019, with the view of listing the shares of MIC Tanzania Public Limited Company ('MIC Tanzania') on the local stock
exchange (see note H.), Millicom completed the restructuring of its investments in different operations in the country. Mainly, MIC
Tanzania acquired all the shares of Zantel, which was partially held by the Government of Zanzibar (15%). In exchange of the
contribution of its 15% shares in Zantel to MIC Tanzania, the Government of Zanzibar received 1.5% of newly issued shares in MIC
Tanzania. This restructuring did not result in the Group losing control in Zantel nor MIC Tanzania, and has therefore been recognized
as an equity transaction. As a consequence, the Group owners’ equity decreased by a net amount of $18 million as a result of the
derecognition of the 15% non-controlling interests in Zantel and the recognition of 1.5% non-controlling interests in MIC Tanzania.

3. Others

During the year ended December 31, 2019, the Group also completed minor additional acquisitions and scope changes.

Millicom 2021 Annual ReportNotes to the Consolidated Financial Statements
For the years ended December 31, 2021, 2020 and 2019

148

A.1.3. Disposal of subsidiaries and decreases in non-controlling interests of subsidiaries

Chad

On June 26, 2019, the Group completed the disposal of its operations in Chad for a cash consideration of $110 million. In August
2020, the Group and the buyer of our operations in Chad agreed on a final price adjustment of $8 million in favor of the buyer. This
price adjustment had been disbursed in September 2020 and recorded under the results from discontinued operations in the
Group's statement of income. In accordance with Group practices, the Chad operation had been classified as assets held for sale and
discontinued operations as from June 5, 2019 and comparative periods restated. On June 26, 2019, Chad was deconsolidated and a
gain on disposal of $77 million was recognized (see also note E.4.).

Rwanda

On December 19, 2017, Millicom announced that it had signed an agreement for the sale of its Rwanda operations to subsidiaries of
Bharti Airtel Limited for a final cash consideration of $51 million, including a deferred cash payment for an amount of $18 million,
which has been finally settled in January 2020. The sale was completed on January 31, 2018. On that day, Millicom's operations in
Rwanda have been deconsolidated and no material loss on disposal was recognized. However, a loss of $32 million was recognized
in 2019 corresponding to the recycling of foreign currency exchange losses accumulated in equity since the creation of the local
operation. This loss had been recognized under ‘Profit (loss) for the 2019 year from discontinued operations, net of tax’.

Other disposals

For the years ended December 31, 2021, 2020 and 2019, Millicom did not dispose of any other significant investments.

A.1.4. Summarized financial information relating to significant subsidiaries with non-controlling interests

At December 31, 2021 and 2020, Millicom’s subsidiaries with material non-controlling interests were the Group’s operations in
Colombia and Panama.

Statement of Financial Position – non-controlling interests

Colombia

Panama

Others

Total

December 31,

2021

2020

(US$ millions)

—

157

133

215

Millicom 2021 Annual ReportNotes to the Consolidated Financial Statements
For the years ended December 31, 2021, 2020 and 2019

Profit (loss) attributable to non-controlling interests

Colombia

Panama

Others

Total

149

2021

2020

2019

(US$ millions)

(40)

(7)

(1)

(48)

(23)

(18)

—

(41)

(6)

—

The summarized financial information for material non-controlling interests in our operations in Colombia and Panama is provided
below. This information is based on amounts before inter-company eliminations.

