Connect.
Grow.
Thrive.
2022 Annual Report
M i l l i c o m 2 0 2 2 A n n u a l R e p o r t
The empowering effect of
connectivity should never be
underestimated.
M i l l i c o m 2 0 2 2 A n n u a l R e p o r t 1
Connectivity is the
enabler of growth.
Connectivity opens doors to knowledge
and opportunities, inspiring
individuals and families to reach
their full potential. It invites
entrepreneurs to tap into the digital
economy, where they can innovate
more, grow faster and aim higher. It
catalyzes job and economic growth in
communities large and small.
Above all, connectivity brings us
together, so we can pursue the limitless
opportunities the internet affords.
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. Our
products and services are integral
to the work, education, social
interaction, and quality of life for
millions of people in the countries
where we operate.
Together, we thrive.
M i l l i c o m 2 0 2 2 A n n u a l R e p o r t 2
About This Report
Our seventh fully integrated annual report combines our
financial and 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.
The content of this report considers our 2022 materiality
assessment, is derived from certain sections of the Global
Reporting Initiative (GRI) and the Sustainable Accounting
Standards Board (SASB) standards, and follows TCFD
reporting recommendations published in our CDP1 report.
Millicom engages ERM Certification and Verification
Services ("ERM") to conduct independent assurance of
selected ESG data. Learn more about our ESG reporting
approach here and refer to page 64 for ERM's Assurance
Statement.
Certain references
Unless otherwise indicated, all references to
“U.S. dollars,” “dollars” or “$” are to the lawful
currency of the United States of America.
1 Formerly Carbon Disclosure Project
M i l l i c o m 2 0 2 2 A n n u a l R e p o r t 3
What’s Inside
This Report
74 Board Governance
74 Board of Directors and Board
Committees
77 Board Profile: Skills and Experience
83 Board Program
85 Board Committees
86 I.Audit Committee
92 II. Compliance and Business
Conduct Committee
95 III. Compensation Committee:
Remuneration Report
111 Millicom CEO and Executive Team
115 Directors’ Financial and Operating Report
116 Management Responsibility Statement
117
Forward Looking Statements
and Use of Non-IFRS Terms
118 Forward Looking Statements
119 Use of Non-IFRS Terms
123
Financial Statements
216
Corporate Information
Overview
4 Chairman’s Message
5 Chief Executive Officer’s Message
7 Our Year in Numbers
8 Our Market Leadership
9
Our Purpose,
Business Strategies
and Performance
10 Our Purpose
13 Our Business Strategies and
Performance
14 Chief Financial Officer's
Message
16 Our Markets in Numbers
19 Advancing Our Business
Strategy
23 Risk Management
28
Our ESG Approach
and impact
31 Environment
38 Society
53 Governance
58 ESG Performance Tables
64 Assurance Letter
68 Corporate Governance
69 Chairman’s Report
70 Framework and
Shareholder Governance
70 Corporate Governance
Framework / Structure
71 Shareholders and
Representation of
Shareholders
M i l l i c o m 2 0 2 2 A n n u a l R e p o r t 4
Chairman’s
Message
Every so often a company reaches a
turning point—a moment when its
portfolio, business strategies, culture
and purpose align in a way that it has
been building toward for years. I
believe Millicom arrived at that
point in 2022.
We are now 100% focused on our Latin American markets,
with strategies to realize our potential across multiple business
lines. Our Sangre Tigo culture and purpose—to build the digital
highways that connect people, improve lives and develop
communities—run parallel to Millicom’s strategies, further
strengthening our conviction that doing the right thing is good
for business.
What does it mean to Millicom to reach these milestones?
It means our foundation for future growth is set, and we’ve
cleared the runway of obstacles to pursuing our strategies.
Millicom’s 2022 performance offers a glimpse at that potential
future. Despite a difficult economic climate, every business unit
and most countries sustained positive organic service revenue
growth for a second consecutive year. Our future strategic
direction affords even more opportunities.
During 2022, the Board was fully engaged and supportive in
reviewing and confirming this direction. This included approving
new operational, financial, ESG and capital allocation targets
for Millicom’s next three years—underpinned by strategies and
initiatives to achieve them.
The Board helped steer the company’s strategy and improve
its risk profile in several areas in 2022. We oversaw the company’s
Africa exit and the redeployment of capital into Latin American
growth opportunities. We also supervised the capital raise with the
rights offering in Q2 to fund the acquisition of the remaining 45%
of the Guatemalan operation the prior year. With this
acquisition, we were able to further integrate the Guatemalan
business into Millicom’s portfolio and cement the company’s
status as Central America’s leading telecom provider. This also
helped us simplify Millicom’s financial profile.
The Board endorsed Millicom’s plans to carve out its
infrastructure and fintech assets—the first step to unlocking
and crystallizing value from these assets with transactions
targeted for 2023. And we continued laying the groundwork
for future success by reinforcing our already strong governance
and compliance culture. Among our governance priorities in
2022 were bolstering Millicom’s cybersecurity framework
and overseeing improvements to our compliance and
control environment.
New targets and initiatives for reducing greenhouse gas
(GHG) emissions and meeting diversity, equity and inclusion
milestones were also top of mind in 2022. These include
science-based targets to reduce Scope 1 and 2 GHG emissions
by 50% and achieve a 50% gender balance in managerial
positions by 2030. The Board is excited about this unity of purpose
and business strategy and looks forward to helping Millicom
continue to grow in a responsible, forward-thinking way.
On behalf of the Board, I would like to thank our passionate
and talented employees for their commitment in driving
Millicom’s recent success and future strategies. Their passion
and energy reveal that Sangre Tigo isn’t just a label, but a
way of living and being. Our employees’ belief in Tigo was
validated with a 5th place ranking in the World’s Best
Workplaces 2022 survey by Great Place to Work®.
Thank you also to my fellow Board members and the entire
Millicom management team for your commitment and
collaboration. I’m honored for the opportunity to work with you.
Lastly, we want to thank our shareholders for the trust
you’ve shown in our growth strategies and leadership. We look
forward to continuing this journey with you.
José Antonio Ríos García
Chair of the Board of Directors
M i l l i c o m 2 0 2 2 A n n u a l R e p o r t 5
While expanding 4G coverage to rural, uncovered areas remains
our top mobile priority, we also rolled out new 5G coverage in
Guatemala as we prepare to meet our markets' long-term needs.
Cable remained a strong engine of growth. Our networks
passed 12.9 million homes by year’s end, an increase of
6.8% compared with 2021.
Our B2B business, meanwhile, enjoyed its fastest organic
growth rate in years. With 338,000 small and medium-sized
enterprises (SME) customers by the end of 2022 and a double-
digit increase in digital service revenue, we’re well on our way
to being the most trusted ally for Latin American businesses on
their digital journey.
Purpose + strategies = prosperity
One reason we’re so excited about the future is that our
purpose, business strategies and ESG ambitions line up
beautifully in Latin America. For example, in 2021 U.S.
Vice President Kamala Harris launched a Call to Action to
support economic development in Guatemala, Honduras
and El Salvador. We responded in June 2022 with a
promised $700 million investment to expand and maintain
our fixed and mobile broadband networks in these markets
over the next two years.
Chief Executive
Officer's Message
2022 was an exciting year for
Millicom for many reasons, but
perhaps the biggest is what this
year’s accomplishments mean for
the future. If Millicom’s journey
were a fútbol match, I’d put it this
way: We just finished the first half
and we’re in great shape. But hold
onto your hats, because our
coaching, strategies and player
performance have set us up for an
even better second half.
Consider what we accomplished in 2022. We completed our
exit from Africa and are now 100% focused on Latin America.
We finished the year with a strong, leading market position in
all of our markets. Every single business line is now growing—
and exciting new ones are emerging. And our modernized,
state-of-the-art networks offer simple, cost-efficient and
future-proof paths for expansion and evolution.
After years of focused hard work, the foundation we’ve built is
so solid that we were able to set ambitious and realistic
operational, financial, ESG and capital allocation targets for
the next three years of our journey. Our portfolio today puts us
in a great position to meet them.
None of this would have happened—and none of this will
happen—without the Sangre Tigo culture that drives
everything we do. There’s no doubt that our team members
rose to every occasion in 2022, uniting under our shared
purpose to build the digital highways that connect people,
improve lives and develop communities. I’m tremendously
proud of them and extraordinarily thankful for their dedication.
Growth from the core
Despite the challenging economic environment in the latter
half of 2022, our business performed strongly throughout the
year. We advanced our commitment to making Millicom the
most modern and expansive telecom network in Latin America
with expanded 4G coverage in many of our markets. This
includes providing first-time mobile network access to 44,000
people in Panama’s largest indigenous territory, introducing
residents to the many social, educational and economic
opportunities the internet provides. Our 4G network now covers
roughly 80% of the population in our Latin American footprint.
M i l l i c o m 2 0 2 2 A n n u a l R e p o r t 6
Expanding our network is the
right move for our business,
but digital infrastructure can
also have an incredible
impact on the future of the
region and its cities.
This promised investment is in line with our longstanding
commitment to a region in which we see great potential for
growth and development. Expanding our network is the right
move for our business, but digital infrastructure can also have
an incredible impact on the future of the region and its cities. A
recent study we commissioned revealed that a 10% increase
in mobile broadband penetration in Latin America could create
more than 6.5 million jobs.
With each new job, a family has an opportunity to build wealth
and contribute to a stronger community. And by offering
better connectivity and improved services, we can empower
Latin American businesses to compete in the digital economy.
Our markets have challenges, but also robust, untapped
potential. We’re proud to help them reach that potential in the
years to come.
Building a more sustainable Tigo
We took action on multiple social and environmental fronts in
2022, including announcing our first near-term science-based
targets to reduce absolute greenhouse gas (GHG) emissions.
Validated by the Science-Based Targets initiative (SBTi), our
goals include reducing absolute Scope 1 and 2 emissions by
50% by 2030 and absolute Scope 3 emissions by 20% by
2035. We know it won’t be easy, but we’re excited by the
challenge. We’re currently building our transition plan and
mobilizing across our business, using every tool at our disposal.
We took bold steps to advance gender equality at Tigo in 2022
with new diversity, equity and inclusion (DE&I) targets. These
include aiming for 50% female representation across our
workforce and upper management by 2030 and aspiring to
train 100% of our employees in DE&I each year. Key to our
Sangre Tigo culture is creating a rewarding work environment
where everyone brings their authentic selves to work every day.
We clearly found a sweet spot this year, as we ranked 5th in
World's Best Workplaces 2022 and 2nd in Best Workplaces in
Latin America 2022 among multinational companies, as
assessed by Great Place to Work®.
And we continued pursuing our mission to teach people of all
ages to harness the potential of the internet by launching web-
based platforms for our Conectadas and Maestr@s
Conectad@s programs. The former provides digital literacy and
entrepreneurship training to women and adolescent girls, while
the latter helps teachers and school administrators develop
technology-based curricula. With these new platforms,
Conectadas and Maestr@s Conectad@s now have a global
reach, making our content available to anyone in the
countries in which we operate who wants to acquire new
digital skills.
Winning the second half
In February 2022, we held an Investor Day event articulating
our strategy for the next three years. Our ambitions include
gaining scale in Colombia; unlocking the full value of our Tigo
Money and tower infrastructure assets; cementing our
environmental, social and governance (ESG) leadership in the
region; and generating cumulative equity free cash flow1 of
between $800 million and $1 billion in the 2022–2024 period.
I’m thrilled to report that not only did we perform in 2022, but
we’re already making progress against each of these
ambitions. As you’ll see on the pages that follow, we are a
purpose-driven company with a big market opportunity, a clear
strategic focus, and a passionate team that makes things
happen the right way.
Thank you to everyone—our employees, our customers, our
Board, our community partners and our shareholders—for
making Tigo what it is today.
Mauricio Ramos
Executive Director and Chief Executive Officer
1 Non-IFRS measure. Please refer to the non-IFRS disclosures in this annual report for a description and for a reconciliation of non-IFRS measures. Financial target as
communicated on February 14, 2022.
M i l l i c o m 2 0 2 2 A n n u a l R e p o r t 7
Our Year in Numbers
Financial, Operational and Environmental, Social & Governance Highlights
IFRS Financial Highlights
Revenue ($m)
Gross Profit ($m)
Operational Highlights
Mobile Customers
(m)
HFC / FTTH Homes
Passed (000s)
HFC / FTTH Customer
Relationships (000s)
Operational highlights exclude Honduras and for 2020 are pro forma for the inclusion of Guatemala. See further reference to note B.3. of our financial statements.
Environmental,
Social & Governance
(“ESG”) Highlights
More than 102,000
teachers trained through Maestr@s
Conectad@s
More than 171,000 women
participated in our digital inclusion
and training programs ("Conectadas")
83% of Consumer Premise
Equipment (CPE) recovered upon
service termination or upgrades
99% of employees
completed our annual Code
of Conduct training
$3,805$4,261$5,624202020212022$2,745$3,063$4,11820202021202237.139.840.620202021202211,28411,81012,6322020202120223,5883,9884,139202020212022 M i l l i c o m 2 0 2 2 A n n u a l R e p o r t 8
Honduras (Joint Venture)
Mobile #1
BBI #1
Pay TV #2
Nicaragua
Mobile #1
BBI #2
Pay TV #3
Panama1
Mobile #1
BBI #1
Pay TV #1
Guatemala
Mobile #1
BBI #1
Pay TV #1
El Salvador
Mobile #1
BBI #2
Pay TV #2
Costa Rica
BBI #4
Pay TV #2
Colombia
Mobile #3
BBI #2
Pay TV #2
Bolivia
Mobile #2
BBI #1
Pay TV #1
Paraguay
Mobile #1
BBI #1
Pay TV #1
Market Leadership
Our long-term focus on converging Tigo’s fixed and
mobile services throughout Latin America continues
to pay dividends. We’ve strengthened our portfolio
in Latin America with more than $2.5 billion in
recent investments by assuming full ownership of
Tigo Guatemala and Tigo Panama, while
simultaneously exiting Africa in 2022 with the sale
of our Tanzania operations. We also continue to
modernize and expand our network in Latin America
with major infrastructure investments.
These assets are allowing us to expand our portfolio
of communities served and accelerate our fixed-
mobile convergence strategy in the region. We are
currently the #1 or #2 mobile and/or broadband
provider in the majority of the markets we serve and
continue to strengthen our market leadership
1Our market position in Panama is as of December 31, 2022, and does not reflect
the merging of the Liberty Latin America and America Movil brands in the country.
M i l l i c o m 2 0 2 2 A n n u a l R e p o r t 9
Our Purpose,
Business Strategies and
Performance
Our Purpose,
Business
Strategies and
Performance
M i l l i c o m 2 0 2 2 A n n u a l R e p o r t 1 0
Our Purpose,
Business Strategies and
Performance
Our Purpose
We build the digital highways that connect people, improve lives and develop communities.
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 the CEO of
a multinational corporation.
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.
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.
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 our 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 empower
people and businesses to aim
higher, achieve more and reap
the benefits of the digital
economy. 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.
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.
Communities
We depend on the communities
in Latin America as deeply as
they depend on us. Through our
strong governance and ESG
initiatives, we minimize risks,
create new social and economic
opportunities and reinforce
Millicom’s standing in the
community. We also partner
with and/or sit on the board of
leading multi-stakeholder bodies
and NGOs to amplify our long-
term impact, including the
Partnership for Central America
(PCA), the ITU/UNESCO
Broadband Commission for
Sustainable Development, the
Meridian International Center,
IREX, the U.S.-Colombia
Business Council and the U.S.
Chamber of Commerce.
Our Partnerships and Value-Added Relationships
To advance our purpose and business strategies, we continually build and maintain strong partnerships and value-added relationships with industry
allies, global nonprofit organizations, international consortiums, community NGOs and similar groups.
M i l l i c o m 2 0 2 2 A n n u a l R e p o r t 1 1
Our Purpose,
Business Strategies and
Performance
Mobile and Fixed Broadband
Penetration in Tigo Markets
Mobile Broadband Penetration in Tigo Markets
As % of total mobile users (Millicom estimates)
Fixed Broadband Penetration in Tigo Markets
As % of total households (Millicom estimates)
Opportunities, Challenges and
Uncertainties in Our Markets
Despite macroeconomic headwinds, we see
opportunities to continue accelerating the digital
transformation in Latin America and help our
business and communities thrive.
Global markets are grappling with economic uncertainty, and our
Latin American markets are no exception. Inflation, rising interest
rates and social discontent loom large in a region that was already
slow to recover from COVID. But connectivity is a powerful enabler
of economic development, especially in emerging markets. By
building digital infrastructure and investing in mobile and
broadband penetration in the markets that need it most, we see
opportunities to spur economic growth, unleash entrepreneurship in
local communities and cement our market leadership.
Opportunities
High-speed connectivity is indispensable to businesses and
communities worldwide. During the pandemic, we saw how
connectivity and digital tools helped spur entrepreneurship and
make businesses and economies more resilient. The need for faster
speeds and always-on service will only grow as more businesses in
our markets embrace e-commerce and adopt hybrid work models
for their employees.
A 10% increase in mobile
broadband penetration
in Latin America could
create more than 6.5 million
jobs and increase GDP
per capita by 1.7%.1
New research has revealed the critical importance of digital
infrastructure to the region’s future. According to an independent
study commissioned by Millicom, a 10% increase in mobile
broadband penetration in Latin America could create more than
6.5 million jobs and increase GDP per capita by 1.7%.1 Our markets
are ripe for these increases. Mobile broadband reaches only 50%
of our markets vs. 60% in Latin America as a whole. Fixed
broadband penetration is even lower at 30% to 40%, compared
with 50% in all of Latin America. Increasing penetration rates to
Latin American averages could give us access to millions of
additional customers.
We see other reasons for optimism in the region. Remittances in
countries like Guatemala, Honduras and Nicaragua continue to
grow rapidly, providing a steady flow of currency that enhances the
region's economic stability and growth. Meanwhile, our Tigo
Money business presents a “blue ocean opportunity” to be the
premiere fintech player in our markets. Offering a financial lifeline
to Latin America’s unbanked, Tigo Money is already the leading
mobile wallet provider in our region. With our high brand awareness
and millions of established customer relationships, we have first-
mover advantages in reaching the roughly 120 million unbanked
citizens in Latin America with our broader fintech solutions.2
1Katz, Jung, and Callorda, “The Role of the Digital Economy in the Economic Recovery of Latin America and the Caribbean,” Telecom Advisory Services, May 2022.
2World Bank, Global Findex Database 2021, published 2022.
BoliviaPanamaColombiaParaguayEl SalvadorTigo MarketsHondurasGuatemalaNicaraguaCosta RicaColombiaPanamaEl SalvadorParaguayTigo MarketsBoliviaGuatemalaHondurasNicaragua M i l l i c o m 2 0 2 2 A n n u a l R e p o r t 1 2
Our Purpose,
Business Strategies and
Performance
"The conclusions of this new research are clear:
To accelerate the development of the
telecommunications industry and the digital
economy, governments in the region must
modernize their regulatory frameworks to
attract investment in the sector."
—Karim Lesina, EVP and Chief External Affairs Officer
Our brand also faces threats from ongoing information security and
privacy issues in our markets. We’re continually bolstering our
information security program and privacy practices to stay ahead
of cyber threats, but hackers never sleep.
Finally, 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. Accelerating the digital transition
must be a priority for these countries to spur economic
development and address social equity.
Uncertainties
Our long-term success hinges on the governments and regulators
that control access to the spectrum for digital services. In the midst
of inflation and other economic pressures, governments may
choose to increase spectrum licensing fees and regulations,
slowing our network investment and resulting in higher costs to
consumers. Changes in political leadership could also affect
spectrum and tax policies.
We ask regulators to advance their digital economies with policies
that prioritize affordable, long-term digital connectivity for users
and businesses. A more stable framework would spur industry-wide
investments in the network infrastructure needed to serve more
individuals and businesses with faster speeds, expanded coverage
areas and higher quality.
Challenges
High inflation, interest rate pressures, tighter monetary policy and
supply chain disruptions combined to slow GDP growth in Latin America
in the second half of 2022—a trend that’s likely to continue into 2023.
Economic pressures and fears of a recession are also creating exchange
rate volatility in some markets, making trade and investment decisions
more difficult. On the plus side, the spike in commodity prices is helping
countries with high exports weather the storm, aided by a gradual
recovery in tourism. GDP in Latin America and the Caribbean is
projected to grow by 1.3% in 2023.3
Recruiting and retaining top tech talent is a growing concern in our
markets, as expectations have shifted among employees and
candidates. Many prefer full-time remote work rather than the
hybrid home/work model that Millicom has adopted, creating
competitive challenges in a tight labor market. We reevaluate our
compensation and benefits packages on an ongoing basis to
ensure we remain competitive.
3 Economic Commission for Latin America and the Caribbean (ECLAC), "Preliminary Overview of the Economies of Latin America
and the Caribbean 2022," Dec. 15, 2022..
M i l l i c o m 2 0 2 2 A n n u a l R e p o r t 1 3
Our Purpose,
Business Strategies and
Performance
Our Business Strategies
and Performance
Despite a challenging economic climate, our business continued
to perform strongly thanks to focused execution of our strategic
priorities and the dedication and hard work of our employees.
2022 Highlights
Our revenue grew 32.0% and our operating profit was
up 47.9% year-over-year, reflecting our Guatemala
acquisition and broad-based growth across countries and
business lines.
Our capital expenditures totaled $973 million, as
we continue to prioritize network investment to fuel
customer growth.
We deployed our first 5G network in Guatemala.
Our postpaid customer base
grew 13.7% year-over-year, with net
additions of 767,000 in 2022.
M i l l i c o m 2 0 2 2 A n n u a l R e p o r t 1 4
Our Purpose,
Business Strategies and
Performance
Chief Financial
Officer's message
2022 was a watershed year marked
by transformational milestones and
a simplification of Millicom’s
financial profile.
2022 was the first full year in which the Guatemala operation
was reflected in our consolidated financial statements,
after increasing to 100% our ownership of that business
near the end of 2021. This, combined with the completion of our
Africa disposal program, has allowed us to greatly simplify our
Depreciation and amortization increased 20.7%. Substantially
financial reporting.
Long-term financing for the Guatemala transaction was
all the increase was attributable to the consolidation of
Guatemala and the related purchase price allocation.
secured in early 2022 with the landmark issuance of $900
Share of net profit in our joint venture, now only Honduras,
million Notes at 5.125%, and with the completion of the rights
decreased by 84.6%. This reflected the impact of the Tigo
offering that raised approximately $746 million of new equity.
Guatemala acquisition, as Tigo Guatemala contributed $183
During 2022, we also increased to 100% our ownership
million to this caption in 2021 and zero in 2022.
interest in our Panama operation, which had another solid year
As a result of these factors, operating income for the year
and has become an important contributor to our growth and
increased 47.9% to $915 million.
cash flow generation. As a dollarized and investment-grade
economy, Panama also plays an important role in reducing our
overall exposure to macroeconomic volatility.
Group highlights1
Revenue for the year ended December 31, 2022, increased 32.0%
to $5,624 million, reflecting the impact of the Tigo Guatemala
acquisition as well as growth across substantially all business units
and countries.
Operating expenses increased 22.3%, largely reflecting the
impact of the Tigo Guatemala acquisition, as well as increased
sales and marketing costs to support our growth (especially in
Colombia), higher energy costs across our markets, and
increased investment to develop and expand the Tigo Money
Interest expense increased 24.6% to $617 million, reflecting
the acquisition of Tigo Guatemala and the impact of the
increased debt to finance the acquisition.
Other non-operating expenses were $78 million in 2022, as
compared with $49 million in 2021. The expense in 2022
mostly reflected foreign exchange losses in Colombia and
Paraguay. The expense in 2021 was mainly due to the
revaluation charge of the put-option liability in Panama for
$26 million and losses on foreign exchange, which was partially
offset by the mark-to-market revaluation of Helios Towers for
an $18 million gain.
Tax expense increased 41.1% to $222 million, mainly due to the
acquisition of Tigo Guatemala as well as a $34 million amnesty.
fintech business and to prepare the carve-out of tower assets.
Net profit for the year attributable to owners of the Company
was $177 million, or an earnings per share of $1.27, including a
$113 million gain on the Tanzania disposal.
1Financial 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.
M i l l i c o m 2 0 2 2 A n n u a l R e p o r t 1 5
Our Purpose,
Business Strategies and
Performance
By country, El Salvador stood out with the fastest growth in the
region, with local currency service revenue up 7.7% in 2022,
compared with 14.4% in 2021, with all business units contributing
to the strong performance. In Colombia, local currency service
revenue accelerated to 6.6%(6.2% in 2021), driven by double-
digit growth in mobile. Guatemala saw moderate local currency
service revenue growth to 0.8% (7.3% in 2021) due mostly to
increased competitive intensity in mobile. Finally, all our other
markets grew in 2022, except for Bolivia, where service revenue
declined 0.6% in local currency (6.3% growth in 2021), due to an
adverse change in regulation and a regional strike that disrupted
business activity in the final quarter of the year.
EBITDA increased 46.8% to $2,228 million, due mostly to the
Guatemala acquisition. Organic growth was 1.2% (6.5% in
2021) and reflected broad-based revenue growth, partially
offset by increased energy and employee costs, as well as
investments to prepare the planned carve-outs of our Tigo
Money and tower infrastructure businesses.
Capex totaled $973 million in 2022 ($922 million in 2021), as
we continued to invest in our networks. In mobile, we built an
additional 2,248 points of presence and increased our 4G
network to cover 80% of the population in our markets.
Despite a more challenging macroeconomic environment and
continued investment in the business, operating cash flow
grew 8.4% organically (1.2% decline in 2021) to $1,255 million
($595 million in 2021). Equity free cash flow excluding Africa
reached $171 million ($12 million in 2021), in line with our
guidance and consistent with our target of generating $800
million to $1 billion in cumulative equity free cash flow from
2022 to 2024.
As a result of robust cash flow generation and the rights offering,
net debt declined by approximately $1.05 billion and leverage
ended the year at 3.04x .
Our success in 2022 and the resiliency of the businesses has
only made us more confident in the long-term opportunity we
are pursuing.
Sheldon Bruha
Chief Financial Officer
Operational and financial performance2
The consolidation of Guatemala is the most important factor affecting the
comparison between 2022 and 2021.
Service revenue grew 29.4%, ending the year at $5,171 million
due mostly to the consolidation of Guatemala, as well as
organic growth of 3.5% (7.0% in 2021). Organic performance
reflected broad-based growth across our footprint.
In mobile, which generates 57% of service revenue (50% in
2021), service revenue increased 48% year-over-year (14% in
2021). This was driven by the consolidation of Guatemala, and
by organic growth reflecting strong performance in postpaid,
especially in Colombia, where recent investments in spectrum,
network and distribution capillarity are paying off. As a result,
we added 767,000 postpaid customers, ending the year with
6.4 million, equivalent to 16% of our mobile customer base of
40.6 million.
Financial performance
key messages:
» Broad-based growth across our footprint
» Successfully completed rights offering
» Completed divestiture out of Africa
» Acquired remaining 20% interest in Tigo Panama
» Reduced net debt by $1 billion, with leverage
ending at 3.04x
In our cable and other fixed businesses, which generate 41%
of service revenue (48% in 2021), service revenue increased
11% in 2022 (8% in 2021). The growth was driven by the
consolidation of Guatemala and partially offset by the impact
of weaker foreign exchange rates in Colombia and Paraguay,
two of our largest markets for fixed services. Meanwhile,
organic growth trends reflected moderating customer growth,
as consumers gradually returned to the office and to school,
and as the macroeconomic environment softened, especially in
the second half of the year.
We added 151,000 new HFC/FTTH customer relationships in
2022 (400,000 in 2021, including 51,000 related to Guatemala).
We continued to invest to extend the reach of our HFC/FTTH
networks, passing an additional 822,000 homes (526,000 in
2021, including Guatemala), ending the year with 12.6 million
HFC/FTTH homes passed (11.8 million in 2021). As a result,
network penetration declined to 32.8%, compared with
33.8% in 2021.
2022 was a solid year operationally and financially, with most
countries and all business units sustaining positive organic
service revenue growth, as we continued to reap the benefits
of investments made throughout the pandemic.
2 This section 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.
M i l l i c o m 2 0 2 2 A n n u a l R e p o r t 1 6
Our Purpose,
Business Strategies and
Performance
Our 2022 Financial Performance
in Latin America
Group
Revenue by Country
Revenue Breakdown
7% 8%
10%
1%
8%
11%
29%
38%
53%
24%
12%
Our Markets in Numbers
Guatemala
Service Revenue2
Colombia
Service Revenue2
Cable and other
fixed ('000)
Customer relationships1
723
As of year end 2022
+48
Net additions
+7.1%
YoY growth
Mobile ('000)
4G data users
5,245
As of year end 2022
+207
Net additions
+4.1%
YoY growth
Cable and other
fixed ('000)
Customer relationships1
1,807
As of year end 2022
+10
Net additions
+0.5%
YoY growth
Mobile ('000)
4G data users
6,400
As of year end 2022
+944
Net additions
+17.3%
YoY growth
Service Revenue
Organic growth +3.5%
$5,171m
EBITDA
Organic growth +1.2%
$2,228m
OCF
Organic growth +8.4%
$1,255m
Service revenue2 $m
Organic growth +0.8%
EBITDA2 $m
Organic growth +0.1%
EBITDA margin2 %
Service revenue2 $m
Organic growth +6.6%
EBITDA2 $m
Organic growth +3.0%
EBITDA margin2 %
1 Includes HFC/FTTH, DTH, Copper and other technologies.
2 Service Revenue, EBITDA, EBITDA margin and organic growth are Non-IFRS measures. Please refer to the non-IFRS disclosures in this annual report for a description and a
reconciliation of non-IFRS measures.
El SalvadorGuatemalaPanamaColombiaBoliviaParaguayOtherMobile + MFS $2,957mCable and other fixed $2,145mEquipment sales revenue $454mOther $69m Mobile $1,060mCable and other fixed $311mOther $2mMobile $528mCable and other fixed $667mOther $58m$1,253$1,31920222021$404$4412022202130.2%31.2%20222021$1,373$1,36520222021$857$8572022202152.9%53.6%20222021 Our Markets in Numbers
M i l l i c o m 2 0 2 2 A n n u a l R e p o r t 1 7
Our Purpose,
Business Strategies and
Performance
Panama
Service Revenue2
Bolivia
Service Revenue2
Paraguay
Service Revenue2
Cable and other
fixed ('000)
Customer relationships1
467
As of year end 2022
–18
Net losses
–3.7%
YoY decline
Mobile ('000)
4G data users
1,389
As of year end 2022
+136
Net additions
+10.9%
YoY growth
Cable and other
fixed ('000)
Customer relationships1
720
As of year end 2022
+44
Net additions
+6.6%
YoY growth
Mobile ('000)
4G data users
2,435
As of year end 2022
–218
Net losses
–8.2%
YoY decline
Cable and other
fixed ('000)
Customer relationships1
497
As of year end 2022
+3
Net additions
+0.5%
YoY growth
Mobile ('000)
4G data users
2,349
As of year end 2022
+212
Net additions
+9.9%
YoY growth
Service revenue2 $m
Organic growth +2.7%
EBITDA2 $m
Organic growth +6.2%
EBITDA margin2 %
Service revenue2 $m
Organic decline -0.6%
EBITDA2 $m
Organic decline -3.0%
EBITDA margin2 %
Service revenue2 $m
Organic growth +4.2%
EBITDA2 $m
Organic growth +4.2%
EBITDA margin2 %
1 Includes HFC/FTTH, DTH, Copper and other technologies.
2 Service revenue, EBITDA, EBITDA margin and organic growth are Non-IFRS measures. Please refer to the non-IFRS disclosures in this annual report for a description and a
reconciliation of non-IFRS measures.
Mobile $251mCable and other fixed $364mOther $8mMobile $321mCable and other fixed $286mOther $2mMobile $331mCable and other fixed $198mOther $1m$530$52620222021$245$2422022202144.0%43.7%20222021$608$61220222021$242$2492022202138.9%40.0%20222021$624$60820222021$298$2812022202145.8%44.4%20222021 Our Markets in Numbers
M i l l i c o m 2 0 2 2 A n n u a l R e p o r t 1 8
Our Purpose,
Business Strategies and
Performance
El Salvador
Service Revenue2
Nicaragua
Service Revenue2
Service revenue2 $m
Organic growth +7.7%
EBITDA2 $m
Organic growth +8.3%
EBITDA margin2 %
Costa Rica
Service Revenue2
Cable and other
fixed ('000)
Customer relationships1
299
As of year end 2022
+11
Net additions
+3.9%
YoY growth
Mobile ('000)
4G data users
1,608
As of year end 2022
+109
Net additions
+7.2%
YoY growth
Cable and other
fixed ('000)
Customer relationships1
51
As of year end 2022
+10
Net additions
+25.1%
YoY growth
Mobile ('000)
4G data users
1,460
As of year end 2022
+450
Net additions
+44.6%
YoY growth
Cable and other
fixed ('000)
Customer relationships1
247
As of year end 2022
–2
Net losses
–0.8%
YoY decline
Honduras Not consolidated
Service Revenue2
Cable and other
fixed ('000)
Customer relationships1
196
As of year end 2022
+8
Net additions
+4.3%
YoY growth
Mobile ('000)
4G data users
2,639
As of year end 2022
+238
Net additions
+9.9%
YoY growth
Service revenue2 $m
Organic growth +2.0%
EBITDA2 $m
Organic growth +3.0%
EBITDA margin2 %
1 Includes HFC/FTTH, DTH, Copper and other technologies.
2 Service Revenue, EBITDA, EBITDA margin and organic growth are Non-IFRS measures. Please refer to the non-IFRS disclosures in this annual report for a description and a
reconciliation of non-IFRS measures.
Mobile $268mCable and other fixed $160mOther $1mMobile $199mCable and other fixed $36mNo data to displayMobile $436mCable and other fixed $108mOther $5m$549$54820222021$262$2592022202144.6%43.9%20222021$429$39820222021$176$1622022202136.9%36.3%20222021Cable and other fixed $137m M i l l i c o m 2 0 2 2 A n n u a l R e p o r t 1 9
Our Purpose,
Business Strategies and
Performance
Advancing Our Business Strategy
In many ways, 2022 was the year we’ve been building toward for the past several years. We have a clear
and consistent strategy for creating value focused exclusively on our Latin American markets. Our
foundation of core mobile and fixed broadband growth strategies is strong. We’ve added value with our
emerging mobile financial services and tower infrastructure businesses. We believe our portfolio of
organic and inorganic investments across Latin America will continue to grow and evolve as our markets
demand more and better connectivity and digital services.
The results: Even with global economic headwinds, we generated strong cash flow and growth in almost
every market and business unit in 2022. We assign a large portion of the credit to the initiative and
commitment of our employees, who never failed to give 1,000% every day.
Millicom’s business strategies are grounded in six interconnected areas. Here’s how we performed in each.
Monetize Mobile
Our mobile business continues to keep pace with consumers’ surging demand
for high-quality content and information access. We ended 2022 with 40.6
million customers, a change of 1.9% from 2021. This included more than
767,000 new postpaid customers, of which more than 486,000 were in
Colombia alone (increasing our Colombia postpaid base by 20%). We currently
offer 4G coverage to 80% of the 120 million people in the countries where we
have a presence.
Our expanding content supermarket allows customers to watch their favorite
content when and where they want. We added premium channel packages in
2022 like Universal+ to our content lineup and began offering HBO Max,
Paramount+ and HotGo as add-on subscription options for our mobile
customers. We cemented our status as a leader in fútbol programming in Latin
America by adding the ViX+ Spanish streaming service, which enables customers
to live stream exclusive LaLiga Española matches, and secured exclusive rights to
broadcast the 2022 FIFA World Cup in full HD in multiple markets. We ended
2022 with 20.9 million 4G smartphone data users, giving 51% of our mobile
customer base the ability to stream high-quality content on the go.
Drive Convergence
Convergence allows us to leverage our existing tangible and intangible assets—
such as our network, brand, and local talent and market knowledge—to capture
business synergies, generate new revenue streams from existing customers,
attract new customers and reduce overall churn. Our focus on convergence also
reflects our expectation that future network deployments, such as 5G, will require
significant fiber network capacity and capillarity, as well as the spectrum, radio
and other components of today’s mobile networks.
In 2022, we continued converging our fixed and mobile networks to create a
more efficient, agile and profitable service model with projects to expand our 4G
capacity. This includes providing first-time mobile network access to more than
44,000 Panamanians in 31 communities of Ngäbe Buglé Comarca, the country’s
largest indigenous territory. We added 2,200 new coverage sites throughout our
markets in 2022, increasing our 4G coverage area to 80% of the population in
our markets—up from 78% one year earlier.
We’re also laying the groundwork for the widespread introduction of 5G
throughout Latin America. Our preparations include securing 5G spectrum in key
markets, investing in 5G-ready technologies and transitioning to a scalable,
virtualized cloud architecture that improves performance and security while
reducing capital expenses. We activated our first 5G network in Guatemala in
July, with 100 new sites in the city of Cayalá near Guatemala City.
M i l l i c o m 2 0 2 2 A n n u a l R e p o r t 2 0
Our Purpose,
Business Strategies and
Performance
Accelerate B2B
We’re on a mission to be the most trusted ally for businesses in
Latin America on their digital journey. A revamped strategic
focus for Tigo Business, with the mission to become the most
trusted ally for businesses in their digital journey, resulted
in approximately 12,000 new SME accounts in 2022. This
growth was supported by an exceptional performance
across all B2B subsegments, including double-digit growth
in our digital services.
16%+ organic increase
in digital services in 2022,
contributing to our exceptional
performance in corporate B2B
On the corporate side, we continued expanding our portfolio of
cloud, SD-WAN and cybersecurity services and solutions, with
the goal of becoming the multi-cloud managed service
provider of choice in the region. Our efforts in 2022 included
announcing the first Cloud Center of Excellence (CCoE) in
Central America, a collaboration with Microsoft that allows us
to guide the region’s companies in adopting a digital
acceleration model using hybrid or cloud-native solutions.
Through these and other initiatives and strategies, we not only
reinvigorated our growth in the corporate segment but
achieved a 16%-plus increase in digital service revenue in
2022.
Expand Broadband
Our fixed broadband portfolio is growing steadily, with several
opportunities for additional growth as we continue to ramp up
our build. We finished the year with 12.6 million HFC/FTTH
homes passed, of which more than 730,000 are fiber to the
home (FTTH). Overall, we added 151,000 new HFC/FTTH
home customers in our footprint. Penetration of fixed
broadband services in our markets remains well below other
Latin American countries, increasing our confidence that there
is a long runway of potential growth to be captured ahead of
us.
We continued to modernize and expand our fiber-cable network in
anticipation of this future growth. This includes the rollout of our
FTTH network, which will dramatically increase connection speeds
for individual users. Recent cost improvements have made FTTH
more economically viable at scale, accelerating our long-planned
transition.
Latin America’s Home
for Fútbol
Our customers enjoyed
exclusive access to the 2022
FIFA World Cup and LaLiga
Española matches in many
Tigo markets.
M i l l i c o m 2 0 2 2 A n n u a l R e p o r t 2 1
Our Purpose,
Business Strategies and
Performance
Internally, we continued upgrading our IT infrastructure and
adding top tech talent. Our 2022 achievements included
consolidating from nine management systems—one for each
Tigo operation—to a single consolidated system. In the
process, we traded busywork and manual data collection for
automated, high-quality analytics, giving us the insights we
need to execute at a high level.
Silver Award Winner
for Best Digital Transformation in the 2022 U.S.
Customer Experience Awards
Go Digital
We continued digitalizing the Tigo experience, with the goal of
creating an end-to-end digital ecosystem that gives customers
more of what they want while boosting company-wide
efficiency. We’re seeing rapid adoption of our digital
platforms, with digital reloads up 39% year-over-year and
digital payment transactions up 45%. Apps like Mi Tienda and
Mi Tigo are leading the charge, with features that make it
easier for customers to recharge their phones, manage bills or
activate services from their mobile phones. Through e-care
tools like our “Liza” customer support bot, we’re automating
more of our customer care interactions, creating efficiencies
for our teams and customers alike. Liza tackled 11 million
customer care transactions in 2022 alone—a 44% year-over-
year increase—with an 80% customer satisfaction rating.
Mi Tigo: #1-Rated Telco App
for both Android and iOS in the nine markets
where we operate
Fintech at Tigo: A “Blue Ocean Opportunity”
Since its launch over a decade ago, Tigo Money has become the leading mobile wallet in the markets we
serve, with almost 6 million active users. Many Latin American citizens are gaining first-time access to the
financial systems through the Tigo Money app.
Today, we’re leveraging these strengths in a push to make Tigo Money the premier fintech player in these
same markets. Our goal is to further increase financial inclusion among Latin American citizens while
tapping into a lucrative “blue ocean opportunity” in a geography where Tigo already leads. In pursuing this
opportunity, Millicom is amassing a deep bench of tech talent, building key infrastructure and seeking
equity investors with complementary fintech expertise.
The features and versatility of the Tigo Money app have long been a competitive advantage, but we made
major strides in advancing this advantage throughout 2022. We piloted a new lending platform in Paraguay
that allows customers to receive microloans through the Tigo Money app. We created a dedicated platform
for micro-merchants that makes it simpler to procure and sell goods in Latin America. We also rolled out a
similar platform for small and medium-sized businesses and large merchants in late 2022.
Additionally, we continued to expand Tigo Money’s footprint, upgrading service in Guatemala, Paraguay, El
Salvador and elsewhere.
The rapid growth of Tigo Money is a direct result of the Sangre Tigo-inspired commitment of our employees
and management team. They rose to the challenge of building a business outside our core telecom expertise
—and positioned us for market leadership in this increasingly important space.
M i l l i c o m 2 0 2 2 A n n u a l R e p o r t 2 2
Our Purpose,
Business Strategies and
Performance
Customer Centricity
Creating an exceptional customer experience is core to our
business strategy, and we continue to explore new ways to give
customers what they want. Our Liza customer service bot, Mi
Tigo and other digital self-service and e-care tools make it
easier for customers to solve a wider range of needs on their
own (see Go Digital on prior page). Customers can also engage
Tigo experts via the social channels they prefer, such as
WhatsApp, Twitter and Facebook. With our Tigo WiFi 360 app,
customers can take full control over their WiFi network from
their home set-top boxes, computers and mobile devices.
Overall, more than 11 million active users relied on our self-service
and e-care apps in 2022.
We continued strengthening our Net Promoter Score (NPS)
system in 2022, engaging world-class partners and platforms
to measure our customers’ willingness to recommend Tigo
products and services. Our customer service mantra is to drive
transactions to the best resolution channel—defined as the
channel that produces the fewest contacts, lowest costs and best
transactional Net Promoter Scores. We’re seeing impressive results
in all three areas.
Healthy Perception, Healthy Brand
In measuring brand perception over time, Relational
NPS data for our customer relationships demonstrate
superiority or parity against our key competitor in
seven of nine markets.
Other brand metrics are showing similar results. According to
Relational NPS data tracked by the NPS Prism benchmarking
platform, our customer relationships demonstrate superiority
or parity against our key competitor in seven of nine markets.
Satisfaction Up, Costs Down
Our Transactional NPS customer-satisfaction scores
have continually increased over the past three years
while our costs of care have dropped 30%.
Unlocking the hidden value of our towers infrastructure
We built a comprehensive tower infrastructure in Latin America with an eye toward becoming the region’s
top mobile and fixed broadband provider. But while this infrastructure powers our business, it’s also an
unrealized gold mine in our markets, where other operators and governments seek to improve digital
services without the same degree of capital investment.
In early 2022, we announced a strategy to carve-out our 10,900-plus towers portfolio into an independent
business aimed at maximizing our towers’ revenue potential. By building an independent brand, actively
marketing our portfolio to third-party operators and attracting growth capital from new investors, we
believe we can dramatically enhance shareholder return on our digital infrastructure investments.
We made significant progress on our plan in 2022, including optimizing our capital and governance
structure and negotiating master lease agreements with several third-party players. A key element of our
strategy is to maintain strategic optionality, which will allow us to bring in a financial and strategic partner
if needed or fold in other infrastructure assets—such as our 193,000 kilometers of fiber or 12 Tier III data
centers—across our footprint, including Honduras.
As with Tigo Money, our tower business is a tremendous business opportunity powered by the energy and
ingenuity of our people. We expect our carve-out initiative to be completed during 2023.
M i l l i c o m 2 0 2 2 A n n u a l R e p o r t 2 3
Our Purpose,
Business Strategies and
Performance
Risk Management
Management of Risk and Uncertainty
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 risk profile continues to evolve with a business strategy now
fully dedicated to opportunities in the Latin American markets and
economies in which we operate. In 2022, we completed our exit
from Africa to Latin America, having raised ownership in our
Guatemala business to 100% in November 2021.
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.
Risk Governance
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.
Our prudent decisions on capital allocation and cash flow
management in response to the COVID-19 pandemic resulted in a
strong recovery in 2021 that continued into 2022.
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.
Global macroeconomic headwinds impacted our business in
the second half of 2022. 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.
M i l l i c o m 2 0 2 2 A n n u a l R e p o r t 2 4
Our Purpose,
Business Strategies and
Performance
Risk Management Approach
Millicom's risk management methodology and
processes are aligned to its strategy business
opportunities, deployed across all business areas
and operating countries.
Key Elements of Millicom’s Risk Management Approach
• Risk focus is on reduction of uncertainty to enhance decision-making in strategy formulation and allocation of capital and resources
• Risk is linked with opportunity and closely aligned with strategic goals
• Alignment of risk ownership and responsibility with organizational goals and decision-making responsibility
• The Board of Directors sets Millicom’s appetite for risk and 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
• Setting of clear, specific and owned actions that target the potential impact or likely occurrence of risks, and monitoring of effectiveness of those actions
• Prioritizing risks based on likelihood of occurrence and importance to the business
• Risks are actively managed to optimize the balance of risk and reward, enhance value and protect against threats
Evolution of Key Risks in 2022
Key Risk Area
Description
Strategy and strategic
direction
Ability to formulate a viable and executable strategy that supports
the vision of the company
Portfolio management
and capital allocation
Acquisition or retention of businesses that generate sufficient
return on investment, and capital management
Macroeconomic
conditions
Ability to successfully navigate through volatile or uncertain
macroeconomic conditions
Political, civil and
regulatory environments
Potential instability or lack of predictability in regulation or rule of
law in the countries in which we conduct business
Technical transformation
and convergence
Possible failure to identify / anticipate drivers of technological
change or lack of resource / know-how to implement change
Competition and
customer experience
Market structure and position, actions taken by competitors
and customer experience
Financial structure
and capacity
The ability to access reasonably-priced capital as well as
capacity and constraints on our organic and inorganic growth
Networks and
infrastructure resilience
Disruptions to service, or compromised ability to restore
services to customers in acceptable time frames
Licenses and spectrum
Ability to obtain and retain the required quantity or band of
spectrum at commercially viable prices
Cybersecurity and
data protection
Intrusion into systems or networks and inappropriate access to
sensitive data
People, workplace and
well-being
Potential for physical, psychological or emotional harm in the
countries in which our businesses operate
Conduct
Actions and behaviors of our employees, business partners and
other stakeholders.