Colombia

Revenue

Total operating expenses

Operating profit

Net (loss) for the year

50% non-controlling interest in net (loss)

Total assets (excluding goodwill)

Total liabilities

Net assets

50% non-controlling interest in net assets

Consolidation adjustments

Total non-controlling interest

Dividends and advances paid to non-controlling interest

Net cash from operating activities

Net cash from (used in) investing activities

Net cash from (used in) financing activities

Exchange impact on cash and cash equivalents, net

Net increase (decrease) in cash and cash equivalents

2021

2020

2019

(US$ millions)

1,414

(509)

100

(80)

(40)

2,336

2,158

178

(6)

(5)

272

(295)

(10)

(2)

1,346

(470)

129

(46)

(23)

2,589

2,303

286

143

(10)

133

(4)

370

(311)

(47)

(15)

(3)

1,532

(543)

164

2,256

1,891

365

183

(13)

170

(12)

363

(260)

(67)

Millicom 2021 Annual ReportNotes to the Consolidated Financial Statements
For the years ended December 31, 2021, 2020 and 2019

Panama

Revenue

Total operating expenses

Operating profit

Net (loss) for the year

20% non-controlling interest in net (loss)

Total assets (excluding Millicom's goodwill in Cable Onda)

Total liabilities

Net assets

20% non-controlling interest in net assets

Total non-controlling interest

Net cash from operating activities

Net cash from (used in) investing activities

Net cash from (used in) financing activities

Net increase in cash and cash equivalents

15 0

2021

2020

2019 (i)

(US$ millions)

633

(207)

(37)

(7)

1,717

1,347

371

179

(118)

(43)

585

(197)

(60)

(89)

(18)

1,734

1,327

407

193

(100)

(69)

475

(148)

(15)

(31)

(6)

1,905

1,411

494

167

(693)

580

(i)

In 2019, Cable Onda acquired Telefónica Panama for $587 million (note A.1.2.), financed by issuing a $600 million Senior Notes due 2030 (note C.3.1.)
The 2019 figures include the full year results and cash flows of Cable Onda, as well as 4 months of Telefónica Panama which was consolidated from
September 1, 2019.

Millicom 2021 Annual ReportNotes to the Consolidated Financial Statements
For the years ended December 31, 2021, 2020 and 2019

A.2. Joint ventures

151

Joint ventures are businesses over which Millicom exercises joint control as decisions over the relevant activities of each, such as the
ability to upstream cash from the joint ventures, require unanimous consent of shareholders. Millicom determines the existence of
joint control by reference to joint venture agreements, articles of association, structures and voting protocols of the board of
directors of those ventures.

At December 31, 2021, the equity accounted net assets of our joint venture in Honduras totaled $406 million (December 31, 2020:
Honduras: $422 million; Guatemala: $2,649 million). These net assets do not necessarily represent statutory reserves available for
distribution as these include consolidation adjustments (such as goodwill and identified assets and assumed liabilities recognized as
part of the purchase accounting). Out of these reserves, $3 million (December 31, 2020: $153 million) represent statutory reserves
that are unavailable to be distributed to the Group. During the year ended December 31, 2021, Millicom's joint venture in Honduras
did not pay any dividend or dividend advances to the Company while Guatemala paid $13 million during the period from January 1,
2021 until November 12, 2021 (December 31, 2020: Honduras: $24 million; Guatemala: $47 million).

Our main joint ventures are as follows:

Entity

Telefonica Celular S.A. (i)

Navega S.A. de CV (i)

Comunicaciones Celulares S.A. (ii)

Navega.com S.A. (ii)

Bharti Airtel Ghana Holdings B.V. (iii)

Country

Activity

Honduras

Guatemala

Ghana

Mobile, MFS

Cable

Mobile, MFS

Cable, DTH

Mobile, MFS

December 31,
2021 %
holding

December 31,
2020 %
holding

66.7

(i) Millicom owns more than 50% of the shares in these entities and has the right to nominate a majority of the directors of each of these entities. However,
key decisions over the relevant activities must be taken by a super majority vote. This effectively gives either shareholder the ability to veto any decision
and therefore neither shareholder has sole control over the entity. Therefore, the operations of these joint ventures are accounted for under the equity
method.