Analysis of Key Risk Areas
M i l l i c o m 2 0 2 2 A n n u a l R e p o r t 2 5
Our Purpose,
Business Strategies and
Performance
Key Risk Area
Risk Climate
Management of the Risk Area
The Board’s Perspective
1. Strategy and
strategic direction
Chief Executive
Officer (CEO)
Medium
Stable
• Our strategy is based on our purpose: to build the
• In 2022, the Company continued to benefit
digital highways that connect people, improve lives
and develop communities. Our purpose and
strategy is set out starting on page 9.
from key decisions taken in prior years and from
staying on its strategic course.
• The Company advanced its strategic goals of
• We focus on opportunities that enhance our
purpose and add value to our key stakeholders.
driving OCF growth, unlocking shareholder value
and allocating capital for return.
• We monitor external factors such as macro,
• Millicom’s strategy remains firmly focused on
political and key demographics in our markets.
• We monitor performance with key financial and
serving customers and communities today and
building for the future.
Improving
operational indicators.
2. Portfolio management
and capital allocation
Medium
CEO, Chief
Financial
Officer (CFO),
Chief Technology
& Information
Officer (CTIO)
3. Macroeconomic
conditions
CFO
Improved
Stable
Elevated
Deteriorated
• We carefully consider opportunities to acquire,
merge or divest businesses based on market
dynamics, portfolio balance and opportunities
for long-term value creation.
• We have a disciplined yet flexible approach to
capital investment, with established payback
hurdles strictly controlled by our central CapEx
Committee and overseen by our Board.
• We made tangible progress in the planned
carve-outs of our mobile financial services and
tower infrastructure businesses during the year.
• Sale of the Tanzanian business in early 2022
completed a multi-year strategic shift to our
Latin American markets.
• We operated our Guatemalan business with
100% ownership for the first full year following
our acquisition in 2021.
• The Board maintains oversight and authority
over all significant capital investments, including
network, equipment and spectrum.
• Inflationary pressures impacting supply pricing
• Most countries in which Millicom operates
and employee-related costs are closely
managed, with sales price adjustments made in
many markets in 2023.
experienced real GDP growth in 2022 and are
on track for rising, albeit slower, disposable
income and levels of prosperity.
• We have several active OpEx and CapEx
• Currency fluctuations are a key risk inherent to
efficiency programs running, and operate an
adaptive capital deployment program during
times of heightened uncertainty.
• Our active liability management strategy, debt
maturities and balance of variable vs. fixed-rate
interest debt has limited our exposure to interest
rate increases and slowing debt markets.
Stable
• Our cash holding and repatriation policies limit our
exposures to currency volatility in our markets.
4. Political, civil and
regulatory environments
Elevated
Chief External
Affairs Officer
(CEAO), CFO
Stable
Stable
• Our local and central teams monitor political
developments where we operate, and assess the
implications of evolving global political trends
for potential impact.
• 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.
• See section starting on page 28 for more on our
climate commitments.
Millicom’s business and, while impacting
reporting and earnings in USD, do not impact
our competitiveness or strategic aspects of
managing our local businesses.
• The Guatemala acquisition with relative stability
of its currency against the USD has improved the
Group’s currency risk profile.
• The Board oversees management’s policies,
processes and controls over liability and cash
management.
• Political and regulatory risks and unpredictability
are inherently high in many of the countries in
our footprint.
• The Board oversees Millicom’s interaction with
key governmental and regulatory agencies, and
related policies and procedures (including
taxation).
• The Board monitors climate-related risks and
impact and managing business sustainably
within its social responsibility programs.
M i l l i c o m 2 0 2 2 A n n u a l R e p o r t 2 6
Our Purpose,
Business Strategies and
Performance
Key Risk Area
Risk Climate
Management of the Risk Area
The Board’s Perspective
5. Technical
transformation and
convergence
CTIO
6. Competition and
customer experience
Chief Operating
Officer (COO)
7. Financial structure
and capacity
CFO
• With fixed and mobile businesses in each of our
• Advancements in technology, increasing
strategic markets, we have the necessary building
blocks for fixed / mobile convergence and 5G.
demand for data, higher quality, and more
content define the industry.
Medium
• Between 2020–2022, we spent >$3 billion in
expanding and modernizing our networks and
infrastructure.
• In 2022, we continued to expand and modernize
our networks and content partnerships to meet
growing demand.
• We actively participate in industry forums and work
• Millicom seeks to balance short-term operating
with our supply partners on opportunities to
enhance and modernize our products and services.
and financial goals with technological and
transformational investments.
• In 2022, we expanded our fintech business with
an expanded set of mobile financial services (see
section starting on page 9).
Stable
Stable
• Network centricity and customer drive are core
components of our organic growth strategy.
• Network centricity and customer drive are core
components of our organic growth strategy.
Medium
• We use brand tracking, relational and
• Positive experience is a vital element in customer
acquisition and retention.
• Millicom’s comprehensive customer satisfaction
program facilitates a continuous cycle of
improvement across all facets of customer
experience in all operating markets.
transactional net promoter scoring (NPS) and
digital social listening, as well as market share
and net adds, to track and manage market and
customer performance (see section starting on
page 19).
• We continue to invest in our digital customer
experience platforms; partner with key content and
service providers, such as Netflix and Amazon; and
invest in exclusive broadcast rights, including
football in many of our markets (see section
starting on page 19).
• See page section starting on page 16 for our
competitive position in our markets.
Stable
Stable
• 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 to lower our cost of debt and
increase our debt efficiency on an ongoing basis.
• Millicom’s financial structure is both a key
facilitator and inhibitor of its ability to grow its
business and create value.
• The capital raise in 2022 to fund the
Guatemala business acquisition was well
supported by shareholders.
• The Board closely monitors balance sheet
• In 2022, we successfully raised ~$750 million in
structure and the sources and uses of funds.
new capital to finance our Guatemala
acquisition and refinanced a number of our
long-term bonds to reduce our average cost of
debt and extending maturities.
• Capital structure, leverage and operating and
equity free cash flow are key areas of focus
for the Board.
Elevated
Improved
Improving
8. Networks and
infrastructure resilience
Medium
CTIO
Improved
Improving
• Our network resilience controls and mitigating
activities include threat and vulnerability
assessments, simulation exercises and business
continuity plans.
• We develop our investment programs with
consideration of outage risks, external
dependencies, network redundancy, climate and
sustainability risks.
• Our IT networks and response systems identified
and repelled a number of cybersecurity attacks
during the year. See risk 10 for further details.
• Fulfilling our purpose requires high levels of
coverage, quality and availability of our
networks and infrastructure.
• Capital allocation to expand, modernize,
maintain and protect our networks and vital
infrastructure is essential.
• The Board approves accelerated or increased
investment in networks in pursuit of
opportunities, balanced with investment in
physical and digital controls to increase service
and strengthen resiliency.
M i l l i c o m 2 0 2 2 A n n u a l R e p o r t 2 7
Our Purpose,
Business Strategies and
Performance
Key Risk Area
Risk Climate
Management of the Risk Area
The Board’s Perspective
9. Licenses and spectrum
CTIO
10. Cybersecurity and
data protection
Low
Stable
Stable
• We formulate spectrum and license strategies
and management plans based on spectrum
quality, network needs and customer demand in
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 when acquiring new
spectrum.
• In recent years, we have successfully obtained
and renewed the spectrum we need to continue
to operate and expand our businesses.
• Spectrum and licenses continue to be an area
where governments seek higher financial and
consumer benefits in auctions.
• In particular, proposed spectrum pricing is seen
by operators and observers as being well above
industry norms.
• The Board promotes fair and transparent
allocation and pricing of spectrum and licenses,
oversees the spectrum strategy, and is
responsible for review and approval of all
significant spectrum and license purchases.
Elevated
Improved
• Our Global Information Security Office and
• Potential disruption from cybersecurity attacks
Global Security Operations Center manage and
coordinate cybersecurity risk mitigation and
incident response.
• We have processes and tools to identify and
respond to threats, test vulnerabilities and run
training programs to raise awareness and security.
have become a significant threat to any
organization.
• These threats have heightened in 2022 as
reliance on networks, communication systems
and the internet continues to grow.
• We faced three major attacks in 2022 with no
• We undertake NIST audits with focused
substantial impact on the business.
CTIO
enhancement programs.
Improving
• Learn more about the initiatives we
implemented in 2022 in the section starting on
page 38.
• The Board has full oversight of the information
security enhancement and cyber control program.
11. People, workplace
and well-being
Chief Human
Resources
Officer (CHRO)
Chief Legal &
Compliance
Officer (CLCO)
12. Conduct
Medium
Improved
Stable
Low
Stable
Stable
• 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 our Sangre Tigo culture.
• Since 2020, employee and customer health and
well-being have become—more than ever—a
key element of our purpose and responsibility.
• See more about our approach to employee
health, safety and security in the section starting
on page 38.
• 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 2022, 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 section starting on page 92 for more in this
area in 2022.
• The Sangre Tigo culture embodied in our people
brings our vision to life.
• In 2022, we proudly ranked 5th in the World’s
Best Workplaces 2022 survey by Great Place to
Work and 2nd in Best Workplaces in Latin
America 2022 for multinational companies.
• We are proud that Millicom 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 fundamental
and is reinforced in message and tone from the
top levels of 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.
M i l l i c o m 2 0 2 2 A n n u a l R e p o r t 2 8
Our ESG Approach and Impact
Our ESG Approach
and Impact
Fueled by our employees’ passion and commitment, we have integrated our
environmental, social and governance (ESG) strategy through every part of
our business. As our market leadership grows through the adoption of digital
technologies, our ability to create even greater environmental, social,
educational and economic opportunities increases dramatically.
M i l l i c o m 2 0 2 2 A n n u a l R e p o r t 2 9
Our ESG Approach and Impact
ESG Approach
Our ESG strategy articulates our approach to improving lives, strengthening communities, reducing our
environmental impact and governing our business with integrity.
In 2021, we announced a new ESG approach that illustrates
the relationship between our purpose, business strategies and
performance. Aligned with leading ESG methodologies, this
approach provides a full 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.
We continued to rally behind this approach in 2022, including
announcing new 2030 GHG emissions reduction and DE&I
targets to hold ourselves accountable to the environmental
and social progress we aspire to create in our business. We also
made progress in key priority areas such as energy efficiency,
digital education, talent strategy, information security, supplier
engagement, and ethics and compliance.
To help us achieve our targets and ambitions, we defined roles,
initiated partnerships, and devised and implemented new
transition plans throughout Millicom in 2022. Our approach
has been reaffirmed by the results of our 2022 materiality
assessment and is aligned with key targets in the United
Nations’ Sustainable Development Goals (SDGs).
ESG at Millicom
Moving forward, we’ve prepared an initial roadmap to align
our ESG disclosures with upcoming EU Taxonomy, Corporate
Sustainability Reporting Directive (CSRD) and SEC rules and
regulations. We will report on eligibility and alignment with the
EU Taxonomy in a separate report in mid-2023.
Together, we believe our ESG approach and initiatives will help
us chart a path for sustainable growth and create long-term
value for our stakeholders.
ESG Governance
Our Board of Directors oversees our ESG strategy. In addition
to the areas mentioned above, the ESG umbrella at Millicom
covers multidisciplinary activities and elements from such areas
as Factory, Legal and Compliance, External Affairs, Technology
and Information, and Human Resources. The ESG structure
embodies the depth and materiality of these topics and the
importance of monitoring their interconnected risks and
opportunities. Our ESG portfolio is managed by the Executive
Vice President (EVP) and Chief External Affairs Officer, who—
together with the CEO and the other EVPs—deliver updates
on the ESG strategy to the Board. The EVPs involved in ESG
matters deliver monthly ESG progress updates,
implementation reports and issue-management updates
to the Executive Team.
Our purpose is to build the digital highways
that connect people, improve lives and develop
our communities
M i l l i c o m 2 0 2 2 A n n u a l R e p o r t 3 0
Our ESG Approach and Impact
Sustainable Development Goals
The Sustainable Development Goals (SDGs) set out by the United Nations in its 2030 Agenda represent a global consensus on where
we must all focus our efforts to ensure the future of our society and our planet. We believe the best way to do so is to understand
where we as a company can make the biggest impact—and to focus on our strengths and opportunities on maximizing that impact.
We took a deep dive into the 169 targets set out by the SDGs, analyzed where we had the greatest influence, and tracked our
contribution through tangible practices, initiatives and metrics. Each of our Latin American operations also conducted this analysis
locally and linked its contributions to the SDG indicators for its respective country.
See the results here.
$700 million
Commitment to expand our broadband networks
in Central America in next two years to promote
inclusive economic development.
Our Purpose in Action
In response to U.S. Vice President Kamala Harris’s Call to Action, we announced
plans to invest $700 million to expand and maintain our broadband networks in
Central America.
In May 2021, Vice President Harris launched a Call to Action for Businesses and Social Enterprises to promote
inclusive economic development in Guatemala, Honduras and El Salvador (the "Northern Triangle").
Through the Partnership for Central America (PCA)—an independent organization that coordinates private
sector coalitions and projects in digital, financial, health, education and energy programs—participating
organizations aim to send a signal of hope to over 15 million people across the region and sustainably
address the root causes of migration by fostering economic opportunities in these countries.
As a member of the PCA, we announced in June 2022 that we will invest $700 million to expand our
fixed and mobile broadband networks in Guatemala, Honduras and El Salvador over the next two years.
The investment will boost our efforts to accelerate economic growth through increased connectivity, as
broadband penetration rates in these markets are well below regional averages.
Digital and financial inclusion is a key focus area of the Call to Action. Its goals include expanding
affordable internet access and increasing participation in the digital economy; facilitating access to
financial technologies and capital for small businesses; and ensuring that the most vulnerable and likely
to migrate have access to basic public services and economic opportunities.
As part of the strategic collaborations between PCA partners, we launched a joint mentoring program with
Glasswing in September 2022 to support and harness the power of youth of the region. Through the program,
Tigo volunteers provide mentorship sessions in public schools in Guatemala, El Salvador and Honduras,
furthering our commitment to contribute to our communities’ growth through connectivity.
M i l l i c o m 2 0 2 2 A n n u a l R e p o r t 3 1
Our ESG Approach and Impact
Environmental Impact
As the threat of climate change has grown more urgent, we’ve accelerated our
climate ambition to create a net zero future for our company and make our digital
highways as sustainable as possible.
We will report on eligibility and alignment with the EU taxonomy regulation in a
separate report by June 30, 2023.
M i l l i c o m 2 0 2 2 A n n u a l R e p o r t 3 2
Our ESG Approach and Impact
Paving the Way to a Net-Zero Future
Validated by the Science-Based Target initiative, our new GHG emissions
reduction targets provide a clearly defined pathway for reducing our impact.
Climate change is not a “someday” issue. We’re already seeing the effects of a warming planet: More frequent and severe droughts,
heat waves, wildfires, hurricanes, and floods; rising sea levels; dwindling freshwater supplies that affect human and animal health.
The consequences are devastating to people and communities worldwide.
Climate change also poses threats to business as usual. High energy costs, infrastructure damage, power outages, supply chain
disruptions and increased regulations and costs related to the disposal of e-waste could all affect Millicom’s business continuity and
growth. What’s more, climate-related disasters can affect Millicom’s ability to provide continued service, which is itself crucial for
communities responding to disasters.
“We strongly believe that a green economy is a digital economy, and
only digital transformation of all industries can truly provide the basis
for a long-term sustainable economic success.”
—Karim Lesina, Executive Vice President and Chief External Affairs Officer
2022 Highlights
Announced new SBTi-validated emissions
targets to reduce Scope
1 and 2 emissions by 50% by 2030
Continued our rollout of over 1,200 new
rural mobile cell sites in Colombia over
the next four years, of which over 70%
will be off grid
83%
recovery rate for our
Customer Premises
Equipment after people
terminated or upgraded
their services, 10% above
our 2022 target
M i l l i c o m 2 0 2 2 A n n u a l R e p o r t 3 3
Our ESG Approach and Impact
2022 represents a watershed year in our journey to address the climate crisis. In July, we announced aggressive new greenhouse gas
(GHG) emissions reduction targets, which were validated by the Science-Based Targets initiative (SBTi). As part of the target-setting
process, we’ve spent the past two years plotting our required emissions reduction trajectory and building a transition plan with a
multidisciplinary team from across the company, including Operations, Engineering, Supply Chain and Facilities. We’ve already set in
motion many of the initiatives that will form the core of our strategy.
Our Science-Based Climate Targets
» Reduce absolute Scope 1 and 2 GHG emissions by 50% by 2030
» Reduce absolute Scope 3 GHG emissions by 20% by 2035
» Achieve net-zero emissions by 2050
Initial Strategies
» Innovative energy sourcing models
» Market instruments for renewable energy
» Energy-efficiency and energy-saving initiatives
Science-Based GHG Targets
Science-based targets show organizations how much and how
quickly they need to reduce their GHG emissions to prevent the
worst effects of climate change. A target is considered science-
based if it’s in line with the latest climate science on achieving
the goals of the Paris Agreement, which seeks to limit global
warming to well-below 2° C above pre-industrial levels. To
achieve our SBTi targets, we must cut absolute Scope 1 and 2
GHG emissions in half by 2030 and drop to net-zero emissions
by 2050 (from a 2020 base year).
Millicom is one of only three telecom companies1 and 33
companies overall2 in Latin America to have their science-based
targets validated.
We set more ambitious targets 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 we have the least control. (Scope 3
disclosure assesses GHG emissions from assets not owned or
controlled by Millicom but that indirectly impact the Millicom
value chain.) This will allow us the time to form partnerships
with authorities, competitors and suppliers on integrated
strategies for reducing emissions. See more details about our
Scope 3 calculation methodology in our Performance Tables
section, starting on page 58.
After performing a comprehensive Scope 3 emissions
inventory in 2021, we revamped our methodology and
measurement methods in 2022 to align with our new climate
commitments and related strategies. We also updated our
Supplier Training Module with an in-depth section on our
emissions expectations.
“SBTi’s validation is a major
milestone for Millicom and our
efforts over many years to reduce
our carbon footprint. Being good
environmental stewards is not a mere
add-on for Millicom, but core to our
purpose of building the digital
highways that connect people,
improve lives, and develop
communities.”
—Mauricio Ramos, Chief Executive Officer
1The full list can be found on SBTi’s website.
2As of July 21, 2022.
M i l l i c o m 2 0 2 2 A n n u a l R e p o r t 3 4
Our ESG Approach and Impact
Advancing Our Climate Goals
A relentless focus on energy efficiency and renewable energy sourcing are at
the core of our net-zero strategy.
Our base station and fixed network sites account for roughly 75% of the energy we consume from fuel and grid electricity. Given the
scale of our ambitions, meeting our Scope 1 and 2 target will require considerable investment and innovation. To achieve our goals,
we’ve built a comprehensive roadmap combining aggressive energy-efficiency and energy-saving initiatives with programs and
market instruments to increase the proportion of energy we use from renewable sources.
Scope 1 and 2 (tonnes of CO2e)
Scope 3 (tonnes of CO2e)
GHG Emissions:
Progress vs.
the Path Ahead
Millicom has committed to
reducing absolute Scope
1 and 2 GHG emissions by
50% by 2030 and absolute
Scope 3 GHG emissions by
20% by 2035, both from
a 2020 base year.
Innovative Energy Sourcing Models
We’re adopting innovative new energy sourcing for our
operations, including partnering with providers to use an
energy as a service (EaaS) model at our mobile cell sites. The
EaaS model relies on distributed power, with electricity
generated from smaller sources not connected to a centralized
energy grid. In 2022, we continued our four-year rollout of
more than 1,200 new mobile sites in Colombia using the EaaS
model, out of which 70% of the sites are expected to be off
grid. Many are solar powered, with lithium-ion batteries
providing backup power without the use of generators.
The business case for the EaaS model is strong. The sites allow
us to provide connectivity to rural areas without grid access,
increasing our customer base. We’ll achieve a major degree of
cost certainty over the next 10 to 20 years by reducing fuel use
and avoiding the purchase of electricity from the grid in a
volatile energy market. Finally, we expect to avoid significant
CO2 emissions as we expand our network and services. The full
benefits of the model will be realized as our rollout continues.
70% of sites off grid
in Colombia using the EaaS model
185,689179,686171,1842020202120221,585,0572,202,2501,582,304202020212022
M i l l i c o m 2 0 2 2 A n n u a l R e p o r t 3 5
Our ESG Approach and Impact
Market Instruments for Renewable Energy
When available, we use market instruments such as Power
Purchase Agreements (PPAs) and Renewable Energy
Certificates (RECs) to partially offset GHG emissions associated
with our electricity use with guaranteed sources of renewable
energy. Renewable energy from these instruments currently
accounts for a small percentage of our total energy
consumption. Where these instruments aren’t available, we
rely solely on the energy mix used by national grids for our
electricity. Paraguay and Costa Rica generate high proportions
of their electricity from renewable sources, resulting in lower
Scope 2 emissions for our operations in these countries, but
that’s unfortunately not the case in many of our other
markets. As governments begin to loosen restrictions on
energy-related public-private partnerships, we expect to pursue
renewable energy for our operations more aggressively.
Power Purchase Agreements
In 2022, we entered into year three of a 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
electricity guaranteed to have been produced by renewable
energy sources, such as hydroelectric, thus avoiding any direct
emissions. We procured 3,826 MWh of electricity through our
Panama PPA in 2022, and will continue to negotiate new PPAs
as they become available in our regions
Renewable Energy Certificates
Tigo Colombia certified 24,382 MWh of its grid electricity
consumption in 2022 through RECs, verifying that the energy
was generated from renewable sources and fed into the
national grid.
As a side benefit, our procurement of renewable energy may
help the countries in which we operate meet their own climate
commitments, such as Colombia’s pledge to reduce GHG
emissions by 51% by 2030. Our actions to reduce demand on
the grid, drive demand for renewable energy sources and
create new mechanisms for renewable energy procurement
can all play a role in changing this energy equation.
Renewable Energy vs.
Total Energy Consumption
— Energy from renewable sources (MWh)
— Total energy consumption (MWh)
18,772
28,208
*Energy from renewable sources not tracked.
705,039
747,660
776,985
28,208 MWh
of our electricity use is from renewable
sources through our Power Purchase
Agreement in Panama and Renewable
Energy Certificates in Colombia
705,0392020*20212022 M i l l i c o m 2 0 2 2 A n n u a l R e p o r t 3 6
Our ESG Approach and Impact
Energy-Efficiency and Energy-Saving Initiatives
We’re adopting new energy-efficiency and energy-saving
initiatives across our operations to reduce our electricity
use. This includes modernizing and consolidating our data
center equipment and infrastructure and investing in
newer, more efficient technologies. Our near-term priorities
in every case are to decrease our energy consumption per
unit of traffic while simultaneously delivering more and
better services to our mobile and broadband customers.
This is a critical yet challenging need, as we aspire to use
less energy per unit of data traffic even as our traffic and
customer base continue to grow.
our data centers, powering off sites in periods of low traffic,
using hybrid fuel systems in off-grid sites, and replacing legacy
equipment with new, more efficient alternatives.
The bulk of these initiatives could significantly reduce our
consumption of electricity and fossil fuels. Many projects also
present strong business cases, such as lower operational and
capital expenses, higher operational efficiencies and improved
service for customers.
More Fiber, Less Energy
Increasing our use of fiber cable may also reduce our energy
consumption, as fiber consumes less energy when transmitting
data than cable internet. As of the end of 2022, we had
installed 193,000 kilometers of fiber across our footprint,
including Honduras.
Mobile RAN Network Modernization
Since 2018, we’ve been incorporating energy-saving features
across Millicom through our Mobile RAN Network
Modernization project. In 2022, our Service Assurance team
began assessing the scaling potential of our current and
ongoing energy-efficiency and renewable energy initiatives in
Latin America. The team identified 14 types of initiatives with
scaling potential, including optimizing the cooling systems in
M i l l i c o m 2 0 2 2 A n n u a l R e p o r t 3 7
Our ESG Approach and Impact
Reducing e-Waste
Our ambition: No broadband equipment left behind.
The world will produce an estimated 74 million metric tonnes
of e-waste by 2030,3 the bulk of which will end up in landfills.
All of our operations have a global e-waste recycling program.
Through our Customer Premises Equipment (CPE) Recovery
Program, we aspire to recover most or all of the equipment our
customers use for broadband and cable connectivity, should
they terminate or upgrade their services. Once recovered, the
equipment is either redeployed in the field or responsibly
recycled, helping reduce the landfill waste we produce.
This process, which we term reverse logistics, helped us avoid
the purchase of more than $126 million in new CPE in 2022. It
also lessens the impact of microchip shortages or other supply
chain disruptions to our business.
Exceeded Our Target
We ended 2022 with an 83% end-to-end recovery rate, well above
our target of 76% by 2024. Every Tigo operation put a significant
focus on improving collection rates and the percentage of CPE that
can be refurbished in our labs. Strategies include reducing the time
between customer disconnects and CPE recollections, changing the
incentives for recollection, allowing customers to drop off equipment
after normal business hours, enabling customers to make
appointments via text and upgrading operations in recovery labs.
Our reverse logistics process reduces our environmental impact
in other ways. For example, by reusing plastic, we’re avoiding
the water consumption and associated CO2 emissions
produced during the manufacturing of new CPE. In 2023, we
plan to further improve our end-to-end recovery rates by
focusing on our country operations that are lagging behind.
We will also enhance our data analytics, which will help us fine-
tune our priorities and effectiveness. This will be especially
useful in making incremental improvements to the recovery rate
for high-value CPE, such as our 24-frequency broadband
equipment.
End-to-End Recovery Rate
for CPE Equipment
— Target — Actual
84%
83%
*For fiscal years 2021 and 2022 respectively.
“We believe that small actions
repeated and sustained over time
are multiplied. ... Each cell phone we
can manage correctly is an amplified
action, since the largest hydrographic
basins in the country are saved.”
—Oscar Romero, General Manager of Renuevo Panama
Reforesting Panama One Cell Phone at a Time
We’re always looking for new ways to engage customers and employees in our markets. With our Un Celular,
Un Árbol (One Cell, One Tree) initiative in Panama, we’re not only engaging the community, but we’re
tackling two of the most persistent environmental problems in Latin America—the buildup of e-waste in
local landfills and deforestation.
Un Celular, Un Árbol invites customers to drop off obsolete electronic devices at specially identified
mailboxes at any of 32 Tigo Panama stores. Our local partner, Renuevo Panama, either recycles or
responsibly disposes of the electronics, including cell phones, laptops, desktop computers, cell phone
batteries and electronic cards.
Proceeds go to the Natura Foundation, which uses the funds to purchase and plant native tree species in the
region. Tigo Panama and our allies plant one tree for each cell phone retrieved.
Un Celular, Un Árbol embodies Tigo Panama’s commitment to acting as an agent of positive change in the
region. In addition to revitalizing local ecosystems, the program is playing an invaluable role in raising
awareness among Tigo customers and the community on the importance of recycling e-waste.
3United Nations Institute for Training and Research (UNITAR), “Global Transboundary E-waste Flows Monitor 2022,” 2022.
72%73%76%2021*2022*2024 M i l l i c o m 2 0 2 2 A n n u a l R e p o r t 3 8
Our ESG Approach and Impact
Society
Our technology and platforms create a world of opportunity for our people and the
communities we serve—from empowering individuals with digital access and
education, to creating an inclusive work environment, to stimulating economic
development in our markets.
M i l l i c o m 2 0 2 2 A n n u a l R e p o r t 3 9
Our ESG Approach and Impact
Highlights
5th in World's Best
Workplaces 2022 survey by
Great Place to Work
Announced new DE&I targets for 2030,
including 50% women at all levels of the
organization, including upper management
More than
171,000
women and girls received
digital literacy and
entrepreneurship training,
including those using our new
web-based Conectadas platform
More than 102,000 teachers trained
through the Maestr@ Conectad@s
online training platform
M i l l i c o m 2 0 2 2 A n n u a l R e p o r t 4 0
Our ESG Approach and Impact
Our People
Our purpose comes to life through the
talent, energy and dedication of our
20,000 employees and more than
10,0001 contractors. We honor them
with a diverse and inclusive workplace
that empowers them to thrive.
Our people are the heart and soul of our Sangre Tigo culture—
the lifeblood of our business success. Their commitment is felt
across the company. Customers recognize it in our relentless
drive to improve the customer experience. Shareholders
perceive it in the rapid growth of our core business and fintech
and infrastructure assets. Tigo leaders observe it in our
organization’s enthusiastic transition to a net-zero-emissions
mindset. In turn, we invest heavily in our people and in
enhancing our Sangre Tigo culture each year—from employee
training and leadership development to immersive
communications on the meaning of “We are one Tigo.”
We value how we work as much as what we do. That’s why we
strive to create an environment that celebrates diversity, stokes
employees’ passions, fosters a culture of respect, and
empowers everyone to make a difference. Our goal is to make
Tigo an amazing place to work, a place where diverse talent
finds a home and team members have what they need to do
their best work every day.
Our new diversity, equity and inclusion (DE&I) targets
accelerate our progress in building a diverse workplace, with a
focus on achieving a 50% gender balance at all levels of the
organization by 2030. This includes strengthening the diversity
of our leadership team, both by recruiting outstanding talent
from outside the company and developing future diverse
leaders within our walls.
Organizationally, we continue to build a better workplace by
optimizing our HR system so we can make faster, smarter
decisions. This new system—combined with our people-first
hybrid work environment and industry-leading DE&I program
—is enabling us to bring in top tech talent from across Latin
America, a prerequisite as we grow our business into the future.
1Contractors are non-permanent personnel on a third-party's provider payroll (including individuals, contractors, freelancers, secondees, subcontractors and/or employees of a
staffing agency), solely working for Tigo or Millicom under our supervision, most typically for special, temporary projects to grow and sustain our operations.
M i l l i c o m 2 0 2 2 A n n u a l R e p o r t 4 1
Our ESG Approach and Impact
Painting Ourselves Blue with Sangre Tigo
We believe when team members own their culture, the culture
will thrive. We launched Sangre Tigo in 2018 with a survey of
more than 11,000 employees. Within a year, their input had
helped us articulate the Sangre Tigo framework and initiate a
series of dynamic and interactive workshops providing clarity
on our workplace culture and values.
Today, Sangre Tigo pulses through our veins and influences
every one of our behaviors, decisions and actions. But a culture
needs constant nourishment to thrive. To build more
excitement and accountability among leaders and employees,
we advanced several new initiatives in 2022, including DE&I
initiatives that play an imperative role in our workplace culture
(see following page).
Leadership Development
Creating development opportunities for leaders to “own”
Sangre Tigo was a top priority. In 2021, we developed the
Sangre Tigo Leader Success Profile, which defined the
leadership attributes and behaviors we believe are necessary to
build our culture the right way. In 2022, we focused on raising
awareness of these behaviors, including collaborating with key
consultants to assess our current leadership and create
pathways for improvement.
In partnership with Assessments International, we evaluated our
top leadership against our Success Profile, with evaluations for
direct reports to come in 2023–2024. Together, this initiative helps
us identify leaders’ strengths and weaknesses, identify leadership
gaps and provide targeted feedback.
We also partnered with consulting firm BTS on a Sangre Tigo
leadership development program for senior leaders. Through a
series of workshops, leaders learned how to apply Sangre Tigo in
real-life business scenarios and put our beliefs into action. Roughly
800 managers participated in the workshops in 2022.
Quickening Our Sangre Tigo Pulses in 2022
We believe a culture is a living, breathing organism. Here are a few of the actions we took to breathe life into our Sangre Tigo pulses in 2022.
We make it happen
the right way
Dedicated a full month to
educating employees on the
Tigo code of conduct, the
importance of ethics and
compliance, and cybersecurity
and data privacy
We give 1,000% for
our customers
Dedicated a full month to
educating employees on the
importance of the customer
experience
We are One Tigo
Provided constant
communication and
awareness around DE&I,
including unconscious
bias training
Tigo runs in our veins
Provided continuous training
to new employees
about Sangre Tigo
An Even Greater
Place to Work
How do you prove your culture is getting it done? Ask your
employees. Tigo was once again named one of the top 25
workplaces in Latin America, earning 2nd place in the Best
Workplaces in Latin America 2022 ranking for multinational
companies in the region. This marks Tigo’s fourth year on the
Great Place to Work roster of leading Latin American workplaces.
We were further honored with 5th place in the World's Best
Workplaces 2022 ranking, which ranks the top 25 places to
work across the globe.
We have built
one of the best
workplaces in
Latin America
and in the world
#2
Best Workplaces in
Latin America
#5
World's Best
Workplaces
Great Place to
Work Ranking for
Latin America
#2
#13
#21
2018
2020
2022
M i l l i c o m 2 0 2 2 A n n u a l R e p o r t 4 2
Our ESG Approach and Impact
Diversity, Equity & Inclusion (DE&I)
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. A commitment to DE&I is also a core element of our Sangre Tigo Leader Success Profiles.
New DE&I Targets
To achieve our vision of a diverse and inclusive Tigo, we set
ambitious new DE&I targets for 2030, with mechanisms to
hold leadership accountable for meeting our commitments.
The targets build on the DE&I strategy we formalized in 2020,
which lays out four priorities:
• Provide equal opportunities for all
• Build diverse and inclusive leadership
• Foster a culture of inclusion
• Monitor and address equity pay gaps
2030 DE&I Targets
2030 target
50% of women at all levels of the organization
2022
42%
50% gender balance in upper management globally
40%
100% of employees trained annually on DE&I
97%
We’ve launched a constellation of initiatives to help us meet our targets
and advance our overall DE&I strategy.
2022 Global Workforce
While there’s still progress to be made, we’re proud to say that gender and minority representation
in Tigo’s 2022 workforce is on par with leading North American and European companies.
Increasing Female Representation
We’ve made great progress in developing young female talent at Tigo, with women currently making up 42% of our employee base and
40% of our managerial positions. To help us level the playing field even more, our HR team performed an internal analysis in 2022 to
understand the factors that attract female talent to Tigo. Based on this analysis, we presented recommendations to the Tigo executive team
on the steps needed to accelerate gender equity. We began to roll out some of these strategies in 2022, and will continue to roll out new
strategies in the coming years.
We also continually monitor the gender pay gap to ensure our female employees are compensated at the same level as males. We’ve
identified no significant variations at present, but we’re working on plans to address the disparities we have identified.
We’re currently working to identify baselines for minority representation for our Tigo operations in Latin America.
Total Employee Breakdown by Country
— Female — Male — Not declared
Total Employee Breakdown
by Age Group
Total Employee Breakdown
by Type of Worker
*
*Fixed term/temporary comprises workers with temporary
visas/work permits and workers whose end date is defined as
part of the employment contract.
Over 50 years 8%Under 30 years 26%30-50 years 66%Permanent 92.6%Fixed term/temporary 7.4%2,3774686633,0388899124392,3613,9114,388BoliviaColombiaCosta RicaEl SalvadorGuatemalaHeadquartersHondurasNicaraguaPanamaParaguay
M i l l i c o m 2 0 2 2 A n n u a l R e p o r t 4 3
Our ESG Approach and Impact
Awareness and Training
We maintain a robust training program for all Tigo employees
that explores DE&I concepts, including how to build awareness
of and overcome unconscious bias in the workplace. Our goal is
to train 100% of our employees each year; as of December 31,
2022, 97% of employees had completed the training.
A Workplace for Everyone
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.
Giving employees a voice is critical to our DE&I efforts as we
seek to provide meaningful support in the workplace. We
maintain DE&I councils in multiple countries made up of
employees from diverse backgrounds. These councils help us
identify specific gaps in our DE&I approach and make targeted
improvements in each location. They also give our employees
the opportunity to participate in and lead diversity initiatives at
Millicom and put our values into practice.
Monitoring Our Progress
To ensure inclusivity and remove bias in our recruiting and
hiring process, we track our progress in gender and minority
hiring and retention. We recently launched new digital DE&I
dashboards that allow us to monitor our diversity progress by
country, function and job level. HR and relevant leadership
teams review this data monthly. In many cases, we’re able to
execute action plans and close gaps in close collaboration with
our DE&I councils.
We recently implemented an annual DE&I campaign focused
on three audiences: Women, LGBTQ+ and people with
disabilities. Called Un Mundo Sin Etiquetas (A World Without
Labels), the campaign invites employees from each of these
communities to share their stories. The intent is not to shame
people with existing biases, but to create conversations among
employees who have more in common than they realize.
In celebration of Women’s History Month in May, we launched a
communications campaign that highlighted women’s voices from
across our operations. CEO Mauricio Ramos led a global town hall
focused on successful women across Tigo, who shared stories
about prospering as females in the telecom sector.
In July, we celebrated the LGBTQ+ community with a similar
campaign and town hall. Hosted by Ramos and Chief Operating
Officer Esteban Iriarte, the town hall featured an LGBTQ+
employee flanked by his mom, line manager and best friend. The
group provided insights into the challenges the employee had to
overcome and the importance of allies in the fight for inclusion.
“We must respect our differences. It is
very difficult to be what you want to
be if other employees do not offer
you that space called respect.”
— Esteban Iriarte, Chief Operating Officer
A World Without Labels Invites
Employee to Tell Their Stories
“The telecommunications industry has historically been led by men. From
my roles as a woman, mother, partner and leader, I want to invite more
girls and women to fight to achieve their dreams and break gender
barriers and paradigms, starting with those that we impose on ourselves.”
— Elisa Saravia, Vice President of Operations and Technology (CTIO) Tigo El Salvador
"The greatest impact we can have is to break the stigmas that exist that as women we
cannot do certain jobs in this industry. Today, I am breaking rules that have stood for
many years, and I know that anyone could achieve the same if they set their minds to it.
Together, we are braking stigmas."
— Valery Rosa Cabrera, Field Services Technician, Tigo Costa Rica
M i l l i c o m 2 0 2 2 A n n u a l R e p o r t 4 4
Our ESG Approach and Impact
Building a Better HR
Talent Strategy
From hybrid offices to the race for top talent, the modern work
environment is changing at a breakneck pace. To keep up,
we’ve set out to transform our HR department into 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 transactional work, to empowering leaders to
build and develop top teams, to freeing up time to focus on
high-level strategic goals.
Making faster decisions
Combining innovative technologies with the latest in user
experience design, our teams made significant progress on this
front in 2022. Whereas we used to have more than a dozen
different systems, we now have a single integrated system of
record. With less manual data collection and more automated
analytics and insights, our HR teams are able to identify trends
at a deeper level—such as increased attrition or the presence
of gender pay gaps in specific job roles—and make faster,
more informed workforce decisions.
Giving Our Workforce More Control
With our latest Workday 1.1 system,
employees and managers can schedule time
off, access benefit information, view or
manage performance reports, participate in
online training, or recruit and onboard new
team members, among other features.
Tigo People Services
We also launched Tigo People Services (TPS), which consolidates
transactional work related to HR for nearly all Tigo operations into
a single service center. Rather than drawing up contracts or
performing other routine processes, our HR teams can focus on
being better partners to the business—from developing new
talent strategies for individual business lines to acting as brand
ambassadors for recruiting.
Our transition from a telecom company into a next-generation
broadband, mobile and digital services provider requires us to
recruit and retain the top software engineers and data
scientists from Latin America and beyond. Filling these roles is
critical to keeping our digital apps up to speed and in growing
our mobile financial services, B2B cloud, infrastructure and
other business areas.
But the fight for top tech talent is fierce. In 2022, we
continued evolving our talent strategy to make sure we
have the right work models, compensation packages and
developmental opportunities to compete in the current market.
Hybrid Work Model
Developed in the aftermath of the pandemic, our hybrid work
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, with access to
remote digital tools that are in step with how they prefer to
communicate, share and collaborate. We’re also implementing
pilots in some countries allowing full-time remote work, so that
people with valued skills don’t have to relocate to work at Tigo.
Compensation and Culture
We provide competitive compensation, with regular reviews to
ensure our packages are in line with or superior to industry
standards for pay and benefits. Our HR team also works closely
with our executive team to devise new ways of accelerating
talent attraction and retention. Our diverse and inclusive work
environment and Sangre Tigo culture also serve as competitive
advantages in attracting global talent.
Professional Development
We provide professional development opportunities through
technical training programs and certifications, such as the
Data & Analytics Program, Agile & Tableau Creator Trainings,
the IT Forum Training Program and Cloud. We also ally with
technical training platforms like Platzi, Udemy and Datacamp
for our collaborators. Subsidies and scholarships are available
for employees pursuing master’s degrees in partnerships with
local universities. To build our roster of female tech talent, we
offer scholarships to women in technical careers. Finally, we’re
building our internal talent pipeline by recruiting through
Young Professionals programs and offering tech internships
with opportunities for permanent placement.
M i l l i c o m 2 0 2 2 A n n u a l R e p o r t 4 5
Our ESG Approach and Impact
Employee Health & Safety
Protecting the health and well-being of our employees has been
the top focus of our Health & Safety teams since the onset of
COVID-19. While the pandemic has not completely receded in our
markets, our policies have evolved with the advent of vaccines and
changes in health protocols and conditions on the ground in
our markets. Upon reopening our offices in 2021, we pivoted
to transforming our work model to find the optimal balance of
safety, culture and operational effectiveness.
Some Tigo operations—such as Tigo Costa Rica, Paraguay and
Colombia—debuted new, more open modern offices in 2022,
with layouts designed to increase personal space and keep
employees safer. We also performed internal reviews/
assessments of our Health, Safety & Environmental functions
in markets that no longer maintain COVID-related travel
restrictions, such as Honduras, Costa Rica, Guatemala, Panama
and El Salvador. Our intent was to understand the impact that
these relaxations had on our workplace and adjust accordingly.
In addition, our Health, Safety & Environment (HSE) teams
participated in external training seminars on ISO 45001 Health &
Safety and ISO 14001 Environmental Standards. Every Tigo
operation complies with standards stipulated in the ISO 45001
and 14001 certifications. Our HSE managers also participated in
company-wide efforts to harmonize and expand our ESG-related
data recording, goals and metrics, as we move to reduce our GHG
emissions and continue to improve our environmental reporting.
Our Health & Safety Management System covers all employees
and contractors. HSE managers and team members are required
to conduct regular and annual risk assessments. In this last
reporting period, we experienced eight fatalities. Four of the eight
were contractors working with electricity and two were contractors
working at heights. Two fatalities were associated with vehicle
accidents. Due to the increase in fatalities, we have placed more
emphasis on high-risk activities that have a higher potential for
work-related incidents such as work at heights and with
electricity. We also prioritize office safety and evacuation drills,
as large volumes of Tigo employees and contractors work in
these environments.
All work-related incidents that involve injuries or death are fully
investigated. We base our criteria on local work-safety regulations
as well as our own requirements as stipulated in our group-level
Health & Safety documentation, which is based on industry best
practices. Country HSE teams conduct regular training seminars on
these requirements for our employees and contractors. We also
actively promote Health & Safety awareness via year-wide
awareness campaigns in our operations.
————————————————————————————————————————————————––––––––———
Digital Education
We connect communities and help people harness
the social, educational and economic opportunities
the internet provides.
We witness the life-changing power of connectivity every day. However, such
benefits remain unfortunately 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.
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 its social, educational and
economic potential.
By expanding affordable connectivity to more people and teaching them how to
take advantage of that connectivity, 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 and dynamic economic
recovery in our markets
• Building the digital customers of the future that will sustain our growth
Maestr@s Conectad@s
We launched our Maestr@s Conectad@s (Connected
Teachers) program in 2020 to strengthen digital education
systems impacted by the COVID-19 pandemic. The program
initially consisted of online training to help teachers, school
administrators and others develop and facilitate technology-
based curricula, so students in our markets had access to the
same educational opportunities as children in other parts of
the world. The interactive modules were delivered via videos,
podcasts, and other digital means.
In June 2022, we broadened the impact of Maestr@s
Conectad@s by launching a new region-wide app for the
program, offering school teachers expanded online learning
modules in digital literacy. The web-based app offers a
catalog of 20 free additional courses developed in
collaboration with AHYU, an international organization
focused on educational content. Course topics include digital
tools, PowerPoint, Canva, Zoom, educational innovation,
storytelling, gamification, use of social networks, digital tools
for the classroom and neuroeducation.
M i l l i c o m 2 0 2 2 A n n u a l R e p o r t 4 6
Our ESG Approach and Impact
With the digital platform, educators wishing to acquire
new skills have easy, immediate access to the Maestr@s
Conectad@s toolkit—and at a critical time for digital
education. Including the educators trained through the app
in 2022, 102,472 teachers were trained by Maestr@s
Conectad@s throughout the year. The program has trained
417,946 educators to date in Guatemala, El Salvador,
Honduras, Nicaragua, Colombia, Costa Rica, Panama,
Bolivia and Paraguay since the beginning of this program in
2020.
102,472 Teachers
trained through our Maestr@s Conectad@s
program in 2022, including those trained with
our new web-based app
“Now that educational work has
become hybrid, the virtual
programs we have developed and
our experience in facilitating
teachers, families and students
responds to the needs of this new
reality and hopefully reaches all
levels of education."
— Arlei Villegas, Director of Production at AHYU
Nearly 2,000 Bolivian Teachers Attend
Maestr@s Conectad@s Event
Maestr@s Conectad@s was born in Bolivia in 2020 and exported to other Tigo operations in the
ensuing months. So when we were deciding on a location for our free, in-person Maestr@s
Conectad@s teacher training event, Bolivia was the obvious choice. To our gratitude, nearly 2,000
teachers from around the country traveled to Santa Cruz in August 2022 to attend.
During the event, organizers and attendees shared the path traveled, lessons learned and milestones
marked since the launch of Maestr@s Conectad@s. Sessions went well beyond teaching attendees
how to use digital tools. For example, a session on neuroeducation and compatible brain tools
focused on applying emotional intelligence in the classroom.
As the name implies, Maestr@s Conectad@s has always been a close community of “connected
teachers.” The teachers of Bolivia showed us just how close this community is.
M i l l i c o m 2 0 2 2 A n n u a l R e p o r t 4 7
Our ESG Approach and Impact
Conectadas
Our Conectadas program has been providing digital literacy
and entrepreneurship training to women and adolescent girls
in Latin America since 2017. In April 2022, we created an
additional springboard for social and economic opportunities
with the launch of a region-wide, web-based Conectadas
platform with new learning modules.