(ii) On November 12, 2021 Millicom signed and closed an agreement to acquire the remaining 45% equity interest in its joint venture business in

Guatemala (collectively, "Tigo Guatemala"). As a result, Millicom owns 100% equity interest in Tigo Guatemala and fully consolidates it since that date.
Until November 12, 2021, Millicom owned more than 50% of the shares in these entities and had the right to nominate a majority of the directors of
each of these entities. However, key decisions over the relevant activities were taken by a super majority vote. This effectively gave either shareholder
the ability to veto any decision and therefore neither shareholder had sole control over the entity. Therefore, the operations of these joint ventures were
accounted for under the equity method prior to the acquisition.

(iii) On October 13, 2021, Millicom, along with its joint venture partner Bharti Airtel Limited, closed the disposal of AirtelTigo Ghana to the Government of

Ghana (a subsidiary of Bharti Airtel Limited). Millicom still owns 50% of Bharti Airtel Ghana Holdings B.V.

The carrying values of Millicom’s investments in joint ventures were as follows:

Carrying value of investments in joint ventures at December 31

Honduras operations (i)

Guatemala operations (i)

AirtelTigo Ghana operations

Total

2021

2020

(US$ millions)

596

—

596

610

2,031

—

2,642

(i)

Includes all the companies under the Honduras and Guatemala groups (for Guatemala, until acquisition date - See Note A.2.1.).

Millicom 2021 Annual ReportNotes to the Consolidated Financial Statements
For the years ended December 31, 2021, 2020 and 2019

The table below summarizes the movements for the year in respect of the Group’s joint ventures carrying values:

152

Opening balance at January 1, 2020

Disposal of the Group's investment in Navega to Celtel (iii)

Results for the year

Dividends declared during the year

Currency exchange differences

Closing balance at December 31, 2020

Capital increase

Results for the year

Utilization of past recognized losses

Dividends declared during the year

Currency exchange differences

Change in consolidation scope

Closing balance at December 31, 2021

Guatemala(i) Honduras (i)

Ghana(ii)

(US$ millions)

2,089

—

144

(199)

(3)

2,031

—

183

—

(201)

—

(2,013)

—

708

(83)

(55)

610

—

(34)

(7)

—

596

—

(38)

—

(i)

Share of profit is recognized under ‘Share of profit joint ventures’ in the statement of income for the year ended December 31, 2021 for Honduras and
for the period from January 1, 2021 until November 12, 2021 for Guatemala (see note A.1.2.)

(ii)

Share of profit (loss) is recognized under ‘Income (loss) from other joint ventures and associates, net’ in the statement of income.

(iii) See note G.5.

(iv) On October 13, 2021, Millicom, along with its joint venture partner Bharti Airtel Limited, closed the disposal of AirtelTigo Ghana to the Government of
Ghana. As part of the closing conditions, each partner committed and paid $37.5 million for the reimbursement of certain local bank facilities which has
been provided for during the first-nine months in the statement of income under the line "Profit (loss) from other joint ventures and associates, net

At December 31, 2021 and 2020 the Group had not incurred obligations, nor made payments on behalf of the Honduras or Ghana
operations.

A.2.1. Accounting for joint ventures

Joint ventures are accounted for using the equity method of accounting and are initially recognized at cost (calculated at fair value if
it was a subsidiary of the Group before becoming a joint venture). The Group’s investments in joint ventures include goodwill (net of
any accumulated impairment loss) on acquisition.

The Group’s share of post-acquisition profits or losses of joint ventures is recognized in the consolidated statement of income and its
share of post-acquisition movements in reserves is recognized in reserves. Cumulative post-acquisition movements are adjusted
against the carrying amount of the investments. When the Group’s share of losses in a joint venture equals or exceeds its interest in
the joint venture, including any other unsecured receivables, the Group does not recognize further losses, unless the Group has
incurred obligations or made payments on behalf of the joint ventures.

Gains on transactions between the Group and its joint ventures are eliminated to the extent of the Group’s interest in the joint
ventures. Losses are also eliminated unless the transaction provides evidence of an impairment of the asset transferred. Accounting
policies of joint ventures have been changed where necessary to ensure consistency with the policies adopted by the Group.
Dilution gains and losses arising in investments in joint ventures are recognized in the statement of income.