The new platform represents an evolution of the program, as
its benefits will now reach women from the entire region.
Women with work and/or family responsibilities, or who live in
remote or rural locations, often lack the time to attend the
Conectadas workshops in the nine countries where we operate.
The free modules, developed with the Grameen Foundation
and accessible through the online platform, educate women
on topics such as basic internet usage, management of
personal finances, and the effective use of digital tools and
social media for business. Our objective is to reach thousands
of additional women in the coming months. Including the
women and girls that accessed Conectadas through the
platform, 171,059 women and adolescent girls received
Conectadas training in 2022. A total of 785,573 have been
trained through the program since its inception in 2017.
171,059
women and adolescent girls received
digital literacy and entrepreneurship
training in 2022 through Conectadas,
including those trained through our new
web-based platform
“Millicom’s Conectadas program is
special, not just because it is a proven
plan to benefit women and girls in
Latin America, but also because it is
built on facts.”
— Doreen Bogdan-Martin,
Director of the Telecommunication Development Bureau
of the International Telecommunication Union
Conéctate Segur@
Tigo’s flagship Conéctate Segur@ program educates children,
parents, teachers and caregivers on the risks and opportunities
of digital technology, giving children a safe way to learn,
explore and grow through the creative and responsible use of
digital tools. We’ve reached more than 650,000 children
adolescents through the program from its inception in 2016
through 2022, with most online and in-person workshops
facilitated by volunteers from our Acción Tigo program.
In 2022 alone, the program benefited 102,554 children and
adolescents (and more than 40,000 parents, caregivers and
teachers), Tigo employees dedicated 7,341 volunteer hours to
the program in 2022.
Contributions to Our Communities
We pursue digital inclusion by supporting causes with cash and
in-kind contributions. Initiatives include disaster relief,
entrepreneurship training and social inclusion, among others.
M i l l i c o m 2 0 2 2 A n n u a l R e p o r t 4 8
Our ESG Approach and Impact
Fundación Real Madrid
In September 2021, Millicom and Fundación Real Madrid
joined forces to promote education and digital literacy to
young people in our nine Latin American markets and the
United States. The alliance’s 69 social sports projects provide
children and young people with the tools, skills and knowledge
to protect themselves on the internet and compete in the 21st-
century job market.
We strengthen the skills of program participants through our
flagship digital education programs: Child Online Protection,
which raises awareness on how to use the internet safely and
responsibly; Conectadas, aimed at reducing the digital gender
gap among mothers; and Maestr@s Conectad@s, which trains
educators and sports instructors on how develop and facilitate
technology-based curricula.
In 2022, the alliance benefited 4,500 children (more than
6,000 as from September 2021) and the Tigo team
contributed approximately 600 volunteer hours to the project.
Tigo Launches Program to Mentor
Latin American Youth
Millions are born into cycles of poverty and violence in Latin America. But with the right role models and
community support, we can disrupt these harmful cycles and give children opportunities to thrive.
In September 2022, we announced a joint mentorship program to support students and young professionals
in Latin America in partnership with Glasswing, a non-profit organization that empowers individuals and
communities in the region. The mentorship program will initially focus on supporting the Central American
Service Corps Jovenes Lideres de Impacto (Youth Impact Leaders), a service-learning initiative originally
funded with exclusive support from The Howard G. Buffett Foundation and Glasswing.
Working closely with the Partnership for Central America, its corporate members and the Central American
Leadership Initiative, the program will initially mobilize hundreds of Tigo mentors to connect, inspire and
lead young people to opportunities for internships, training and jobs. The program’s goal is to build hope,
enhance community pride and harness the power of youth to effect positive change.
The program was announced at a Glasswing gala to honor Tigo’s contributions to the region. Tigo was
Glasswing’s first corporate sponsor 15 years ago.
M i l l i c o m 2 0 2 2 A n n u a l R e p o r t 4 9
Our ESG Approach and Impact
Protecting Data and Privacy Rights
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 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.
Protecting Privacy
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. Read our
Privacy Statement here.
Mandatory Employee Training
All Millicom employees are required to
participate in our cybersecurity and data
privacy training. The training is available
online for ease of use and effectiveness.
2022 Training Participation
Cybersecurity
Data Privacy
95%
97%
A Collaborative Approach
In 2022 we became a Data Privacy Champion of the National
Cybersecurity Alliance, a consortium dedicated to empowering
individuals and encouraging businesses to respect privacy,
safeguard data and enable trust. Organizations in the alliance
work together to make cybersecurity easier and more accessible.
We also continued to promote awareness regarding cybersecurity
and online privacy practices and provide educational resources to
help our employees learn how to mitigate risks and keep privacy
and security top of mind. By promoting our privacy awareness
campaigns, Millicom ensures that our employees are properly
trained to protect our customers’ and our colleagues’ privacy and
that our customers are informed about how we use and protect
their information. Employees must complete privacy training to be
eligible for bonuses.
We trained 23,751 employees and contractors on data privacy
at Millicom in 2022.
Identifying and responding to incidents impacting personal data is
a Millicom priority. Our Global Security Operation Center monitors
our environments and identifies events that may be considered
security issues. These events are analyzed and, where required, our
Computer Security Incident Response Team is activated to
respond to any incident. The team is supported by external experts
for both incident response and forensic purposes.
M i l l i c o m 2 0 2 2 A n n u a l R e p o r t 5 0
Our ESG Approach and Impact
Our local 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, test vulnerabilities to our network and systems
to minimize the risk of security breaches, and respond to
incidents where they occur.
We also maintain an ongoing awareness program consisting of
regular communications to employees and contractors,
phishing testing, generic cybersecurity training for all
employees, and more specific training for populations like at-
risk executives and administrators. More than 95% of our
employees participated in security awareness and training in
2022 covering key threats—including but not limited to
phishing risk—as well as prevention and company procedures.
NIST Cybersecurity Framework
In 2022, we began implementing the National Institute of
Standards and Technology CyberSecurity Framework (NIST
CSF). Issued by the U.S. Department of Commerce, the
framework provides guidance and best practices to help
businesses of all sizes better understand, manage and reduce
their cybersecurity risk and protect their networks and data.
The CSF impacts the entire organization, ensuring that we
implement processes that are not in place and improve the
ones that are. Using CSF protocols, we completely rewrote our
internal cybersecurity framework, including policies, standards
and processes. We also transitioned from a “group+local”
design—in which the group issues policies, but individual
operations define local policies according to group
requirements—to a “global” framework with a single set of
policies applicable to all Tigo operations.
Freedom of Expression
As our lives are increasingly digitized, we must balance our
respect for customers’ rights with our duty to comply with local
laws in the countries where we operate. These laws require us
to disclose information about our customers to law
enforcement agencies and other government authorities in
connection with their legitimate duty to protect national
security and public safety, or to prevent or investigate crimes
such as acts of terrorism. Whenever we face a government
request for customer information, we seek to minimize the
impact of that request on our customers’ right to privacy and
freedom of expression. Before we respond to any legal
demand, we determine that we have received the correct type
of demand based on the applicable law for the type of
information sought.
Moreover, when any conflict arises between a local law and the
United Nations’ Universal Declaration of Human Rights or
other international human rights standards, we strive to resolve
that conflict in a manner that respects their right to privacy
and freedom of expression, as well as their fundamental right
to access the internet and communications services.
Millicom’s significant on-the-ground presence in our markets
gives us a strong understanding of potential human rights risks.
We have run global human rights risk assessments in a number
of our operating environments to assess such risks in
partnership with leading sustainability firms.
Read our Law Enforcement Disclosure (LED) Report for more
on our approach to managing law enforcement requests.
Information Security
Our ongoing goal is to be #1 in data protection for our
industry. Our Global Chief Information Security Officer
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.
M i l l i c o m 2 0 2 2 A n n u a l R e p o r t 5 1
Our ESG Approach and Impact
On a tactical level, we deploy a number of preventive and
corrective measures to prevent privacy. In Paraguay, for
example, we encrypt the end-to-end TV signal of both our
traditional TV and IPTV broadcasts and our over-the-top (OTT)
apps. (OTT refers to content that goes “over” a cable box and is
delivered via internet connection.)
We also employ fingerprinting technology when broadcasting
our main sporting events, with monitoring provided by our
engineering and legal team. This allows us to identify the
individuals who retransmit a signal illegally, interrupt the
transmission and start legal proceedings against the
perpetrator. Additionally, our teams monitor and remove
contentious feeds on social networks or apps used to
advertise or stream illegal feeds.
In Bolivia, we work closely with local regulators to prevent
piracy. One way regulators have responded is by
communicating the risk of fraud to consumers who stream
content illegally.
The CSF is the centerpiece of a new three-year cyber maturity
model. In year one (2022), we focused on creating a full map
of our security landscape, defining our success measures,
determining our strategies, and investing in the technologies
that best fit these strategies. In 2023, we’re on track to fully
map our customer data landscape, including third parties that
interact with our customer data. In tracking our progress, we
aim to achieve consistent improvement in 2023 and achieve
full maturity in 2024.
We also initiated a complete review of our Information
Security organization to ensure a full alignment with
company priorities. The plan, to be completed in 2023,
will help us move to a more centralized model avoiding
the priority gaps between operational and security
objectives, and enforce an even stronger standardization
of our cyber practices.
Anti-Piracy Measures
Piracy is common in many of our markets, resulting in millions
of dollars of lost revenue for Millicom, governments and
communities (through lower taxes), and potentially sports
teams when pirates illegally stream broadcasts. Piracy can
occur on multiple platforms, including Internet Protocol Television
(IPTV), social networks, apps or the web. One of the most common
violations is when a legal TV signal is transmitted via an illegal
subscription to a pirate content provider.
We’re committed to helping unite all industry players—including
programmers, TV channels, content distributors and more—in
the fight to protect digital content creators in our region. In
2022, we joined the Alliance for Creativity and Entertainment
(ACE), a global coalition of content providers and operators
dedicated to combatting illegal acts of digital piracy. As the
first telecommunications company in Latin America to join
ACE, our membership gives ACE a strong foothold to continue
expanding its reach and impact in key Latin American markets.
M i l l i c o m 2 0 2 2 A n n u a l R e p o r t 5 2
Our ESG Approach and Impact
Supply Chain
We seek to work with businesses that understand and share our values and meet
our core social and environmental standards.
We do business with over 7,500 suppliers of all sizes across
all markets where we operate in Latin America. Through
them, we have an indirect, far-reaching societal impact. We
seek to consciously address this impact and create positive
ripple effects that impact our communities as a whole
through better services, fair labor practices and robust
environmental stewardship. To this end, we build long-term
partnerships that are mutually beneficial at the group and
local level, and that are in accordance with our full legal
and compliance obligations.
Our Supplier Code of Conduct sets core expectations in the
areas of health and safety, environment, fair labor, ethics and
compliance. Our suppliers are expected to adhere to our code,
which we revise regularly to ensure its continued relevance in a
fast-changing world.
Supplier Training and Evaluation
We continually provide training to key suppliers on ESG topics
material to our business. In 2021, we transitioned to an online
training module for strategic suppliers, helping us reach a
greater percentage of our vendors. In 2022, we started
requiring suppliers with group spend above U.S. $1 million and
other strategic suppliers to take part in the training as a
prerequisite for doing business with Millicom. 79% of our
suppliers with $1 million-plus group spend participated in our
training in 2022; we’re aiming for 100% compliance in 2023.
Our supplier training in 2022 included updated content on our
expectations for reducing GHG emissions in line with our newly
announced climate commitments and related strategies. We
also identified and engaged key vendors among our top Scope
3 emissions categories to begin working toward shared
emissions reduction goals.
We continue to partner with EcoVadis to evaluate suppliers in
key ESG areas, such as environmental stewardship, labor and
human rights, ethics and sustainable procurement. This
approach allows us to monitor supplier performance and
progress in these areas over time. Please refer to the
Performance Tables on starting on page 58 for more specific
information on our progress.
Supplier
Participation
Suppliers who signed
our Supplier Code of
Conduct
46%70%67% M i l l i c o m 2 0 2 2 A n n u a l R e p o r t 5 3
Our ESG Approach and Impact
Governance
Through best-in-class governance practices, we hold ourselves to the highest
standards in ethics, accountability and transparency in everything we do.
M i l l i c o m 2 0 2 2 A n n u a l R e p o r t 5 4
Our ESG Approach and Impact
Management Governance
The Group embeds governance, risk, control, compliance and assurance activities
into the daily operations of all of its operating businesses and its corporate
functions. The corporate functions set policies and procedures and manage their
implementation and compliance in accordance with our obligations and
international best practices.
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.
M i l l i c o m 2 0 2 2 A n n u a l R e p o r t 5 5
Our ESG Approach and Impact
Finance
Internal Controls
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.
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 third-year controls attestation
under the Sarbanes-Oxley Act for the 2021 financial year, we
focused in 2022 on efficiencies in internal controls over
financial reporting through simplification and centralization.
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.
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, 2022, 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.
Internal Audit
The 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, in addition to participating in
local Audit Committee meetings.
Risk Management and Business Continuity
The central Risk Management team is responsible for the
Group's risk management framework and processes, as well as
designing, implementing and monitoring Millicom's risk
management methodology and supporting tools and reporting
to senior management, the Audit Committee and the Board of
Directors.
A Management Risk Committee, comprising members of the
Executive Team and central functions responsible for key risks,
meets at least every three months to consider the evolution of
key risks, monitor risk levels against appetite and tolerance, and
consider future potential uncertainties and how these may
manifest as risks to Millicom's business.
The Chief Risk Officer reports to the Executive Team and the
Audit Committee.
Further information related to Millicom's risk landscape and the
principal risks managed by the Group are set out in the Risk
Management section starting on page 23 of this report.
Business Continuity Management (BCM) is positioned within
the central Risk Management function of the Group. The
framework and methodology is established centrally and
implemented in each of the countries and central functions.
Each country has a BCM team in place.
The Global BCM Policy establishes the methodology, tools and
processes to prepare and strengthen organizational resilience
and to facilitate coordinated and expedited recovery from
business continuity incidents, and to minimize time, cost and
opportunities that may be lost due to disruption.
Business continuity plans covering critical assets and processes
are prepared, updated and periodically tested to provide
assurance on resilience.
M i l l i c o m 2 0 2 2 A n n u a l R e p o r t 5 6
Our ESG Approach and Impact
Legal and Compliance
Corporate Compliance and AML
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 to prevent, detect and correct 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 and 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.
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. In 2022, we published revised Code of
Conduct, AML, anti-corruption, gift and hospitality, sponsorship
and donation, and Speak Up policies. In the same vein, we
continued to evaluate our progress in 2022 by launching a
detailed compliance survey with a third party that provides a
benchmark and action plan suggestions based on market
best practices.
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, anti-bribery and AML policies 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 2022 included
monthly newsletters highlighting relevant compliance news,
monthly campaigns on various compliance policies, and
celebration of the annual Corporate & Ethics Compliance Week
in November 2022.
Aligned with our Sangre Tigo motto, and for the fifth year in a
row, clear KPIs were built into the remuneration package of our
General Managers and their direct reports.
Speak Up Policy and Issue Management: Continuing our
compliance enhancements and evolution, we published an
updated Speak Up policy in 2022, and, as in prior years,
included Speak Up in our training program. We also conducted
a Speak Up campaign in our communications program. The
bulk (70%) of the inquiries and complaints recorded through
our Speak Up program are related to Human Resources and
Business Integrity.
We have a team dedicated to following up on concerns
communicated through Speak Up and are committed to addressing
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.
External Affairs
Sustainability, Climate Change and Education
For the sixth consecutive year, we included extensive data on
our ESG activities in our Annual Report. We reaffirm the synergy
between our financial performance and sustainability as
enabling a business model that positively impacts society and
the environment and promotes responsibility. For more on our
integral approach and ESG, see 'Our ESG Approach and Impact'
section starting on page 28.
Technology and Information
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 information 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 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 to review the strategy and ensure
appropriate risks are elevated and addressed. For more
information on Information Security, see section starting on
page 38.
During 2022, the global Information Security team focused is
efforts in structuring its security program, based on NIST CSF
(Cyber Security Framework) and improving the maturity:
• 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.
• Continued awareness and training initiatives, to large
populations or specialized roles, and regular phishing testing.
• Protection of critical assets through inventory and
classification of Millicom's assets and implementation of
consistent protection measures.
• 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 to
gain additional visibility. We also continued reviewing the
configuration to improve incident detection and reduce
false positive.
• Acceleration of vulnerability remediation, patch management,
and obsolescence remediation and management program: A
monthly scanning of the entire environment across the region
ensures that vulnerabilities are identified and remediation is
performed on a timely basis. This was supported by an
automation of the patch management process and an
acceleration of obsolescence remediation.
Procurement and Supply Chain Management
For information regarding procurement and supply chain
management, see section starting on page 38.
HR
Health, Safety, Environment and Security Services
As our operations have transitioned to a post-COVID-19
working environment, ensuring safe workplace environments
and the health and well-being of our employees remain the top
focus areas of our Health & Safety (HSE) teams. HSE policies
have evolved to incorporate our new hybrid working model, as
we seek to create the optimal balance of safety, culture and
operational effectiveness.
As employees returned to the workplace, we recognized the need to
reassess all workplace safety and procedures. We started with onsite
audits of all our operations, with a focus on workplace-related safety
—such as fire prevention and evacuation drills—to ensure our
employees were adequately trained and prepared. For more on our
HSE see section starting on page 38.
Diversity, Equity and Inclusion
For information regarding diversity, equity and inclusion, see
section starting on page 38.
M i l l i c o m 2 0 2 2 A n n u a l R e p o r t 5 7
Our ESG Approach and Impact
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 allow for effective two-way communication and
priority setting between Group and country-level operations
during crisis situations. Crisis management planning was utilized
on two different occasions in response to tropical storms that
impacted our operations in Central America.
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. We update our
Group and country-level crisis management plans annually to
reflect potential risks in our region and risks specific to our
countries of operation.
In parallel, Millicom has implemented an asset protection
initiative in all our operations designed to protect our systems
and fixed assets that support our network operations. Managed
by our Security and Operations teams, our goal with this
initiative is to mitigate material losses at our network sites and
ensure network operations.
M i l l i c o m 2 0 2 2 A n n u a l R e p o r t 5 8
Our ESG Approach and Impact
ESG Performance Tables
We report our progress against our renewed ESG strategy, which includes the
public commitments established in our five-year plan (developed in 2018) and
incorporates elements of our 2022 Materiality Assessment, updated and adjusted
as per our ongoing engagements with internal and external stakeholders. Our
Performance Tables1 have been redesigned to reflect our ESG strategy and
adapt to changing global realities. Progress on goals and targets are disclosed in
the tables on the following pages.
1 Unless otherwise stated, this section 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 only disclosed for a reduced subset of Health & Safety and Compliance metrics. The majority of our performance data beginning on page 63 is for the period from
October 1, 2021, to September 30, 2022, except where noted.
M i l l i c o m 2 0 2 2 A n n u a l R e p o r t 5 9
Our ESG Approach and Impact
ESG Public Commitments Overview
Environment
Topic
Our Goals
Target
Develop and implement a
comprehensive strategy for
climate change mitigation and
resilience that covers Tigo
operations and our wider value
chain.
Reduce absolute Scope 1 and 2
GHG emissions by 50% by
2030 from a 2020 base year.
e
g
n
a
h
C
e
t
a
m
i
l
C
d
n
a
y
g
r
e
n
E
Target
Year
2030
What We Did in 2022
Our Performance/Status
Our targets were validated by the Science-Based
Targets initiative (SBTi) and publicly announced in July
2022.
In progress
We continued working with a cross-functional team
throughout the year to scale energy-efficiency
initiatives, including maximizing savings due to
infrastructure modernization. We acquired 28,208
MWh from renewable sources through power purchase
agreements in Panama and renewable energy
certificates in Colombia.
Reduce absolute Scope 3 GHG
emissions 20% by 2035 from a
2020 base year.
2035 We have engaged with key suppliers in Purchased
Goods & Services, Capital Goods and Use of Sold
Products categories to initiate joint action to reduce
our Scope 3 emissions.
In progress
Reach an end-to-end recovery
rate of 76% of Consumer
Premise Equipment* ("CPE") by
2024.
*Excludes obsolete equipment
that cannot be reinserted.
2024 We surpassed our target with an end-to-end recovery
rate of 83% (target for year-end December 2022 was
73%).
Completed
d
n
a
e
t
s
a
W
-
e
streams, including the reuse and
recycling of consumer devices.
y Manage and measure waste
m
o
n
o
c
E
r
a
u
c
r
i
C
l
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
In 2022, we documented waste disposal in our
operations.
The waste documented includes electronic
components (e-waste), carton/paper, wood, plastic,
metal and industrial fluids, to name a few. A 2022
waste disposal report of all the waste collected and
disposed in our operations is available for review.
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. No significant gaps were identified
during the 2022 recertification processes. Updated
and standardized environmental policies and
guidelines have been issued for internal use.
t
n
i
r
p
t
o
o
f
r
u
o
g
n
i
c
u
d
e
R
Completed
Completed
M i l l i c o m 2 0 2 2 A n n u a l R e p o r t 6 0
Our ESG Approach and Impact
ESG Public Commitments Overview—Continued
Society
Topic
Our Goals
Target
Target
Year
What We Did in 2022
Our Performance/Status
Implement regional strategy to
advance digital literacy with
educational programs on basic
and advanced digital knowledge
and entrepreneurial skills.
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.
Expand Child Online Protection
(COP) training through our
employee volunteering program
by creating an online training
platform for all Tigo operations.
Reach 400,000 women trained
through our digital inclusion
program by 2023.
2023 We trained 171,059 women.
In April 2022, we launched a web-based app offering
free courses and digital tools in basic finances and
social media to women and adolescent girls.
Completed
All operations implement CSAM
blocking mechanism by 2020.
2020
Our resources and priorities shifted during the
pandemic, resulting in us missing our 2020 target.
We’re nearing completion, however, as eight out of our
nine Latam operations currently have a new system in
place that blocks CSAM sites (Bolivia, Colombia, Costa
Rica, El Salvador, Guatemala, Honduras, Nicaragua and
Paraguay). The implementation process is ongoing in
Panama.
In progress
2020
This initiative is now part of our Connected Women
program. GSMA extended the Connected Women
initiative until 2023.
Refocused
Close the digital gap in our
operations by 2020 in line with
commitments through the
Global System for Mobile
Communications Association's
(GSMA) Connected Women
initiative.
Reach 120,000 volunteer hours
for COP-related programs by
2023.
2023
Our employees contributed 25,909 virtual and face-to-
face volunteer hours, of which 7,341 were for COP-
related programs through our hybrid approach.
In progress
Continue our COP education
program to reach more children,
adolescents, parents, teachers
and caregivers.
Reach 700,000 children and
adolescents; 200,000 parents
and caregivers; and 70,000
teachers.
Conduct assessments in our
operations on socioeconomic
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.
Continue bringing internet
connections to schools and
public institutions in vulnerable
communities throughout Latin
America through collaborative
partnerships with local
governments and NGOs.
Conduct assessments for all
operations focused on
socioeconomic conditions and
technological capabilities of
women and girls by 2023.
Design and roll out a regional
impact measurement
methodology to operations by
2020.
Implement an impact
measurement methodology for
all operations related to
connectivity and digital
inclusion by 2022.
Provide internet to 1,300
schools and public institutions
by 2023, reaching our set
commitment with the OAS ICT
Alliance.
2023
2023
2020
2022
Including the results of our alliance with the Real
Madrid Foundation, we reached 102,554 children and
adolescents. We also reached 36,478 parents and
caregivers and 5,451 teachers through our Conéctate
Segur@ training program.
Due to the pandemic crisis and the restrictions to in-
person activities, the resources for these studies were
refocused to the Conectadas and Maestr@s
Conectad@s digital education programs and their
platforms.
In progress
Refocused
Due to mobility restrictions, the resources for these
studies were refocused to the Conectadas and
Maestr@s Conectad@s digital education programs
and their platforms.
Refocused
Refocused
2023
As of September 30, 2022, 2,347 schools and public
institutions were connected to the internet.
Completed
n
o
i
t
a
c
u
d
E
l
a
t
i
g
D
i
n
o
i
s
u
l
c
n
I
l
a
t
i
g
D
i
M i l l i c o m 2 0 2 2 A n n u a l R e p o r t 6 1
Our ESG Approach and Impact
ESG Public Commitments Overview—Continued
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.
n
o
i
s
u
l
c
n
I
d
n
a
y
t
i
u
q
E
,
y
t
i
s
r
e
v
i
D
Promote a culture of inclusion through policies, procedures and
regular training, as well as activities that foster employee
collaboration.
Enhance employee wellness and growth through policies,
programs and practices designed to support their professional
aspirations and personal development.
Target
Year
What We Did in 2022
Our Performance/Status
2030 We defined and communicated our DE&I targets to
both external and internal stakeholders:
In progress
• 50% of women at all levels of the organization
• 50% gender balance in upper management
positions globally
• Train 100% of our employees on DE&I annually
DE&I objectives are now tied to GM bonuses and are
included in our Leader Success program.
We continued focusing on awareness and
education through such activities as unconscious
bias training, annual communications campaigns,
and panel discussions and workshops. See further
details in our Society section starting on page 38.
97% of employees received
unconscious bias training.
40% of women in managerial
positions and 42% of women
across our employee base.
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
45% of current global strategic suppliers scored 45 or
higher on Ecovadis. Based on those assessments, we
have assigned corrective action plans on their key
areas of opportunity in an effort to boost their scores
towards our target.
In progress
Extend related training to
procurement team.
Train 100% of procurement
staff in responsible supply chain
management issues related to
our core risks.
2023 We have continued to deliver training through our
corporate learning management system.
i
n
a
h
C
y
p
p
u
S
l
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.
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 have updated our training program to include
science-based target topics and have continued to
extend the training through our supplier online
learning platform.
2023 We continued integrating our systems at regional
levels, achieving higher efficiency and streamlining the
Ecovadis vetting process.
In progress
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 our markets.
s
t
h
g
R
i
l
a
t
n
e
m
a
d
n
u
F
Develop remediation plan to
cover findings of HRIAs by Q2
2021.
2021
Training on HRIA toolkit
conducted in all operations by
Q4 2019.
2019
Conduct HRIAs in all operations
by Q4 2020.
2020
No material issues were raised in the HRIAs that
required a remediation plan. 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 established Human Rights Impact
Assessments.
Extensive training completed in countries where HRIAs
have been conducted. Remaining operations received
awareness building training on topic and received
additional training to ensure alignment with a wide
range of ESG regulations.
Completed HRIA in CO, PY, BO and NI. Methodology
for remaining countries continued internally, given the
increased knowledge and skills our local teams have
gained from training in recent years on these topics.
In progress
91% of our procurement teams
have been trained on
responsible supply chain
management.
In progress
79% of eligible suppliers
received training.
57% of the global strategic
suppliers in our updated list
have been vetted on our
sustainable procurement
platform.
Completed
Completed
Completed
Read our Law Enforcement Disclosure (LED) Report for more on our approach to managing law enforcement requests and major events.
M i l l i c o m 2 0 2 2 A n n u a l R e p o r t 6 2
Our ESG Approach and Impact
ESG Public Commitments Overview—Continued
Governance
Corporate Governance, Compliance and Information Security are covered in detail in the Governance Report, starting on page 68.
Specifically, more information on Compliance is included in "Compliance and Business Conduct Committee," starting on page 92.
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.
95% of Compliance & Ethics training
for active employees yearly.
Target
Year
2020
2021
What We Did in 2022
Our Performance/Status
This is the fifth year we have tied GM
compliance objectives with their
bonuses, and this year we included
GM-1 under the same scope.
Tigo Guatemala has adopted our GM
remuneration package, aligning with
our 100% target for 2022.
Heatmap and KPIs scorecards have
been presented to the Board of
Directors as a way to assess progress
towards compliance objectives.
Completed
100% of GMs and GM-1 have
compliance KPIs built into their
remuneration package.
Annual We deployed the annual mandatory
training on Code of Conduct to all
operations and HQ employees..
Completed
99% of employees completed the
Code of Conduct training.
Respond within three business
days to all Ethics Line allegations
submitted through hotline.
Annual We responded within three business
days to each Ethics Line allegation
submitted through hotline.
Completed
e
c
n
a
i
l
p
m
o
C
Provide corrective action
recommendations for each
Ethics Line case
substantiated through the
investigation process.
Annual We provided corrective action
recommendations for each
substantiated Ethics Line case. Each
corrective action was tracked through
completion.
Maintain 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.
2023 We updated several compliance
policies and updated the hospitality
form to meet policy changes. The
existing Third Party Due Diligence
platform serves as a repository and a
process management tool to vet
vendors before being onboarded. This
tool also runs background checks on
existing vendors, based on automated
watch lists, adverse media and law
enforcement searches.
Completed
Where a concern or allegation is
substantiated, investigation findings
and recommendations for corrective
action are provided to the appropriate
review committee.
Completed
Both the forms and the Third Party
Due Diligence tool are standardized
and accessible for our operations.
M i l l i c o m 2 0 2 2 A n n u a l R e p o r t 6 3
Our ESG Approach and Impact
Our Performance
About Our ESG Metrics
2022 metrics have been condensed following the updates in our materiality assessment and in alignment with our public commitments.
They reflect our 'Group Segment' definition, including Guatemala and Honduras and excluding Africa (except otherwise stated). New
key performance indicators will be reported voluntarily in the following years, in accordance with the framework of the upcoming
regulation.
2021 metrics have still been impacted by the ongoing COVID-19 pandemic (as in 2020). Therefore, some of the reported values may
reflect atypical variations.
Environment
E-waste for recycling through responsible waste management program (tonnes)
KPI
Bolivia
Colombia
Costa Rica
El Salvador
Guatemala
Honduras
Nicaragua
Paraguay
Panama
2020
2021(i)
2022
—
1,373
—
118
181
162
—
75
527
24
1,858
43
71
365
310
342
104
168
139
2,953
32
58
637
213
431
412
169
5,044
Total weight of e-waste for recycling through our responsible e-waste management program
(tonnes)
(i) Misstatement for Paraguay, Costa Rica and Nicaragua detected in 2022 and adjusted from 4,654 Tonnes as disclosed in the Annual Report 2021 to 3,285Tonnes.
3,285
2,436
Energy use
KPI
Base station and fixed network sites
Energy from fuel (MWh)
Grid electricity (MWh)
Our fleet
Energy from fuel (MWh)
Data centers and offices
Energy from fuel (MWh)
Grid electricity (MWh)
Shops
Energy from fuel (MWh)
Grid electricity (MWh)
Total energy consumption (MWh)
Grid electricity (MWh)
Energy from fuel (MWh)
Total energy consumption (MWh)
Out of which energy from renewable sources (MWh)
Scope 1 emissions (Tonnes of CO2e)
Scope 2 emissions (Tonnes of CO2e)
Scope 3 emissions (Tonnes of CO2e)
2020
2021
2022
46,721
459,496
46,590
514,684
50,046
532,301
53,630
52,017
45,803
3,220
124,808
2,281
118,679
2,350
131,975
626
16,538
105
13,304
109
14,401
600,842
104,197
705,039
New KPI for 2021
33,629
152,060
646,667
100,993
747,660
18,772
33,161
678,677
98,308
776,985
28,208
31,942
146,525
139,242
1,585,057
2,202,250
1,582,304
Scope 1 emissions include fugitive emissions using emission factors from the “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 the World Resources Institute (2015) GHG Protocol Tool for Stationary Combustion (version 4.1) and the
Mobile Combustion GHG Emissions Calculation Tool (version 2.6).
Scope 2 emissions (market-based method) were calculated using Electricity Emission Factors from IEA, except in the case of Colombia (as from 2021).
Scope 3 emissions computation was performed with reference to the GHG Protocol methodology, and was calculated by an expert third party, whenever feasible and
relevant. Scope 3 categories 10 (Processing of sold products), 13 (Downstream leased assets) and 14 (Franchises) were not included because they are not applicable to
Millicom. Category 9 (Downstream transportation and distribution) is included in category 4 based on the Greenhouse Gas Protocol methodology. Variation towards the
base year is explained by an increase in 2021 due to COVID-19 and a decrease in 2022 thanks to our continuous improvement practices focus on comply our science-based
target. The more representative categories are related to purchased goods and services (45%) and use of sold products (31%), which together account for 76% of
Millicom's Scope 3 GHG emissions.
Our Performance—Continued
Society
Diversity and Inclusion
KPI
% of women in managerial positions
% of women across our employee base
Supply Chain
KPI
M i l l i c o m 2 0 2 2 A n n u a l R e p o r t 6 4
Our ESG Approach and Impact
Year ended December 31,
2020
2021
2022
38 %
38 %
39 %
41 %
40 %
42 %
2020
2021
2022
% of all suppliers who have signed the supplier code
% of procurement teams trained on responsible supply chain management
46 %
75 %
% of suppliers with Group spend >$1.0m trained on Millicom's ESG strategy and requirements
New KPI for 2021
70 %
92 %
78 %
67 %
91 %
79 %
% of all suppliers who have signed the code of conduct is only for suppliers with a spend of over $25,000 ($80,000 for Colombia). Suppliers with a compliance program in place
that's considered equivalent to ours (not included above) for this exercise were approximately 5% for 2022.
As from 2022, % of procurement teams trained on responsible supply chain management is reported on a calendar year basis as opposed to past reporting cycles, which went
from October 1 to September 30 of the reporting year.
Suppliers considered for ESG training are those with a 2022 spend over $1M is reported on a calendar year basis excluding related parties, competitors, utilities and government
entities. Suppliers with an identified CSR robust program (Ecovadis score of 45 and above) are considered trained and included in the above figure.
Health and Safety
KPI
Number of employee fatalities
Number of contractor fatalities
Number of lost time accidents for Millicom employees
Lost-time injury rate per 1,000 employees
Absentee rate (%)
2020
2021
2022
1
2
49
1.35
0
2
41
0.83
0
8
55
2.76
1.45 %
1.97 %
2.04 %
Apprentices (students hosted due to government programs, work experience students on contracts of less than a year, unpaid interns etc.) are excluded from employee metrics.
For details on the number of contractor fatalities and measures put in place, see section starting on page 38.
A lost time accident as shown above occurs when an employee takes one or more days of lost time due to injury. In 2022, lost-time injury rate is capturing all accidents that
resulted in at least one day or more of lost-work time. Previously (2021 and 2020), lost-time injury rate only captured incidents that involved 3 or more days of lost work.
The absentee rate is the number of days of unplanned absences versus the average number of workdays in the reporting period, expressed as a percentage.
Digital Education
KPI
Women trained in digital inclusion programs ("Conectadas")
Teachers trained through Maestr@s Conectad@s program
% of operations blocking child sexual abuse content
Year ended December 31,
2020
131,274
202,737
2021
158,881
112,737
2022
171,059
102,472
2020
2021
2022
44 %
67 %
89 %
As of September 30, 2022, we reached by COP training more than 650 thousand children. (approximately 103 thousand for the period October 1, 2021 to September 30, 2022) , following
our target of 700 thousand by the end of 2023 (see corresponding public commitment above).
Digital Inclusion & Social Investment
KPI
Monetary value of employee volunteering ($)
Volunteering hours
2020
2021
2022
346,863
30,323
138,174
13,525
228,464
25,909
As of September 30, 2022, 2,347 schools and public institutions were connected to the internet, exceeding our target of 1,300 by the end of 2023 (see corresponding public commitment
above).
Fundamental Rights
KPI
Total number of law enforcement requests
Number of major events
2020
2021
2022
37,007
53,420
71,572
Year ended December 31,
2020
2021
2022
15
8
4
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. Read our Law
Enforcement Disclosure (LED) Report for more on our approach to managing law enforcement requests and major events.
Our Performance—Continued
Governance
Ethics
KPI
% of employees who acknowledged the Code of Conduct
% of employees who have completed the Code of Conduct training
% of operations (where) we conducted a compliance risk assessment
M i l l i c o m 2 0 2 2 A n n u a l R e p o r t 6 5
Our ESG Approach and Impact
Year ended December 31,
2020
2021
2022
99 %
99 %
100 %
99 %
99 %
100 %
99 %
99 %
100 %
Apprentices (students hosted due to government programs, work experience students on contracts of less than a year, unpaid interns etc.) are excluded from employee metrics.
Corporate Governance is covered in detail in the section starting on page 68.
M i l l i c o m 2 0 2 2 A n n u a l R e p o r t 6 6
Our ESG Approach and Impact
Independent Limited Assurance Statement to Millicom International Cellular S.A.
ERM Certification and Verification Services Inc. ('ERM CVS') was engaged by Millicom International Cellular S.A. (‘Millicom’) to
provide limited assurance in relation to specified information in Millicom's 2022 Annual Integrated Report (the "Report') as set out
below for the year ended December 31, 2022 (bolded below) and for the twelve month period October 1, 2021 to September 30, 2022
(not bolded).
Engagement summary
Whether the selected calendar year 2022 (bolded) and twelve-month period October 1, 2021 to September
30, 2022 (not bolded) disclosures are fairly presented in the Report, in all material respects, in accordance
with the reporting criteria:
Environment
•
•
•
•
•
•
•
Consumer Premise Equipment (CPE) end-to-end recovery for the Group {% recovered}
Total grid electricity [MWh]
Total renewable energy [MWh]
Total fuel consumption [MWh]
Total energy consumption [MWh]
Scope 1 emissions [metric tonnes CO2e]
Scope 2 emissions [metric tonnes CO2e]
Society
Diversity and inclusion
•
% of women in senior management positions
Digital education
Scope of our
assurance
engagement
• Women trained in digital inclusion program ("Conectadas") [# women trained]
•
Teachers trained through of Maestr@s Conectad@s program [# teachers trained]
Supply chain
• % of all suppliers who have signed the Supplier Code
•
•
% of procurement teams trained on responsible supply chain management
% of suppliers with Group spend >$1.0 million trained on Millicom's ESG strategy and
requirements
Health and safety
•
•
•
•
•
Number of employee fatalities
Number of contractor fatalities
Number of lost time accidents for Millicom employees
Lost-time injury rate per 1,000 employees
Absentee rate
Fundamental rights
•
•
Number of law enforcement requests
Number of major events
Governance
Ethics
•
•
% of employees who acknowledged the Code of Conduct
% of employees who have completed the Code of Conduct training
Reporting period
Our assurance engagement does not extend to information in respect of earlier periods or to any other
information included in the Report.
Year ended December 31, 2022 (bolded above)
Twelve-month period October 1, 2021 to September 30, 2022 (not bolded above).
Reporting
criteria
•
GHG Protocol (2004, as updated January 2015) published by World Business Council for Sustainable
Development (WBCSD) / World Resource Institute (WRI)
• Millicom’s internal reporting criteria and definitions (described in notes throughout the Report)
Assurance
standard and
level of assurance
We performed a limited assurance engagement, in accordance with the International Standard on Assurance
Engagements ISAE 3000 (Revised) 'Assurance Engagements other than Audits or Reviews of Historical
Financial Information'.
The procedures performed in a limited assurance engagement vary in nature and timing from and are less in
extent than for a reasonable assurance engagement and consequently, the level of assurance obtained in a
limited assurance engagement is substantially lower than the assurance that would have been obtained had
a reasonable assurance engagement been performed.
Respective
responsibilities
Millicom is responsible for preparing the Report and for the collection and presentation of the information
within it, and for the designing, implementing and maintaining of internal controls relevant to the
preparation and presentation of the Report.
ERM CVS’s responsibility is to provide conclusions to Millicom on the agreed scope based on our engagement terms
with Millicom, the assurance activities performed and exercising our professional judgement.
M i l l i c o m 2 0 2 2 A n n u a l R e p o r t 6 7
Our ESG Approach and Impact
Our conclusion
Based on our activities, as described below, nothing has come to our attention to indicate that the 2022 data for the disclosures listed
under our 'Scope' above and shown on page 59, 63, 64 and 65 of the Report are not fairly presented in all material respects, in
accordance with the reporting criteria.
Our assurance activities
Considering the level of assurance and our assessment of the risk of material misstatement of the Report, a multi-disciplinary team of
sustainability and assurance specialists performed a range of procedures that included, but was not restricted to, the following:
• Assessing the appropriateness of the reporting criteria of the Report
• Interviews with management representatives responsible for managing the selected issues.
• Interviews with Corporate-level staff to understand and evaluate the relevant management systems and processes (including
internal review and control processes) used for collecting and reporting the selected disclosures.
• A review at corporate level of a sample of qualitative and quantitative evidence supporting the reported information.
• An analytical review of the data submitted by all locations included in the consolidated 2022 group data for the selected
disclosures which included testing the completeness and mathematically accuracy of conversions and calculations, and
consolidation in line with the stated reporting boundary;
• Virtual visits to two Millicom operations in El Salvador and Nicaragua to review source data and understand local reporting
systems and controls.
• Confirming emission factors and assumptions used.
• Reviewing the presentation of information relevant to the scope of our work in the Report to ensure consistency with our
findings.
The limitations of our engagement
The reliability of the assured information is subject to inherent uncertainties, given the available methods for determining, calculating
or estimating the underlying information. It is important to understand our assurance conclusions in this context.
Our independence, integrity and quality control
ERM CVS is an independent certification and verification body accredited by UKAS to ISO 17021:2015. Accordingly, we maintain a
comprehensive system of quality control, including documented policies and procedures regarding compliance with ethical
requirements, professional standards, and applicable legal and regulatory requirements. Our quality management system is at least as
demanding as the relevant sections of ISQM-1 and ISQM-2 (2022).
ERM CVS applies a Code of Conduct and related policies to ensure that its employees maintain integrity, objectivity, professional
competence, and high ethical standards in their work. Our processes are designed and implemented to ensure that the work we
undertake is objective, impartial and free from bias and conflict of interest. Our certified management system covers independence
and ethical requirements that are at least as demanding as the relevant sections of Parts A & B of the IESBA Code relating to
assurance engagements.
The team that has undertaken this assurance engagement has extensive experience in conducting assurance on environmental,
social, ethical and health and safety information, systems and processes, and provides no consultancy related services to Millicom in
any respect.
Beth Wyke
Head of Corporate Assurance Services
Malvern, PA
February 28, 2023
ERM Certification and Verification Services, Inc.
www.ermcvs.com; Email: post@ermcvs.com
M i l l i c o m 2 0 2 2 A n n u a l R e p o r t 6 8
Governance
Corporate
Governance
M i l l i c o m 2 0 2 2 A n n u a l R e p o r t 6 9
Governance
Chairman’s Report
Transparent Governance:
Leading with Purpose
Millicom’s Board of Directors (“the Board”) set our three-year
strategy and successfully lead oversight of the Company's strategic,
operational, regulatory and compliance-related matters in 2022,
with the support of our Board committees and senior management.
Introduction
The Board leads with one clear purpose: "To build the digital
highways that connect people, improve lives and develop
communities." Through our core business and our strategic social
and environmental impact initiatives, we seek to grow our business
in a sustainable way, creating long-term value for stakeholders.
In February 2022, Millicom announced new three-year
operational, financial and strategic targets. These strategic
goals included ambitious financial, cash flow and debt targets,
shareholder remuneration plans, the expansion of our fixed
broadband network, preparatory plans for towers and mobile
financial services carve-outs, and new science-based GHG
emissions reduction targets.
In May 2022, the Board approved a successful rights offering in
order to strengthen our balance sheet and repay the remaining
part of our bridge loan.
Under the supervision of Millicom's Board, the Company also
acquired the remaining 20% interest in Tigo Panama in June
2022. As a result of this transaction, Millicom now proudly owns
100% of Tigo Panama, the leader in Panama’s
telecommunications market.
During 2022, the Board further reviewed and updated the risk
appetite, as well as monitored the implementation of controls in
areas such as accounting, financial, legal, regulatory and
compliance. The Board also supervised management in fulfilling
its obligations and responsibilities, and reviewed the
performance and compensation of the CEO.
I thank our Board members and Senior Management for
leading the organization with transparency, commitment and
dedication in 2022.
Board and Senior Management Changes
In May, following elections at the Company's annual general
meeting, we welcomed back Mr. Tomas Eliasson to Millicom's
Board as a Non-Executive Director. Mr. Eliasson brings
significant experience with Millicom to the Board, along with a
wealth of financial and strategy experience in the
telecommunication industry.
I would like to extend our gratitude to Ms. Sonia Dulá for her
contribution to the Board and its Audit Committee and Compliance
and Business Conduct Committee in 2021 and 2022.
In January 2022, we welcomed Mr. Sheldon Bruha, who was
appointed as Millicom's CFO on April 1, 2022. Mr. Bruha brings
a wealth of senior financial leadership experience in multiple
sectors, including telecommunications. His appointment followed
Mr. Tim Pennington's retirement from his role as CFO. We extend
our gratitude to Tim for his extraordinary contribution to Millicom
between 2014 and 2022. He played an instrumental role as the
Company transformed itself into a leading provider of fixed and
mobile broadband services in Latin America, helping lead key
projects like Millicom’s exit from Africa; its U.S. NASDAQ listing;
its acquisitions in Panama and Nicaragua; the consolidation of
its ownership of the Guatemala operation; and preparation for
the rights offering.
Enhancing Governance and Optimizing
Corporate Structure
Millicom continues to strengthen its governance framework with
Board and Committee oversight of risk, controls and assurance
initiatives, including in the areas of business continuity,
cybersecurity and incident management.
In line with strategic targets, Millicom is conducting a corporate
restructuring that will enable carve-outs and maximize the
fintech market opportunity, while ensuring transparent
subsidiary governance and enhancing internal controls.
Diversity, Equity & Inclusion (DE&I)
DE&I is embedded in the DNA of our Sangre Tigo culture. We
are committed to achieving gender parity by 2030 across the
entire organization, including upper management positions
globally. In addition, the Company continued to train 100% of
our employees annually on DE&I. We are reviewing the
adoption of DE&I policies & training by strategic suppliers, and
continue to promote inclusion of other under-represented
groups. We are focused on making TIGO an environment where
all voices are heard and respected.
Our positive Sangre Tigo culture was rewarded by earning 2nd
place in the Best Workplaces in Latin America 2022 ranking for
multinational companies. This marked TIGO’s fourth year on
the Great Place to Work® roster of leading workplaces.
Compliance and Business Ethics
During 2022, we emphasized the importance of doing business
the right way throughout all levels of our organization. Relying
on the active participation of employees in our operations, we
fully customized the content of our training to make it 100%
Tigo relevant and relatable. We captured real-life challenges,
while setting the tone at the top and leading by example. Our
Board believes this culture is a vital strength that contributes to
the success of our business.
We thank you for being part of Millicom's successful transformation
and look forward to continuing to grow with you.
José Antonio Ríos García
Chairman of the Board of Directors
M i l l i c o m 2 0 2 2 A n n u a l R e p o r t 7 0
Governance
Framework and Shareholder Governance
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 Depositary 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
Luxembourg Law
EU Directives and Regulations
Nasdaq Stockholm Issuer Rule Book
Nasdaq Stock Market Rules
U.S. Securities Laws
Legislation
Legislation
Regulation
Regulation
Regulation
Philosophy
Comply or Explain
Comply
Comply
Comply
Comply
Comply
Good Stock Market Practice
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 2022.
Corporate Governance Structure
M i l l i c o m 2 0 2 2 A n n u a l R e p o r t 7 1
Governance
Shareholders and Representation
of Shareholders
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 2022 AGM, held virtually on May 4, 2022, shareholders
approved all the resolutions proposed by the Board and
Nomination Committee, including the following key items:
•
the annual accounts and the consolidated accounts for the
year ended December 31, 2021;
the allocation of the profit of US $204,806,298 to the
profit or loss-brought-forward account of Millicom;
the discharge of all current and former Millicom
Directors who served at any point in time during the
financial year ended December 31, 2021, for the
performance of their mandates;
•
•
•
•
•
•
•
•
•
•
the establishment of the number of Directors at nine (9)
and election of the Board members and Chair of the Board
(see "Board Profile: Skills and Experience on page 78);
the re-election of Ernst & Young S.A., Luxembourg as
Millicom's external auditor;
the remuneration to the Board members and external
auditor;
the instruction to the Nomination Committee;
the share repurchase plan;
the 2021 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 28, 2022, an Extraordinary General Meeting (EGM)
was scheduled to be held to increase the authorized share
capital and amend the articles of association in preparation for
the Rights Offering we announced during Q1. 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 governance deviated in 2022 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 Chair 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 2022, no shares were repurchased under the share repurchase plans approved at the 2021 AGM (valid until May 4, 2022), or
the plan approved at the 2022 AGM (valid until May 4, 2023).
M i l l i c o m 2 0 2 2 A n n u a l R e p o r t
7 2
Governance
Nomination Committee
Millicom's prior Nomination Committee, which was elected in October 2021 and served until the appointment of a new Committee in
October 2022, was composed 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
Millicom's current Nomination Committee, elected in October 2022, is composed of:
Member
Mr. Jan Dworsky
Mr. Viktor Kockberg
Mr. Staley Cates
Mr. Gerardo Zamorano
Mr. José Antonio Ríos García
On behalf of
Swedbank Robur
Nordea Investment Funds
Southeastern Asset Management
Brandes Investment Partners
Appointed by shareholders at the 2022 AGM
Position
Chair
Member
Member
Member
Member
Position
Chair
Member
Member
Member
Member
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, 2022.
Shareholder
Société Générale S.A. (1)
Xavier Niel (2)
Dodge & Cox (3)
Number of shares
% Shareholding
13,744,989
12,046,741
8,844,432
8.0%
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 shares. For the 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.
(1) Information herein is based upon a Schedule 13G filed with the SEC on February 6, 2023. Based solely upon Amendment No. 1 to Schedule 13G, filed with the SEC on February
10, 2023, Société Générale S.A. held 43,188 of our common shares (0.03% of common shares outstanding) as of February 6, 2023.
(2) Information herein is based upon a Schedule 13G jointly filed with the SEC on November 4, 2022 by Atlas Investissement, NJJ Holding and Xavier Niel. Based solely upon a
Schedule 13D, jointly filed with the SEC on February 24, 2023 by Atlas Luxco S.à r.l., Atlas Investissement, NJJ Holding and Xavier Niel, Xavier Niel held 34,173,526 of our common
shares (approximately 20% of common shares outstanding) as of February 24, 2023. The sole owner of Atlas Luxco S.à r.l. is Atlas Investissement. The sole owner of Atlas
Investissement is NJJ Holding. The sole owner of NJJ Holding is Xavier Niel, and as a result, Xavier Niel is deemed to be the beneficial owner of NJJ Holding, Atlas Investissement and
Atlas Luxco S.à r.l.
(3) Information herein is based upon Amendment No. 1 to Schedule 13G filed with the SEC on February 14, 2023. As of December 31, 2021 Dodge & Cox held 5,182,144 of our
common shares (5.1% of common shares then outstanding). As of December 31, 2020 Dodge & Cox held 4,856,615 of our common shares (4.8% of common shares outstanding).
M i l l i c o m 2 0 2 2 A n n u a l R e p o r t 7 3
Governance
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 determining the appropriate skills,
perspectives and experiences required of Board candidates based on the Company’s strategic 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, 2022)
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
No
9
Female
Male
Non-Binary
Did Not Disclose Gender
2
7
0
0
4
0
0
M i l l i c o m 2 0 2 2 A n n u a l R e p o r t 7 4
Governance
Board Governance
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 2022 AGM set
the number of Directors at nine, comprising a Chair, a Deputy
Chair and seven members. The Board is composed of eight
Non-Executive Directors and one Executive Director (the CEO of
Millicom).
Gender of the
Board
Tenure of
Directors
Nationalities
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, 2022.
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 2022 AGM and ending on the
date of the 2023 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.
Male 78%Female 22%1st year 12nd year 23rd year 14th year 36th year 18th year 1American 4Swedish 2Danish 1Brazilian 1Colombian 1 M i l l i c o m 2 0 2 2 A n n u a l R e p o r t 7 5
Governance
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
Chair of the Board
The Chair is elected by the AGM. If the Chair relinquishes the
position during the mandate period, the Board elects a new
Chair from among its members to serve until the end of the
next AGM. The Board Chair convenes the Board and leads its
work, coordinates with the CEO to set the meeting agendas and
serves as the Board's liaison to the CEO between meetings.
Deputy Chair of the Board
If elected by the Board, the Deputy Chair acts as a sounding
board and provides support for the Chair. The Deputy Chair
convenes Board meetings in accordance with the Company’s
Articles of Association and leads the Board's work in the event
the Chair is unavailable or is excused from a Board meeting. The
Deputy Chair may act as an intermediary in any conflicts
among Board members or between the Chair and the CEO. The
Board can designate additional roles and responsibilities of the
Deputy Chair.
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 on Board
responsibilities and logistics.
Chief Executive Officer (CEO)
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.
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, balance and diversity 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 against the Directors proposed by the Nomination Committee. Shareholders that hold at least 5% of the share capital may
propose additional 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.
M i l l i c o m 2 0 2 2 A n n u a l R e p o r t 7 6
Governance
Factors considered to determine the Directors’ independence (i) from the Company, executive management and (ii)
the major shareholders
Category
Test
Managerial duties
Employment
Other services
Business relationship
Audit function
Cross directorships
Family relationship
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%)
Combined experience,
leadership and skill
sets of the Board
M i l l i c o m 2 0 2 2 A n n u a l R e p o r t 7 7
Governance
Industry
Member of the
Board of a Listed
Company 9
Leadership
experience
Functional
areas
ESG (inc. compliance
and regulations) 5
Territories
Media/Entertainment/Content 6Financial/Fintech Sector 5Technology 5Others 7Mobile/Next-Gen Platforms 5Network/Infrastructure 5Cable and Fixed Line Service 5Chairman of a Listed Company 3CEO 7CFO 3M&A 8Strategy/ Transformational Strategy 7Operational/Commercial(Inc. Marketing and Sales) 6Financial Expertise (inc. capital allocation and shareholder remuneration) 6Risk Management 6Cybersecurity/Data Protection 4Latin America 6U.S. 7EU/Nordic Countries 6 Board Profile: Skills and Experience
M i l l i c o m 2 0 2 2 A n n u a l R e p o r t 7 8
Governance
Mr. José Antonio Ríos García
Chairman, Non-Executive Director
Role: Re-elected as a Non-Executive Director and Chair of
the Board in May 2022; 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: In addition to serving as the Chairman of Millicom’s Board of Directors, Mr. Ríos is
currently a Board member and the Chairman of the Compensation Committee of Cirion
Technologies and a Senior Advisor and Consultant of Pan American Finance. Previously, Mr. Rios
held the following roles: (i) Senior External Advisor to the President and Board of Directors of
Celistics Holdings, a leading cellular top-up distribution business and mobile payment platform, as
well as a provider of 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 include:
(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, 2023 (including holdings by closely related persons):
43,891 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 2022; 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.
Millicom Committees: Chair of the Compensation Committee
Experience: Currently, Ms. Erenbjerg also serves as (i) Chair of the Board of Nordic Entertainment
Group AB (Viaplay), which provides international streaming services; (ii) Deputy Chair of Genmab, a
dual listed company focusing on international biotechnology headquartered in Denmark; and (iii) a
Non-Executive Board member of RTL Group, Europe's largest broadcaster. Previous roles include: (i)
President and Group Chief Executive Officer of TDC, the leading provider of integrated
communications and entertainment solutions in Denmark and Norway; and (ii) 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, 2023 (including holdings by closely related persons):
32,869 shares
M i l l i c o m 2 0 2 2 A n n u a l R e p o r t 7 9
Governance
Mr. Odilon Almeida
Non-Executive Director
Role: Re-elected as a Non-Executive Director in May 2022; first appointed in May 2015
Nationality: 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.
Millicom Committees: Chair of the Compliance and Business Conduct Committee
Experience: From March 2020 to November 2022, Mr. Almeida was the President and Chief
Executive Officer of ACI Worldwide Inc, , and served as a member of the Company’s Board of
Directors.. His previous roles include: (i) President of Western Union Global Money Transfer, where
he led Western Union’s global consumer omnichannel 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, 2023 (including holdings by closely related persons):
26,682 shares
Mr. Bruce Churchill
Non-Executive Director
Role: Re-elected as a Non-Executive Director in May 2022; first appointed 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.
Millicom Committees: Member of the Audit Committee
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 served as (i) Non-Executive Director on the Board of Computer Sciences Corporation, a
multinational corporation that provided IT services and professional services, from 2014 to 2017
(when the company merged with HP Enterprise); (ii) President of DIRECTV Latin America, LLC, from
2004 to 2015, and Chief Financial Officer of DIRECTV from January 2004 to March 2005; and (iii)
President and Chief Operating Officer of STAR TV.
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, 2023 (including holdings by closely related persons):
12,566 shares.
M i l l i c o m 2 0 2 2 A n n u a l R e p o r t 8 0
Governance
Mr. Tomas Eliasson
Non-Executive Director
Role: Elected as a Non-Executive Director in May 2022
Nationalities: Swedish citizen
Age: Born in 1962
Skills: Mr. Eliasson brings to the Millicom Board significant experience as a Chief Financial Officer
(CFO) for multinational and global Swedish companies in roles that span governance and oversight
over financial reporting, internal control, and risk management processes and procedures within
global finance functions. He also brings extensive knowledge of Millicom, having served as a Non-
Executive Director and Chair of the Audit Committee for seven years between 2014 and 2021.
Millicom Committees: Member of the Audit Committee, Member of the Compliance and Business
Conduct Committee
Experience: Currently, Mr. Eliasson serves as: (i) Non-Executive Director of Riksbankens
Jubileumsfond, a Swedish foundation promoting and supporting research in the humanities and
social sciences; (ii) Non-Executive Director of Boliden, a metals company with a focus on sustainable
development, listed in Nasdaq Stockholm; and (iii) Non-Executive Director of Telia Company, a
listed telecommunications, media and entertainment company. Previously, Mr. Eliasson served as: (i)
Chief Financial Officer (CFO) of Sandvik AB, a global high-tech engineering group providing
solutions for the manufacturing, mining and infrastructure industries, until January 2022; (ii) CFO of
Electrolux, a leading global appliance company listed in Nasdaq Stockholm; (iii) CFO of ASSA ABLOY
Group, a global leader in access solutions, listed in Nasdaq Stockholm; and (iv) CFO of SECO Tools, a
global metal cutting and machining solutions provider, among others.
Education: Bachelor of Science in Business Administration and Economics, University of Uppsala
Independence: Independent from the Company, its executive management and its major shareholders
Millicom shareholding at January 31, 2023 (including holdings by closely related persons):
7,142 shares
Mr. Lars-Johan Jarnheimer
Non-Executive Director
Role: Re-elected as a Non-Executive Director in May 2022; first appointed 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.
Millicom Committees: Member of the Compensation Committee
Experience: Currently, Mr. Jarnheimer serves as: (i) Chair of the Board of Telia Company, a listed
telecommunications, media and entertainment company; (ii) Chair of the Board of INGKA Holding
B.V. (Ikea); (iii) Deputy Chair of the Board of SAS AB, a Swedish-listed aviation company; and (iv)
Chair of Arvid Nordquist, a Swedish company that commercializes coffee, wine, beer, and food
products in Nordic countries. Previously, Mr. Jarnheimer served as: (i) President and CEO of Tele 2;
(ii) CEO of Comviq GSM; (iii) Chair of the Board of Directors of Qliro Group, BRIS and Eniro AB; and
(iv) Board member of MTG Modern Times Group AB, Invik and Apoteket AB, 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, 2023 (including holdings by closely related persons):
18,396 shares
M i l l i c o m 2 0 2 2 A n n u a l R e p o r t 8 1
Governance
Ms. Mercedes Johnson
Non-Executive Director
Role: Re-elected as a Non-Executive Director in May 2022; 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.
Millicom Committees: Chair of the Audit Committee, Member of the Compliance and Business
Conduct Committee
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, Ms. Johnson 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, 2023 (including holdings by closely related persons):
21,050 shares
Mr. James Thompson
Non-Executive Director
Role: Re-elected as a Non-Executive Director in May 2022; 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.
Millicom Committees: Member of the Audit Committee, Member of the Compensation Committee
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, 2023 (including holdings by closely related persons):
33,593 shares
M i l l i c o m 2 0 2 2 A n n u a l R e p o r t 8 2
Governance
Mr. Mauricio Ramos
Executive Director
Role: Re-elected as Executive Director in May 2022; 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: Currently, Mr. Ramos serves as: (i) a member of the Board of Directors of Charter
Communications (U.S.); (ii) Chair of the U.S. Chamber’s U.S.-Colombia Business Council (USCBC);
and (iii) Commissioner at the Broadband Commission for Sustainable Development. Previously, Mr
Ramos served as 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, 2023 (including holdings by closely related persons):
426,607 shares
M i l l i c o m 2 0 2 2 A n n u a l R e p o r t 8 3
Governance
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
Board Program
The Board’s annual
program includes:
Summary of Board Activities in 2022
Immediately after the 2022 AGM, the Board of
Directors held a meeting during which it 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.
5. Organizational structure and corporate culture
6. External financial reporting
7. Risk management
8. Capital structure and shareholder
remuneration policy
9. Portfolio management including
acquisitions and divestments
10. Board performance self-evaluation
11. Human resource matters
12. Reports from committees
M i l l i c o m 2 0 2 2 A n n u a l R e p o r t 8 4
Governance
Board Program and Areas of Focus in 2022
Board annual program
1. Strategic review
Focused actions
• Discussed, reviewed and approved the strategy
• Approved and oversaw the capital raise by way of rights offering
• Approved and oversaw changes in the portfolio (Tanzania sale and Panama full ownership)
• Oversaw progress in carving out the MFS and Tower infrastructure businesses
• Discussed with the Executive Team industry and geographic trends and the operational and
financial strategy for each region, including the portfolio 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
• Monitored challenges, threats, opportunities and other consequences of the the
macroeconomic climate on the business and strategy
• Reviewed and approved spectrum acquisition, updated 2022 budget and discussed and
approved the 2023 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)
• Elected the Deputy Chair and Committee Chairs and members
4. ESG; sustainability and other external
affairs related matters
• Oversaw the development of the ESG strategy and sustainability targets
• Reviewed the external affairs strategic framework and implementation activities
5. Organizational structure and corporate
culture
• 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
• Reviewed CFO transition
• Oversaw succession planning for the Executive Team
• Reviewed cultural initiatives, including Sangre Tigo, and DE&I developments
6. External financial reporting and non-
financial performance
• Held regular meetings with external auditors to review the financial position and related
reporting
• Reviewed the 2021 Annual Report and 20-F, including the 2021 Consolidated Financial
Statements of the Company
• Reviewed quarterly earnings releases and 2022 interim consolidated financial statements
• Approved corporate finance strategy, including liability management initiatives 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
• Approved the USD $750 million rights offering
• Recommended the shareholder remuneration policy and approved share repurchase plan; no
shares were repurchased during 2022
9. Portfolio management, including
acquisitions and divestments
• Discussed acquisition and disposal developments across the Group, including approval of
transactions such as the acquisition of the minority stake in the Panama business, sale of the
Tanzania businesses and focus on core investments
10. Board performance self-evaluation
• Completed an annual self-evaluation of combined Board performance and individual
performances and reported to the Nomination Committee
11. HR matters
• Evaluated the performance and approved the compensation of the CEO
• Oversaw succession planning for the Executive Team
12. Reports from committees
• Regularly reviewed reports from Audit Committee, Compliance and Business Conduct
Committee, and Compensation Committee on recent activities
• Discussed Nomination Committee Director appointment proposals
M i l l i c o m 2 0 2 2 A n n u a l R e p o r t 8 5
Governance
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 2022, 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.
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, 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 since 2020 were postponed
and are scheduled to recommence in 2023.
Board Meetings/Attendance at Regularly Scheduled Meetings of the Board in the 2022 Financial Year
Director
Mr. José Antonio Ríos García
Ms. Pernille Erenbjerg
Mr. Odilon Almeida
Mr. Bruce Churchill
Mr. Tomas Eliasson
Mr. Lars-Johan Jarnheimer
Ms. Mercedes Johnson
Mr. Mauricio Ramos
Mr. James Thompson
Attendance
Former Director (until May 2022)
Ms. Sonia Dulá
Overall attendance
Meeting Attendance
12 of 12
12 of 12
12 of 12
12 of 12
8 of 8
12 of 12
12 of 12
12 of 12
11 of 12
103 of 104
4 of4
107 of 108
%
100
100
100
100
100
100
100
100
92
99
100
99
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 2022 and Directors’
emoluments are set out on the following pages.
M i l l i c o m 2 0 2 2 A n n u a l R e p o r t 8 6
Governance
I. Audit Committee
I am pleased to present the Audit Committee’s report for 2022. As directed by
our Charter, we convened six formal meetings during the financial year in order
to satisfy our established set of responsibilities.
Despite a challenging macroeconomic environment in the second half, Millicom's business
performed well and closed the year with positive organic service revenue growth in most countries
and all business units. These trends—as well as other factors like technological advancements and
new regulatory requirements—were key areas of focus and shaped the Audit Committee’s agenda
for the period. We centered our attention in reviewing the finalization of the purchase price
allocation and the implementation of a SOX controls program in Guatemala, as Millicom now has
full ownership of that business after acquiring the minority stake last year. We also oversaw the
financial recognition of the disposal of the last operations in Africa, as well as the acquisition of the
remaining 20% ownership in Panama.
Supported by the guiding principles established by management and periodic updates on the
strength of the business, the Audit Committee engaged in risk oversight of critical areas like
cybersecurity, supply chain challenges and other external threats. Further, our overarching objectives
included ensuring the integrity of the Group’s financial reporting and that appropriate accounting
judgments were made, assessing the external auditor's effectiveness, and overseeing the status of
the internal control environment.
Our Internal Audit Team assisted the committee by harmonizing their plans and assurance
activities with the evolving risk profile and prioritizing reviews to provide consulting services
where appropriate. These activities generated relevant recommendations aimed at enhancing
the control posture of the company.
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
Millicom’s risk management programs.
Further, the committee increased its emphasis on the processes leading to ESG disclosures,
performance metrics, targets and the EU Taxonomy, including the design and testing of controls to
verify the accuracy of these reports.
I wish to extend my appreciation to my colleagues for their support of and commitment to the
activities of the committee. I look forward to continue performing our duties until the conclusion of
our mandate at the 2023 AGM.
Ms. Mercedes Johnson
Chair of the Audit Committee
Audit Committee Membership and Attendance at Regularly Scheduled Meetings in 2022
Audit Committee
Ms. Mercedes Johnson
Mr. Bruce Churchill
Mr. Tomas Eliasson
Mr. James Thompson
Attendance
Position
Chair*
Member
Member
Member
First appointment
May 2019
May 2021
May 2022
January 2019
Ms. Sonia Dulá
Former Member
May 2021
Overall attendance
*Designated as having specific accounting competence as per the EU Directive.
M i l l i c o m 2 0 2 2 A n n u a l R e p o r t 8 7
Governance
Meetings/
attendance
6 of 6
6 of 6
3 of 3
6 of 6
21 of 21
1 of 2
22 of 23
%
100
100
100
100
100
50
96
In addition, the Chairman of the Board, Mr. José Antonio Ríos
García, attended all of the 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 2022.
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, including those covering ESG-related matters.
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.
M i l l i c o m 2 0 2 2 A n n u a l R e p o r t 8 8
Governance
Summary of Areas of Focus and Actions in 2022
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.
ESG reporting
External auditor
• Reviewed and approved each quarter’s earnings release; the 2022 annual earnings release; the Annual Report
and 20-F together with the consolidated financial statements; the 2022 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 of
the acquisition of the remaining 45% of our business in Guatemala and the Group's exit from Africa
• Reviewed the alternative performance measures policy
• Reviewed the roadmap and progress for implementation of upcoming ESG regulations (EU Taxonomy, CSRD, SEC)
• 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 and CSSF guidelines
• Reviewed and approved all audit, audit-related and non-audit services rendered by the external auditors
• Approved the 2022 external audit strategy and fees and the proposed approach to address the challenges
posed by external factors such as economic pressures, the winding down of the pandemic and cybersecurity
threats, among others
• 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 2022 Internal Audit plan and subsequent reprioritization of work to address new and emerging risks.
• Reviewed internal audit findings arising from the delivery of the 2022 audit plan
Financing, treasury and tax
• Reviewed the Group’s tax strategy and structure and approved the tax policy
• 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
• Reviewed alignment of top risks with strategy and recommended risk appetite
• Reviewed regular risk reports and risk management remediation plans
Business controls and SOX
• Reviewed the results of Millicom’s Sarbanes-Oxley program, including Guatemala (its first year included in the scope)
• 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 updates, as well as proposed actions to remediate identified cases
Revenue assurance
• Received updates on revenue assurance activities
• Reviewed trends and actions taken to minimize loss and revenue leakage
Related party transactions
• Reviewed related party transactions
M i l l i c o m 2 0 2 2 A n n u a l R e p o r t 8 9
Governance
2022 Meetings
The Audit Committee held six meetings during 2022, 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,
2022, 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. At December 31, 2021, the purchase accounting was
still provisional, particularly in respect to the evaluation of
certain tangible assets.
In 2022, Millicom finalized the purchase accounting and
determined the fair values of Tigo Guatemala's identifiable
assets and liabilities and comparative figures as of December
31, 2021, which have been restated accordingly.
The committee reviewed and agreed with the accounting
effects of the above-mentioned update.
2. Africa / Tanzania divestiture – refer to note A.1.3.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. On April 5, 2022, Millicom completed the
sale for an initial cash consideration of approximately $101
million (subject to final price adjustment).
As per the sale agreement, the initial sale price was adjusted to
consider some outstanding tax and legal contingencies, which
management believes is sufficient to cover any future claims on
pre-closing matters. Should the price adjustments not be
sufficient, Millicom might be liable and need to make additional
provisions that are not covered by the latter. In addition, the
agreement also provides an IPO adjustment clause valid until
April 5, 2024, whereby Millicom would reimburse the buyer for
any negative difference between the share price per share on
the IPO date and the one implied by this sale. As of December
31, 2022, no additional provisions have been made by
management in respect to the aforementioned items.
The Audit Committee concurred with the above decisions.
3. Segment information – refer to note B.3. of the
consolidated financial statements
Until the divestiture of our Tanzania business, the Millicom
Group had businesses in two main regions, which constituted
our two reportable segments. As a result of the sale of the
Tanzania business and its classification as discontinued
operations, we no longer report an Africa segment. The Group
now only operates in a single region, Latin America.
As a result, the Group now reports a single segment, called the
‘Group Segment,’ which includes the results of our Latin
American operations and regional and central corporate costs.
Group segment figures will continue to include our Honduras
joint venture as if it were fully consolidated, as this reflects how
management reviews and uses internally reported information
to make decisions about operating matters and to provide
increased transparency to investors on those operations. Group
segment figures also include our operations in Guatemala as if they
were fully consolidated for all comparative periods, for the same
reasons. On November 12, 2021, we acquired the remaining 45%
equity interest in our Guatemala joint venture business, and we
have now fully consolidated our operations in Guatemala. Prior to
this date, we held a 55% stake in our operations in Guatemala, and
accounted for it using the equity method of accounting. We use
the same method for our operations in Honduras.
The Committee agreed with that conclusion.
4. Rights offering – refer to note C.1. of the consolidated
financial statements
On May 18, 2022, the Board of Directors of Millicom resolved
on a rights offering (the "Rights Offering") granting preferential
subscription rights to existing holders of shares and Swedish
Depositary Receipts ("SDRs") for up to 70,357,088 shares in
aggregate.
Those who were registered as holders of shares/SDR register on
May 23, 2022, received one subscription right for each share
("Share Right") or SDR ("SDR Right") held in Millicom. Ten Share
Rights entitled a holder thereof to subscribe for seven new
shares in Millicom; 10 SDR Rights entitled a holder thereof to
subscribe for seven new SDRs in Millicom. The subscription price
was set at SEK 106 per new SDR and $10.61 per new share. The
subscription price in SEK was determined based on the
subscription price in U.S dollars as resolved by Millicom, $10.61
per new share, using the SEK-U.S dollar exchange rate published
by the Swedish Central Bank on May 17, 2022.
The record date for participation in the Rights Offering was May
23, 2022. The subscription period ran from May 27, 2022, up to
June 13, 2022.
The result of the Rights Offering showed that 68,822,675
shares, including those represented by SDRs, have been
subscribed for by the exercise of basic subscription rights. The
remaining 1,534,413 shares, including those represented by
SDRs, were allotted to investors who subscribed for the shares
pursuant to oversubscription privileges. The Rights Offering was
thus fully subscribed, and Millicom received proceeds amounting to
approximately $717 million after deducting underwriting
commissions and other offering expenses of $28 million.
M i l l i c o m 2 0 2 2 A n n u a l R e p o r t 9 0
Governance
The Rights Offering resulted in the issuance of 70,357,088 new
shares, which increased the number of outstanding shares in
Millicom from 101,739,217 to 172,096,305. As a result, the
share capital increased by $106 million—from $153 million to
$258 million. The remaining $612 million has been allocated to
the Group's share premium account.
The Audit Committee reviewed and agreed with the accounting
effects of the above-mentioned Rights Offering.
5. Panama 'put option' – refer to note A.1.2. of the
consolidated financial statements
As of June 14, 2022, the Group received the formal notification
from the minority shareholders of Cable Onda S.A. confirming
the exercise of their put option right to sell their remaining 20%
shareholding to Millicom for an amount of approximately $290
million. The transaction closed on June 29, 2022, and the
payment was applied against the already recorded put option
liability of $290 million.
As a result, the non-controlling interests' carrying value of $78
million has been transferred to the Group's equity.
The Audit Committee agreed with the conclusions.
6. 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. However, we disclosed potential
impairment for our operations in Colombia and Nicaragua that
would have to be recorded in case of certain reasonable
changes in key assumptions used in the impairment test.
The Audit Committee agreed with the conclusions.
7. 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. During 2022, exposure decreased due to
an adherence to a tax amnesty in one of our operations for a
total cash outflow of $40 million and to Millicom's exit from
Africa. The external auditor also presented an analysis of
judgmental tax matters.
Management Disclosure Committee
To assist with all matters related to earnings releases, financial
statements and other market disclosures, Millicom has a
Management Disclosure Committee composed of 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 the
evolution of significant risks at both operational and Group
levels and related mitigation and risk management actions.
Further information is set out in the Risk Management section
of this Annual Report, starting on page 23.
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 2022 program and approach to testing of key
controls.
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 2022 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 2022 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.
Fraud Risk
The Audit Committee received fraud updates 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 2021 given the launch of the external audit tender.
M i l l i c o m 2 0 2 2 A n n u a l R e p o r t 9 1
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, 2022, the Audit Committee
approved fees for audit and audit-related services of $6.3
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 2021 the Audit
Committee completed 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 after consideration by the
Nomination Committee in early 2022, reappointed EY.
M i l l i c o m 2 0 2 2 A n n u a l R e p o r t 9 2
Governance
II. Compliance and Business Conduct Committee
In 2022, we continued to develop the ethics and compliance program to better
assist employees in doing the right thing the right way, including continuing to
improve the program's reach. As such, we continued enhancing our three strategic
focus points: embed and entrench, communication, and data analytics. With
compliance integrated within the Company's business processes, compliance
teams are better able to detect and mitigate any potential risks in real time.
Additionally, the compliance function disseminated its messages in conjunction
with other departments in a clear and understandable manner, with everyone
in the organization apprised of both risks and controls that are in place.
Similarly, we used data collected on our platforms to develop action plans
and attack root causes.
In focusing on the most pressing risks in 2022, we continued reinforcing the main elements of our
compliance program, including our annual training for the entire Company. The training covered,
among other topics, our Code of Conduct, our Speak Up campaign, our anti-corruption policies and
our anti-money laundering (AML) program.
The training campaign this year was designed and prepared using in-house talent and resources.
For the first time, employees across the Company participated in creating, producing and delivering
a 100% Tigo-customized course.
We continued to build and refine our ethics and compliance program in 2022. This included
publishing our revised Code of Conduct with a new design and look, as well as our AML, Speak Up,
anti-corruption, gift and hospitality, and sponsorship and donation policies. These revised policies
aim to mitigate the current risk landscape and adopt best practices across the board.
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
Chair of the Compliance and Business Conduct Committee
M i l l i c o m 2 0 2 2 A n n u a l R e p o r t 9 3
Governance
Compliance and Business Conduct Committee Membership and Attendance 2022
Committee
Mr. Odilon Almeida
Mr. Tomas Eliasson
Ms. Mercedes Johnson
Attendance
Ms. Sonia Dulá
Overall attendance
Position
Chairman
Member
Member
First appointment
November 2015
May 2022
June 2020
Former Member
May 2021
Meeting
Attendance
5 of 5
3 of 3
5 of 5
13 of 13
2 of 2
14 of 14
%
100
100
100
100
100
100
In addition, the Chairman of the Board, Mr. José Antonio Rios Garcia, attended all but one 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 cybersecurity risk management and incident
response
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.
M i l l i c o m 2 0 2 2 A n n u a l R e p o r t 9 4
Governance
Summary of Committee Activities in 2022
The committee Chair 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 culture 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 2022
Compliance program elements
reviewed
• Refined and rewrote third-party management policy and enhanced due diligence program
• Monitored anti-corruption program and automated procedures, including those covering new and
emerging areas of risk and strengthening of the overall program
• Published revised compliance policies and procedures and communicated them to the whole
organization
• Reviewed training completion rates on Company compliance policies as part of select managers' KPIs
• Moved forward with continuous improvement of the compliance framework, including through
recommendations from internal and external assessments and from internal audit
• Improved communication campaigns on various compliance subjects
• Hired one new compliance officer, one investigator and one Compliance Strategic Response Manager
• Integrated compliance program within the recently acquired entities in Central America
• Incorporated compliance factors into executives’ incentive programs for the fifth consecutive year; bonus
awards are tied to achievement of compliance KPIs.
• Code of Conduct training is now a requisite to access bonus in the whole organization
Reporting and investigations
• Supported Speak Up program by continuing to encourage employees to use Speak Up resources to
report issues of perceived non-compliance with our policies and values
• Strengthened investigations team: further developed central investigations resources and enhanced
investigation tools
• Enhanced breadth of the 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
Global anti-money laundering
(AML) program
• Continued developing and implementing improvements to the transaction monitoring process
• Continued to provide AML communications and training campaigns in all operations; in 2022, targeted,
on-site AML training was provided to the MFS team in Panama
• Continued to perform quarterly AML controls, such as self-assessments and AML Risk Matrix exercises in
operations
Information security and
cybersecurity
• Reviewed the Information Security Framework, organization and governance
• Reviewed the Information Security Program, including risk management, vulnerability management, and
awareness and training, among others
• Reviewed reports on cybersecurity incidents, including impact, responses and remediation
• Reviewed maturity improvement plans related to the NIST Cyber Security Framework (CSF)
implementation
M i l l i c o m 2 0 2 2 A n n u a l R e p o r t 9 5
Our ESG Approach and Impact
Chair of the Compensation Committee
III. Compensation Committee
I am pleased to present the 2022 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 believe in paying for
performance, which encompasses both short-term and long-term incentives. These plans
maintain a strong link between Millicom’s performance, shareholder interests as well as enable
Millicom’s culture.
Our remuneration policy focuses on a total compensation approach which consists of:
a) a base salary, various benefits and pension arrangements
b) a high variable component through an annual short-term incentive (STI) bonus
c) for senior management only, a portion of this (STI) bonus is paid in cash and part is made as an
equity grant from the deferred share plan (DSP); the individual payouts are 30% cash / 70% equity
if they are at the top end of the executive jobs and 40% cash / 60% equity if they are at the lower
end (the DSP grant has a prorate vesting over 3 years 30%/30%/40%).
d) for top executives only, a long-term incentive plan (LTI) that consists of an equity grant from the
performance share plan (PSP)
The compensation committee believes this blended approach balances both short-term and long-
term focus. Specifically for the Chief Executive Officer (CEO) and Executive Vice Presidents (EVPs),
the majority of their total compensation is variable, with a high proportion paid in shares. It aims to
align management and shareholder interests by measuring performance, payment in shares and
extended time horizons for vesting.
A substantial part of the annual bonus (STI) for the top roles of the organization, including the CEO
and EVPs, as mentioned above is paid in shares that vest prorated over three years (DSP). The long-
term incentive awards under the Performance Share Plan (PSP) cliff vest after three years and are
fully paid in shares as well.
For the whole Telco business, 60% of the annual bonus is based on three financial measures:
service revenue, EBITDA and operating free cash flow after leases (OFCFaL). Of the remaining 40%,
10% is allocated to customer satisfaction—measured using Net Promoter Score (NPS)—and 30%
is based on individual strategic objectives.
In 2022 we introduced a new program for our financial services business (MFS). This program was
designed with a similar approach on the STI but using metrics that were directly linked to our
fintech strategy. The measurements used were a) service revenue, b) # of digital users, c) # of active
merchants, and d) adherence to Product Development Roadmap.
We also encourage our top leaders to take a longer-term view on positive business performance in
alignment with Company and shareholder interests. Therefore, we continue to have share
ownership requirements for the CEO, EVPs, VP's and GM's that constitute our top executive team.
The CEO is required to build and maintain a shareholding with a value of at least 400% of base
salary, a level he maintained and exceed in 2022.
In 2022 the Group delivered a set of results in line with budget targets while continuing to invest in
further growth. The Board is satisfied with 2022 outcomes for Group financial performance outlined
in the STI plan.
M i l l i c o m 2 0 2 2 A n n u a l R e p o r t 9 6
Governance
Therefore, the Board concluded that the CEO continued to provide exceptional leadership in helping
the Company reach all financial and operational targets for the year. In evaluating his performance,
the Board considered the way he delivered on financial commitments. Additionally, the CEO
delivered against ESG commitments which focused on environmental, DE/I and social programs
which focus on women entrepreneurs in our markets. These programs are aligned to the company’s
overall purpose.
Together with meeting the financial targets discussed below, the CEO received $1,650,460 in cash and
$4,373,719 granted in deferred shares that vest over three years for the Company's 2022 performance.
The Chairman of the Board conveyed the results of the review and evaluation to the CEO.
Additionally thresholds for the, FY 2020 LTI Plan, which consist of three measures (service revenue
growth, adjusted cash flow growth, Relative TSR) and is subject to a three-year performance period
(ending December 31, 2022), were not met. The committee did not exercise any discretion on this
plan. However, the committee chose to introduce in 2021 a one-time Market Stock Unit (MSU)
award linked entirely to the share price performance aimed at retaining key executives while
protecting shareholder interests. The MSU award was divided into two tranches with the payouts
are scheduled mid-2023 and mid-2024.
Participants of this plan were required to forfeit portions of their awards under LTI 2019 and LTI 2020 in
respect of the financial targets (service revenue growth and operating cash flow) and required to retain
the TSR component for these schemes to maintain alignment between management incentives and
shareholder interests.
Regrettably, the first MSU tranche vested only at 12% of target due to the stock price performance.
The Committee did not exercise any discretion on the payout out of this plan.
The Committee also chose to rebalance executives STI and LTI opportunity. While the total combined
incentive opportunity remains unchanged, we have reduced the LTI opportunity for 2022 and made
a corresponding increase in the share component of the STI. This important change incentivizes
management’s attention to driving yearly results while continuing to focus on longer term
profitability. All awards continue to link a substantial amount of their total reward to share price
performance—either relative to peers (TSR for the LTI) or absolute levels of stock price (MSU).
While 92.7% of shareholders voted in favor of the Senior Management Remuneration Policy
and 95.9% approved share-based incentive plans in the 2022 AGM, we responded to shareholder
feedback to remove the RSU component for the 2022 LTI grant and reverted to full performance-based
LTI award. Although RSUs are common in U.S. market practice and used by most of our peer
benchmark group, we have aligned with performance-based metrics instead.
During the year, the Compensation Committee reviewed the base salaries and incentive opportunities
for the CEO, who received a 3% increase to $1,224,863 as of April 1, 2022. 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.
Due to the execution of the rights issue, we made the required adjustments to the existing unvested
share plans, including the DSP, PSP and MSU. The approach was made in collaboration with Mercer
as the external independent consultant to the Committee and followed market best practices.
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 2022 is set
out on page100.
Looking ahead to 2023, the only revision considered is a slight adjustment in the LTI Plan which is
the inclusion of an ESG element.
The Compensation Committee is committed to ongoing consultation with shareholders and their
advisory groups.
On behalf of the Board, I hope you find the 2022 Remuneration Report informative.
Ms. Pernille Erenbjerg
Chair of the Compensation Committee
M i l l i c o m 2 0 2 2 A n n u a l R e p o r t 9 7
Governance
1. 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.
1.1 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 2022, the Board concluded that the CEO provided
exceptional leadership in helping the Company achieve the
financial and operational targets for the year. In evaluating
his performance, the Board considered the way he delivered on
financial commitments. Additionally, the CEO delivered against
ESG commitments which focused on environmental, DE&I and
social programs which focus on women entrepreneurs in our
markets. These programs are aligned to the Company’s overall
purpose. Together with meeting the financial targets discussed
below, in his STI payout the CEO received $1,650,460 in cash and
$4,373,719 granted in deferred shares that vest over three years
for the Group's 2022 performance. The Chairman of the Board
conveyed the results of the review and evaluation to the CEO.
1.2 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.
1.3 Compensation Committee Membership and Attendance 2022
Committee
Ms. Pernille Erenbjerg
Mr. Lars-Johan Jarnheimer
Mr. James Thompson
Overall Attendance
Position
Chairman
Member
Member
First Appointment
Meeting Attendance
January 2019
May 2021
January 2019
6 of 6
6 of 6
6 of 6
18 of 18
%
100
100
100
100
In addition, the Chairman of the Board, Mr. José Antonio Rios Garcia, attended all of the regularly scheduled meetings of the
Compensation Committee.
M i l l i c o m 2 0 2 2 A n n u a l R e p o r t 9 8
Governance
1.4 Areas Covered in 2022
The Compensation Committee met six times in 2022. Areas of focus included overseeing executive rewards and retention,
managing the impact of the rights issuance in our variable pay plans, and supporting the variable compensation approach for the
new fintech business.
Topic
Commentary
Bonus (STI) and performance reports
• Reviewed and approved the Global Senior Management Team's 2021 performance reports and
individual Executive Team payouts for STI/LTI (cash/equity)
• Reviewed and approved 2022 short-term variable compensation targets
Compensation review
• Approved all payments for CEO and Executive Team members
• Reviewed executive remuneration and governance trends and developments
• Reviewed and approved the peer group for the CEO and the Executive Team benchmarking
• Approved changes to CEO and Executive Team compensation elements based on market
competitiveness
Share-based incentive plans
• Approved the 2019 LTI (PSP) vesting
• Reviewed and approved all equity grants
• Reviewed and approved the 2022 share units plan (DSP and PSP) rules
• Reviewed and approved the 2022 long-term variable compensation targets
• Reviewed and approved the reduction of the LTI opportunity for 2022 and the corresponding
increase in the share component of the STI
• 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 (2020, 2021 and 2022)
• Reviewed equity plans participant turnover
• Reviewed and approved the required adjustments to the existing unvested share plans due to
the rights
• Approved the accelerated vesting of share grants to Tanzania employees as a consequence of
the divestiture of that asset
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 2023
Other
• Reviewed and approved exceptional items, new hire equity grants, etc.
• Reviewed and approved the achievement of the MSU 2022 Tranche
• Reviewed and approved STI and LTI performance measures for 2023
• Reviewed Executive Team’s severance payouts in a change of control
• Reviewed and discussed results of 2022 "Say on Pay"
• Approved the payments associated with the retirement of the previous CFO
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
M i l l i c o m 2 0 2 2 A n n u a l R e p o r t 9 9
Governance
2. 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, 2022.
2.1 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
What it means
Levels of pay and benefits to attract and retain the right people
Drive the right behaviors
Reward policy and practices that drive behaviors supporting our Company strategy and business objectives
Shareholder alignment
Pay for performance
Transparency
Market competitive and representative
remuneration
Retention of key talent
Executive management to be "invested"
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
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 achievement
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 perquisites
Permit executives to hedge company shares
Provide dividends or dividend equivalents on
unearned PSUs or RSUs
Offer tax gross-ups related to change in control
Permit executives to use company shares as
collateral
M i l l i c o m 2 0 2 2 A n n u a l R e p o r t 1 0 0
Governance
2.2 Elements of Executive Pay
Compensation for the Global Senior Management Team in 2022 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
Operational execution
Paid monthly in cash in U.S. dollars or the home
currency of the executive
Reviewed by the Compensation Committee every
March
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.
The Compensation Committee aims to set salaries
for the Executive Team at the median of the peer
group.
M i l l i c o m 2 0 2 2 A n n u a l R e p o r t 1 0 1
Governance
STI
Pay element
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 a
portion 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 – 365% (72% paid in DSP)
CFO – 210% (64% paid in DSP)
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 – 730% (144% paid in DSP)
CFO – 420% (128% paid in DSP)
Purpose and link to
strategy
The financial and operational targets are:
•
•
•
•
•
•
Service revenue
EBITDA
Operating free cash flow after leases (OFCFaL)
Relational Net Promoter Score (rNPS)
Personal performance
2022 Cyber Security Gateway
20%
20%
20%
10%
30%
This gateway needs to be attained for payout of the
personal objective component
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.
LTI
Pay element
Purpose
Payout opportunity
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 total shareholder return ("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.
The target achievement for:
CEO – 315%
CFO – 115%
The maximum achievement for:
CEO – 630%
CFO – 230%
The LTI links an important part of overall Global Senior Management
Team compensation with the interests of our shareholders.
Purpose and link to
strategy
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 a 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 shares and based on company three-year
cash flow and revenue targets approved by the Compensation
Committee and the Board, in addition to shareholder return.
Operational
execution
Performance share units plan (PSP)
The weights for the PSP component are:
• Service revenue: 30%
• OCFaL (operating cash flow after leases): 50%*
• Relative TSR: 20%
The PSP 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)
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.
M i l l i c o m 2 0 2 2 A n n u a l R e p o r t 1 0 2
Governance
In addition, the Board uses retention schemes to ensure continued retention of key individuals during periods of uncertainty.
2.3 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.
2.4 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.
M i l l i c o m 2 0 2 2 A n n u a l R e p o r t 1 0 3
Governance
3. Key Developments for 2022
During 2022, we worked on structuring return-to-office schemes
that prioritize health and safety (such as hybrid approaches).
For the 2022 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.
During 2022, we successfully implemented the removal of the
RSU component for the 2022 LTI grant and reverted to full
performance-based LTI awards.
We also implemented the change of reducing the LTI
opportunity for 2022 with a corresponding increase in the
share component of the STI. The total combined incentive
opportunity remains unchanged.
With the execution of the rights issue, we made the required
adjustments to the existing unvested share plans, including the
DSP, PSP and MSU. The approach was made in collaboration
with Mercer as the external consultant to the Committee,
following the best practices approach for this type of situation.
3.1 Key Elements of 2022 CEO and CFO Pay
In 2022, 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
Mauricio Ramos
(CEO)
$1,224,863
Sheldon Bruha (CFO)* $625,000
Tim Pennington
(Former CFO)**
$634,115
STI Target
Performance
Measures:
STI Target
Performance
Measures:
STI Target
100% in Cash Bonus
265% in Share Units
over 3 years vesting
30%/30%/40%
60% Financial
10% Customer
30% Personal
75% in Cash Bonus
135% in Share Units
over 3 years vesting
30%/30%/40%
60% Financial
10% Customer
30% Personal
75% in Cash Bonus
75% in Share Units over
3 years vesting
30%/30%/40%
Performance
Measures:
60% Financial
10% Customer
30% Personal
PSP award of 315% of salary
with 3-year cliff vesting (based
entirely on performance
shares)
15% of salary
PSP award of 115% of salary
with 3-year cliff vesting (based
entirely on performance
shares)
15% of salary
N/A
15% of salary
Private
healthcare
Life insurance
Car Allowance
Private
healthcare
Life insurance
Car Allowance
Private
healthcare
Life insurance
Car Allowance
*CEO / CFO Salary as of December 31, 2022. Mr. Bruha (CFO) started January 12, 2022, and took over the CFO role effective April 1, 2022
**Mr Pennington CFO Compensation paid in Pounds GBP and for purposes of this report converted to USD using December Closing Forex (0.8276 GBP/USD).