After application of the equity method, including recognizing the joint ventures’ losses, the Group applies IFRS 9 to determine
whether it is necessary to recognize any additional impairment loss with respect to its net investment in the joint venture.

A.2.2. Material joint ventures – Guatemala, Honduras and Ghana operations

Summarized financial information for the years ended December 31, 2021, 2020 and 2019 of the Guatemala (until acquisition),
Honduras and Ghana (until disposal) operations is as follows. This information is based on amounts before inter-company
eliminations.

Millicom 2021 Annual Report
Notes to the Consolidated Financial Statements
For the years ended December 31, 2021, 2020 and 2019

Honduras

153

Revenue ..............................................................................................................................................

Depreciation and amortization ..........................................................................................................

Operating profit ................................................................................................................................

Financial income (expenses), net .......................................................................................................

Profit before taxes ............................................................................................................................

Charge for taxes, net ...........................................................................................................................

Profit for the year ..............................................................................................................................

Net profit for the year attributable to Millicom ............................................................................

Dividends and advances paid to Millicom .........................................................................................

Total non-current assets (excluding goodwill) ..................................................................................

Total non-current liabilities .................................................................................................................

Total current assets .............................................................................................................................

Total current liabilities ........................................................................................................................

Total net assets ....................................................................................................................................

Group's share in % ...............................................................................................................................

Group's share in USD millions .............................................................................................................

Goodwill and consolidation adjustments ..........................................................................................

Carrying value of investment in joint venture ...................................................................................

Cash and cash equivalents ..................................................................................................................

Debt and financing – non-current ......................................................................................................

Debt and financing – current ..............................................................................................................

Net cash from operating activities .....................................................................................................

Net cash from (used in) investing activities .......................................................................................

Net cash from (used in) financing activities .......................................................................................

Net (decrease) increase in cash and cash equivalents .................................................................

2021

2020

2019

(US$ millions)

589

(124)

(34)

(22)

—

473

362

176

305

(18)

66.7 %

(12)

608

596

267

166

(89)

(98)

(21)

552

(132)

(24)

(19)

461

533

300

236

(8)

66.7 %

(5)

615

610

390

151

(145)

594

(132)

102

(37)

(21)

516

469

312

183

176

66.7 %

117

591

708

384

169

(77)

Honduras financing

On September 19, 2019, Telefónica Celular, S.A. de C.V. entered into a new credit agreement with Banco Industrial S.A. and Banco
Pais S.A for an amount up to $185 million, in tranches of $100 million, $60 million and $25 million. The Loan Agreement has a 10-
year maturity and an interest rate of LIBOR plus 3.80% per annum, subject to a floor of minimum 5.25%. The new credit agreement
has been used to consolidate the portion of a syndicated $250 million facility with Scotiabank dated March 27, 2015, and $90 million
credit agreement with Banco Industrial S.A. dated March 20, 2018.

On September 19, 2019, Navega S.A. de C.V., entered into a new facility agreement with Banco Industrial S.A. for an amount of
$20 million and a duration of 10 years. The new agreement bears an annual interest of LIBOR plus 3.80% , subject to a floor of 5.25%.
and will be used to refinance the portion corresponding to it as borrower under the $250 million facility with Scotiabank dated
March 27, 2015.

On June 1, 2020, Telefónica Celular, S.A. de C.V. executed a $32 million bank loan agreement in equivalent amount in local currency
for a 10-year term.

Millicom 2021 Annual Report

Notes to the Consolidated Financial Statements
For the years ended December 31, 2021, 2020 and 2019

Guatemala

15 4

Revenue ..............................................................................................................................................

1,379

1,503

1,434

2021(ii)

2020 (i)

2019

(US$ millions)

Depreciation and amortization ..........................................................................................................

Operating profit ................................................................................................................................

Financial income (expenses), net (i) ...................................................................................................