3.2 Summary of Total CEO/CFO Compensation
The compensation for the CEO and CFO is summarized in the table below:
M i l l i c o m 2 0 2 2 A n n u a l R e p o r t 1 0 4
Governance
Mauricio Ramos (CEO)
Sheldon Bruha (CFO)*
Tim Pennington (Former CFO)**
2022
2021
2022
2021
2022
2021
In USD
Base Salary
Fringe Benefits***
Pension Expense
Total Fixed
Annual Bonus****
Deferred Share
Units****
LTIP*****
Total Annual
Variable
Annual
Compensation
MSU Plan******
1,215,944
1,185,140
81,745
286,846
1,584,535
1,650,460
87,551
284,243
1,556,934
2,164,320
4,373,719
2,164,320
3,745,939
5,630,400
598,121
67,264
144,460
809,845
541,075
973,935
718,750
9,770,118
9,959,040
2,233,760
11,354,653
11,515,974
3,043,605
581,272
39,769
87,191
708,232
—
—
—
—
707,532
46,362
106,130
860,024
969,079
969,079
1,237,889
3,176,047
708,232
4,036,071
—
—
—
—
—
—
—
—
—
—
—
—
Total Compensation 11,354,653
—
8,000,000
19,515,974
—
3,043,605
Termination
Benefits********
% Annual Fixed
% Annual Variable
—
13.95 %
86.05 %
—
13.52 %
86.48 %
—
26.61 %
73.39 %
—
708,232
876,939
— %
— %
100.00 %
— %
1,600,000
5,636,071
—
21.31 %
78.69 %
*Mr. Bruha (CFO) started January 12, 2022, and took over the CFO role effective April 1, 2022
**Mr. Pennington 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 medical and dental Insurance.
****The short-term incentive award includes cash bonus and the corresponding grant of deferred share units.
*****LTIP is performance share units granted in 2022. Calculated based on the average Millicom closing share price on the Nasdaq in the US for the three-month period ending
December 31, 2022.
******MSU plan: Our stock-based MSU performance plan is settled in cash. Pro-rata vesting occurs in two tranches (50% in 2022, and 50% in 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 (adjusted to $33.83 for rights issuance) for Tranche
2022 (10%) and $47.00 (adjusted to $36.90 for rights issuance) for Tranche 2023 (20%). The original targets were adjusted during the rights offering. The awards are payable
only after an additional 12-month employment period post vesting.
******** Mr. Pennington started his 1-year notice period on April 1, 2022 and paid via payroll until November 30, 2022 and the remaining 4-month period paid as a one-time
payment on December 22, 2022.
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)
2022
2021
1,215,944
15,000
286,846
1,517,789
2,164,320
865,762
—
3,030,082
4,547,871
1,185,140
15,000
284,243
1,484,383
1,301,131
930,836
1,457,988
3,689,955
5,174,339
33.37 %
66.63 %
28.69 %
71.31 %
*Annual bonus paid is the cash portion for the short-term incentive award for the performance period in that calendar year (the 2022 column displays the amount paid in Q1 2022
from 2021 performance).
**Deferred share units vested are the shares vested from the pro-rata vesting of the three years prior (the 2022 column displays the amount vested in Q1 2022: 30% from 2021
grant, 30% from 2020 grant and 40% from 2019 grant.
***LTIP vested are the shares vested from the cliff vesting of the LTI granted three years prior (the 2022 column displays the amount vested in Q1 2022 from 2019 grant).
The total short-term award for the CEO, CFO and other senior leadership team is split into a portion in cash and the balance in share
units deferred over a three-year period (DSP). The latter of the two is the biggest component. 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.
2022 CEO Compensation
M i l l i c o m 2 0 2 2 A n n u a l R e p o r t 1 0 5
Governance
3.3 Performance on STI 2022
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 Relative Net Promoter Score
achievement. 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.
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 2022, the achievement of performance targets is set out in the table below:
For the CEO and other eligible DSP participants, the issuance of share units under the DSP is presented at Millicom’s AGM of
shareholders.
Under the 2022 STI, the 2023 DSP share units are granted in Q1 2023 and will vest (generally subject to the participant still being
employed by the Millicom group) at 30% in Q1 2024, 30% in Q1 2025 and 40% in Q1 2026. The vesting schedule is unchanged
from the 2022 DSP.
M i l l i c o m 2 0 2 2 A n n u a l R e p o r t 1 0 6
Governance
3.4 LTI (PSP)
This section reviews the LTI 2020 performance, which vested in January 2023 with a zero payout in Q1 2023 for all participants. It
also reviews the LTI 2022 plan granted in 2022 to 39 participants, including the CEO and CFO.
3.4.1 LTI (PSP) 2020 Performance
The LTI 2020 plan vested in January 2023 with an award of 0.0%. The outcome of LTI 2020 has been audited by Ernst & Young in
respect of the financial performance measures and by Towers Watson for the TSR.
For LTI 2020, the achievement of performance targets is set out in the table below:
Notes: Relative TSR considered the following peers: America Movil, Telefonica, TIM Brazil, TEF Brazil, Entel Chile, Lilac.
The PSP 2020 did not meet the criteria for vesting for the CEO and CFO awards:
Type of
award
Basis of award
Face value of
award
Number of share
units granted
End of performance
period
Achievement
Number of
shares vested
Name
Mauricio Ramos
(CEO)
Tim Pennington(Former CFO)
LTI2020 175% of salary 1,132,957
LTI2020 400% of salary 4,600,000
77,111
18,992
Jan-23
Jan-23
— %
— %
—
—
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 2020, PSP 2021 and PSP 2022—no discretion has been exercised and
none of the performance or other conditions have been changed.
M i l l i c o m 2 0 2 2 A n n u a l R e p o r t 1 0 7
Governance
3.4.2 Award LTI 2022
A new plan was issued in 2022 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
2022 plan was approved by shareholders at the 2022 AGM:
Metric
Weighting
Performance target
Performance measure
Service revenue
OCFaL
TSR
30%
50%
20%
Target growth
Target growth
A specific 3-year Cumulative Growth target
A specific 3-year Cumulative Growth target
The Company TSR relative to a peer group
between 2022 and 2024
At median - target payout; below median - nil; 20% above
median - max
The peer group for the PSP 2022 is: America Movil, TIM Brazil, TEF Brazil, Entel Chile, Lilac, Telecom Argentina, Grupo Televisa, Megacable.
For the CEO and CFO, the award of LTI 2022 is summarized below:
Name
Type of award
Basis of award
Face value of award
Number of share
units granted*
End of
performance
period
Mauricio Ramos
(CEO)
Sheldon Bruha (CFO)
PSU - 3 years
Cliff Vesting
PSU - 3 years
Cliff Vesting
315% of salary
3,745,939
144,108
Jan-2025
115% of salary
718,750
27,649
Jan-2025
*With the execution of the rights issue, we made the required adjustments to the existing unvested share plans, including the DSP and PSP. The original grant was 113,136 and
21,707 performance share units for Mr Ramos and Mr Bruha, respectively.
4. Remuneration Approach for 2023
For 2023, the Board has proposed continuing with a consistent framework of STI and LTI with a few changes explained below. In the
2023 LTI plan, the Board will propose to the AGM to include a number of ESG metrics with a total weight of 10%. The metrics are:
1. OCFaL: 50%
2.
3.
4.
Service Revenue: 30%
TSR: 10%
ESG: 10%
For the CEO, the at-target and maximum remuneration for 2023 is set out below*:
At Target
At Maximum
At Target
At Maximum
*Cash> Base Pay + Car Allowance + Pension + STI Bonus
At target, CEO compensation is paid 72% in share units and 84% in variable compensation. At maximum, CEO compensation is paid
78% in share units and 91% in variable compensation.
Cash 28%Benefits 0.7%Shares 72%Cash 22%Benefits 0.4%Shares 78%Fixed 16%Variable 84%Fixed 9%Variable 91% M i l l i c o m 2 0 2 2 A n n u a l R e p o r t 1 0 8
Governance
4.1 Summary of Key Changes for 2023
We made one small change to the 2023 remuneration plans, with a continued focus on pay for performance and incentivizing the
retention of key talent.
For the LTI 2023, the structure of the award remains consistent with 2022, with only one change: we included a number of ESG
metrics with a total weight of 10%.
5. Supplemental topics
5.1 Summary of Outstanding Awards
Name
Plan Type
Deferred
Share Plan
Award
Details -
Plan Name
2019 DSP
2020 DSP
2021 DSP
2022 DSP
Performance
Period
Award
Grant Date
Vesting
Date
Award
Share Price
in USD
Outstanding
Balance as of
Dec. 2021
Share Units
Granted in
2022
Shares
Vested in
2022
Forfeited in
2022
Opening
Balance
During the Year
2018
1/1/2019
1/1/2022 $
59.65
2019
1/1/2020
1/1/2023 $
45.86
2020
1/1/2021
1/1/2024 $
35.20
10,004
21,788
36,963
—
3,408
7,083
10,004
9,338
11,089
2021
1/1/2022
1/1/2025 $
33.11
—
83,262
Performance
Share Plan
2019 PSP
2019-2022
3/1/2019
1/1/2022 $
59.65
2020 PSP
2020-2023
3/1/2020
1/1/2023 $
45.86
19,278
30,692
2021 PSP
2021-2024
1/1/2021
1/1/2024 $
35.20
159,941
—
8,402
43,786
2022 PSP
2022-2025
1/1/2022
1/1/2025 $
33.11
—
144,108
Closing
Balance
Outstanding
Balance as of
Dec. 2022
—
15,858
32,957
83,262
—
39,094
203,727
144,108
—
—
—
—
19,278
—
—
—
—
—
—
—
—
278,666
290,049
30,431
19,278
519,006
Deferred
Share Plan
2019 DSP
2020 DSP
2021 DSP
2022 DSP
2018
1/1/2019
1/1/2022 $
59.65
2019
1/1/2020
1/1/2023 $
45.86
3,736
9,560
2020
1/1/2021
1/1/2024 $
35.20
14,457
—
1,495
2,770
2021
1/1/2022
1/1/2025 $
33.11
—
37,280
Performance
Share Plan
2019 PSP
2019-2022
3/1/2019
1/1/2022 $
59.65
2020 PSP
2020-2023
3/1/2020
1/1/2023 $
45.86
4,748
6,546
2021 PSP
2021-2024
1/1/2021
1/1/2024 $
35.20
35,164
2022 PSP
2022-2025
1/1/2022
1/1/2025 $
33.11
—
—
1,792
9,626
—
3,736
4,097
4,337
—
—
—
—
—
—
—
—
—
4,748
—
—
—
—
6,958
12,890
37,280
—
8,338
44,790
—
74,211
52,963
12,170
4,748
110,256
Deferred
Share Plan
2019 DSP
2020 DSP
2021 DSP
2022 DSP
2018
2019
2020
2021
1/1/2019
1/1/2022
1/1/2020
1/1/2023
1/1/2021
1/1/2024
1/1/2022
1/1/2025
2019 PSP
2019-2022
3/1/2019
1/1/2022
Performance
Share Plan
2020 PSP
2020-2023
3/1/2020
1/1/2023
2021 PSP
2021-2024
1/1/2021
1/1/2024
2022 PSP
2022-2025
1/1/2022
1/1/2025
59.65
45.86
35.2
33.11
59.65
45.86
35.2
33.11
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
27,649
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
27,649
—
27,649
—
—
27,649
Mauricio
Ramos
(CEO)
TOTAL
Mauricio
Ramos
(CEO)
Tim
Pennington
(Former
CFO)
TOTAL Tim
Pennington
(Former
CFO)
Sheldon
Bruha
(CFO)
TOTAL
Sheldon
Bruha
(CFO)
M i l l i c o m 2 0 2 2 A n n u a l R e p o r t 1 0 9
Governance
5.2 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
CEO
CFO
EVPs
General Managers and VPs
For the CEO and CFO:
Mauricio Ramos
(CEO)
Sheldon Bruha (CFO)
400
200
100
50
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 in
Compliance
386,929
27,649
132,077
—
400 %
200 %
143,665
37,752
426,607
—
Yes
Yes *
* Unless this requirement is met each year, no vested Millicom shares can be sold by the individual.
5.3 Details of Share Purchase and Sale Activity
During 2022, we had a rights offering where the CEO exercised his rights in full.
5.4 Historic CEO and CFO Pay
CEO Remuneration*
Retiring CFO Remuneration
Incoming CFO Remuneration**
Group Segment EBITDA
2020 vs. 2019
2021 vs. 2020
2022 vs. 2021
Information
Regarding 2022 (USD
millions, except as
indicated)
9,2%
(4.20) %
— %
(1.40) %
17.80 %
33.40 %
— %
5.90 %
(41.82) %
(87.00) %
— %
11.3
0.7
3.04
(1.50) % 2.5 (USD billions)
Average remuneration on FTE basis of employees of parent company***
0.50 %
3.60 %
3.90 %
26,262 (USD
thousands)
**Represents year-over-year changes in CEO/CFO compensation (excludes MSU)
** Incoming CFO started January 12, 2022, and took over the CFO role effective April 1, 2022
***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 December 31, 2022.
5.5. 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, 2022, approved
the Director remuneration from the date of the 2022 AGM to the date of the AGM in 2023.
2022 Director Remuneration
During early 2022, 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 to
maintain the remuneration structure and propose a small increase in the amount of remuneration for each role for the Non-Executive
Directors.
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 2022 or 2021 from any other undertakings within the Millicom
Group.
b) Executive Director Remuneration
Executive Directors do not receive any remuneration in their capacity as Directors.
M i l l i c o m 2 0 2 2 A n n u a l R e p o r t 1 1 0
Governance
Approval of 2022 Director Remuneration
The Nomination Committee’s proposal for Director remuneration was approved at the AGM on May 4, 2022.
Director
Cash-based
fee ($000's)
Share-based fee
(ii) ($000's)
Total ($000's)
Cash-based
fee ($000's)
2022 (i, iii)
Mr. José Antonío Rios García
Ms. Pernille Erenbjerg C
Mr. Odilon Almeida CBE
Mr. Tomas Eliasson A, CBE
Mr. Bruce Churchill A
Ms. Mercedes Johnson A, CBE
Mr. Lars-Johan Jarnheimer C
Mr. James Thompson A, C
Former Director
Ms. Sonia Dulá A, CBE
Total
105
100
80
90
77.5
112.5
67.5
90
210
160
105
105
105
105
105
105
315
260
185
195
182.5
217.5
172.5
195
100
100
75
n.a.
72.5
107.5
62.5
85
85
722.5
1,000.00
1,722.50
687.5
2021 (i, iii)
Share-based
fee (ii)
($000's)
Total ($000's)
200
150
100
n.a
100
100
100
100
100
950
300
250
175
n.a
172.5
207.5
162.5
185
185
1,637.50
A: Member of Audit Committee
C: Member of Compensation Committee
CBE: Member of Compliance and Business Conduct Committee
(i) Remuneration covers the period from May 4, 2022, to the date of the AGM in May 2023, as resolved at the shareholder meeting on May 4, 2022 (2021: for the period from
May 4, 2021, to May 4, 2022).
(ii) Share-based compensation for the period from May 4, 2022, to May 2023 was based on the average closing price of Millicom shares for the three-month period ended April 30,
2022, and represented a total of 40,017 shares (2021: 24,737 shares based on the average closing price of Millicom shares for the three-month period ended April 30, 2021).
(iii) Total remuneration for the period from May 4, 2022, to May 2023 after deduction of applicable withholding tax at source comprising 73% in shares and 27% in cash (2021:
73% in shares and 27% in cash).
6. 2022 AGM Vote
Director Remuneration
Senior Management Remuneration Guidelines and Policy
Votes For
%
Votes Against
%
Abstentions
36,326,963
33,025,027
99.81%
92.72%
70,321
2,591,667
0.19%
7.28%
1,387,114
2,186,240
Proposals for Director Remuneration and Senior Management Remuneration were well supported by shareholders at the 2022 AGM
held on May 4, 2022. The Compensation Committee continues to develop and adapt senior management remuneration with
consideration of the views of its shareholders. For example, in 2023 the Compensation Committee will be proposing the addition of
an ESG measure in the LTI plan.
M i l l i c o m 2 0 2 2 A n n u a l R e p o r t 1 1 1
Governance
Millicom CEO and Executive Team
CEO
Position
Role and responsibilities
Mr. Mauricio Ramos
CEO
• 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's biography is presented in the Board Governance section of this report.
SHAREHOLDING AT JANUARY 31, 2023: 426,607 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 Executive Team meets at least once a month and
more frequently when required. Millicom’s Executive Team is as follows:
Executive
Team
Role responsibilities
Mr. Sheldon Bruha
Chief Financial Officer
Mr. Esteban Iriarte
Chief Operating 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
Operations and development of the Latin American
businesses
Mr. Xavier Rocoplan
Mr. Karim Lesina
Chief Technology and
Information Officer
Networks, information technology, procurement and
cybersecurity within the Group
Chief External Affairs
Officer
Government relations, regulatory affairs, corporate
communications and corporate responsibility
Mr. Salvador Escalón
Chief Legal and
Compliance Officer
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
Ms. Susy Bobenrieth
Chief Human Resources
Officer
Human resources matters, including talent acquisition
and management; compensation; diversity, equity and
inclusion; and corporate security
The profiles of the CFO and Executive Team members are provided below:
M i l l i c o m 2 0 2 2 A n n u a l R e p o r t 1 1 2
Governance
Mr. Sheldon Bruha
Executive Vice President, Chief Financial Officer
Sheldon joined Millicom in January 2022 and was appointed as Chief Financial Officer 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) in Business Administration from
Washington University.
MILLICOM SHAREHOLDING AT JANUARY 31, 2023: no shares1
Mr. Esteban Iriarte
Executive Vice President, Chief Operating Officer
Esteban was appointed as Executive Vice President and Chief Operating Officer (COO) 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 US Cellular and 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, 2023: 90,935 shares
1 Refer to page 108 for outstanding share awards
M i l l i c o m 2 0 2 2 A n n u a l R e p o r t 1 1 3
Governance
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, initially serving 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
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, 2023: 97,974 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, where he directed 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, 2023: 10,631 shares
M i l l i c o m 2 0 2 2 A n n u a l R e p o r t 1 1 4
Governance
Mr. Salvador Escalón
Executive Vice President, Chief Legal and Compliance Officer
Salvador became General Counsel in 2013, Executive Vice President in 2015 and Chief Legal and
Compliance Officer in 2020.
Salvador joined Millicom as Associate General Counsel Latin America in 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, 2023: 84,494 shares
Ms. Susy Bobenrieth
Executive Vice President, Chief Human Resources Officer
Susy joined the Executive Team as Executive Vice President and Chief Human Resources Officer in 2017.
She has been instrumental in development and bringing Millicom's Sangre Tigo culture to life.
Susy is a global human resources professional with over 25 years of experience at 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, 2023: 13,027 shares
M i l l i c o m 2 0 2 2 A n n u a l R e p o r t 1 1 5
Governance
Directors’ Financial and Operating Report
Group Performance
In 2022, total revenue for the Group was $5,624 million and
gross profit was $4,118 million, a margin of 73.2%.
activities undertaken by the Group, are set out in Section D, financial
risk management, of the consolidated financial statements.
Operating expenses represented 33.6% of revenue, a decrease
compared with the 36.3% in 2021 as a result of increased sales and
marketing costs to support robust customer growth.
Internal controls and risk management on the preparation of
the consolidated financial statements are covered in the Our
Governance section starting on page 53.
Operating profit was up 47.9% to $915 million, a 16.3%
margin, affected by strong operational performance.
Depreciation was also higher, which was mainly attributable to
the Tigo Guatemala acquisition and the related purchase price
allocation.
Net financial expenses were $599 million, an increase of $127
million compared with last year. The increase was mainly due to the
Tigo Guatemala acquisition and the subsequent issuance of debt.
Profit before taxes was $238 million, reflecting the higher
operating profit, partially offset by the net increase in financial
expenses mentioned above and other non-operating expenses
of $78 million, mainly related to foreign exchange losses and
the revaluation charge of the put option in Panama.
The net tax charge was $222 million, leaving a net profit from
continuing operations of $16 million for the year.
As a result, our net profit for the year, after discontinued
operations stemming from the gain on disposal of our
operations in Tanzania, was $129 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
$177 million, an earnings per share of $1.27.
Share Capital
On May 18, 2022, the Board of Directors of Millicom resolved on
a rights offering (the "Rights Offering") granting preferential
subscription rights to existing holders of shares and Swedish
Depositary Receipts ("SDRs"). The Rights Offering resulted in the
issuance of approximately 70.4 million new shares, which
increased the number of outstanding shares in Millicom.
At December 31, 2022, Millicom had approximately 172.1
million issued and paid-up common shares of par value $1.50
each, of which approximately 1.2 million were held by the
Company as treasury shares (2021: approximately 1.5 million).
During the year, the Company did not acquire shares through its
share repurchase program. It issued approximately 378,000
shares to management and employees under the share-based
plans, and issued approximately 41,000 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 2022. No dividend was paid in 2021.
Following the Group's decision to work towards the Rights Offering
explained above, during 2022, no shares were repurchased under
the share repurchase plans approved at the 2021 AGM (which was
valid until May 4, 2022) or the plan that was approved at the 2022
AGM (which is valid until May 4, 2023).
Financial Risk Management Objectives and Policies
Millicom’s financial risk management policies and objectives,
together with a description of the various risks and hedging
Non-Financial Information
Non-financial information—such as environmental, social and
governance—is integrated throughout this report.
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, 2022, the Group’s headcount from continuing
operations is approximately 20,000.
Financial targets1
As communicated on February 14, 2022, Millicom’s financial
targets are:
• Organic operating cash flow growth of around 10% per year
on average in 2022-2024
• Cumulative Equity free cash flow of $800 million to $1.0
billion in 2022-2024
• Reduce leverage to 2.5x by 2025 and to 2.0x over the long term
Risks and Uncertainty Factors
The Group operates in an industry and markets that are
characterized by rapid change and are subject to macroeconomic,
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 such as inflation—affect the
level of disposable income, consumers’ attitudes and demand for
our products and services.
Subsequent Events
Potential acquisition
On January 25, 2023, Millicom confirmed that a potential
acquisition of all outstanding shares in Millicom is being discussed
with Apollo Global Management and Claure Group. There is no
certainty that a transaction will materialize nor as to the terms,
timing or form of any potential transaction.
Colombia financing
On January 5, 2023, UNE issued a COP230 billion (approximately
$50 million) bond consisting of two tranches with three and four
and a half-year maturities. Interest rates are variable, based on CPI
+ a margin, and are payable in Colombian peso.
José Antonio Ríos García
Chairman of the Board of Directors
Luxembourg, February 28, 2023
1 Our outlook includes references to non-GAAP measures which are further defined and described elsewhere in this Annual Report.
M i l l i c o m 2 0 2 2 A n n u a l R e p o r t 1 1 6
Governance
Management Responsibility Statement
We, Mauricio Ramos, Executive Director and Chief Executive Officer, and Sheldon Bruha, Chief Financial Officer, confirm to
the best of our knowledge that these 2022 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
Sheldon Bruha
Chief Financial Officer
Luxembourg, February 28, 2023
M i l l i c o m 2 0 2 2 A n n u a l R e p o r t 1 1 7
Forward Looking Statements and Use of Non-IFRS Terms
Forward Looking
Statements and
Use of Non-IFRS
Terms
M i l l i c o m 2 0 2 2 A n n u a l R e p o r t 1 1 8
Forward Looking Statements and Use of Non-IFRS Terms
Forward Looking Statements
Statements included herein that are not historical facts, including without limitation statements concerning future strategy, plans,
objectives, expectations and intentions, projected financial results, liquidity, growth and prospects, are forward-looking statements.
Such forward-looking statements involve a number of risks and uncertainties and are subject to change at any time. In the event such
risks or uncertainties materialize, Millicom’s results could be materially adversely affected. In particular, there is uncertainty about
global economic activity and inflation, the demand for Millicom's products and services, and global supply chains. The risks and
uncertainties include, but are not limited to, the following:
• Global economic conditions, foreign exchange rate
• Our ability to create new organizational structures for our Tigo
fluctuations and inflation, and local economic conditions in
the markets we serve, which can be impacted by geopolitical
developments outside of our principal geographic markets,
such as the armed conflict between Russia and the Ukraine
and related sanctions;
• Potential disruption due to diseases, pandemics, political
events, armed conflict and acts by terrorists; examples
include the impact of the outbreak of the COVID-19 virus and
the ongoing efforts throughout the world to contain it;
• Telecommunications usage levels, including traffic, customer
growth and the accelerated transition from traditional to
digital services;
• Competitive forces, including pricing pressures, piracy, the
ability to connect to other operators’ networks and our ability
to retain market share in the face of competition from
existing and new market entrants as well as industry
consolidation;
• The achievement of our operational goals, financial targets
and strategic plans, including the acceleration of cash flow
growth, the reduction in net leverage, the expansion of our
fixed broadband network, the implementation of a share
repurchase program, and environmental, social and
governance standards;
• Legal or regulatory developments and changes or changes in
governmental policy, including the availability of spectrum
and licenses; the level of tariffs, laws and regulations that
require the provision of services to customers without
charging; tax matters; the terms of interconnection; customer
access; and international settlement arrangements;
• Our ability to grow our mobile financial services business in
our Latin American markets;
• Adverse legal or regulatory disputes or proceedings;
• The success of our business, operating and financing
initiatives, and strategies, including partnerships and capital
expenditure plans;
• Our expectations regarding the growth in fixed broadband
penetration rates and the return that our investment in
broadband networks will yield;
• The level and timing of the growth and profitability of new
initiatives, start-up costs associated with entering new
markets, the successful deployment of new systems, and
applications to support new initiatives;
Money and Towers businesses and manage them
independently to enhance their value;
• Relationships with key suppliers, and costs of handsets and
other equipment;
• Disruptions in our supply chain due to economic and political
instability, the outbreak of war or other hostilities, public
health emergencies, natural disasters and general business
conditions;
• Our ability to successfully pursue acquisitions, investments or
merger opportunities, integrate any acquired businesses in a
timely and cost-effective manner, 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; and
• Other factors or trends affecting our financial condition or
results of operations
A further list and description of risks, uncertainties and other
matters can be found in Millicom’s Registration Statement on
Form 20-F, including those risks outlined in “Item 3. Key
Information—D. Risk Factors,” and in Millicom’s subsequent
U.S. Securities and Exchange Commission filings, all of which are
available at www.sec.gov. 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 its
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.
M i l l i c o m 2 0 2 2 A n n u a l R e p o r t 1 1 9
Forward Looking Statements and Use of Non-IFRS Terms
Use of Non-IFRS Terms
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 provides them to investors as a supplement to Millicom’s
reported results 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.
Following the changes in perimeter following the Guatemala
acquisition and the Africa disposal, Millicom's management
modified the company's external reporting with the primary
objective of simplifying it. As a result, the Group has
discontinued the use of the following non-IFRS measures:
Proportionate financial obligations, Proportionate leverage,
Proportionate leverage after leases, and all Underlying
measures (as these mainly reflected the full consolidation of
Guatemala). The definitions of EBITDA and Return on Invested
Capital have been adjusted to reflect this change. In addition,
the Group changed the definition of equity free cash flow to
include spectrum paid and lease principal repayments in
response to feedback from users of our financial statements
who prefer a more comprehensive view of our cash flow
generation. As a result, we no longer refer to equity free cash
flow 'after leases.'
Alternative Performance Measure Description
Service revenue is revenue related to the provision of ongoing
services such as monthly subscription fees for mobile and
broadband, airtime and data usage fees, interconnection fees,
roaming fees, mobile finance service commissions and fees
from other telecommunications services such as data services,
short message services, installation fees and other value-added
services, excluding telephone and equipment sales.
EBITDA is operating profit excluding impairment losses,
depreciation and amortization and gains/losses on fixed
asset disposals.
EBITDA after leases (EBITDAaL) represents EBITDA after lease
interest and principal repayments.
EBITDA margin represents EBITDA in relation to revenue.
Organic growth represents year-on-year growth excluding the
impact of changes in FX rates, perimeter and accounting. Changes
in perimeter are the result of acquisitions and divestitures. Results
from divested assets are immediately removed from both periods,
whereas the results from acquired assets are included in both
periods at the beginning (January 1) of the first full calendar
year of ownership.
Net debt is debt and financial liabilities less cash and pledged
and time deposits.
Net financial obligations is net debt plus lease liabilities.
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 (last 12
months) EBITDA after leases, pro forma for acquisitions and
disposals 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.
Operating cash flow (OCF) is EBITDA less Capex.
Operating free cash flow (OFCF) is EBITDA less cash capex,
spectrum paid, working capital and other non-cash items and
taxes paid.
Equity free cash flow (EFCF) is OFCF less finance charges paid
(net), lease interest payments, lease principal payments and
advances for dividends to non-controlling interests, plus cash
repatriation from joint ventures and associates.
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, 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, and investments and
non-controlling interests), less assets and liabilities held for sale.
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 from other industry participants.
M i l l i c o m 2 0 2 2 A n n u a l R e p o r t 1 2 0
Forward Looking Statements and Use of Non-IFRS Terms
Non-IFRS reconciliations
Reconciliation from Reported Growth to Organic Growth for the Group
($ millions)
A- Current period
B- Prior year period
C- Reported growth (A/B)
D- Perimeter
E- FX and other
F- Organic Growth (C-D-E)
Revenue
Service Revenue
EBITDA
OCF
FY 2022
FY 2021
FY 2022
FY 2021
FY 2022
FY 2021
FY 2022
FY 2021
5,624
4,261
32.0 %
32.2 %
(3.5) %
3.3 %
4,261
3,805
12.0 %
3.0 %
1.9 %
7.1 %
5,171
3,997
29.4 %
29.4 %
(3.5) %
3.5 %
3,997
3,604
10.9 %
2.3 %
1.6 %
7.0 %
2,228
1,517
46.8 %
49.2 %
(3.5) %
1.2 %
1,517
1,362
1,255
595
11.4 % 111.0 %
1.9 % 104.4 %
3.0 %
6.5 %
(1.8) %
8.4 %
595
614
(3.1) %
0.7 %
(2.6) %
(1.2) %
Reconciliation from Reported Growth to Organic Growth for the Group's main markets
Service Revenue* ($ millions)
FY 2022
FY 2021
Organic
FX & Others
Reported
Guatemala
Colombia
Paraguay
Honduras
Bolivia
Panama
El Salvador
Nicaragua
Costa Rica
1,373
1,253
1,365
1,319
0.8 %
(0.2) %
6.6 % (11.7) %
530
549
608
624
429
235
137
526
548
612
608
398
225
139
4.2 %
2.0 %
(0.6) %
2.7 %
7.7 %
6.7 %
2.8 %
(3.1) %
(1.9) %
— %
— %
— %
(1.9) %
(4.1) %
0.6 %
(5.0) %
0.9 %
0.1 %
(0.6) %
2.7 %
7.7 %
4.6 %
(1.4) %
*Accounting and perimeter changes do not applied and as such have been removed. FX and others have been combined as the "others" changes are related to exchange rate
related movements.
EBITDA* ($ millions)
FY 2022
FY 2021
Organic
FX & Others
Reported
Guatemala
Colombia
Paraguay
Honduras
Bolivia
Panama
El Salvador
Nicaragua
Costa Rica
857
404
245
262
242
298
176
109
45
857
441
242
259
249
281
162
105
44
0.1 %
(0.2) %
— %
3.0 % (11.4) %
(8.4) %
4.2 %
3.0 %
(3.0) %
6.2 %
8.3 %
6.6 %
7.3 %
(3.1) %
(1.9) %
— %
— %
— %
(1.9) %
(4.2) %
1.0 %
1.1 %
(3.0) %
6.2 %
8.3 %
4.5 %
3.1 %
*Accounting and perimeter changes do not applied and as such have been removed. FX and others have been combined as the "others" changes are related to exchange rate
related movements.
Reconciliation Net Financial Obligations to EBITDA December 31, 2022, and December 31, 2021.
Debt Information - 31 December 2022
Financial obligations
EBITDA
Leverage
$ millions
Millicom Group (IFRS)
Gross
7,820
Cash
1,039
Net
6,780
2,228
3.04x
Debt Information - 31 December 2021
Financial obligations
EBITDA
$ millions
Millicom Group (IFRS)
Gross
8,911
Cash
930
Net
7,981
Adjustments*
EBITDA
Leverage
1,639
747
2,385
3.34x
*Related to Guatemala acquisition completed on November 12, 2021.
M i l l i c o m 2 0 2 2 A n n u a l R e p o r t 1 2 1
Forward Looking Statements and Use of Non-IFRS Terms
One-off Summary - Items Above EBITDA
($ millions)
Panama
Colombia
Corporate
Group Total
($ millions)
Paraguay
Group Total
ARPU Reconciliations
Group - 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)
2022
Revenue
EBITDA
Comments
—
—
—
—
5
(4)
(7)
(7)
2021
Revenue
EBITDA
Comments
(4)
(4)
(4)
(4)
2022
2021
2,957
2,933
(43)
(30)
2,914
2,903
40,576
39,802
40,041
38,393
6.1
6.3
*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.
Group - 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)
*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.
OCF (EBITDA - Capex) Reconciliation
EBITDA
(-) Capex (Ex. Spectrum)
OCF
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
2022
2021
1,555
1,590
(33)
(29)
1,522
1,561
4,811
4,704
4,765
4,575
26.6
28.4
FY 2022
FY 2021
2,228
1,517
973
1,255
922
595
FY 2022
FY 2021
823
345
195
1,167
14
787
164
29
951
10
Foreign Exchange Rates
Bolivia
Colombia
Costa Rica
Guatemala
Honduras
Nicaragua
Paraguay
BOB
COP
CRC
GTQ
HNL
NIO
PYG
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
Lease Principal Repayments
Free cash flow
Repatriation from joint ventures and associates
Dividends paid to non-controlling interests
Equity free cash flow
Equity free cash flow - Africa
Equity free cash flow - excluding Africa **
M i l l i c o m 2 0 2 2 A n n u a l R e p o r t 1 2 2
Forward Looking Statements and Use of Non-IFRS Terms
Average FX rate (vs. USD)
End of period FX rate (vs. USD)
2022
2021
YoY
2022
2021
YoY
6.91
4,254
650
7.75
24.56
35.87
7,008
6.91
— %
3,756
(11.71) %
625
7.74
24.12
35.17
6,790
(3.81) %
(0.20) %
(1.80) %
(1.96) %
(3.11) %
6.91
4,810
602
7.85
24.66
36.23
7,346
6.91
3,981
645
7.72
24.43
35.52
6,886
FY 2022
1,284
(800)
21
(179)
(93)
530
765
(530)
(157)
77
88
(4)
161
(10)
171
— %
(17.24) %
7.19 %
(1.70) %
(0.93) %
(1.96) %
(6.26) %
FY 2021
956
(740)
11
(98)
(37)
491
582
(491)
(137)
(46)
62
(6)
10
(2)
12
*Operating free cash flow is now calculated including spectrum and licenses.
** As a result of the disposal of our Africa operations in 2022, we have removed the effect of Africa from the Equity free cash flow.
123
Financial Statements
INDEX TO FINANCIAL STATEMENTS
Audited Consolidated Financial Statements of Millicom International Cellular S.A. at December 31, 2022 and 2021
and for the Years Ended December 31, 2022, 2021 and 2020
Report of independent registered public accounting firm PCAOB ID 1367
Consolidated statement of income for the years ended December 31, 2022, 2021 and 2020
Consolidated statement of comprehensive income for the years ended December 31, 2022, 2021 and 2020
Consolidated statement of financial position at December 31, 2022 and 2021
Consolidated statement of cash flows for the years ended December 31, 2022, 2021 and 2020
Consolidated statement of changes in equity for the years ended December 31, 2022, 2021 and 2020
Notes to the audited consolidated financial statements
124
130
131
132
134
136
138
Millicom 2022 Annual Report M i l l i c o m 2 0 2 2 A n n u a l R e p o r t
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 215, which comprise the consolidated statement of financial position as at December 31, 2022, 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, 2022, 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
(“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 as adopted for Luxembourg by the CSSF 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 Code of Ethics for Professional Accountants, including
International Independence Standards, issued by the International Ethics Standards Board for 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.
125
M i l l i c o m 2 0 2 2 A n n u a l R e p o r t
125
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. Similarly, the
recoverability of the carrying amount of the deferred tax assets is assessed periodically and in particular the capacity to
generate sufficient taxable profits to utilize these deferred tax assets and other tax credits as such recoverability assessment
is highly judgmental.
125
M i l l i c o m 2 0 2 2 A n n u a l R e p o r t
126
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 and the recoverability of the deferred tax assets and other tax credits.
• 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 tested also controls over management’s evaluation of the significant assumptions used in their fiscal projections to
assess the recoverability of the Group’s deferred tax assets and other tax credits.
• 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 inspected the business plans used in the Group’s analysis of the tax assets’ recoverability, comparing the plans to
those used in other areas of the audit and evaluating the methodology used.
• 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 4,059 million as of December 31, 2022, 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.
125
M i l l i c o m 2 0 2 2 A n n u a l R e p o r t
127
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 115 and the accompanying corporate governance statement on pages 68 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.
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
125
M i l l i c o m 2 0 2 2 A n n u a l R e p o r t
128
fraud may
involve collusion,
forgery,
intentional omissions,
than
from error, as
higher
misrepresentations, or the override of internal control.
for one resulting
▪ 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.
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.
From the matters communicated with those charged with governance, we determine those matters that were of most
significance in the audit of the consolidated financial statements of the current period and are therefore the key audit
matters. We describe these matters in our report unless law or regulation precludes public disclosure about the matter.
Report on other legal and regulatory requirements
We have been appointed as “réviseur d’entreprises agréé” by the General Meeting of the Shareholders on May 04, 2022,
and the duration of our uninterrupted engagement, including previous renewals and reappointments, is 11 years.
The consolidated management report on page 115 is consistent with the consolidated financial statements and has been
prepared in accordance with applicable legal requirements.
The accompanying corporate governance statement on pages 68 to 110 is the responsibility of the Board of 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 undertakings, as amended, is consistent with the
consolidated financial statements and has been prepared in accordance with applicable legal requirements.
We have checked the compliance of the consolidated financial statements of the Group as at December 31, 2022 with
relevant statutory requirements set out in the ESEF Regulation that are applicable to the financial statements. For the
Group, it relates to:
•
•
.
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
In our opinion, the consolidated financial statements of the Group as at December 31, 2022, identified as
tigo-2022-12-31-en, have been prepared, in all material respects, in compliance with the requirements laid down
in the ESEF Regulation.
125
M i l l i c o m 2 0 2 2 A n n u a l R e p o r t
12 9
We confirm that the audit opinion is consistent with the additional report to the audit committee or equivalent.
We confirm that the prohibited non-audit services referred to in EU Regulation No 537/2014 were not provided
and that we remained independent of the Group in conducting the audit.
Other matter
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.
Luxembourg, February 28, 2023
Ernst & Young
Société anonyme
Cabinet de révision agréé
Bruno Di Bartolomeo
125
130
Consolidated financial statements for the years ended
December 31, 2022, 2021 and 2020
Consolidated statement of income for the years ended December 31, 2022,
2021 and 2020
Notes
2022(ii)
2021(i)
2020(i)
Revenue ....................................................................................................................
Cost of sales ..............................................................................................................
Gross profit .............................................................................................................
Operating expenses .................................................................................................
B.1.
B.2.
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), 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 ........................................................................................
A.1.4.
Earnings (loss) per common share for profit (loss) attributable to the owners
of the Company
Basic ($ per share)(iii) ...............................................................................................
Diluted ($ per share)(iii) ...........................................................................................
(i)
Re-presented for discontinued operations (see note A.4.)
5,624
(1,506)
4,118
(1,890)
(999)
(345)
32
(2)
915
(617)
18
—
(78)
—
238
(222)
16
113
129
177
(48)
(US$ millions)
4,261
(1,197)
3,063
(1,546)
(804)
(310)
210
5
619
(495)
23
670
(49)
(40)
728
(158)
570
(28)
542
590
(48)
3,805
(1,060)
2,745
(1,383)
(810)
(309)
171
(12)
402
(560)
13
—
(107)
(1)
(252)
(72)
(325)
(60)
(385)
(344)
(41)
1.27
1.27
4.59
4.57
(2.68)
(2.67)
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.
(ii)
As a result, numbers might not be directly comparable with previous years' figures.
(iii)
2021 and 2020 comparatives have been restated as a result of the completion of the rights offering (see note B.7.).
The accompanying notes are an integral part of these consolidated financial statements.
Millicom 2022 Annual Report 131
Consolidated financial statements for the years ended
December 31, 2022, 2021 and 2020
Consolidated statement of comprehensive income for the years ended
December 31, 2022, 2021 and 2020
2022
2021
2020
(US$ millions)
Net profit (loss) for the year ................................................................................................................
129
542
(385)
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 (loss) for the period arises from:
Continuing operations ........................................................................................................................
Discontinued operations ....................................................................................................................
19
9
(2)
155
204
(49)
42
113
(51)
17
1
509
566
(57)
536
(27)
(19)
(1)
(2)
(407)
(360)
(48)
(345)
(62)
The accompanying notes are an integral part of these consolidated financial statements.
Millicom 2022 Annual Report 132
Consolidated financial statements for the years ended
December 31, 2022, 2021 and 2020
Consolidated statement of financial position at December 31, 2022 and 2021
Notes
December 31,
2022
December 31,
2021(i)
(US$ millions)
ASSETS
NON-CURRENT ASSETS
Intangible assets, net .....................................................................................................................
Property, plant and equipment, net ..............................................................................................
Right of use assets, net ...................................................................................................................
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.
7,361
2,989
884
590
—
10
204
19
—
76
7,558
3,382
1,024
596
22
8
180
21
24
74
TOTAL NON-CURRENT ASSETS ...................................................................................................
12,133
12,890
CURRENT ASSETS
Inventories ......................................................................................................................................
Trade receivables, net ....................................................................................................................
Contract assets, net ........................................................................................................................
Amounts due from non-controlling interests, associates and joint ventures .............................
Prepayments and accrued income ................................................................................................
Current income tax assets ..............................................................................................................
Supplier advances for capital expenditure ...................................................................................
Other current assets .......................................................................................................................
Restricted cash ...............................................................................................................................
Cash and cash equivalents .............................................................................................................
TOTAL CURRENT ASSETS .............................................................................................................
TOTAL ASSETS ..............................................................................................................................
F.2.
F.1.
F.5.
G.5.
C.5.
C.5.
(i) Restated after the finalization of the Guatemala purchase accounting. See note A.1.2. for further details.
53
379
77
15
117
111
21
197
57
1,039
2,065
14,198
63
405
69
42
166
104
35
269
203
895
2,251
15,141
The accompanying notes are an integral part of these consolidated financial statements.
Millicom 2022 Annual Report 133
Consolidated financial statements for the years ended
December 31, 2022, 2021 and 2020
Consolidated statement of financial position at December 31, 2022 and 2021
Notes
December 31,
2022
December 31,
2021 (i)
(US$ millions)
EQUITY AND LIABILITIES
EQUITY
Share capital and premium ......................................................................................................
C.1.
Treasury shares .........................................................................................................................
Other reserves ...........................................................................................................................
C.1.
Retained profits ........................................................................................................................
Net profit 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 ..........................................................................................................................
Derivative financial instruments ..............................................................................................
Payables and accruals for capital expenditure ........................................................................
Provisions and other non-current liabilities ............................................................................
Deferred tax liabilities ...............................................................................................................
C.3.
C.4.
D.1.2.
F.4.3.
F.4.2.
B.6.
1,343
(47)
(559)
2,691
177
3,605
29
3,634
6,624
853
53
473
295
148
628
(60)
(594)
2,019
590
2,583
157
2,740
5,904
996
1
435
364
214
TOTAL NON-CURRENT LIABILITIES .......................................................................................
8,445
7,914
CURRENT LIABILITIES
Debt and financing ...................................................................................................................
Lease liabilities ..........................................................................................................................
C.3.
C.4.
Put option liability ....................................................................................................................
C.7.4.
Payables and accruals for capital expenditure ........................................................................
Other trade payables ................................................................................................................
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 ................................................................................................
TOTAL LIABILITIES ..................................................................................................................
TOTAL EQUITY AND LIABILITIES ...........................................................................................
F.5.
F.4.1.
180
163
—
428
400
58
412
86
88
305
2,119
10,565
14,198
(i)
Restated after the finalization of the Guatemala purchase accounting. See note A.1.2. for further details.
1,840
171
290
452
347
74
539
128
97
548
4,487
12,401
15,141
The accompanying notes are an integral part of these consolidated financial statements.
Millicom 2022 Annual Report 13 4
Consolidated financial statements for the years ended
December 31, 2022, 2021 and 2020
Consolidated statement of cash flows for the years ended December 31, 2022,
2021 and 2020
Notes
2022
2021(i)
2020(i)
(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 ...................................................................................... E.1., E.2., E.3.
Share of profit in joint ventures .......................................................................................
A.2.
(Gain) loss on disposal and impairment of assets, net ...................................................
B.2., E.4.2.
C.1.
A.1.2.
A.3.
B.5.
Share-based compensation ...........................................................................................
Revaluation of previously held interest in Guatemala ...................................................
Profit (loss) from other joint ventures and associates, net .............................................
Other non-cash non-operating (income) expenses, net ...............................................
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):
238
116
354
131
497
(18)
1,364
(32)
(122)
29
—
—
77
(104)
5
(37)
(14)
(151)
(128)
(411)
8
(316)
1,284
728
3
731
131
400
(23)
1,196
(210)
(6)
17
(670)
39
50
(93)
9
6
(5)
(81)
(140)
(355)
4
(127)
956
Acquisition of subsidiaries, joint ventures and associates, net of cash acquired .........
Financing exit from the Ghana joint venture ..................................................................
Proceeds from the disposal of subsidiaries and associates ............................................
Purchase of spectrum and licenses .................................................................................
Purchase of other intangible assets ................................................................................
Purchase of property, plant and equipment ..................................................................
Proceeds from sale of property, plant and equipment .................................................
Proceeds from disposal of equity investments, net of costs ..........................................
Dividends and dividend advances received from joint ventures and associates ........
Settlement of derivative financial instruments ..............................................................
A.1.
A.2.2.
E.1.4.
E.2.3.
E.2.
C.7.3.
A.2.2.
Transfer (to) / from pledge deposits, net ........................................................................
C.5.3.
Loans granted within the MFS lending activity ..............................................................
(283)
(2,000)
—
152
(93)
(179)
(800)
21
—
10
11
33
(3)
(37)
30
(37)
(98)
(740)
11
163
13
—
(33)
—
(252)
(31)
(283)
156
468
(13)
1,208
(171)
20
24
—
1
106
(43)
(6)
40
8
(2)
(151)
(411)
11
(142)
821
10
—
10
(101)
(101)
(622)
9
197
71
—
—
—
Millicom 2022 Annual Report 135
2021(i)
2020(i)
26
32
(495)
1,470
(1,744)
(193)
(116)
—
(5)
(10)
—
(598)
(17)
(289)
1,164
—
875
Consolidated financial statements for the years ended
December 31, 2022, 2021 and 2020
Cash (used in) provided by other investing activities, net ............................................
Notes
D.1.2.
2022
25
Net cash used in investing activities ..............................................................................
(1,104)
(2,703)
Cash flows from financing activities (including discontinued operations):
Proceeds from debt and other financing .......................................................................
Repayment of debt and other financing ........................................................................
Loan repayment from (advance to) joint venture ..........................................................
Lease capital repayment ..................................................................................................
Proceeds from the rights offering, net of costs ...............................................................
C.6.
C.6.
C.6.
C.1.
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 from (used in) financing activities ....................................................................
Exchange impact on cash and cash equivalents, net .....................................................
Net increase (decrease) 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.
1,570
(2,127)
—
(157)
717
(4)
—
—
(1)
(11)
168
895
(24)
Cash and cash equivalents at the end of the year .........................................................
1,039
3,113
(1,335)
193
(137)
—
(6)
(50)
—
1,777
(10)
20
875
—
895
((i) Re-presented for discontinued operations (see note A.4.).
The accompanying notes are an integral part of these consolidated financial statements.
Millicom 2022 Annual Report 136
Consolidated financial statements for the years ended
December 31, 2022, 2021 and 2020
Consolidated statement of changes in equity for the years ended December 31,
2022, 2021 and 2020
Number of
shares
(000’s)(iv)
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, 2020 .
101,739
(581)
153
480
(51)
2,372
(544)
2,409
271
2,680
Total comprehensive income
for the period ..........................
Dividends to non-controlling
interests ...................................
Purchase of treasury shares ....
Share based compensation
(v) .............................................
Issuance of shares under
share-based payment
schemes ..................................
Balance on December 31,
2020 ........................................
Total comprehensive income
for the year ..............................
Dividends to non controlling
interest ....................................
Purchase of treasury shares ....
Share based compensation
(v) .............................................
Issuance of shares under
share-based payment
schemes ..................................
Change in scope of
consolidation(vii) ....................
Balance on December 31,
2021 ........................................
—
—
—
—
—
—
—
(467)
—
521
—
—
—
—
—
—
—
—
—
(2)
—
—
(19)
—
40
(344)
(15)
(360)
(48)
(407)
—
3
—
—
—
24
—
(16)
24
(11)
(26)
1
(8)
—
—
—
(8)
(16)
24
1
101,739
(526)
153
478
(30)
2,020
(562)
2,059
215
2,274
—
—
—
—
—
—
—
—
(1,471)
—
459
—
—
—
—
—
—
—
—
—
—
—
(2)
—
—
—
(56)
—
26
—
590
(25)
565
(57)
509
—
2
—
2
(5)
—
—
18
(25)
—
—
(54)
18
1
(5)
(3)
—
1
—
—
(3)
(54)
19
1
(5)
101,739
(1,538)
153
476
(60)
2,609
(594)
2,583
157
2,740
Total comprehensive income
for the year ..............................
—
Effects of rights offering(ix) ....
70,357
Dividends to non-controlling
interests ...................................
Purchase of treasury
shares(vi) .................................
Share based compensation(v)
Issuance of shares under
share-based payment
schemes ..................................
Effect of the buy-out of non-
controlling interests in
Panama (viii) ............................
Balance on December 31,
2022 ........................................
—
—
—
—
—
—
—
—
(93)
419
—
—
106
—
611
—
—
—
—
—
—
—
—
(2)
—
—
—
—
(4)
—
16
—
177
—
—
1
—
27
—
—
—
25
204
717
—
(3)
25
(49)
—
(2)
—
1
155
717
(2)
(3)
26
4
(17)
1
—
1
78
—
78
(78)
—
172,096
(1,213)
258
1,085
(47)
2,868
(559)
3,605
29
3,634
Millicom 2022 Annual Report 137
Consolidated financial statements for the years ended
December 31, 2022, 2021 and 2020
(i)
(ii)
Share capital and share premium – see note C.1.
Retained profits – includes profit for the year attributable to equity holders, of which $472 million (2021: $486 million; 2020: $310 million) are not
distributable to equity holders.
(iii) Other reserves – see note C.1.
(iv)
The authorized share capital amounts to $300 million divided into 200 million shares with a par value of $1.50 each following the extraordinary
general meeting held on February 28, 2022.
(v)
Share-based compensation – see note C.1.
(vi) During the year ended December 31, 2022, Millicom withheld approximately 93,413 shares for the settlement of tax obligations on behalf of employees
under share-based compensation plans (2021: 1,369,284 shares repurchased in connection with the Group's share purchase program and 101,591
shares were withheld))
(vii) 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.
(viii) Resulting from the exercise of the put option in Panama, see note A.1.2.
(ix)
See note C.1.
The accompanying notes are an integral part of these consolidated financial statements.
Millicom 2022 Annual Report 138
Notes to the Consolidated Financial Statements
For the years ended December 31, 2022, 2021 and 2020
Introduction
Corporate Information
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).
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 February 24, 2023, 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).
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 markets.
Our Group Segment include our Honduras joint venture as if it were fully consolidated, as this reflects the way management reviews
and uses internally reported information to make decisions (see note B.3. Segmental information). The Group Segment figures also
include our operations in Guatemala fully consolidated for comparative periods. 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.
Millicom also provides Mobile Financial Services (MFS) and holds small minority investments in other businesses such as micro-
insurance (Milvik).
Current macroeconomic environment
Inflation in many countries globally has been rising for the past several months due to a variety of factors, including significant
disruptions to the global production and distribution of energy and food commodities caused by Russia’s invasion of Ukraine as well
as the global response to that invasion. As a result, global economic prospects have been severely affected, including in our Latin
America markets. During the last semester of 2022, the Group took meaningful steps to mitigate the impact of rising inflation,
including the implementation of numerous price increases and establishing cost savings initiative programs, which will position it to
sustain healthy service revenue growth and margins going forward.
Although the macro-economic backdrop has become more challenging, business and financial performance through 2022 is
broadly in line with our plans.
The Group continues to monitor the developments of the aforementioned events and their potential impact on performance and
accounting considerations.
When it comes to COVID-19, as of December 31, 2022, and for the year ended December 31, 2022, management did not identify any
significant adverse accounting effects as a result of the pandemic.
Climate-related risks
As already publicly announced and discussed elsewhere in our external reporting, our goal is to raise the bar on the Group’s
contribution on environmental, societal and governance matters. In particular, we have committed to short-term goals validated by
the Science Based Targets initiative (SBTi). We are also committed to the long-term goal of net zero emissions by or before 2050.
Although there is no single explicit standard on climate-related matters under IFRS, climate risk and other climate-related matters
may impact a number of areas of accounting. Up to now, the Group has not been significantly impacted by climate change, and,
currently, Management has not considered the climate-related risks as part of the Group's top twelve key risks. Nevertheless,
Management will continue monitoring every year the potential risks resulting from the effects of climate change in the form of
natural disasters, such as extreme weather events affecting our 'Networks and infrastructure resilience'. So far, Management has not
identified nor considered any material impacts of climate change on assumptions used (e.g. for impairment tests, fair value
measurement, etc.) and on the Group's financial reporting (e.g. provisions, fixed assets, etc.).
Millicom 2022 Annual Report 139
Notes to the Consolidated Financial Statements
For the years ended December 31, 2022, 2021 and 2020
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 2022 Annual Report 14 0
Notes to the Consolidated Financial Statements
For the years ended December 31, 2022, 2021 and 2020
The following table presents functional currency translation rates for the Group’s locations to the US dollar on December 31, 2022,
2021 and 2020 and the average rates for the years ended December 31, 2022, 2021 and 2020.
Exchange Rates to the
US Dollar
Functional Currency
2022 Year-
end Rate
2021 Year-
end Rate
Change %
2022
Average
Rate
2021
Average
Rate
Change %
2020
Average
Rate
Bolivia ........................ Boliviano (BOB)
Colombia ................... Peso (COP)
Costa Rica ................... Costa Rican Colon (CRC)
El Salvador ................. US dollar
Guatemala ................. Quetzal (GTQ)
Honduras ................... Lempira (HNL)
Luxembourg .............. Euro (EUR)
Nicaragua ................... Cordoba (NIO)
Panama ...................... Balboa (B/.) (i)
Paraguay .................... Guarani (PYG)
Sweden ...................... Krona (SEK)
United Kingdom ........ Pound (GBP)
6.91
4,810
602
n/a
7.85
24.66
0.93
36.23
n/a
7,346
10.43
0.83
6.91
3,981
645
n/a
7.72
24.43
0.88
35.52
n/a
6,886
9.05
0.74
— %
(17.2) %
7.2 %
n/a
(1.7) %
(0.9) %
(5.9) %
(2.0) %
n/a
(6.3) %
(13.2) %
(10.7) %
6.91
4,254
650
n/a
7.75
24.56
0.95
35.87
n/a
7,008
10.07
0.81
6.91
3,756
625
n/a
7.74
24.12
0.85
35.17
n/a
6,790
8.59
0.73
— %
(11.7) %
(3.8) %
n/a
(0.2) %
(1.8) %
(10.6) %
(2.0) %
n/a
(3.1) %
(14.7) %
(9.9) %
6.91
3,695
590
n/a
7.73
24.65
0.87
34.34
n/a
6,758
9.16
0.77
(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 changes to 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:
◦
◦
◦
◦
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 or after January 1, 2023 that are not expected to have a significant impact on
the Group consolidated financial statements:
◦
◦
◦
Amendments to IAS 1, 'Disclosure of Accounting Policies' that are intended to help preparers in deciding which
accounting policies to disclose in their financial statements.
IAS 8, 'Accounting Policies, Changes in Accounting Estimates and Errors' - Definition of accounting estimates.
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 recognizing deferred tax for all temporary differences related to leases and decommissioning obligations
at the beginning of the earliest comparative period presented. The Group has been applying the so-called "Linked
transaction approach" in the calculation of deferred taxes related to leases and asset retirement obligation (ARO) since
the adoption of IFRS 16 (in compliance with these amendments). Therefore, the adoption of these amendments will
not have an impact for the Group.
The following changes to standards are effective for annual periods starting on January 1, 2024 and their potential impact on the
Group consolidated financial statements is currently being assessed by Management:
▪
▪
Amendments to IFRS 16 'Leases: Lease Liability in a Sale and Leaseback' (not yet endorsed by the EU) - The
amendment specifies the requirements that a seller-lessee uses in measuring the lease liability arising in a sale and
leaseback transaction, to ensure the seller-lessee does not recognize any amount of the gain or loss that relates to the
right of use it retains.
Amendments to IAS 1, 'Presentation of Financial Statements' (not yet endorsed by the EU): These amendments aim to
improve the information an entity provides when its right to defer settlement of a liability is subject to compliance
with covenants within twelve months after the reporting period.
Millicom 2022 Annual Report 141
Notes to the Consolidated Financial Statements
For the years ended December 31, 2022, 2021 and 2020
Judgments and critical estimates
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, such as current
macro-economic challenges. 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 2022 Annual Report 142
Notes to the Consolidated Financial Statements
For the years ended December 31, 2022, 2021 and 2020
•
•
•
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.
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 2022 Annual Report 143
Notes to the Consolidated Financial Statements
For the years ended December 31, 2022, 2021 and 2020
Entity
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
Telecomunicaciones Digitales, S.A. (formerly 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
Telefonia Celular de Nicaragua S.A. (ii) ........................ Nicaragua
Mobile
December
31, 2022
% holding
December
31, 2021
% holding
December
31, 2020
% holding
100
100
100
100
100
100
100
100
100
100
100
80
80
100
100
100
100
80
80
100
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
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
Millicom International Operations S.A. ........................ Luxembourg Holding Company
Millicom International Operations B.V. ........................ Netherlands
Holding Company
Millicom Telecommunications S.A. .............................. Luxembourg Holding Company
InfraCo S.A. .................................................................... Luxembourg Holding Company
Millicom LIH S.A. ........................................................... Luxembourg Holding Company
MIC Latin America 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
100
100
100
100
100
100
100
100
100
100
100
100
100
100
100
100
na
100
100
100
100
100
100
55
55
100
100
100
na
100
100
100
100
100
100
* Also reflects the voting interest, except in Colombia where voting interest is 50% + 1 share for each of the three entities.
(i)
Acquisition completed on December 13, 2018. Telecomunicaciones Digitales, S.A. (formerly 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
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.
Millicom 2022 Annual Report Notes to the Consolidated Financial Statements
For the years ended December 31, 2022, 2021 and 2020
14 4
A.1.2. Acquisition of subsidiaries and changes in non-controlling interests in subsidiaries
Scope changes 2022
As of June 14, 2022, the Group received the formal notification from the minority shareholders of Telecomunicaciones Digitales, S.A
(formerly Cable Onda S.A.) confirming the exercise of their put option right to sell their remaining 20% shareholding to Millicom for
an amount of approximately $290 million. The transaction was closed on June 29, 2022 and the payment was applied against the
already recorded put option liability of $290 million. As a result, the non-controlling interests' carrying value of $78 million have
been transferred to the Group's equity.
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.).
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 2021 statement of income under the line "Revaluation of previously held interests" and is included in the goodwill
calculation.
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.
Finalization of Purchase Accounting
During the first half of 2022, Millicom has finalized the purchase accounting and determined the fair values of Tigo Guatemala's
identifiable assets and liabilities. Comparative figures as of December 31, 2021, have been restated accordingly. The finalization of
the purchase accounting had an effect on the following financial position line items previously reported as of December 31, 2021:
$ millions
STATEMENT OF FINANCIAL POSITION
ASSETS
Intangible assets, net
Property, plant and equipment, net
Right-of-use asset (non-current), net
Prepayments and accrued income
Other current assets
LIABILITIES
Provisions and other current liabilities
December 31, 2021
As reported
Impact of the finalization
of the purchase
accounting of Guatemala
December 31, 2021
As restated
Reason for
the change
7,721
3,198
1,008
168
302
546
(163)
184
17
(2)
(33)
2
(i)
(ii)
(iii)
7,558
3,382
1,024
166
269
548
(i) Impact on intangibles resulting from the adjustments explained below.
(ii) See updated fair values section below. It mainly relates to property, plant and equipment step up.
(iii) See updated fair values section below. It relates to remeasurement of the right of use assets.
The impact of the finalization of Tigo Guatemala's purchase accounting on the 2021 Group statement of income is immaterial.
Therefore, no adjustments were made in that respect on comparative figures.
Millicom 2022 Annual Report 145
Notes to the Consolidated Financial Statements
For the years ended December 31, 2022, 2021 and 2020
The table below shows the changes in fair values compared to the values reported as of December 31, 2021.
At acquisition date - November 12, 2021
(in millions of U.S. dollars)
Provisional fair
values (100%)
($ millions)
Final fair values
(100%)
($ millions)
Changes
Intangible assets (excluding goodwill)(i) .................................................................................
1,294
1,917
Property, plant and equipment(ii) ...........................................................................................
Right of use assets(iii) ...............................................................................................................
Other non-current assets ..........................................................................................................
Current assets (excluding cash) ...............................................................................................
Trade receivables(iv) .................................................................................................................
Cash and cash equivalents .......................................................................................................
547
189
5
210
42
199
731
205
5
210
42
199
Total assets acquired .............................................................................................................
2,486
3,309
Lease liabilities(iii) .....................................................................................................................
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(v) ............................................................
Total goodwill - E+F=G ...........................................................................................................
(i)
Fair value step-up have been recognized mainly on the following intangible assets:
205
417
281
903
1,583
2,195
4,877
2,013
2,625
670
3,295
205
417
281
903
2,406
2,195
4,877
2,013
1,802
670
2,472
623
184
17
—
—
—
—
823
—
—
—
—
823
—
—
—
(823)
—
(823)
a) the customer lists for an amount of $514 million, with estimated weighted average useful lives of 9.3 years.
b) the spectrum and licenses held by Tigo Guatemala for $51 million, with a remaining useful life of 11 years.
c) the trademarks and brand held and operated by Tigo Guatemala for $62 million, bringing its carrying value to $910 million.
Management determined that the latter have indefinite useful lives.
(ii)
A fair value step-up of $184 million has been recognized on property, plant and equipment, mainly on the core network, network equipment and
owned towers. The weighted average remaining useful live is estimated at 6 years.
(iii)
The Group measured the lease liability at the present value of the remaining lease payments (as defined in IFRS 16) as if the acquired lease were a
new lease at the acquisition date. The right-of-use assets have been adjusted by $17 million to be measured at the same amount as the lease
(iv)
(v)
liabilities.
The fair value of trade receivables acquired approximate their carrying value of $42 million.
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; 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 following valuation methods and key estimates were used for the valuation of the main classes of fixed assets:
Millicom 2022 Annual Report 14 6
Notes to the Consolidated Financial Statements
For the years ended December 31, 2022, 2021 and 2020
Major class of
assets
Trademark
Valuation method
Key assumption 1
Key assumption 2
Key assumption 3
Income approach -
Relief from
royalty method
Discount rate: 8.5%
Royalty rate: 5%
Indefinite life
Attrition rates:
•
•
•
•
Mobile prepaid:
Forecasted period
average 38.9%, 36.9%
afterwards
Mobile Postpaid:
Forecasted period
average 20.5%, 16.6%
afterwards
B2B: 13%
Home: Forecast Period
average: 27.3%, 27.9%
afterwards
ARPU:
•
•
•
•
Mobile prepaid: Forecasted
period average $5.7, $5.1
afterwards
Mobile Postpaid:
Forecasted period average
$28.7, $29.8 afterwards
B2B: Forecasted period
average $348.4, $383.5
afterwards
Home: Forecast Period
average: $38, $41.1
afterwards
Fair value of each license is
based on selected market
price (USD/MHz/capital/year),
as well as the remaining
period, bandwidth and
population coverage under
each license
n/a
RCN of tower assets based on
current prices depending on
the tower category (guyed,
monopole, self supported or
rooftop), construction type
(concrete, lattice, steel, etc.)
and height
Economic useful lives
considered, according to the
American Society of
Appraisers:
•
•
•
•
Buildings: 35 to 40 years
Leasehold improvements,
towers, tower civil works,
fiber ring post, lifting
equipment, measuring and
observing/testing
instruments, wire working
machinery, generators, air
conditioned, antennas and
fiber optic cable: 12 to 15
years
Core network, HW core,
mobile messaging
platforms, fire protection,
security surveillance
equipment, battery, CPE, EQ
HW BTS, RF components,
routers, telecommunication
jumper, vehicles and
industrial trucks: 5 to 10
years
Network security equipment
and IT equipment: 3 years
Customer lists
Income approach -
Multi-Period Excess
Earnings Method
Discount rate: 10%
Spectrum
Market approach -
Comparable
transactions
multiple based
Discount rate: 8%
Land – Sales
comparison
approach
Building and site
improvements –
Cost approach
Leasehold
Property, plant
and
equipment
improvements –
Indirect cost
approach
Machinery and
equipment –
Indirect cost
approach
Tower assets – Direct
cost approach
Various asset class specific indices
considered, from the bureau of
labor statistics, to estimate the
reproduction cost new (“RCN“),
e.g.:
•
•
•
•
Core network, HW core, CPE,
antennas, EQ HW BTS, HW
BTS, network security
equipment and routers: PPI
industry data for
Communications equipment
(BLS)
Wire working machinery,
fiber optics cable, fiber ring
equipment, RF components
and telecommunication
jumper: PPI industry data for
Communication & energy
wire & cable (BLS)
Components for information
technology, computer
equipment, handsets and
security surveillance
equipment: PPI industry
group data for Computer &
peripheral equipment (BLS)
Tower civil works and
leasehold improvements:
Building cost index (MVS
2022)
Scope changes 2020
There were no material acquisitions in 2020.
Millicom 2022 Annual Report 147
Notes to the Consolidated Financial Statements
For the years ended December 31, 2022, 2021 and 2020
A.1.3. Disposal of subsidiaries
Tanzania
As from March 10, 2022, and in accordance with IFRS 5, all assets and liabilities of our operations in Tanzania were classified as held
for sale and their results have been removed from the results of continuing operations and are shown as a single line item on the
face of the statement of comprehensive income under 'Profit (loss) from discontinued operations, net of tax'. Comparative figures of
the statement of income have been re-presented accordingly.
On April 5, 2022, Millicom completed the sale for an initial cash consideration of approximately $101 million (subject to final price
adjustment). As per the sale agreement, the initial sale price is adjusted to consider some outstanding tax and legal contingencies
which management believes is sufficient to cover any future claims on pre-closing matters. Should the price adjustments not be
sufficient, Millicom might be liable and need to make additional provisions that are not covered by the latter. In addition, the
agreement also provides an IPO(i) adjustment clause valid until April 5, 2024, whereby Millicom would reimburse the buyer for any
negative difference between the share price per share on the IPO date and the one implied by this sale. As of December 31, 2022, no
additional provisions have been made by management in respect of the aforementioned items.
(a)
The net assets de-consolidated on the date of the disposal, as well as the gain on disposal, were as follows:
Details of the sale of the subsidiary ($ millions)
April 5, 2022
Carrying amount of net assets sold (A) .............................
Initial sale consideration (B) ..............................................
Gross gain on sale (B) - (A) ..............................................
Other operating expenses linked to the disposal ............
Other operating income/expenses, net ...........................
Gain on sale before reclassification of foreign
currency translation reserve ..........................................
Reclassification of foreign currency translation reserve ..
Net gain on sale ...............................................................
(79)
101
180
(11)
(5)
165
(56)
109
(i) The Tanzanian government implemented in 2016 legislation requiring telecommunications companies to list their shares on the Dar es Salaam Stock
Exchange and offer 25% of their shares in a Tanzanian public offering. The ´Tanzania Communications Regulatory Authority´ (TCRA) ordered the Tanzanian
operations to complete such public offering by December 31, 2025, at the latest.
Millicom 2022 Annual Report Notes to the Consolidated Financial Statements
For the years ended December 31, 2022, 2021 and 2020
14 8
(b)
2021 and December 31, 2020 are set out below. The figures shown below are after inter-company eliminations.
The operating results and cash flows of the discontinued operation for the years ended December 31, 2022, December 31,
Results from Discontinued Operations
(in millions of U.S. dollars)
Twelve months
ended December
31, 2022
Twelve months
ended December
31, 2021
Twelve months
ended December
31, 2020
Revenue .............................................................................................
Cost of sales .......................................................................................
Operating expenses ...........................................................................
Depreciation and amortization .........................................................
Other operating income (expenses), net ..........................................
Gain/(loss) on disposal of discontinued operations .........................
Other expenses linked to the disposal of discontinued operations
Operating profit (loss) .....................................................................
Interest income (expense), net ..........................................................
Other non-operating (expenses) income, net ..................................
Profit (loss) before taxes .................................................................
Credit (charge) for taxes, net .............................................................
Net profit/(loss) from discontinued operations ..........................
88
(26)
(27)
(21)
4
120
(11)
127
(12)
—
116
(3)
113
357
(104)
(131)
(83)
1
—
—
39
(36)
(1)
3
(31)
(28)
366
(111)
(126)
(89)
(9)
—
(1)
32
(64)
1
(31)
(29)
(60)
Cash flows from discontinued operations
(in millions of U.S. dollars)
Twelve months
ended December
31, 2022
Twelve months
ended December
31, 2021
Twelve months
ended December
31, 2020
Cash from operating activities, net ....................................................
Cash from (used in) investing activities, net ......................................
Cash from (used in) financing activities, net ......................................
Net cash inflows (outflows) .............................................................
18
(10)
(9)
(1)
87
(46)
(35)
5
69
(43)
(34)
(8)
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 $8 million in favor of the buyer. This
price adjustment had been disbursed in September 2020 and recorded under the results from discontinued operations in the
Group's 2020 statement of income.
Other disposals
For the years ended December 31, 2022, 2021 and 2020, Millicom did not dispose of any other significant investments.
A.1.4. Summarized financial information relating to significant subsidiaries with non-controlling interests
Statement of Financial Position – non-controlling interests
Millicom 2022 Annual Report Notes to the Consolidated Financial Statements
For the years ended December 31, 2022, 2021 and 2020
Colombia
Panama
Others
Total
Profit (loss) attributable to non-controlling interests
Colombia
Panama
Others
Total
149
December 31,
2022(i)
2021
(US$ millions)
28
—
1
29
83
74
—
157
2022(i)
2021
2020
(US$ millions)
(52)
4
—
(48)
(40)
(7)
(1)
(48)
(23)
(18)
—
(41)
(i) On June 29, 2022, we purchased the remaining 20% shareholding of our operations Panama (see note A.1.2.).
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
2022
2021
2020
(US$ millions)
1,335
(492)
64
(104)
(52)
1,942
1,890
52
26
2
28
(2)
250
(289)
(133)
(5)
(178)
1,414
(509)
100
(80)
(40)
2,336
2,158
178
89
(6)
83
(5)
272
(295)
30
(10)
(2)
1,346
(470)
129
(46)
(23)
2,589
2,303
286
143
(10)
133
(4)
370
(311)
(47)
(15)
(3)
Millicom 2022 Annual Report Notes to the Consolidated Financial Statements
For the years ended December 31, 2022, 2021 and 2020
Panama
Revenue
Total operating expenses
Operating profit
Net profit (loss) for the year
20% non-controlling interest in net profit (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 (decrease) in cash and cash equivalents
15 0
2022(i)
2021
2020
(US$ millions)
651
(207)
106
29
4
1,719
1,318
401
—
—
148
(117)
(93)
(63)
633
(207)
7
(37)
(7)
1,717
1,347
371
74
74
179
(118)
(43)
17
585
(197)
(60)
(89)
(18)
1,734
1,327
407
81
81
193
(100)
(69)
24
(i) From January 1 to June 29, 2022, until the purchase of the remaining 20% shareholding of our operations Panama (see note A.1.2.).
Millicom 2022 Annual Report 151
Notes to the Consolidated Financial Statements
For the years ended December 31, 2022, 2021 and 2020
A.2. Joint ventures
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, 2022, the equity accounted net assets of our joint venture in Honduras totaled $401 million (December 31, 2021:
$406 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 net assets, $3 million (December 31, 2021: $3 million) represent statutory reserves that are unavailable to
be distributed to the Group. During the year ended December 31, 2022, Millicom's joint venture in Honduras repatriated cash of $85
million in the form of management fees, dividend advances and repayment of a shareholder loan. For the same period last year,
Millicom's joint ventures in Guatemala and Honduras repatriated cash of $62 million, out of which $13 million corresponding to
other operating receivables remain outstanding.
Our main joint ventures are as follows:
Entity
Telefonica Celular S.A. (i)
Navega S.A. de CV (i)
Country
Activity
Honduras
Honduras
Mobile, MFS
Cable
Bharti Airtel Ghana Holdings B.V.
Netherlands
Holding Company
December 31,
2022 %
holding
December 31,
2021 %
holding
66.7
66.7
50
66.7
66.7
50
(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.
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 $37.5 million for the reimbursement
of certain local bank facilities which had been provided for in the statement of income under the line "Profit (loss) from other joint
ventures and associates, net". Millicom still owns 50% of the holding company Bharti Airtel Ghana Holdings B.V..
The carrying values of Millicom’s investments in joint ventures were as follows:
Carrying value of investments in joint ventures at December 31
Honduras operations (i)
Total
(i)
Includes all the companies under the Honduras groups.
2022
2021
(US$ millions)
590
590
596
596
Millicom 2022 Annual Report 152
Notes to the Consolidated Financial Statements
For the years ended December 31, 2022, 2021 and 2020
The table below summarizes the movements for the year in respect of the Group’s joint ventures carrying values:
Opening balance at January 1, 2021
Results for the year
Dividends declared during the year
Currency exchange differences
Closing balance at December 31, 2021
Capital increase
Results for the year
Dividends declared during the year
Currency exchange differences
Closing balance at December 31, 2022
Honduras (i)
(US$ millions)
610
27
(34)
(7)
596
3
32
(35)
(7)
590
(i)
Share of profit is recognized under ‘Share of profit in joint ventures’ in the statement of income for the year ended December 31, 2022.
At December 31, 2022 and 2021 the Group had not incurred obligations, nor made payments on behalf of the Honduras 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 – Honduras, Guatemala and Ghana operations
Summarized financial information of the Honduras, Guatemala (until acquisition the remaining 45% equity interest, see note A.1.2.)
and Ghana (until disposal in 2021) operations is as follows. This information is based on amounts before inter-company eliminations.
Millicom 2022 Annual Report 153
Notes to the Consolidated Financial Statements
For the years ended December 31, 2022, 2021 and 2020
Honduras
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 .................................................................
2022
2021
2020
(US$ millions)
586
(112)
111
(29)
80
(31)
49
32
9
404
384
182
220
(17)
66.7 %
(12)
601
590
27
334
23
162
(109)
(64)
(12)
589
(124)
99
(34)
62
(22)
40
27
—
473
362
176
305
(18)
66.7 %
(12)
608
596
39
267
73
166
(89)
(98)
(21)
552
(132)
77
(24)
58
(19)
39
27
24
461
533
300
236
(8)
66.7 %
(5)
615
610
60
390
10
151
(145)
14
20
Millicom 2022 Annual Report
15 4
Notes to the Consolidated Financial Statements
For the years ended December 31, 2022, 2021 and 2020
Guatemala
Revenue ..............................................................................................................................................
1,379
1,503
2021 (ii)
2020(i)
(US$ millions)
Depreciation and amortization ..........................................................................................................
Operating profit ................................................................................................................................
Financial income (expenses), net (i) ...................................................................................................
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 .........................................................................................
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 .......................................................................................
Exchange impact on cash and cash equivalents, net ........................................................................
Net increase (decrease) in cash and cash equivalents .................................................................
In 2020, Financial expenses included a $18 million charge related to early redemption of bonds.
(282)
462
(40)
432
(99)
333
183
13
N/A
N/A
N/A
611
(192)
(406)
1
13
(323)
452
(95)
347
(83)
264
144
47
188
619
24
598
(289)
(308)
(2)
(1)
Information for the statement of income and cash flows is for the period from January 1 to November 12, 2021. No information is disclosed on
statement of financial position items as these are now fully consolidated in the Group numbers.
(i)
(ii)
Millicom 2022 Annual Report
155
Notes to the Consolidated Financial Statements
For the years ended December 31, 2022, 2021 and 2020
AirtelTigo Ghana
Our joint investment in AirtelTigo Ghana has been disposed of in 2021. The only material effect for 2021 year's statement of income
is the loss recognized on the exit financing which is further explained in note A.2.. Therefore, only 2020 financial information is
disclosed in the table below.
Revenue .............................................................................................................................................
Depreciation and amortization .........................................................................................................
Operating loss ..................................................................................................................................
Financial income (expenses), net ......................................................................................................
Loss before taxes ..............................................................................................................................
Charge for taxes, net ..........................................................................................................................
Loss for the period ...........................................................................................................................
Net loss for the period attributable to Millicom ..........................................................................
Cash and cash equivalents ................................................................................................................
Debt and financing – non-current .....................................................................................................
Debt and financing – current ............................................................................................................
Net cash from (used in) operating activities .....................................................................................
Net cash from (used in) investing activities ......................................................................................
Net cash from (used in) financing activities ......................................................................................
Net decrease in cash and cash equivalents ..................................................................................
2020
(US$ millions)
132
(42)
(30)
(41)
(85)
—
(85)
0
1
289
40
(8)
—
4
(4)
A.2.3. Impairment of investment in joint ventures
While no impairment triggers were identified for the Group’s investments in joint ventures in 2022, according to its policy,
management have completed an impairment test for its joint ventures in Honduras.
The Group’s investments in Honduras operations was tested for impairment by assessing the recoverable amount (using a value in
use model based on discounted cash flows) against the carrying amount. The cash flow projections used were extracted from
financial budgets approved by management and reviewed by the Board (refer to note E.1.6. for further details on impairment
testing). Cash flows beyond this period have been extrapolated using a perpetual growth rate of 1% (2021: 1%). Discount rate used
in determining recoverable amount was 14.2% (2021: 8.9%).
For the year ended December 31, 2022 and 2021, and as a result of the impairment testing described above, management
concluded that the Group’s investments for its joint ventures in Honduras should not be impaired.
Sensitivity analysis was performed on key assumptions within the impairment tests. The sensitivity analysis determined that
sufficient headroom exists from realistic changes to the assumptions that would not impact the overall results of the testing.
Millicom 2022 Annual Report 15 6
Notes to the Consolidated Financial Statements
For the years ended December 31, 2022, 2021 and 2020
A.3. Investments in associates
Millicom has significant influence over immaterial associates as shown below:
Entity
Africa
Country
Activity(ies)
% holding
% holding
December 31,
2022
December 31,
2021
West Indian Ocean Cable Company Limited (WIOCC) (i) .
Republic of
Mauritius
Latin America
Telecommunication carriers’ carrier
—
9.1
MKC Brilliant Holding GmbH (LIH)
Germany
Online marketplace, retail and services
35.0
35.0
Unallocated
Milvik AB (ii) ........................................................................ Sweden
Other
—
9.0
(i) Divested as a result of the disposal of our Tanzanian operations (see note A.4.).
(ii) In December 2022, Millicom relinquished its seat at the board of directors of Milvik AB ("Milvik") and therefore lost its significant influence in accordance
with IAS 28. As a result, the Group stopped equity accounting for its investment in Milvik and classified it as a financial asset measured at fair value in
accordance with IFRS 9.
At December 31, 2022 and 2021, the carrying value of Millicom’s main associates was as follows:
Carrying value of investments in associates at December 31
Milvik AB .....................................................................................................................................................
West Indian Ocean Cable Company Limited (WIOCC) .............................................................................
Total
2022
2021
(US$ millions)
—
—
—
8
14
22
A.3.1. Accounting for investments in associates
The Group accounts for associates in the same way as it accounts for joint ventures.
A.3.2. Impairment of interests in associates
MKC Brilliant Holding GmbH (LIH)
Millicom’s 35.0% investment in LIH had been fully impaired in two stages (by $40 million in 2016 and $48 million in 2017) as a result
of the annual impairment test conducted back then. The impairment test performed in 2022 confirmed this conclusion.
A.4. Discontinued operations
A.4.1. Classification of discontinued operations
Discontinued operations are those which have identifiable operations and cash flows (for both operating and management
purposes) and represent a major line of business or geographic area which has been disposed of, or are held for sale. Revenue and
expenses associated with discontinued operations are presented retrospectively in a separate line in the consolidated statement of
income.
Millicom 2022 Annual Report 157
Notes to the Consolidated Financial Statements
For the years ended December 31, 2022, 2021 and 2020
A.4.2. Millicom’s discontinued operations
In accordance with IFRS 5 and as further explained in Note A.1.3. , the Group’s former businesses in Tanzania and Chad had been
classified as discontinued operations. For further details on Assets held for sale, refer to note E.4.
In accordance with IFRS 5, financial information relating to discontinued operations for the years ended December 31, 2022, 2021
and 2020 is set out below. Figures shown below are after intercompany eliminations.
Results from discontinued operations
Revenue ...............................................................................................................................................
Cost of sales .........................................................................................................................................
Operating expenses ............................................................................................................................
Other expenses linked to the disposal of discontinued operations .................................................
Depreciation and amortization ..........................................................................................................
Other operating income (expenses), net ...........................................................................................
Gain/(loss) on disposal of discontinued operations ..........................................................................
Operating profit (loss) ......................................................................................................................
Interest income (expense), net ...........................................................................................................
Other non-operating (expenses) income, net ....................................................................................
Profit (loss) before taxes ..................................................................................................................
Credit (charge) for taxes, net ..............................................................................................................
Net profit/(loss) from discontinued operations ............................................................................
Cash flows from discontinued operations
December 31
2022
2021
2020
(US$ millions)
88
(26)
(27)
(11)
(21)
4
120
127
(12)
—
116
(3)
113
357
(104)
(131)
—
(83)
1
—
39
(36)
(1)
3
(31)
(28)
366
(111)
(126)
(1)
(89)
(9)
—
32
(64)
1
(31)
(29)
(60)
December 31
2022
2021
2020
(US$ millions)
Cash from operating activities, net .....................................................................................................
Cash from (used in) investing activities, net ......................................................................................
Cash from (used in) financing activities, net ......................................................................................
18
(10)
(9)
87
(46)
(35)
69
(43)
(34)
B. Performance
B.1. Revenue
Millicom’s revenue comprises sale of services from its mobile business (including Mobile Financial Services - MFS) and its cable and
other fixed services, as well as related devices and equipment. Recurring revenue consists of monthly subscription fees, airtime and
data usage fees, interconnection fees, roaming fees, TV services, B2B contracts, MFS commissions and fees from other
telecommunications services such as data services, short message services and other value added services.
Millicom 2022 Annual Report
Notes to the Consolidated Financial Statements
For the years ended December 31, 2022, 2021 and 2020
Revenue from continuing operations by
Mobile ..................................................................................................................................................
Cable and other fixed services ............................................................................................................
Other ....................................................................................................................................................
Service revenue .................................................................................................................................
Telephone and equipment .................................................................................................................
Total revenue .....................................................................................................................................
Revenue from continuing operations by country or operation
15 8
2022
2021
2020
(US$ millions)
2,957
2,145
69
5,171
454
5,624
2,000
1,938
60
3,997
263
4,261
1,759
1,794
51
3,604
201
3,805
2022
2021
2020
(US$ millions)
Colombia .............................................................................................................................................
1,335
1,414
1,346
Paraguay ..............................................................................................................................................
Bolivia ..................................................................................................................................................
El Salvador ...........................................................................................................................................
Nicaragua.............................................................................................................................................
Costa Rica ............................................................................................................................................
Panama ................................................................................................................................................
Guatemala (i) .......................................................................................................................................
Other operations .................................................................................................................................
Eliminations .........................................................................................................................................
556
621
474
247
137
650
1,614
2
(12)
555
623
445
238
141
632
223
2
(13)
544
584
389
220
140
585
—
3
(5)
Total .........................................................................................................................................................
5,624
4,261
3,805
(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.
B.1.1. Accounting for revenue
Revenue recognition
Revenue is recognized at an amount that reflects the consideration to which the Group expects to be entitled in exchange for
transferring goods or services to a customer.
The Group applies the following practical expedients foreseen in IFRS 15:
•
•
•
•
No adjustment to the transaction price for the means of a financing component whenever the period between the transfer
of a promised good or service to a customer and the associated payment is one year or less; when the period is more than
one year the financing component is adjusted, if material.
Disclosure in the Group Financial Statements the transaction price allocated to unsatisfied performance obligations only
for contracts that have an original expected duration of more than one year (e.g. unsatisfied performance obligations for
contracts that have an original duration of one year or less are not disclosed).
Application of the practical expedient not to disclose the price allocated to unsatisfied performance obligations, if the
consideration from a customer corresponds to the value of the entity’s performance obligation to the customer (i.e, if
billing corresponds to accounting revenue).
Application of the practical expedient to recognize the incremental costs of obtaining a contract as an expense when
incurred if the amortization period of the asset that otherwise would have been recognized is one year or less.
Post-paid connection fees are derived from the payment of a non-refundable / one-time fee charged to customer to connect to the
network (e.g. connection / installation fee). Usually, it does not represent a distinct good or service, and therefore does not give rise
Millicom 2022 Annual Report 159
Notes to the Consolidated Financial Statements
For the years ended December 31, 2022, 2021 and 2020
to a separate performance obligation and revenue is recognized over the minimum contract duration. However, if the fee is paid by
a customer to get the right to receive goods or services without having to pay this fee again over his tenure with the Group (e.g. the
customer can readily extend his contract without having to pay the same fee again), it is accounted for as a material right and
revenue should be recognized over the customer retention period.
Post-paid mobile / cable subscription fees are recognized over the relevant enforceable/subscribed service period (recurring
monthly access fees that do not vary based on usage). The service provision is usually considered as a series of distinct services that
have the same pattern of transfer to the customer. Remaining unrecognized subscription fees, which are not refunded to the
customers, are fully recognized once the customer has been disconnected.
Prepaid scratch / SIM cards are services where customers purchase a specified amount of airtime or other credit in advance. Revenue
is recognized as the credit is used. Unused credit is carried in the statement of financial position as a contract liability. Upon
expiration of the validity period, the portion of the contract liability relating to the expiring credit is recognized as revenue, since
there is no longer an obligation to provide those services.
Telephone and equipment sales are recognized as revenue once the customer obtains control of the good. That criteria is fulfilled
when the customer has the ability to direct the use and obtain substantially all of the remaining benefits from that good.
Revenue from provision of Mobile Financial Services (MFS), such as commissions on peer to peer transfers, is generally recognized
once the primary service has been provided to the customer. Revenue from interest earned on loans granted to customers are
recognised over the period of the loan and are based on effective interest rates. Loan origination fees are treated as an adjustment
to the effective interest rate.
Customer premise equipment (CPE) are provided to customers as a prerequisite to receive the subscribed Home services and shall
be returned at the end of the contract duration. Since CPEs provided over the contract term do not provide benefit to the customer
on their own, they do not give rise to separate performance obligations and therefore are accounted for as part of the service
provided to the customers.
Bundled offers are considered arrangements with multiple deliverables or elements, which can lead to the identification of separate
performance obligations. Revenue is recognized in accordance with the transfer of goods or services to customers in an amount that
reflects the relative standalone selling price of the performance obligation (e.g. sale of telecom services, revenue over time + sale of
handset, revenue at a point in time).
Principal-Agent, some arrangements involve two or more unrelated parties that contribute to providing a specified good or service
to a customer. In these instances, the Group determines whether it has promised to provide the specified good or service itself (as a
principal) or to arrange for those specified goods or services to be provided by another party (as an agent). For example,
performance obligations relating to services provided by third-party content providers (i.e., mobile Value Added Services or “VAS”)
or service providers (i.e., wholesale international traffic) where the Group neither controls a right to the provider’s service nor
controls the underlying service itself are presented net because the Group is acting as an agent. The Group generally acts as a
principal for other types of services where the Group is the primary obligor of the arrangement. In cases the Group determines that it
acts as a principal, revenue is recognized in the gross amount, whereas in cases the Group acts as an agent revenue is recognized in
the net amount.
Revenue from the sale of cables, fiber, wavelength or capacity contracts, when part of the ordinary activities of the operation, is
recognized as recurring revenue. Revenue is recognized when the cable, fiber, wavelength or capacity has been delivered to the
customer, based on the amount expected to be received from the customer.
Revenue from operating lease of tower space is recognized on a straight-line basis over the period of the underlying lease contracts.
Finance leases revenue is apportioned between lease of tower space and interest income.
Millicom 2022 Annual Report 16 0
Notes to the Consolidated Financial Statements
For the years ended December 31, 2022, 2021 and 2020
Significant judgments
The determination of the standalone selling price for contracts that involve more than one performance obligation may require
significant judgment, such as when the selling price of a good or service is not readily observable.
The Group determines the standalone selling price of each performance obligation in the contract in accordance to the prices that
the Group would apply when selling the same services and/or telephone and equipment included in the obligation to a similar
customer on a standalone basis. When standalone selling price of services and/or telephone and equipment are not directly
observable, the Group maximizes the use of external input and uses the expected cost plus margin approach to estimate the
standalone selling price.
B.2. Expenses
The cost of sales and operating expenses incurred by the Group can be summarized as follows:
Cost of sales
2022
2021
2020
(US$ millions)
Direct costs of services sold ...............................................................................................................
Cost of telephone, equipment and other accessories ......................................................................
Bad debt and obsolescence costs ......................................................................................................
(941)
(441)
(124)
(841)
(270)
(86)
(748)
(207)
(106)
Cost of sales .......................................................................................................................................
(1,506)
(1,197)
(1,060)
Operating expenses, net
Marketing expenses ............................................................................................................................
Site and network maintenance costs .................................................................................................
Employee related costs (B.4.) ..............................................................................................................
External and other services .................................................................................................................
Other operating expenses ..................................................................................................................
2022
2021
2020
(US$ millions)
(570)
(310)
(494)
(251)
(266)
(450)
(233)
(474)
(164)
(224)
(349)
(214)
(453)
(163)
(204)
Operating expenses, net ..................................................................................................................
(1,890)
(1,546)
(1,383)
The other operating income and expenses incurred by the Group can be summarized as follows:
Other operating income (expenses), net
Notes
2022
2021
2020
(US$ millions)
Impairment of intangible assets and property, plant and equipment ..................
Gain (loss) on disposals of intangible assets and property, plant and
equipment ...............................................................................................................
E.1., E.2.
Impairment of AirtelTigo's receivable .....................................................................
G.5.
Reverse earn-out in respect of Zantel's acquisition (i) ............................................
Gain (loss) on disposal of equity investments ........................................................
C.7.3.
Other income (expenses) (ii) ...................................................................................
Other operating income (expenses), net ............................................................
(7)
1
—
2
—
2
(2)
(6)
5
—
11
(15)
10
5
—
—
(45)
—
25
9
(12)
(i)
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 2021 statement of income.
(ii) In 2021, other income (expenses) can be mainly attributed to social obligations spectrum liability derecognition in Paraguay of $4 million and reversal
provision related to Ghana of $4 million.
Millicom 2022 Annual Report 161
Notes to the Consolidated Financial Statements
For the years ended December 31, 2022, 2021 and 2020
B.2.1. Accounting for cost of sales and operating expenses
Cost of sales
Cost of sales is recorded on an accrual basis.
Incremental costs of obtaining a contract
Incremental costs of obtaining a contract, including dealer commissions, are capitalized as Contract Costs in the statement of
financial position and amortized in operating expenses over the expected benefit period, which is based on the average duration of
contracts with customer (see practical expedient in note B.1.1.).
B.3. Segmental information
Management determines operating and reportable segments based on information used by the chief operating decision maker
(CODM) to make strategic and operational decisions from both a business and geographic perspective. The Millicom Group’s risks
and rates of return for its operations were predominantly affected by operating in different geographical regions. Until the
divestiture of our Tanzania business, as discussed above, the Millicom Group had businesses in two main regions, Latin America and
Africa, which constituted our two reportable segments. As a result of the sale of the Tanzania business and its classification as a
discontinued operation, we no longer report an Africa segment in our financial statements and will no longer report it for future
periods. The Group now only operates in a single region, Latin America.
As a result, the Group now reports a single segment, called the "Group Segment," which includes the results of our Latin American
operations, and regional and central corporate costs. Group Segment figures will continue to include our Honduras joint venture as
if it was fully consolidated, as this reflects the way management reviews and uses internally reported information to make decisions
about operating matters and to provide increased transparency to investors on those operations. Group Segment figures also
include our operations in Guatemala as if they were fully consolidated for all comparative periods, for the same reasons. On
November 12, 2021, we acquired the remaining 45% equity interest in our Guatemala joint venture business, and we now fully
consolidate our operations in Guatemala. Prior to this date, we held a 55% stake in our operations in Guatemala and accounted for it
using the equity method of accounting, along with our operations in Honduras.
Revenue, operating profit (loss), EBITDA and other segment information for the years ended December 31, 2022, 2021 and 2020,
were as follows:
Millicom 2022 Annual Report 162
Notes to the Consolidated Financial Statements
For the years ended December 31, 2022, 2021 and 2020
Group
Segment (viii)
Honduras (vii)
Eliminations
and transfers
Group
(US$ millions)
Year ended December 31, 2022
Mobile revenue ............................................
Cable and other fixed services revenue ......
Other revenue ..............................................
Service revenue (i) .......................................
Telephone and equipment revenue ............
Revenue ......................................................
Operating profit (loss) ...............................
Add back:
3,392
2,247
73
5,712
491
6,203
1,004
Depreciation and amortization ...................
1,454
Share of profit in joint ventures ...................
Other operating expenses (income), net ....
EBITDA (ii) ...................................................
EBITDA from discontinued operations .......
EBITDA incl discontinued operations .....
Capital expenditure (iii) ...............................
Spectrum paid ..............................................
Changes in working capital and others (iv)
Taxes paid ....................................................
Operating free cash flow (v) .....................
Total Assets (vi) ...........................................
Total Liabilities ...........................................
—
(1)
2,457
24
2,482
(1,042)
(93)
(95)
(365)
887
14,543
11,097
(436)
(108)
(5)
(549)
(37)
(586)
(121)
(112)
—
3
(230)
—
(230)
85
—
(26)
49
(122)
(1,004)
(603)
1
7
—
8
—
8
32
1
(32)
(1)
1
—
1
—
—
—
—
1
2,957
2,145
69
5,171
454
5,624
915
1,344
(32)
2
2,228
24
2,252
(957)
(93)
(121)
(316)
765
660
70
14,198
10,565
(i)
(ii)
(iii)
(iv)
(v)
(vi)
(vii)
(viii)
Service revenue is revenue related to the provision of ongoing services such as monthly subscription fees for mobile and broadband, airtime and
data usage fees, interconnection fees, roaming fees, mobile finance service commissions and fees from other telecommunications services such
as data services, short message services, installation fees and other value-added services excluding telephone and equipment sales.
EBITDA is operating profit excluding impairment losses, depreciation and amortization and gains/losses on the disposal of fixed assets.
Excluding spectrum and licenses.
‘Changes in working capital and others’ include changes in working capital as stated in the cash flow statement as well as share based payments
expense.
Operating Free Cash Flow is EBITDA less capex, less spectrum paid, less change in working capital, other non-cash items (share-based payment
expense) and taxes paid. From 2022, the Group changed the definition of Operating Free Cash Flow to include spectrum paid in response to
feedback from users of our financial statements who prefer a more comprehensive view of our cash flow generation.
Segment assets include goodwill and other intangible assets.
Including eliminations for Guatemala (prior to acquisition) and Honduras as reported in the Group Segment.
As further explained above, Group Segment numbers include Guatemala (until acquisition in November 2021) and Honduras as if they were fully
consolidated, and excludes Africa.
Millicom 2022 Annual Report
163
Notes to the Consolidated Financial Statements
For the years ended December 31, 2022, 2021 and 2020
Group
Segment (viii)
Guatemala
and
Honduras
(vii)
Eliminations
and transfers
Group
(US$ millions)
Year ended December 31, 2021
Mobile revenue ................................................
Cable and other fixed services revenue ..........
Other revenue ..................................................
Service revenue (i) ............................................
Telephone and equipment revenue ................
Revenue ...........................................................
Operating profit (loss) ...................................
Add back:
3,372
2,273
68
5,712
503
6,216
983
Depreciation and amortization .......................
1,516
Share of profit in joint ventures .......................
Other operating expenses (income), net .........
EBITDA (ii) .......................................................
EBITDA from discontinued operations ...........
EBITDA incl discontinued operations .........
Capital expenditure (iii) ...................................
Spectrum paid ..................................................
Changes in working capital and others (iv) .....
Taxes paid ........................................................
Operating free cash flow (v) .........................
Total Assets (vi) ...............................................
Total Liabilities ................................................
—
(5)
2,494
121
2,615
(1,065)
(59)
(51)
(271)
1,169
15,484
12,934
(1,372)
(334)
(8)
(1,715)
(240)
(1,955)
(574)
(403)
—
—
(977)
—
(977)
238
22
(13)
143
(587)
(6,432)
(1,763)
—
—
—
—
—
—
210
—
(210)
—
—
—
—
—
—
—
—
—
2,000
1,938
60
3,997
263
4,261
619
1,113
(210)
(5)
1,517
121
1,638
(827)
(37)
(65)
(127)
582
6,088
1,229
15,141
12,401
Millicom 2022 Annual Report
16 4
Notes to the Consolidated Financial Statements
For the years ended December 31, 2022, 2021 and 2020
Group
Segment (viii)
Guatemala
and
Honduras
(vii)
Eliminations
and transfers
Group
(US$ millions)
Year ended December 31, 2020
Mobile revenue .................................................
Cable and other fixed services revenue ...........
Other revenue ...................................................
Service revenue (i) ............................................
Telephone and equipment revenue (i) ............
Revenue ...........................................................
Operating profit (loss) ....................................
Add back:
3,220
2,096
58
5,374
466
5,840
763
Depreciation and amortization ........................
1,572
Share of profit in joint ventures .......................
Other operating expenses (income), net .........
EBITDA (ii) ........................................................
EBITDA from discontinued operations ............
EBITDA incl discontinued operations ..........
Capital expenditure (iii) ....................................
Spectrum paid ..................................................
Changes in working capital and others (iv) .....
Taxes paid .........................................................
Operating free cash flow (v) ..........................
Total Assets (vi) ...............................................
Total Liabilities ................................................
—
19
2,354
129
2,483
(973)
(6)
65
(273)
1,297
14,266
11,563
(1,461)
(302)
(6)
(1,769)
(266)
(2,035)
(536)
(453)
—
(3)
(992)
—
(992)
258
—
(43)
131
(645)
(5,116)
(2,044)
—
—
—
—
—
—
175
—
(171)
(4)
—
—
—
—
—
—
—
—
1,759
1,794
51
3,604
201
3,805
402
1,119
(171)
12
1,362
129
1,491
(714)
(6)
22
(142)
651
(859)
(987)
12,422
10,148
Millicom 2022 Annual Report
165
Notes to the Consolidated Financial Statements
For the years ended December 31, 2022, 2021 and 2020
Revenue from contracts with customers from continuing operations:
Twelve
months
ended
December
31, 2022
Twelve
months
ended
December
31, 2021
Twelve
months
ended
December
31, 2020
$ millions
Timing of revenue
recognition
Group
Group
Group
Mobile ........................................ Over time
Mobile Financial Services .......... Point in time
Cable and other fixed services .. Over time
Other .......................................... Over time
Service Revenue
2,916
1,963
40
37
2,145
1,938
69
60
5,171
3,997
Telephone and equipment ....... Point in time
454
263
1,727
32
1,794
51
3,604
201
Revenue from contracts with
customers
B.4. People
Number of permanent employees
5,624
4,261
3,805
Subsidiaries (i) .....................................................................................................................................
Joint ventures (ii) ................................................................................................................................
Total ....................................................................................................................................................
2022
2021
2020
18,534
912
19,446
19,749
938
20,687
16,955
4,464
21,419
(i)
Emtelco (subsidiary of EPM) headcount are excluded from this disclosure and any internal reporting because their costs are classified as direct costs
and not employee related costs. Includes Guatemala for 2021.
(ii) Only Honduras for 2022 and 2021. Includes also Guatemala and Ghana for 2020.
Notes
2022
2021
2020
Wages and salaries ...................................................................................................
Social security ..........................................................................................................
Share based compensation .....................................................................................
Pension and other long-term benefit costs ............................................................
B.4.1.
B.4.2.
Other employees related costs ...............................................................................
(US$ millions)
(372)
(361)
(69)
(29)
(2)
(22)
(66)
(16)
(6)
(25)
Total .........................................................................................................................
(494)
(474)
(337)
(62)
(23)
(4)
(27)
(453)
B.4.1. Share-based compensation
1. Equity-settled
Millicom shares granted to management and key employees includes share-based compensation in the form of long-term share
incentive plans. Since 2016, Millicom has two types of annual plans, a performance share plan (PSP) and a deferred share plan (DSP).
The different plans are further detailed below.
Millicom 2022 Annual Report Notes to the Consolidated Financial Statements
For the years ended December 31, 2022, 2021 and 2020
Cost of share-based compensation
2018 incentive plans
2019 incentive plans
2020 incentive plans
2021 incentive plans
2022 incentive plans
Total share based compensation
16 6
2022
2021
2020
(US$ millions)
—
—
(3)
(11)
(15)
(29)
—
3
(3)
(17)
—
(17)
(2)
(8)
(13)
—
—
(24)
Deferred share plan (unchanged since 2014, except for vesting schedule)
As from the 2019 plan, shares vest at a rate of 30% on January 1 of each of year one and two, and the remaining 40% on January 1 of
year three. Vesting is conditional upon the participant remaining employed with Millicom at each vesting date. The cost of this long-
term incentive plan, which is not conditional on performance conditions, is calculated as follows:
Fair value (share price) of Millicom’s shares at grant date x number of shares expected to vest.
Performance share plan (for plans issued from 2018)
Shares granted under this performance share plan vest at the end of the three-year period, subject to performance conditions, 25%
based on Relative Total Shareholder Return (“Relative TSR”), 25% based on the achievement of the Service Revenue target measured
on a 3-year CAGRs from year one to year three of the plan (“Service Revenue”) and 50% based on the achievement of the Operating
Free Cash Flow (“Operating Free Cash Flow”) target measured on a 3-year CAGRs from year one to year three of the plan. From 2020
onwards, the Operating Free Cash Flow target has been redefined to consider payments made in respect of leases. As a result, the
target is since then the Operating Free Cash Flow after Leases ("OFCFaL").
For the performance share plans, and in order to calculate the fair value of the TSR portion of those plans, it is necessary to make a
number of assumptions which are set out below. The assumptions have been set based on an analysis of historical data as at grant
date.
Performance share plan (for plans issued from 2021)
Shares granted under this performance share plan generally follow the same rules as for previous performance share plans.
However, for LTI 2021 plan, Millicom had added a time vesting Restricted Stock Units (“RSU’s”) representing 35% of the total award.
The RSU’s will be vesting at the end of three years depending on satisfactory service condition. RSU's have been removed from the
plan rules from 2022. The Relative TSR, which account for 20% of the award, will be measured over the 10 trading days before / after
December 31 of the last year of the corresponding three-year measurement period. The Service Revenue (LTI 2022: 30%; LTI 2021:
15%) and Operating Cash Flow after Leases ("OCFaL") (LTI 2022: 50%; LTI 2021: 30%) performance conditions will not be measured
based on a CAGR anymore but on the actual cumulative achievement against the 3-year cumulative targets to better reflect the
performance over the three-year period rather than simply the end point as is the case with a CAGR target.
For the performance share plans, and in order to calculate the fair value of the TSR portion of those plans, it is necessary to make a
number of assumptions which are set out below. The assumptions have been set based on an analysis of historical data as at grant
date.
Assumptions and fair value of the shares under the TSR portion(s)
Risk-free
rate %
Dividend
yield %
Share price
volatility(i) %
Award term
(years)
Share fair
value (in US$)
Performance share plan 2022 (Relative TSR)...............................
Performance share plan 2021 (Relative TSR)...............................
Performance share plan 2020 (Relative TSR)...............................
Performance share plan 2019 (Relative TSR)...............................
Performance share plan 2018 (Relative TSR)...............................
2.01
0.29
0.61
(0.24)
(0.39)
0.00
1.28
1.47
3.01
3.21
47.94
46.28
24.54
26.58
30.27
2.80
2.82
2.93
2.93
2.93
29.12
52.99
55.66
49.79
57.70
(i)
Historical volatility retained was determined on the basis of a three-year historic average.
The cost of the long-term incentive plans which are conditional on market conditions is calculated as follows:
Fair value (market value) of shares at grant date (as calculated above) x number of shares expected to vest.
Millicom 2022 Annual Report 167
Notes to the Consolidated Financial Statements
For the years ended December 31, 2022, 2021 and 2020
The cost of these plans is recognized, together with a corresponding increase in equity (share compensation reserve), over the
period in which the performance and/or employment conditions are fulfilled, ending on the date on which the relevant employees
become fully entitled to the award. Adjustments are made to the expense recorded for forfeitures, mainly due to management and
employees leaving Millicom. Non-market performance conditions are not taken into account when determining the grant date fair
value of awards, but the likelihood of the conditions being met is assessed as part of the Group’s best estimate of the number of
equity instruments that will ultimately vest.
No expense is recognized for awards that do not ultimately vest, except for awards where vesting is conditional upon a market
condition (such as the Relative TSR). These are treated as vested, regardless of whether or not the market conditions are satisfied,
provided that all other performance conditions are satisfied. Where the terms of an equity-settled award are modified, as a minimum
an expense is recognized as if the terms had not been modified. In addition, an expense is recognized for any modification that
increases the total fair value of the share based payment arrangement, or is otherwise beneficial to the employee as measured at the
date of modification.
Plan awards and shares expected to vest
Initial shares granted
Additional shares granted(i)
Effect of the Right Offering(ii)
Revision for forfeitures
Revision for cancellations
Total before issuances
Shares issued in 2019
Shares issued in 2020
Shares issued in 2021
Shares issued in 2022
Performance conditions not met
Shares still expected to vest
Estimated cost over the vesting period (US$
millions)
2022 plans
2021 plans
2020 plans
2019 plans
PSP
DSP
PSP
DSP
PSP
DSP
PSP
DSP
(number of shares)
306,641
865,862
451,363
536,890
341,897
370,131
257,601
297,856
—
47,588
—
5,824
—
5,928
83,926
227,947
115,575
93,375
20,862
32,526
—
—
43,115
—
(21,990)
(25,938)
(28,130)
(265,632)
(34,857)
(257,293)
(32,253)
—
—
(9,250)
—
(4,996)
390,567
1,119,407
541,000
598,709
97,127
368,732
—
308
—
308,718
—
—
—
—
—
—
—
(1,121)
(5,760)
(13,957)
(2,071)
(160,596)
—
—
—
—
—
(150)
(24,294)
(3,571)
(17)
(96,629)
(113,653)
(100,362)
—
(87,141)
(141)
(100,654)
—
—
—
(97,127)
—
390,567
1,105,450
537,808
432,353
—
151,146
7
20
16
19
4
15
—
—
na
—
—
na
—
—
—
—
—
—
—
(i) Additional shares granted represent grants made for new joiners and/or as per CEO contractual arrangements.
In 2022, as per plan rules, additional shares have been granted to all participants for unvested plans as a result of the effect of the right offering (see
(ii)
note C.1. ).
2. Cash-settled
In 2021, and in the light of the impact on future LTI awards as a consequence of the impact of COVID-19 on our business, the Board
awarded a one-time Retention Plan to a selected group of executives, including the CEO and CFO. The plan is based on Market Stock
Units (“MSU”) and is a performance-based scheme where the outcome is dependent on the share price at the time of vesting. The
number of MSUs granted to each participant was determined on the basis of a share price at inception of $33.83 for Tranche 2022
and $36.90 for Tranche 2023 (targets consider that Millicom share price at grant date - $30.75 - will appreciate 10% for Tranche 2022
and 20% for tranche 2023 from the grant price). The aforementioned share prices and number of units granted have been amended
as a result of the effect of the right offering (see note C.1. ). At the vesting date, the value of the MSU will be 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 will be made in cash 12 months after those dates, provided the
participant is still employed (subject to limited allowances for good leavers). For every participant, payment is capped at 150% of
their Target MSU Award Value set up for each Tranche. Participants of the Retention Plan were required to forfeit their awards under
the LTI plans 2019 and 2020 in respect of the Financial targets (Service Revenue and Operating Cash flow growths), provided that
the TSR component will continue to be active for these schemes.
The MSU is a cash-settled share-based payment plan and Millicom will measure the services acquired over the relevant service
period and the liability incurred at the fair value of the liability. Until the liability is settled, Millicom is required to remeasure the fair
value of the liability at the end of each reporting period and at the date of settlement, with any changes in value recognised the
statement of income.
Millicom 2022 Annual Report
16 8
Notes to the Consolidated Financial Statements
For the years ended December 31, 2022, 2021 and 2020
As of December 31, 2022 and 2021, the fair value of the liability amounts to $2 million and $3 million, respectively, and was
determined by using Millicom's share price (using a Black-Scholes model would not result in material differences). The related cost
for the years ended December 31, 2022 and 2021, amounts to a credit of $1 million (as a result of the share price decrease over the
year) and an expense of $3 million, respectively.
B.4.2. Pension and other long-term employee benefit plans
Pension plans
The pension plans apply to employees who meet certain criteria (including years of service, age and participation in collective
agreements).
Pension and other similar employee related obligations can result from either defined contribution plans or defined benefit plans. A
defined contribution plan is a pension plan under which the Group pays fixed contributions into a separate entity. No further
payment obligations exist once the contributions have been paid. The contributions are recognized as employee benefit expenses
when they are due. Prepaid contributions are recognized as assets to the extent that a cash refund or a reduction in future payments
is available.
Defined benefit pension plans define an amount of pension benefit that an employee will receive on retirement, usually dependent
on one or more factors such as age, years of service and compensation. The liability recognized in the statement of financial position
in respect of the defined benefit pension plan is the present value of the defined benefit obligation at the statement of financial
position date less the fair value of plan assets, together with adjustments for unrecognized actuarial gains or losses and past service
costs. The defined benefit obligation is calculated annually by independent actuaries. The present value of the defined benefit
obligation is determined by discounting the estimated future cash outflows, using an appropriate discount rate based on maturities
of the related pension liability.
Re-measurement of net defined benefit liabilities are recognized in other comprehensive income and not reclassified to the
statement of income in subsequent years.
Past service costs are recognized in the statement of income on the earlier of the date of the plan amendment or curtailment, and
the date that the Group recognizes related restructuring costs.
Net interest is calculated by applying the discount rate to the net defined benefit asset/liability.
Long-service plans
Long-service plans apply for Colombian subsidiary UNE employees with more than five years of service whereby additional bonuses
are paid to employees that reach each incremental length of service milestone (from five to 40 years).
Termination plans
In addition, UNE has a number of employee defined benefit plans. The level of benefits provided under the plans depends on
collective employment agreements and Colombian labor regulations. There are no defined assets related to the plans, and UNE
make payments to settle obligations under the plans out of available cash balances.
At December 31, 2022, the defined benefit obligation liability amounted to $37 million (2021: $42 million) and payments expected in
the plans in future years totals $77 million (2021: $81 million). The average duration of the defined benefit obligation at December
31, 2022 is 4 years (2021: 5 years). The termination plans apply to employees that joined UNE prior to December 30, 1996. The level
of payments depends on the number of years in which the employee has worked before retirement or termination of their contract
with UNE.
Except for the UNE pension plan described above, there are no other significant defined benefits plans in the Group.
B.4.3. Directors and executive management
The remuneration of the members of the Board of Directors comprises an annual fee and shares. Director remuneration is proposed
by the Nomination Committee and approved by the shareholders at their Annual General Meeting (AGM).
Millicom 2022 Annual Report 169
Notes to the Consolidated Financial Statements
For the years ended December 31, 2022, 2021 and 2020
Remuneration charge for the non-executive Directors of the Board (gross of withholding tax)
Chairperson .........................................................................................................................................
Other non-executive directors of the Board ......................................................................................
Total (i) ................................................................................................................................................
Shares beneficially owned by the non-executive Directors
2022
2021
2020
(US$ ’000)
300
1,338
1,638
315
1,408
1,723
300
1,188
1,488
2022
2021
(number of shares)
Chairperson ....................................................................................................................................................................
Other non-executive directors of the Board ..................................................................................................................
43,891
152,298
Total (i) ...........................................................................................................................................................................
196,189
18,634
61,022
79,656
(i)
Cash compensation is denominated in USD. Share based compensation is based on the market value of Millicom shares on the corresponding AGM
date (2022: in total 41,167 shares; 2021: in total 24,737 shares; 2020: in total 32,358 shares. Net remuneration comprised 73% in shares and 27% in
cash (SEK) (2021: 73% in shares and 27% in cash; 2020: 71% in shares and 29% in cash).
The remuneration of executive management of Millicom comprises an annual base salary, an annual bonus, share based
compensation, social security contributions, pension contributions and other benefits. Bonus and share based compensation plans
(see note B.4.1.) are based on actual and future performance. Share based compensation is granted once a year by the
Compensation Committee of the Board.
If the employment of Millicom’s senior executives is terminated, severance of up to 12 months’ salary is potentially payable.
The annual base salary and other benefits of the Chief Executive Officer (CEO) and the Executive Vice Presidents (Executive team) are
proposed by the Compensation Committee and approved by the Board.
Remuneration charge for the Executive Team
Mr. Mauricio
Ramos
Mr. Sheldon
Bruha
Mr. Tim
Pennington
(US$ ’000)
Other
Executive
Team
Members (5
members)
2022
Base salary .................................................................................................................
Bonus ........................................................................................................................
Pension .....................................................................................................................
Other benefits ...........................................................................................................
MSU (v) ......................................................................................................................
Termination benefits ................................................................................................
Total before share based compensation .............................................................
Share based compensation(i)(ii) in respect of 2022 LTIP (iv) ..................................
Total ..........................................................................................................................
1,216
1,650
287
82
373
—
3,608
5,567
9,175
598
541
144
67
—
—
1,351
688
2,039
581
—
87
40
67
877
1,653
888
2,540
2,883
2,044
663
312
174
—
6,076
4,927
11,004
Millicom 2022 Annual Report 170
Notes to the Consolidated Financial Statements
For the years ended December 31, 2022, 2021 and 2020
Other
Executive
Team
Members (5
members)
Mr. Mauricio
Ramos
Mr. Tim
Pennington
(US$ ’000)
2021
Base salary ...........................................................................................................................................
Bonus ...................................................................................................................................................
Pension ................................................................................................................................................
Other benefits .....................................................................................................................................
MSU (v) .................................................................................................................................................
Total before share based compensation .......................................................................................
Share based compensation(i)(ii) in respect of 2020 LTIP (iv) .............................................................
Total ....................................................................................................................................................
1,185
2,164
284
88
991
4,712
7,914
12,626
708
969
106
46
198
2,027
1,652
3,679
2,783
2,718
652
791
545
7,489
5,383
12,872
Other
Executive
Team
Members (5
members) (iii)
Mr. Mauricio
Ramos
Mr. Tim
Pennington
(US$ ’000)
2020
Base salary ...........................................................................................................................................
Bonus ...................................................................................................................................................
Pension ................................................................................................................................................
Other benefits .....................................................................................................................................
Total before share based compensation .......................................................................................
Share based compensation(i)(ii) in respect of 2019 LTIP (iv) .............................................................
Total ....................................................................................................................................................
1,173
1,301
285
82
2,841
7,114
9,955
670
509
100
38
1,317
1,834
3,151
2,612
1,837
663
303
5,414
3,796
9,210
(i)
(ii)
(iii)
See note B.4.1.
290,049 and 338,171 were awarded in 2022 under the 2019 LTIPs to Mauricio Ramos and the Executive Team (2021: 196,904 and 211,578, respectively;
2020: 153,894 and 135,269, respectively).
'Other Executives' includes compensation paid in 2020 to Rachel Samren former Chief External Affairs Officer (departed on August 31, 2020) and to HL
Rogers former Chief Ethics and Compliance Officer (departed on January 1, 2020). Additionally other Benefits' for 'Other Executives' include medical
and dental insurance for Daniel Loria, former CHRO.
(iv) Calculated based on the closing Millicom share price on the Nasdaq in the US at the grant date.
(v)
Represents the amount earned in the year.
Share ownership and unvested share awards granted from Company equity plans to the Executive team
2022
Share ownership (vested from equity plans and otherwise acquired) .............................................
Share awards not vested .....................................................................................................................
2021
Share ownership (vested from equity plans and otherwise acquired) .............................................
Share awards not vested .....................................................................................................................
CEO
Executive
team
Total
(number of shares)
426,607
519,006
232,562
278,666
297,061
593,765
723,668
1,112,771
221,407
295,568
453,969
574,234
Millicom 2022 Annual Report 171
Notes to the Consolidated Financial Statements
For the years ended December 31, 2022, 2021 and 2020
B.5. Other non-operating (expenses) income, net
Non-operating items mainly comprise changes in fair value of derivatives and the impact of foreign exchange fluctuations on the
results of the Group.
December 31
Note
2022
2021
2020
(US$ millions)
Change in fair value of derivatives ............................................................. C.7.2.
Change in fair value in investment in Milvik (i) ..........................................
Change in fair value in investment in Jumia (vi) ........................................
Change in fair value in investment in HT (ii) .............................................. C.7.3.
Change in value of call option asset and put option liability (iii) .............. C.7.4.
Exchange gains (losses), net .......................................................................
Other ..........................................................................................................
Total other non-operating (expenses) income, net
12
(6)
—
—
(1)
(84)
1
(78)
3
—
—
18
(31)
(42)
2
(49)
(11)
—
(18)
(16)
5
(69)
2
(107)
(i) )(Milvik) Please see note A.3.
(ii) In June 2021, Millicom disposed of its entire stake in HT for a total net consideration of $163 million, triggering a net loss on disposal of $15 million
recorded in the statement of income under ‘other operating income (expenses), net’. The changes in fair value prior to the disposal were shown under "Other
non-operating (expenses) income, net"
(iii) Until June 29, 2022, date on which the non-controlling shareholders of Tigo Panama exercised their put option right to sell their remaining 20%
shareholding to Millicom (see note A.1.2.).
(vi) In June 2020, Millicom disposed of its entire stake in Jumia for a total net consideration of $29 million, triggering a net gain on disposal of $15 million
recorded in the statement of income under ‘other operating income (expenses), net’. The changes in fair value prior to the disposal were shown under "Other
non-operating (expenses) income, net" .
Foreign exchange gains and losses
Transactions denominated in a currency other than the functional currency are translated into the functional currency using
exchange rates prevailing at the transaction dates. Foreign exchange gains and losses resulting from the settlement of such
transactions, and on translation of monetary assets and liabilities denominated in currencies other than the functional currency at
year-end exchange rates, are recognized in the consolidated statement of income, except when deferred in equity as qualifying cash
flow hedges.
B.6. Taxation
B.6.1. Income tax expense
Tax mainly comprises income taxes of subsidiaries and withholding taxes on intra-group dividends and royalties for use of Millicom
trademarks and brands. Millicom operations are in jurisdictions with income tax rates of 10% to 35% levied on either revenue or
profit before income tax (2021: 10% to 35%; 2020: 10% to 35%). Income tax relating to items recognized directly in equity is
recognized in equity and not in the consolidated statement of income.
Millicom 2022 Annual Report
172
Notes to the Consolidated Financial Statements
For the years ended December 31, 2022, 2021 and 2020
Income tax charge
Income tax (charge) credit
Withholding tax ...................................................................................................................................
Other income tax relating to the current year ...................................................................................
Adjustments in respect of prior years(i) .............................................................................................
Total
Deferred tax (charge) credit
Origination and reversal of temporary differences ...........................................................................
Effect of change in tax rates ................................................................................................................
Tax income (expense) before valuation allowances ..........................................................................
Effect of valuation allowances ............................................................................................................
Total
Adjustments in respect of prior years ................................................................................................
Tax (charge) credit on continuing operations ...................................................................................
Tax (charge) credit on discontinuing operations ...............................................................................
Total tax (charge) credit ...................................................................................................................
2022
2021
2020
(US$ millions)
(70)
(165)
(39)
(274)
168
—
168
(114)
54
(2)
52
(222)
(3)
(225)
(56)
(106)
(13)
(175)
72
29
101
(81)
20
(3)
17
(158)
(31)
(189)
(83)
(60)
(12)
(155)
95
(5)
90
(15)
75
8
83
(72)
(29)
(101)
(i) Mainly due to the adherence to a tax amnesty in one of our operations for a total cash outflow of $40 million, out of which $34 million have been provided
for in 2022 and the rest in previous years.
Millicom 2022 Annual Report
173
Notes to the Consolidated Financial Statements
For the years ended December 31, 2022, 2021 and 2020
Reconciliation between the tax expense and tax at the weighted average statutory tax rate is as follows:
Income tax calculation
2022
2021
2020
Continuing
operations
Discontinued
operations
Total
Continuing
operations
Discontinued
operations
Total
Continuing
operations
Discontinued
operations
Total
(US$ millions)
Profit before tax ........
238
Tax at the weighted
average statutory
rate ............................
Effect of:
Items taxed at a
different rate .............
Change in tax rates
on deferred tax
balances ....................
Expenditure not
deductible and
income not taxable ..
Unrelieved
withholding tax ........
Accounting for
associates and joint
ventures ....................
Movement in
deferred tax on
unremitted earnings
Unrecognized
deferred tax assets ...
Recognition of
previously
unrecognized
deferred tax assets ...
Adjustments in
respect of prior
years ..........................
Total tax (charge)
credit ........................
Weighted average
statutory tax rate ......
(47)
37
—
1
(68)
9
1
(114)
—
(41)
(222)
19.7%
116
(27)
—
—
26
—
—
—
(2)
—
—
(3)
354
(74)
37
—
27
728
(153)
9
29
83
(68)
(55)
9
1
41
(15)
(116)
(138)
—
57
3
(1)
—
—
(4)
—
—
—
(6)
—
731
(252)
(31)
(283)
(154)
76
9
29
79
1
(5)
(99)
(55)
(83)
41
(15)
42
15
(144)
(23)
57
8
9
—
—
(7)
—
—
—
(4)
—
85
1
(5)
(106)
(83)
42
15
(27)
8
(41)
(16)
(20)
(36)
(4)
(27)
(31)
(225)
(158)
(31)
(189)
(72)
(29)
(101)
Effective tax rate .......
93.3%
63.6%
21.7%
25.9%
(28.6)%
B.6.2. Current tax assets and liabilities
20.9%
21.0%
21.1%
30.2%
30.0%
(35.7)%
Current tax assets and liabilities for current and prior periods are measured at the amount expected to be recovered from or paid to
the taxation authorities. The tax rate and tax laws used to compute the amount are those enacted or substantively enacted by the
statement of financial position date.
B.6.3. Deferred tax
Deferred tax is calculated using the liability method on temporary differences at the statement of financial position date between
the tax base of assets and liabilities and their carrying amount for financial reporting purposes.
Millicom 2022 Annual Report 174
Notes to the Consolidated Financial Statements
For the years ended December 31, 2022, 2021 and 2020
Deferred tax liabilities are recognized for all taxable temporary differences, except where the deferred tax liability arises from the
initial recognition of goodwill or of an asset or liability in a transaction that is not a business combination and, at the time of the
transaction, affects neither accounting, nor taxable profit or loss.
Deferred tax assets are recognized for all temporary differences including unused tax credits and tax losses, to the extent that it is
probable that taxable profit will be available against which the deductible temporary differences can be utilized, except where the
deferred tax assets relate to deductible temporary differences from initial recognition of an asset or liability in a transaction that is
not a business combination, and, at the time of the transaction, affects neither accounting, nor taxable profit or loss. It is probable
that taxable profit will be available when there are sufficient taxable temporary differences relating to the same tax authority and the
same taxable entity which are expected to reverse in the same period as the expected reversal of the deductible temporary
difference.
The carrying amount of deferred tax assets is reviewed at each statement of financial position date and reduced to the extent that it
is no longer probable that sufficient taxable profit will be available to utilize them. Unrecognized deferred tax assets are reassessed
at each statement of financial position date and are recognized to the extent it is probable that future taxable profit will enable the
asset to be recovered.
Deferred tax assets and liabilities are measured at the tax rate expected to apply in the year when the assets are realized or liabilities
settled, based on tax rates and tax laws that have been enacted or substantively enacted at the statement of financial position date.
Deferred tax assets and deferred tax liabilities are offset where legally enforceable set off rights exist and the deferred taxes relate to
the same taxable entity and the same taxation authority.
Deferred tax
Fixed assets
Unused tax
losses
Unremitted
earnings
Other
Offset
Total
(US$ millions)
Balance at December 31, 2020 .....................
Deferred tax assets ...........................................
Deferred tax liabilities .......................................
Balance at December 31, 2020 .....................
(Charge)/credit to income statement ..............
Change in scope ...............................................
Charge to Other Comprehensive Income ........
Exchange differences .......................................
Balance at December 31, 2021 .....................
Deferred tax assets ...........................................
Deferred tax liabilities .......................................
Balance at December 31, 2021 .....................
Transfers to Assets Held for Sale ......................
(Charge)/credit to income statement ..............
Charge to Other Comprehensive Income ........
Exchange differences .......................................
Balance at Balance at 31 December 2022 ...
Deferred tax assets ...........................................
Deferred tax liabilities .......................................
Balance at December 31, 2022 .....................
(142)
97
(239)
(142)
23
(9)
—
(2)
(130)
97
(227)
(130)
57
29
—
—
(44)
109
(153)
(44)
187
187
—
187
(27)
—
—
(4)
156
156
—
156
—
(131)
—
(3)
22
22
—
22
(11)
—
(11)
(11)
(15)
—
—
—
(26)
—
(26)
(26)
—
1
—
—
(25)
—
(25)
(25)
(46)
102
(148)
(46)
16
3
(1)
(6)
(34)
162
(196)
(34)
(9)
153
1
(8)
103
104
(1)
103
—
(189)
189
—
—
—
—
—
—
(235)
235
—
—
—
—
—
—
(31)
31
—
(12)
197
(209)
(12)
(3)
(6)
(1)
(12)
(34)
180
(214)
(34)
48
52
1
(11)
56
204
(148)
56
Deferred tax assets have not been recognized in respect of the following deductible temporary differences:
At December 31, 2022 .............................................................................................
At December 31, 2021 .............................................................................................
90
117
5,535
4,856
71
103
5,696
5,076
Fixed assets
Unused tax
losses
Other
Total
(US$ millions)
Millicom 2022 Annual Report
175
Notes to the Consolidated Financial Statements
For the years ended December 31, 2022, 2021 and 2020
Unrecognized tax losses carryforward related to continuing operations expire as follows:
2022
2021
2020
(US$ millions)
Expiry:
Within one year ...................................................................................................................................
Within one to five years ......................................................................................................................
After five years .....................................................................................................................................
No expiry .............................................................................................................................................
Total ....................................................................................................................................................
—
3
1,598
3,934
5,535
1
2
1,232
3,621
4,856
3
3
1,089
3,573
4,668
With effect from 2017, Luxembourg tax losses incurred may be carried forward for a maximum of 17 years. Losses incurred before
2017 may be carried forward without limitation of time.
At December 31, 2022, Millicom had $640 million of unremitted earnings of Millicom operating subsidiaries for which no deferred
tax liabilities were recognized (2021: $725 million; 2020: $621 million). Except for intragroup dividends to be paid out of 2022 profits
in 2023 for which deferred tax of $25 million (2021: $26 million; 2020 $11 million) has been provided, it is anticipated that intra-
group dividends paid in future periods will be made out of profits of future periods.
B.7. Earnings per share
Basic earnings (loss) per share are calculated by dividing net profit for the year attributable to equity holders of the Company by the
weighted average number of ordinary shares outstanding during each year.
Diluted earnings (loss) per share are calculated by dividing the net profit for the year attributable to equity holders of the Company
by the weighted average number of ordinary shares outstanding during each year, plus the weighted average number of dilutive
potential shares.
Net profit/(loss) used in the earnings (loss) per share computation
Millicom 2022 Annual Report 176
Notes to the Consolidated Financial Statements
For the years ended December 31, 2022, 2021 and 2020
2022
2021(ii) (iii)
2020(ii) (iii)
(US$ millions)
Basic and Diluted
Net profit (loss) attributable to equity holders from continuing operations .......................................
Net profit (loss) attributable to equity holders from discontinued operations ....................................
Net profit (loss) attributable to all equity holders to determine the profit (loss) per share ...............
64
113
177
618
(28)
590
(284)
(60)
(344)
in thousands
Weighted average number of ordinary shares for basic and diluted earnings per share ...................
139,049
128,571
128,625
Potential shares as a result of long term incentive plans .......................................................................
640
549
355
Weighted average number of ordinary shares (excluding treasury shares) adjusted for the effect of
dilution (i) .................................................................................................................................................
139,690
129,120
128,980
Basic
Earnings (loss) per common share for profit (loss) from continuing operations attributable to
owners of the Company .........................................................................................................................
Earnings (loss) per common share for profit (loss) from discontinued operations attributable to
owners of the Company .........................................................................................................................
Earnings (loss) per common share for profit (loss) for the period attributable to owners of the
Company .................................................................................................................................................
Diluted
Earnings (loss) per common share for profit (loss) from continuing operations attributable to
owners of the Company ..........................................................................................................................
Earnings (loss) per common share for profit (loss) from discontinued operations attributable to
owners of the Company ..........................................................................................................................
Earnings (loss) per common share for profit (loss) for the period attributable to owners of the
Company ..................................................................................................................................................
0.46
0.81
1.27
0.46
0.81
1.27
(U.S. dollars)
4.81
(0.22)
4.59
4.79
(0.22)
4.57
(2.21)
(0.47)
(2.68)
(2.20)
(0.47)
(2.67)
(i) For the purpose of calculating the diluted earnings (loss) per common share, the weighted average outstanding shares used for the basic earnings (loss)
per common share were increased only by the portion of the shares which have a dilutive effect on the earnings (loss) per common share.
(ii) Re-presented for discontinued operations (see note A.4.).
(iii) As required by IAS 33 ‘Earnings per share’ the impact of the bonus element included within the rights offering (see note C.1. ) has been included in the
calculations of the basic and diluted earnings per share for the current year/period and comparative figures have been re-presented accordingly.
C. Capital structure and financing
C.1. Share capital, share premium and reserves
Common shares are classified as equity. Incremental costs directly attributable to the issue of new shares are shown in equity as a
deduction from the proceeds.
Where any Group company purchases the Company’s share capital, the consideration paid, including any directly attributable
incremental costs, is shown under Treasury shares and deducted from equity attributable to the Company’s equity holders until the
shares are canceled, reissued or disposed of. Where such shares are subsequently sold or reissued, any consideration received, net of
any directly attributable incremental costs and the related income tax effects is included in equity attributable to the Company’s
equity holders.
Millicom 2022 Annual Report 177
Notes to the Consolidated Financial Statements
For the years ended December 31, 2022, 2021 and 2020
Share capital, share premium
Authorized and registered share capital (number of shares) .............................................................................
200,000,000
133,333,200
Subscribed and fully paid up share capital (number of shares) ..........................................................................
172,096,305
101,739,217
Par value per share ................................................................................................................................................
Share capital (US$ millions) ..................................................................................................................................
Share premium (US$ millions) ..............................................................................................................................
Total (US$ millions) ............................................................................................................................................
1.50
258
1,085
1,343
1.50
153
476
628
2022 (i)
2021
(i) On December 13, 2021, in the view of the upcoming right offering, Millicom's Board of Directors proposed to increase the authorized share capital of the
Company to $300 million divided into 200 million shares with a par value of $1.50 each, through an extraordinary general meeting ("EGM"). The proposal
has been ratified at the EGM which took place on February 28, 2022.
On May 18, 2022, the Board of Directors of Millicom resolved on a rights offering (the "Rights Offering") granting preferential
subscription rights to existing holders of shares and Swedish Depositary Receipts ("SDRs") to subscribe for up to 70,357,088 shares in
aggregate.
Those who were registered as holders of shares/SDR register on May 23, 2022, received one subscription right for each share ("Share
Right") or SDR ("SDR right") held in Millicom. 10 share rights entitled a holder thereof to subscribe for 7 new shares in Millicom and 10
SDR Rights entitled a holder thereof to subscribe 7 new SDRs in Millicom. The subscription price was set at SEK 106 per new SDR and
$10.61 per new share. The subscription price in SEK was determined based on the subscription price in U.S dollars as resolved by
Millicom, $10.61 per new share, using the SEK-U.S dollar exchange rate published by the Swedish Central Bank on May 17, 2022.
The record date for participation in the Rights Offering was May 23, 2022. The subscription period ran from May 27, 2022 up to June
13, 2022.
The result of the Rights Offering showed that 68,822,675 shares, including those represented by SDRs, have been subscribed for by
the exercise of basic subscription rights. The remaining 1,534,413 shares, including those represented by SDRs, were allotted to
those investors who subscribed for them pursuant to over subscription privileges. The Rights Offering was thus fully subscribed, and
Millicom received proceeds amounting to approximately $717 million after deducting underwriting commissions and other offering
expenses of $28 million.
The Rights Offering resulted in the issuance of 70,357,088 new shares, which increased the number of outstanding shares in Millicom
from 101,739,217 to 172,096,305. As a result, the share capital increased by $106 million to $258 million from $153 million. The
remaining $611 million have been allocated to the Group's share premium account.
Other equity reserves
Millicom 2022 Annual Report 178
Notes to the Consolidated Financial Statements
For the years ended December 31, 2022, 2021 and 2020
Equity settled
transaction
reserve
Hedge
reserve
Currency
translation
reserve
Pension
obligation
reserve
Total
Legal reserve
16
—
—
—
—
—
16
—
—
—
—
—
16
—
—
—
—
—
16
52
24
(26)
—
—
—
50
18
(25)
—
—
—
43
25
(17)
—
—
—
51
(US$ millions)
(18)
(593)
—
—
—
(1)
0
(19)
—
—
—
14
1
(3)
—
—
—
8
—
5
—
—
—
—
(12)
(605)
—
—
—
—
(41)
(646)
—
—
—
—
20
(626)
(2)
—
—
(2)
—
—
(4)
—
—
2
—
—
(3)
—
—
(2)
1
—
(4)
(544)
24
(26)
(2)
(1)
(12)
(562)
18
(25)
2
14
(41)
(593)
25
(17)
(2)
9
20
(559)
As of January 1, 2020 .....................................
Share based compensation ..............................
Issuance of shares – 2015, 2016, 2017 LTIPs ....
Remeasurements of post-employment
benefit obligations ...........................................
Cash flow hedge reserve movement ...............
Currency translation movement ......................
As of December 31, 2020 ...............................
Share based compensation ..............................
Issuance of shares –2016, 2017, 2018 LTIPs .....
Remeasurements of post-employment
benefit obligations ...........................................
Cash flow hedge reserve movement ...............
Currency translation movement ......................
As of December 31, 2021 ...............................
Share based compensation ..............................
Issuance of shares –2017, 2018, 2019 LTIPs .....
Remeasurements of post-employment
benefit obligations ...........................................
Cash flow hedge reserve movement ...............
Currency translation movement ......................
As of December 31, 2022 ...............................
C.1.1. Legal reserve
If Millicom International Cellular S.A. reports an annual net profit on a non-consolidated basis, Luxembourg law requires
appropriation of an amount equal to at least 5% of the annual net profit to a legal reserve until such reserve equals 10% of the issued
share capital. This reserve is not available for dividend distribution. No appropriation was required in 2021 or 2022 as the 10%
minimum level was reached in 2011, a further allocation will be needed in 2023 as a result of the recent capital increase.
C.1.2. Equity settled transaction reserve
The cost of LTIPs is recognized as an increase in the equity-settled transaction reserve over the period in which the performance
and/or service conditions are rendered. When shares under the LTIPs vest and are issued the corresponding reserve is transferred to
share premium.
C.1.3. Hedge reserve
The effective portions of changes in value of cash flow hedges are recorded in the hedge reserve (see note C.1. ).
C.1.4. Currency translation reserve
In the financial statements, the relevant captions in the statements of financial position of subsidiaries with functional currencies
different to US dollar, are translated to US dollars using the closing exchange rate. Statements of income or statement of income
captions (including those of joint ventures and associates) are translated to US dollars at monthly average exchange rates during the
year. The currency translation reserve includes foreign exchange gains and losses arising from these translations. 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.
Millicom 2022 Annual Report
179
Notes to the Consolidated Financial Statements
For the years ended December 31, 2022, 2021 and 2020
C.2. Dividend distributions
No dividend distributions were made in the last three years as the Group pivoted its shareholder's remuneration strategy to share
buybacks.
In addition, the ability of the Company to make dividend payments is subject to, among other things, the terms of indebtedness,
legal restrictions and the ability to repatriate funds from Millicom’s various operations. At December 31, 2022, $472 million
(December 31, 2021: $486 million; December 31, 2020: $310 million) of Millicom’s retained profits represent statutory reserves that
are unavailable to be distributed to owners of the Company.
C.3. Debt and financing
Debt and financing by type (i)
Note
2022
2021
(US$ millions)
Debt and financing due after more than one year
Bonds ...................................................................................................................................................
Banks ....................................................................................................................................................
Other financing (ii) ..............................................................................................................................
Total non-current financing ................................................................................................................
Less: portion payable within one year ................................................................................................
Total non-current financing due after more than one year ........................................................
Debt and financing due within one year
Bonds ...................................................................................................................................................
Banks ....................................................................................................................................................
Total current debt and financing ....................................................................................................
Add: portion of non-current debt payable within one year ..............................................................
Total ....................................................................................................................................................
Total debt and financing ..................................................................................................................
See note D.1.1. for further details on maturity profile of the Group debt and financing.
C.3.1.
C.3.2.
C.3.1.
C.3.2.
4,879
1,776
30
6,686
(61)
6,624
101
18
119
61
180
6,804
4,030
1,851
36
5,916
(12)
5,904
61
1,768
1,828
12
1,840
7,744
In July 2018, the Company issued a COP144,054.5 million /$50 million bilateral facility with IIC (Inter-American Development Bank) for a USD indexed
to COP Note. The note bears interest at 9.450% p.a.. This COP Note is used as net investment hedge of the net assets of our operations in Colombia.
(i)
(ii)
Debt and financing by location
2022
2021
(US$ millions)
Millicom International Cellular S.A. (Luxembourg) ............................................................................................................
Guatemala .......................................................................................................................................................................
Colombia .........................................................................................................................................................................
Paraguay .........................................................................................................................................................................
Bolivia ..............................................................................................................................................................................
Panama ...........................................................................................................................................................................
Tanzania ..........................................................................................................................................................................
Costa Rica ........................................................................................................................................................................
El Salvador .......................................................................................................................................................................
Nicaragua ........................................................................................................................................................................
2,573
1,465
605
678
260
773
—
128
173
147
Total debt and financing .............................................................................................................................................
6,804
4,020
605
802
751
310
846
188
121
100
—
7,744
Debt and financing are initially recognized at fair value, net of directly attributable transaction costs. They are subsequently
measured at amortized cost using the effective interest rate method. Amortized cost is calculated by taking into account any
discount or premium on acquisition and any fees or costs that are an integral part of the effective interest rate. Any difference
Millicom 2022 Annual Report 18 0
Notes to the Consolidated Financial Statements
For the years ended December 31, 2022, 2021 and 2020
between the initial amount and the maturity amount is recognized in the consolidated statement of income over the period of the
borrowing. Borrowings are classified as current liabilities, unless the Group has an unconditional right to defer settlement of the
liability for at least 12 months from the statement of financial position date.
Note
Country
Maturity
Interest Rate %
2022
2021
(US$ millions)
C.3.1. Bond financing
Bond financing
SEK Variable Rate Notes ............................
SEK Variable Rate Notes ............................
USD 4.500% Senior Notes .........................
USD 6.625% Senior Notes .........................
USD 6.250% Senior Notes .........................
USD 5.125% Senior Notes .........................
USD 5.875% Senior Notes .........................
PYG 8.750% Notes (tranche A) .................
PYG 9.250% Notes (tranche B) ..................
PYG 10.000% Notes (tranche C) ...............
PYG 9.250% Notes (tranche D) .................
PYG 10.000% Notes (tranche E) ................
PYG 9.250% Notes (tranche F) ..................
PYG 10.000% Notes (tranche G) ...............
PYG 6.000% Notes (tranche H) .................
PYG 6.700% Notes (tranche I) ...................
PYG 7.500% Notes (tranche J) ..................
BOB 5.800% Notes ....................................
BOB 4.850% Notes ....................................
BOB 3.950% Notes ....................................
BOB 4.600% Notes ....................................
BOB 4.300% Notes ....................................
BOB 4.300% Notes ....................................
BOB 4.700% Notes ....................................
BOB 5.300% Notes ....................................
BOB 5.000% Notes ....................................
UNE Bond 2 (tranches A and B) ................
UNE Bond 3 (tranche A) ............................
UNE Bond 3 (tranche B) ............................
UNE Bond 3 (tranche C) ............................
UNE Bond 6.600% .....................................
UNE Bond 4 (tranche A) ............................
UNE Bond 4 (tranche B) ............................
UNE Bond 4 (tranche C) ............................
USD 4.500% Senior Notes .........................
1 Luxembourg
1 Luxembourg
2 Luxembourg
3 Luxembourg
4 Luxembourg
5 Luxembourg
6 Paraguay
6 Paraguay
6 Paraguay
6 Paraguay
6 Paraguay
6 Paraguay
6 Paraguay
6 Paraguay
6 Paraguay
6 Paraguay
6 Paraguay
7 Bolivia
7 Bolivia
7 Bolivia
7 Bolivia
7 Bolivia
7 Bolivia
7 Bolivia
7 Bolivia
7 Bolivia
8 Colombia
8 Colombia
8 Colombia
8 Colombia
8 Colombia
8 Colombia
8 Colombia
8 Colombia
9 Panama
USD Comcel Senior Notes 5.125% ...........
10 Guatemala
Total bond financing ..............................
(i)
STIBOR – Swedish Interbank Offered Rate.
2024
2027
2031
2026
2029
2028
2027
2024
2026
2029
2026
2029
2027
2030
2026
2028
2031
2026
2023
2024
2024
2029
2022
2024
2026
2026
2023
2024
2026
2036
2030
2028
2031
2036
2030
2032
STIBOR (i) + 2.350%
STIBOR (i) + 3.000%
4.500 %
6.625 %
6.250 %
5.125 %
5.875 %
8.750 %
9.250 %
10.000 %
9.250 %
10.000 %
9.250 %
10.000 %
6.000 %
6.700 %
7.500 %
5.800 %
4.850 %
3.950 %
4.600 %
4.300 %
4.300 %
4.700 %
5.300 %
5.000 %
CPI + 4.76%
9.350 %
CPI + 4.15%
CPI + 4.89%
6.600 %
5.560 %
CPI + 2.61%
CPI + 3.18%
4.500 %
5.125 %
191
214
779
147
670
446
508
16
7
9
1
3
2
3
13
19
22
35
14
14
41
15
—
21
8
48
31
33
53
26
31
24
59
18
220
—
777
147
670
445
556
17
7
9
1
4
2
3
14
21
23
50
28
21
40
17
11
25
9
54
38
40
64
32
38
29
71
21
589
870
4,980
587
—
4,090
Millicom 2022 Annual Report 181
Notes to the Consolidated Financial Statements
For the years ended December 31, 2022, 2021 and 2020
Luxembourg
(1) SEK Notes
In May 2019, MIC S.A. completed its offering of a SEK 2 billion floating rate senior unsecured sustainability bond due 2024 (the
"2024 SEK bond"). The bond carries a floating coupon of 3-month Stibor+235bps. Costs of issuance of $2.4 million is amortized over
the five year life of the bond (the effective interest rate is 2.6%)
On January 10, 2022, Millicom placed another SEK 2.2 billion floating rate senior unsecured sustainability bond due on 2027 (the
"2027 SEK bond") and carrying a floating coupon priced at 3-month Stibor+300bps. Costs of issuance of $2.4 million is amortized
over the five year life of the bond (the effective interest rate is 3.23%)
Millicom has been using the proceeds in accordance with the Sustainability Bond Framework which includes both environmental
and social investments such as in energy efficiencies, and the expansion of its fixed and mobile networks. The latter are listed on the
Nasdaq Stockholm sustainable bond list.
The 2024 SEK bond is swapped with various banks to hedge its principal and interest rate exposure, pursuant to which it will
effectively pay fixed-rate coupons in US dollars between 4.990% and 4.880%. The 2027 SEK bond is swapped to US dollars to hedge
the exchange risk of its principal and interest payments (see D.1.2.).
(2)
(2031) USD 4.500% Senior Notes
On October 19, 2020, MIC S.A. issued $500 million aggregate principal amount of 4.500% Senior Notes due 2031. The Notes bear
interest at 4.500% p.a., payable semiannually in arrears on each interest payment date. Proceeds were used to early redeem MIC
S.A.'s $500 million 6.000% Senior Notes due 2025. Costs of issuance of $5.5 million is amortized over the eleven-year life of the notes
(the effective interest rate is 4.800%).
On September 22, 2021, Millicom announced the early participation exchange results from its offer dated September 8, 2021;
$302.1 million of the 6.625% Notes due 2026 were exchanged for $307.5 million of the 4.5% Notes due 2031 (at 101.812% exchange
ratio). The gain of $15 million, derived from applying the "modification accounting" under IFRS 9 to this exchange, has been
recorded under "Interest and other financial income" in the statement of income during the year ended December 31, 2021.
Transaction costs attributable to this exchange amount to approximately $4 million and are amortized over the remaining life of the
Notes due 2031.
(3)
(2026) USD 6.625% Senior Notes
In October 2018, MIC S.A. issued $500 million aggregate principal amount of 6.625% Senior Notes due 2026. The Notes bear interest
at 6.625% p.a., payable semiannually in arrears on each interest payment date. Proceeds were used to finance Cable Onda’s
acquisition. Costs of issuance of $6 million were amortized over the eight-year life of the notes (the effective interest rate is 6.750%).
As aforementioned, $302.1 million of the 6.625% Notes due 2026 were exchanged during 2021 for $307.5 million of newly issued
4.5% Notes due 2031.
On February 22, 2021, Millicom redeemed 10% of the principal outstanding of its Notes due 2026, 2028 and 2029 at a price of 103%.
This redemption followed Millicom’s announcement dated February 11, 2021. Total consideration of approximately $180 million was
funded from cash, consistent with the Company's decision to prioritize debt reduction. The redemption premium of $5 million and
the accelerated amortization of the upfront costs of $3 million, have been recorded in the line "Interest and other financial expenses"
in the statement of income during the year ended December 31, 2021.
(4)
(2029) USD 6.250% Senior Notes
In March 2019, MIC S.A. issued $750 million of 6.250% notes due 2029. The notes bear interest at 6.250% p.a., payable semi-annually
in arrears on March 25 and September 25 of each year, starting on September 25, 2019. The net proceeds were used to finance, in
part, the completed Telefónica CAM Acquisitions (see note A.1.2.). Costs of issuance of $8.2 million are amortized over the ten-year
life of the notes (the effective interest rate is 6.360%).
On February 22, 2021, Millicom redeemed 10% of the principal outstanding of its Notes due 2026, 2028 and 2029 at a price of 103%.
See above.
(5)
(2028) USD 5.125% Senior Notes
In September 2017, MIC S.A. issued a $500 million, ten-year bond due January 2028, with an interest rate of 5.125%. Costs of issuance
of $7 million are amortized over the ten year life of the notes (effective interest rate is 5.240%).
On February 22, 2021, Millicom redeemed 10% of the principal outstanding of its Notes due 2026, 2028 and 2029 at a price of 103%.
See above.
Millicom 2022 Annual Report 182
Notes to the Consolidated Financial Statements
For the years ended December 31, 2022, 2021 and 2020
Paraguay
(6)
(2027) USD 5.875% Senior Notes and (2024-2031) PYG Notes
In April 2019, Telefónica Celular del Paraguay S.A.E. (Telecel) issued $300 million 5.875% senior notes due 2027. The notes bear
interest at 5.875% p.a., payable semi-annually in arrears on April 15 and October 15 of each year, starting on October 15, 2019. The
net proceeds were used to finance the repurchase of the Telecel 6.750% 2022 notes. Costs of issuance of $4 million are amortized
over the eight-year life of the notes (the effective interest rate is 6.04%). On January 28, 2020, Telecel issued at a premium
$250 million of 5.875% Senior Notes due 2027 (the "New Notes"), representing an additional issuance from the Senior Notes
described above. The New Notes are treated as a single class with the initial notes, and were priced at 106.375% for an implied yield
to maturity of 4.817%. The corresponding $15 million premium received is amortized over the Senior Notes maturity. On November
4, 2022, Telecel announced a tender offer (early tender consideration for $927.5 for each $1,000 principal amount of notes) to
purchase for cash up to $55 million in aggregate principal amount of the Senior Notes. On November 20, 2022, Telecel announced
that approximately $47 million in principal amount of the mentioned Notes, have been accepted and settled on November 21, 2022.
Late tender expired on December 6, 2022 with no further tendered Notes. Total consideration amounted to approximately
$44 million with a net financial income impact of $3 million given the Notes were repurchased below their par value.
In May 2020, Telefónica Celular del Paraguay, S.A.E.. completed the acquisition of another Millicom subsidiary in Paraguay - Mobile
Cash Paraguay S.A , and further on June 30, 2020, the acquisition of Servicios y Productos Multimedios S.A.. Effective as of those
dates, these new entities now form part of the borrower's group for the purposes of the $550 million 5.875% Senior Notes due 2027
issued by Telefónica Celular del Paraguay, S.A.E.. In addition, as of July 7, 2020 Servicios y Productos Multimedios S.A. became
guarantor of the 5.875% Notes due 2027.
Between June 2019 and February 2020, Telecel registered and completed the issuance of a bond program for PYG 300,000 million
(approximately $41 million using December 31, 2022 exchange rate) program on the Paraguayan stock market, launched in different
series from 5 years to 10 years.
On October 1, 2021, Telecel issued another PYG 400,000 million bond (approximately $54 million using December 31, 2022
exchange rate) in three series with fixed interest rates between 6% to 7.5% and a repayment period from 5 to 10 years.
Bolivia
(7) BOB Notes
In November 2015, Telefónica Celular de Bolivia S.A. issued a BOB 696 million (approximately $100 million) of notes in two series,
series A for BOB 104.4 million (approximately $15 million), with a fixed annual interest rate of 4.050%, maturing in August 2020 and
series B for BOB 591.6 million (approximately $85 million) with a fixed annual interest rate of 4.850%, maturing in August 2023. The
bond has coupon with interest payable semi-annually in arrears in March and September during the first two years, thereafter each
February and August. The effective interest rate is 4.840%. These bonds are listed on the Bolivia Stock Exchange.
In August 2016, Telefónica Celular de Bolivia S.A. issued a new bond for a total amount of BOB 522 million consisting of two tranches
(approximately $50 million and $25 million, respectively). Tranche A and B bear fixed interest at 3.950% and 4.300%, and will mature
in June 2024 and June 2029, respectively. These bonds are listed on the Bolivia Stock Exchange.
In October 2017, Telefónica Celular de Bolivia S.A placed approximately $80 million of local currency bonds in three tranches, which
mature in 2022, 2024 and 2026 with a 4.300% , 4.700% and 5.300% respectively. These bonds are listed on the Bolivia Stock
Exchange.
In July 2019 Telefónica Celular de Bolivia S.A issued two bonds one for BOB 420 million (approximately $61 million) with a 5.000%
coupon maturing on August 2026 and another one for BOB 280 million (approximately $40 million) with a 4.600% coupon maturing
on August 2024. Interest payments is semiannual and both bonds are listed on the Bolivia Stock Exchange.
In December 2020, Telefónica Celular de Bolivia S.A. issued BOB 345 million (approximately $50 million) senior notes due 2026.
Colombia
(8) UNE Bonds
In May 2011, UNE issued a COP300 billion (approximately $126 million) bond consisting of two equal tranches with five and twelve-
year maturities. Interest rates are variable and depend on the tranche. Tranche A had variable interest, based on CPI, in Colombian
peso and paid in Colombian peso. Tranche B bears variable interest, based on CPI, in Colombian peso and paid in Colombian peso.
UNE applied the proceeds to finance its investment plan. Tranche A matured in October 2016 and tranche B will mature in October
2023.
In May 2016, UNE issued a COP540 billion bond (approximately $176 million) consisting of three tranches (approximately $52
million, $83 million and $41 million respectively). Interest rates are either fixed or variable depending on the tranche. Tranche A
bears fixed interest at 9.350%, while tranche B and C bear variable interest, based on CPI, (respective margins of CPI + 4.150% and
Millicom 2022 Annual Report 183
Notes to the Consolidated Financial Statements
For the years ended December 31, 2022, 2021 and 2020
CPI + 4.890%), in Colombian peso. UNE applied the proceeds to finance its investment plan and repay one bond (COP150 billion
tranche). Tranches A, B and C will mature in May 2024, May 2026 and May 2036, respectively.
In March 2020, UNE issued local bonds for an amount of COP 150 billion (approximately $44 million) to repay an existing bond for
the same value, with a 6.600% fixed rate for 10 years.
On February 16, 2021, UNE issued under the approved local bond program, a COP 485,680 million bond (approximately $138 million
using the transaction date exchange rate) with 3 maturities; Series 7 years at 5.56% fixed rate, Series 10 years at CPI plus 2.61% and
Series 15 years at CPI plus 3.18% margin. With the aim to improve UNE’s natural hedge against local currency, the bond proceeds
were used on March 26, 2021 to partially repay 50% of the $300 million syndicated loan of Colombia Movil S.A. (originally due in
December 2024).
Panama
(9) Cable Onda Bonds
In November 2019, Cable Onda issued $600 million aggregate principal amount of 4.500% senior notes due 2030 payable in U.S.
dollars, registered with the Superintendencia del Mercado de Valores de Panamá and listed on the Luxembourg Stock Exchange and
on the Panamá Stock Exchange. The Notes bear interest from November 1, 2019 at a rate of 4.500% per annum, payable on January
30, 2020 for the first payment and thereafter semiannually in arrears on each interest payment date. The proceeds were used to fund
the Panama Acquisition and to refinance certain local financing. Costs of issuance of $16 million, which include an original issue
discount (OID) is amortized over the ten-year life of the notes (the effective interest rate is 4.690%).
Guatemala
(10) (2032) USD 5.125% Senior Notes
On January 27, 2022, our principal subsidiary in Guatemala, Comunicaciones Celulares, S.A. ("Comcel"), completed the issuance of
10-year $900 million Senior Notes with a coupon of 5.125% per annum. The proceeds from this bond 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 the Tigo
Guatemala operations (see note A.1.2.).
On November 4, 2022, Comcel announced a tender offer (early tender consideration for $822.5 for each $1,000 principal amount of
notes) to purchase for cash up to $90 million in aggregate principal amount of the Senior Notes. On November 20, 2022, Comcel
announced that approximately $19 million in principal amount of the mentioned Notes, have been accepted and settled on
November 21, 2022. Late tender expired on December 6, 2022 with no further tendered Notes. Total consideration amounted to
approximately $16 million with a net financial income impact of $3 million given the Notes were repurchased below their par value.
Millicom 2022 Annual Report 18 4
Notes to the Consolidated Financial Statements
For the years ended December 31, 2022, 2021 and 2020
C.3.2. Bank and Development Financial Institution financing
Note
Country
Maturity range
Interest rate
2022
2021
(US$ millions)
Fixed rate loans
PYG Long-term loans .......................................
1 Paraguay
USD - Long-term loans .....................................
2 Panama
BOB Long-term loans .......................................
3 Bolivia
GTQ Long-term loans .......................................
Variable rate loans
8 Guatemala
USD Long-term loans .......................................
4 Costa Rica
CRC Long-term loans .......................................
4 Costa Rica
USD Long-term loans .......................................
TZS Long-term loans ........................................
Tanzania
Tanzania
COP Long-term loans .......................................
5 Colombia
USD Long-term loans .......................................
5 Colombia
2023-2026
2025-2026
2023-2026
2025-2027
2026
2026
2022-2025
2022-2025
2025-2030
2024
USD Credit Facility / Senior Unsecured Term
Loan Facility ......................................................
6 El Salvador
2026-2027
USD Long-term loans .......................................
6 Nicaragua
USD Revolving Credit Facility(i) .......................
7 Luxembourg
USD Bridge Loan ..............................................
7 Luxembourg
USD DNB Bilateral .............................................
Total Bank and Development Financial
Institution financing ......................................
7 Luxembourg
2027
2025
2022
2026
Fixed
Fixed
Fixed
Fixed
Variable
Variable
Variable
Variable
Variable
Variable
Variable
Variable
Variable
Variable
Variable
76
185
64
595
32
96
—
—
280
50
173
147
(3)
—
99
94
259
54
605
33
88
150
38
322
148
99
—
(4)
1,632
99
1,794
3,618
(i)
Relates to the amortized costs of the undrawn RCF that the Company entered into in October 2020 - see point 7 below.
Below are some further details on the facilities disclosed in the table above. When applicable, local currency amounts are translated
in USD using the exchange rate at the time of obtaining them. Otherwise specify the date
1.
Paraguay
In July 2018, Telefónica Celular del Paraguay S.A.E. executed a seven-year loan with Regional Bank for PYG 115,000 million
(approximately $18 million) with a final maturity in 2025.
In January 2019, Telefónica Celular del Paraguay S.A.E. obtained a seven-year loan from BBVA Bank for PYG 177,000 million which is
due on November, 26, 2025.
In September 2019, Telefónica Celular del Paraguay S.A.E. executed an amended and restated agreement with Banco Continental
S.A.E.C.A., to consolidate three existing loans, for a PYG 370,000 million (approximately $57 million). The new loan has a maturity of
7 years.
In December 2020, Telecel executed a credit agreement with Banco Continental S.A.E.C.A for PYG 200,000 million (approximately
$29 million) with a duration of 2.5 years. Main aim was to refinance outstanding bank loans with maturities from 2021 to 2025.
In December 2021, Telecel entered into a new loan of PYG 50,000 million (approximately $7 million) with GNB to refinance an
outstanding bank loan with Banco Itaú. This loan bears fixed interest and will mature in 2024.
2.
Panama
In August 2019, Telecomunicaciones Digitales, S.A. (formerly Cable Onda S.A.) entered into two credit agreements, one with Banco
Nacional de Panama S.A , for $75 million which bears a fixed interest and has a 5 year duration and another one with the Bank of
Nova Scotia (Sucursal Panama) for $75 million with a fixed interest and a five year duration to finance and refinance working capital
and capital expenditures. In October 2020 and September 2021, the $75 million credit agreement with Banco Nacional de Panama
S.A. has been early repaid. On July 29th, 2022 the $75 million loan with The Bank of Nova Scotia was repaid.
Millicom 2022 Annual Report 185
Notes to the Consolidated Financial Statements
For the years ended December 31, 2022, 2021 and 2020
In December 2020, Telecomunicaciones Digitales, S.A. executed a credit agreement with Bank of Nova Scotia with a 60 month
duration for $110 million divided into 2 tranches. Tranche A ($85 million) was disbursed on December 2020 to partially recall the
Local Bond ($85 million) and Tranche B ($25 million) was disbursed on March 1, 2021.
On August 31, 2021, Telecomunicaciones Digitales, S.A. executed an agreement with Bank of Scotia for $75 million at a fixed rate.
The facility was used to repay Cable Onda's remaining balance under the 5.75% local bond, which was initially due on September 3,
2025.
3.
Bolivia
In June 2018, Telefónica Celular de Bolivia S.A. entered into a two tranche loan agreement with Banco BISA S.A for BOB 69.6 million
(approximately $10 million) each, with a fixed interest rate. The loans have a term of 7 years.
In November 2019, they executed a new loan with Banco de Crédito de Bolivia S.A for Bs. 78 million (approximately $11 million), with
semiannual payments and a fixed interest rate. The loan has a term of 4 years.
In October 2021, Tigo Bolivia signed additional credit facilities for a total amount of approximately $26 million with a repayment
period between 2.5 and 5 years and bearing fixed interest rate.
In July 2022, Tigo Bolivia signed two new loan agreements for a total amount of approximately $8 million and a repayment period of
five years, bearing fixed interest rate.
4.
Costa Rica
On October 25, 2021, Millicom Cable Costa Rica S.A. executed new syndicated loan entered into by the Company and Millicom Cable
Costa Rica as co-borrowers for an amount of $125 million. The latter has 2 tranches, a USD $33 million tranche with a LIBOR+ margin
and a local currency tranche at TBP+margin for an amount equivalent to $92 million.
5.
Colombia
On December 14, 2021, UNE EPM Telecomunicaciones S.A. entered into an ESG Linked agreement with Bancolombia for a COP
450,000 million (approximately $94 million at the December 31, 2022 exchange rate) loan with a variable rate and a maturity of 7
years.
On December 20, 2019, our operation in Colombia executed an amendment to the $300 million loan between Colombia Móvil S.A.
E.S.P. as borrower and UNE EPM Telecomunicaciones S.A., as guarantor with a consortium of banks to extend the maturity for 5 years
(now due on December 20, 2024) and lower the applicable margin. On March 26, 2021, $150 million were paid.
On September and November 2020, Colombia executed 4 new cross currency swaps of $25 million each with Bancolombia, JP
Morgan and BBVA to complete $100 million and hedge the exposure of a portion of the $300 million Syndicated Loan Agreement,
fixing the exchange and interest rates (see note D.1.2.).
On January 21, 2022, Colombia Movil S.A. repaid $100 million of the outstanding amount of the aforementioned Syndicated Loan
Agreement. On January 19, 2022, the respective cross currency swaps with Bancolombia and JP Morgan for $25 million, each, were
terminated. This resulted in a gain and cash settlement of $11 million (see note B.5.).
As of December 31, 2022, there is still $50 million outstanding under the Syndicated Loan Agreement, which is covered by cross
currency and interest rate swaps.
On October 5, 2022 UNE EPM Telecomunicaciones S.A. entered into a credit loan with Bancolombia for COP 85,000 million loan
(approximately $18 million) with a variable rate at IBR+margin and a maturity of 1 year.
6.
El Salvador and Nicaragua
On December 26, 2021, Telemovil El Salvador S.A. ("Telemovil") executed a new credit agreement for $100 million with a 5 year
maturity, which bears a variable interest to refinance the $100 million loan agreement dated March 23, 2018 with DNB and Nordea,
which was entirely repaid on December 29, 2021. The credit agreement is guaranteed by Millicom.
On September 12, 2022, Telefonia Celular de Nicaragua, S.A. ("Nicaragua") and Telemovil entered into a new Credit and Guaranty
Agreement with Bank of Nova Scotia as Administrative Agent and Citigroup and Bladex as Joint Lead Arrangers, and with the
Company as Guarantor for $225 million Unsecured Term Loan with a 5-year maturity. The allocated portion for Telemovil is
$75 million and the allocated portion for Nicaragua is $150 million. The proceeds have been used to partially repay loans with other
companies within the Group. The interest rate for this loan is SOFR based plus a margin.
Millicom 2022 Annual Report 18 6
Notes to the Consolidated Financial Statements
For the years ended December 31, 2022, 2021 and 2020
7.
Luxembourg
In October 2020, MICSA. entered into a 5 year, $600 million ESG-linked revolving credit facility (the "Facility") with a syndicate of 11
commercial banks. This facility was not drawdown so far and could be used for financing of working capital or for general corporate
purposes, if needed.
On November 10, 2021, Millicom executed a Bridge Loan Agreement of $2.15 billion with a consortium of banks. The proceeds were
used for the acquisition of Tigo Guatemala's remaining 45% shareholding (see note A.1.2.). The Bridge Loan bore a variable interest
rate with a step up every three months and had a maturity period of 6 months, extendable for an additional 6 months. The initial
costs of issuance amounted to $28 million and were amortized based on the six-month expected timing of refinancing of this Bridge
Loan. On December 29, 2021, Millicom partially repaid $500 million of this Bridge loan, partially with Millicom's own cash and
partially with proceeds from the $100 million bilateral loan with DNB bank, executed on December 20, 2021, with a variable interest
rate and a 5-year maturity. On April 13, 2022, Millicom repaid $100 million of the Bridge Loan with the proceeds received from the
disposal of our operations in Tanzania. The remaining balance of $350 million has been repaid in June 2022 with the proceeds of the
rights offering (see note C.1. ).
8. Guatemala
In October 2020, Comcel and Navega executed several credit agreements with Banco Industrial, Banco G&T Continental, Banco de
America Central and Banco Agromercantil for a total amount of GTQ 3,223 million (approximately $413 million) for 5 and 7 year term
to refinance other credit agreements to finance and refinance working capital, capital expenditures and general corporate purposes.
On December 9, 2021, the Guatemalan operations entered into the following loan agreements:
•
•
a GTQ 950 million loan with Banco Industrial (approximately $123 million) which bears a fixed interest and matures in
October 2025.
two loans for a total of GTQ 500 million with Banco G&T Continental S.A. (approximately $65 million) which bear a fixed
interest rate and mature in December 2026.
On March 31, 2022, Comcel executed a new 5-year $150 million loan agreement with Banco de Desarrollo Rural, S.A.. Proceeds were
disbursed on April 27, 2022 and were used to refinance some of the credit agreements Comcel had with Banco Industrial.
Right of set-off and derecognition
Financial assets and financial liabilities are offset and the net amount is reported in the consolidated statement of financial position if
there is a currently enforceable legal right to offset the recognized amounts and an intention to settle on a net basis, or to realize the
assets and settle the liabilities simultaneously.
A financial asset (or a part of a financial asset or part of a group of similar financial assets) is derecognized when:
•
•
Rights to receive cash flows from the asset have expired; or
Rights to receive cash flows from the asset or obligations to pay the received cash flows in full without material delay have been
transferred to a third party under a “pass-through” arrangement; and the Group has either transferred substantially all the risks
and rewards of the asset or the control of the asset.
When rights to receive cash flows from an asset have been transferred or a pass-through arrangement concluded, an evaluation is
made if and to what extent the risks and rewards of ownership have been retained. When the Group has neither transferred nor
retained substantially all of the risks and rewards of the asset, nor transferred control of the asset, the asset is recognized to the
extent of the Group’s continuing involvement in the asset. In that case, the Group also recognizes an associated liability. The
transferred asset and the associated liability are measured on a basis that reflects the rights and obligations that the Group has
retained. Continuing involvement that takes the form of a guarantee over the transferred asset is measured at the lower of the
original carrying amount of the asset and the maximum amount of consideration that the Group could be required to repay.
A financial liability is derecognized when the obligation under the liability is discharged or canceled, or expires. When an existing
financial liability is replaced by another from the same lender on substantially different terms, or the terms of an existing liability are
substantially modified, such an exchange or modification is treated as the derecognition of the original liability and the recognition
of a new liability. The difference in the respective carrying amounts is recognized in the statement of income.
C.3.3. Interest and other financial expenses
The Group’s interest and other financial expenses comprised the following:
Millicom 2022 Annual Report 187
Notes to the Consolidated Financial Statements
For the years ended December 31, 2022, 2021 and 2020
December 31
2022
2021
2020
(US$ millions)
Interest expense on bonds and bank financing ................................................................................
Interest expense on leases ..................................................................................................................
Early redemption charges ...................................................................................................................
Others ..................................................................................................................................................
Total interest and other financial expenses ......................................................................................
(434)
(124)
—
(59)
(617)
(329)
(113)
(5)
(47)
(495)
(369)
(112)
(15)
(64)
(560)
C.3.4. Guarantees and pledged assets
Guarantees
Financial guarantee contracts issued by the Group are those contracts that require a payment to be made to reimburse the holder
for a loss it incurs because the specified debtor fails to make payment when due in accordance with the terms of a debt instrument.
Financial guarantee contracts are recognized initially as a liability at fair value, adjusted for transaction costs that are directly
attributable to the issuance of the guarantee. Subsequently, the liability is measured at the higher of the best estimate of the
expenditure required to settle the present obligation at the reporting date and the amount recognized, less cumulative
amortization.
Liabilities to which guarantees are related are recorded in the consolidated statement of financial position under Debt and financing,
and liabilities covered by supplier guarantees are recorded under Trade payables or Debt and financing, depending on the
underlying terms and conditions.
Maturity of guarantees
Bank and financing guarantees (i)
Supplier guarantees
Terms
As at December 31,
2022
As at December 31,
2021
As at December 31,
2022
As at December 31,
2021
Outstanding and Maximum exposure
Outstanding and Maximum exposure
0-1 year ................................................
1-3 years ..............................................
3-5 years ..............................................
Total ....................................................
13
70
418
501
71
6
223
300
2
—
—
2
82
—
—
82
(i) If non-payment by the obligor, the guarantee ensures payment of outstanding amounts by the Group's guarantor.
Pledged assets
As at December 31, 2022, the Group’s share of total debt and financing secured by either pledged assets, pledged deposits issued to
cover letters of credit, or guarantees issued was $501 million (December 31, 2021: $300 million). At December 31, 2022 and
December 31, 2021 there were no assets pledged by the Group over these debts and financings. The remainder represented
primarily guarantees issued by Millicom S.A. to guarantee financings raised by other Group operating entities.
C.3.5. Covenants
Millicom’s financing facilities are subject to a number of covenants including net leverage ratio, debt service coverage ratios, or debt
to earnings ratios, among others. In addition, certain of its financings contain restrictions on sale of businesses or significant assets
within the businesses. At December 31, 2022, there were no breaches of financial covenants.
C.4. Lease liabilities
At December 31, 2022, lease liabilities are presented in the statement of financial position as follows:
Millicom 2022 Annual Report 18 8
Notes to the Consolidated Financial Statements
For the years ended December 31, 2022, 2021 and 2020
December 31,
2022
December 31,
2021
(US$ millions)
Current ............................................................................................................................................................
Non-Current ....................................................................................................................................................
Total Lease liabilities ....................................................................................................................................
163
853
1,016
171
996
1,167
As permitted under IFRS 16, Millicom has elected not to recognize a lease liability for short term leases (leases with an expected term
of 12 months or less) or for leases of low value assets. Payments associated with short-term leases of equipment and vehicles and all
leases of low-value assets are rather recognized on a straight-line basis as an expense in the statement of income. Short-term leases
are leases with a lease term of 12 months or less. Low-value assets comprise IT equipment and small items of office furniture. In
addition, certain variable lease payments are not permitted to be recognized as lease liabilities and are expensed as incurred.
The expenses relating to payments not included in the measurement of the lease liability are disclosed in operating expenses and
are as follows:
2022
2021
(US$ millions)
Expense relating to short-term leases (included in cost of sales and operating
expenses) ......................................................................................................................................
0
0
The total cash outflow for leases in 2022 was $285 million (2021: $277 million). Lease liabilities split by maturity and future cash
outflows are disclosed in note D.5..
At December 31, 2022, the Group has not committed to any material leases which had not yet commenced and has no material lease
contracts with variable lease payments.
The Group's leasing activities and how these are accounted for
The Group leases various lands, sites, towers (including those related to towers sold and leased back), offices, warehouses, retail
stores, equipment and cars. Rental contracts are typically made for fixed periods but may have extension options as described
below. Lease terms are negotiated on an individual basis and contain a wide range of different terms and conditions. The lease
agreements do not impose any covenants, but leased assets may not be used as security for borrowing purposes.
Leases are recognized as a right-of-use asset and a corresponding liability at the date at which the leased asset is available for use by
the Group. Each lease payment is allocated between the reduction of the liability and finance cost. The finance cost is charged to the
statement of income over the lease period so as to produce a constant periodic rate of interest on the remaining balance of the
liability for each period. The right-of-use asset is depreciated over the shorter of the asset's useful life and the lease term on a
straight-line basis.
Assets and liabilities arising from a lease are initially measured on a present value basis. Lease liabilities include the net present value
of the following lease payments:
•
•
•
•
•
fixed payments (including in-substance fixed payments), less any lease incentives receivable
variable lease payment that are based on an index or a rate
amounts expected to be payable by the lessee under residual value guarantees
the exercise price of a purchase option if the lessee is reasonably certain to exercise that option, and
payments of penalties for terminating the lease, if the lease term reflects the lessee exercising that option.
The lease payments are discounted using the interest rate implicit in the lease. As it is generally impracticable to determine that rate,
the Group uses the lessee’s incremental borrowing rate, being the rate that the lessee would have to pay to borrow the funds
necessary to obtain an asset of similar value in a similar economic environment with similar terms and conditions. The incremental
borrowing rate applied can have a significant impact on the net present value of the lease liability recognized under IFRS 16.
The Group determines the incremental borrowing rate by country and by considering the risk-free rate, the country risk, the industry
risk, the credit risk and the currency risk, as well as the lease and payment terms and dates.
Millicom 2022 Annual Report 189
Notes to the Consolidated Financial Statements
For the years ended December 31, 2022, 2021 and 2020
The Group is also exposed to potential future increases in variable lease payments based on an index or rate, which are not included
in the lease liability until they take effect. When adjustments to lease payments based on an index or rate take effect, the lease
liability is adjusted against the right-of-use asset by discounting the revised lease payments using either the initial discount rate or a
revised discount rate. The initial discount rate is used if future lease payments are reflecting market or index rates or if they are in
substance fixed. The discount rate is revised, if a change in floating interest rates occurs. The Group reassesses the variable payment
only when there is a change in cash flows resulting from a change in the reference index or rate and not at each reporting date.
According to IFRS 16, lease term is defined as the non-cancellable period for which a lessee has the right to use an underlying asset,
together with both: (a) periods covered by an option to extend the lease if the lessee is reasonably certain to exercise that option;
and (b) periods covered by an option to terminate if the lessee is reasonably certain not to exercise that option. The assessment of
such options is performed at the commencement of a lease. As part of the assessment, Millicom introduced the 'time horizon
concept': the reasonable term under which the company expects to use a leased asset considering economic incentives,
management decisions, business plans and the fast-paced industry Millicom operates in. The assessment must be focused on the
economic incentives for Millicom to exercise (or not) an option to early terminate/extend a contract. The Group has decided to work
on the basis the lessor will generally accept a renewal/not early terminate a contract, as there is an economic incentive to maintain
the contractual relationship.
Millicom considered the specialized nature of most of its assets under lease, the low likelihood the lessor can find a third party to
substitute Millicom as a lessee and past practice to conclude that, the lease term can go beyond the notice period when there is
more than an insignificant penalty for the lessor not to renew the lease. This analysis requires judgment and has a significant impact
on the lease liability recognized under IFRS 16.
Under IFRS 16, the accounting for sale and leaseback transactions has changed as the underlying sale transaction needs to be first
analyzed using the guidance of IFRS 15. The seller/lessee recognizes a right-of-use asset in the amount of the proportional original
carrying amount that relates to the right of use retained. Accordingly, only the proportional amount of gain or loss from the sale
must be recognized.
Finally, the Group has taken the additional following decisions when adopting the standard:
•
•
Non-lease components are capitalized (IFRS16.15)
Intangible assets are out of IFRS 16 scope (IFRS16.4)
C.5. Cash and deposits
C.5.1. Cash and cash equivalents
Cash and cash equivalents in USD .................................................................................................................................
Cash and cash equivalents in other currencies .............................................................................................................
Total cash and cash equivalents .................................................................................................................................
2022
2021
(US$ millions)
820
220
1,039
526
369
895
Cash and cash equivalents include cash in hand, deposits held at call with banks and other short-term highly liquid investments with
original maturities of three months or less.
Cash deposits with banks with maturities of more than three months that generally earn interest at market rates are classified as time
deposits.
C.5.2. Restricted cash
Mobile Financial Services ...............................................................................................................................................
Others ..............................................................................................................................................................................
Restricted cash ..............................................................................................................................................................
2022
2021
(US$ millions)
50
6
57
197
7
203
Millicom 2022 Annual Report 19 0
Notes to the Consolidated Financial Statements
For the years ended December 31, 2022, 2021 and 2020
Cash held with banks related to MFS which is restricted in use due to local regulations is denoted as restricted cash. The decrease is
in mainly related to the sale of our operations in Tanzania.
C.5.3. Pledged deposits
Pledged deposits represented contracted cash deposits with banks that are held as security for debts at corporate or operational
entity level. Millicom is unable to access these funds until either the relevant debt is repaid or alternative security is arranged with
the lender.
At December 31, 2022, there was nil pledged deposits (2021: $35 million).
C.6. Net financial obligations
Net financial obligations
Total debt and financing ................................................................................................................................................
Lease liabilities ................................................................................................................................................................
Gross financial obligations .........................................................................................................................................
Less:
Cash and cash equivalents .............................................................................................................................................
Pledged deposits ............................................................................................................................................................
Net financial obligations at the end of the year .......................................................................................................
Add (less) derivatives related to debt (note D.1.2.) .......................................................................................................
Net financial obligations including derivatives related to debt ............................................................................
2022
2021
(US$ millions)
6,804
1,016
7,820
(1,039)
—
6,780
34
6,814
7,744
1,167
8,911
(895)
(35)
7,981
(20)
7,961
Assets
Cash and cash
equivalents
Liabilities from financing
activities
Other
Bond and bank
debt and financing
Lease
liabilities
Total
Net financial obligations as at January 1, 2021 ...........................
Cash flows ...........................................................................................
Scope Changes ..................................................................................
Recognition / Remeasurement ..........................................................
Interest accretion ................................................................................
Foreign exchange movements ..........................................................
Transfers ..............................................................................................
Other non-cash movements ..............................................................
Net financial obligations as at December 31, 2021 .....................
Cash flows ...........................................................................................
Scope changes ....................................................................................
Recognition / Remeasurement ..........................................................
Interest accretion ................................................................................
Foreign exchange movements ..........................................................
Transfers to/from assets held for sale ................................................
Transfers ..............................................................................................
Other non-cash movements ..............................................................
875
(169)
199
—
—
(10)
—
—
895
179
—
—
—
(11)
(24)
—
—
Net financial obligations as at December 31, 2022 .....................
1,039
—
31
4
—
—
—
—
—
35
(35)
—
—
—
—
—
—
—
—
5,691
1,779
413
—
20
(108)
(15)
(36)
7,744
(557)
—
—
9
(197)
(189)
1
(8)
1,021
(137)
5,837
1,780
204
123
—
(44)
1
—
414
123
20
(142)
(14)
(36)
1,167
(157)
7,981
(858)
—
251
—
(63)
(184)
2
—
—
251
9
(249)
(349)
4
(8)
6,804
1,016
6,780
Millicom 2022 Annual Report
191
Notes to the Consolidated Financial Statements
For the years ended December 31, 2022, 2021 and 2020
C.7. Financial instruments
i) Equity and debt instruments
Classification
The Group classifies its financial assets in the following measurement categories:
•
•
those to be measured subsequently at fair value either through Other Comprehensive Income (OCI), or through profit or loss,
and
those to be measured at amortized cost.
The classification depends on the Group’s business model for managing the financial assets and the contractual terms of the cash
flows.
For assets measured at fair value, gains and losses will either be recorded in profit or loss or OCI. For investments in equity
instruments that are not held for trading, this will depend on whether the Group has made an irrevocable election at the time of
initial recognition to account for the equity investment at fair value through other comprehensive income (FVOCI).
The Group reclassifies debt investments when and only when its business model for managing those assets changes.
Measurement
At initial recognition, the Group measures a financial asset at its fair value plus, in the case of a financial asset not at fair value
through profit or loss (FVPL), transaction costs that are directly attributable to the acquisition of the financial asset. Transaction costs
of financial assets carried at FVPL are expensed in profit or loss.
Financial assets with embedded derivatives are considered in their entirety when determining whether their cash flows are solely
payment of principal and interest.
Debt instruments
Subsequent measurement of debt instruments depends on the Group’s business model for managing the asset and the cash flow
characteristics of the asset. There are three measurement categories into which the group classifies its debt instruments:
•
•
•
Amortized cost: Assets that are held for collection of contractual cash flows where those cash flows represent solely payments
of principal and interest are measured at amortized cost. Interest income from these financial assets is included in finance
income using the effective interest rate method. Any gain or loss arising on derecognition is recognized directly in profit or loss
and presented in other gains / (losses), together with foreign exchange gains and losses. Impairment losses are presented as a
separate line item in the consolidated statement of income.
FVOCI: Assets that are held for collection of contractual cash flows and for selling the financial assets, where the assets’ cash
flows represent solely payments of principal and interest, are measured at FVOCI. Movements in the carrying amount are taken
through OCI, except for the recognition of impairment gains or losses, interest revenue and foreign exchange gains and losses
which are recognized in profit or loss. When the financial asset is derecognised, the cumulative gain or loss previously
recognized in OCI is reclassified from equity to profit or loss and recognized in ‘Other non-operating (expenses) income, net’.
Interest income from these financial assets is included in finance income using the effective interest rate method. Foreign
exchange gains and losses and impairment expenses are presented as ‘Other non-operating (expenses) income, net’ in the
consolidated statement of income.
FVPL: Assets that do not meet the criteria for amortized cost or FVOCI are measured at FVPL. A gain or loss on a debt investment
that is subsequently measured at FVPL is recognized in profit or loss and presented net within ‘Other non-operating (expenses)
income, net’ in the period in which it arises.
Equity instruments
The Group subsequently measures all equity investments at fair value. The Group does not hold equity instruments for trading.
Where the Group’s management has elected to present fair value gains and losses on equity investments in OCI, there is no
subsequent reclassification of fair value gains and losses to profit or loss following the derecognition of the investment. Purchases
and sales of equity instruments are recognized as of their settlement date. Dividends from such investments continue to be
recognized in profit or loss as other income when the Group’s right to receive payments is established.
Otherwise, changes in the fair value of financial assets at FVPL are recognized in ‘Other non-operating (expenses) income, net’ in the
consolidated statement of income as applicable. Impairment losses (and reversal of impairment losses) on equity investments
measured at FVOCI are not reported separately from other changes in fair value.
Millicom 2022 Annual Report 192
Notes to the Consolidated Financial Statements
For the years ended December 31, 2022, 2021 and 2020
Impairment
The Group assesses on a forward looking basis the expected credit losses associated with its financial assets carried at amortized cost
and FVOCI. The impairment methodology applied depends on whether there has been a significant increase in credit risk.
For trade receivables, the Group applies the simplified approach permitted by IFRS 9, which requires expected lifetime losses to be
recognized from initial recognition of the trade receivables.
The provision is recognized in the consolidated statement of income within Cost of sales.
ii) Derivative financial instruments and hedging activities
Derivatives are initially recognized at fair value on the date a derivative contract is entered into and are subsequently re-measured at
fair value at each subsequent closing date. The method of recognizing the resulting gain or loss depends on whether the derivative
is designated as a hedging instrument and, if so, the nature of the item being hedged. The Group designates certain derivatives as
either:
a) Hedges of the fair value of recognized assets or liabilities or a firm commitment (fair value hedge); or
b) Hedges of a particular risk associated with a recognized asset or liability or a highly probable forecast transaction (cash flow
hedge).
c) Hedges of a net investment in a foreign operation (net investment hedges).
For transactions designated and qualifying for hedge accounting, at the inception of the transaction, the Group documents the
relationship between hedging instruments and hedged items, as well as its risk management objectives and strategy for
undertaking various hedging transactions. This is done in reference to the Group Treasury Policy as last updated and approved by
the Audit Committee in late 2020. The Group also documents its assessment, both at hedge inception and on an ongoing basis
(quarterly), of whether the derivatives that are used in hedging transactions are highly effective in offsetting changes in fair values or
cash flows of hedged items.
The full fair value of a hedging instrument is classified as a non-current asset or liability when the period to maturity of the hedged
item is more than 12 months and as a current asset or liability when the remaining maturity of the hedged item is less than 12
months. Trading derivatives are classified as a current asset or liability when the remaining period to maturity of the hedged item is
less than 12 months.
The change in fair value of hedging instruments that are designed and qualify as fair value hedges is recognized in the statement of
income as finance costs or income. The change in fair value of the hedged item attributable to the risk hedged is recorded as part of
the carrying value of the hedged item and is also recognized in the statement of income as finance costs or income.
The effective portion of changes in the fair value of derivatives that are designated and qualify as cash flow hedges is recognized in
other comprehensive income. Gains or loss relating to any ineffective portion is recognized immediately in the statement of income
within Other non-operating (expenses) income, net. Amounts accumulated in equity are reclassified to the statement of income in
the periods when the hedged item affects profit or loss.
Hedges of net investments in foreign operations are accounted for similarly to cash flow hedges. Any gain or loss on the hedging
instrument relating to the effective portion of the hedge is recognised in other comprehensive income and accumulated in reserves
in equity. The gain or loss relating to the ineffective portion is recognised immediately in profit or loss within Other non-operating
(expenses) income, net. Gains and losses accumulated in equity are reclassified to profit or loss when the foreign operation is
partially disposed of or sold.
When a hedging instrument expires or is sold, or when a hedge no longer meets the criteria for hedge accounting, any cumulative
gain or loss existing in equity at that time is recycled to the statement of income within Other non-operating (expenses) income, net.
When a forecast transaction is no longer expected to occur, the cumulative gain or loss that was reported in equity is immediately
transferred to the statement of income within Other non-operating (expenses) income, net.
Certain derivative instruments do not qualify for hedge accounting. Changes in the fair value of any derivative instrument that does
not qualify for hedge accounting are recognised immediately in profit or loss and are included in Other non-operating (expenses)
income, net.
C.7.1. Fair value measurement hierarchy
Millicom uses the following fair value measurement hierarchy:
Level 1 – Quoted prices (unadjusted) in active markets for identical assets or liabilities.
Millicom 2022 Annual Report 193
Notes to the Consolidated Financial Statements
For the years ended December 31, 2022, 2021 and 2020
Level 2 – Inputs other than quoted prices included within Level 1 that are observable for the asset or liability, either directly (that is,
as prices) or indirectly (that is, derived from prices).
Level 3 – Inputs for the asset or liability that are not based on observable market data (that is, unobservable inputs).
The Group enters into derivative financial instruments with various counterparties, principally financial institutions with investment
grade ratings. Interest rate swaps and foreign exchange forward contracts are valued using valuation techniques, which employ the
use of markets observable data. The most frequently applied valuation techniques include forward pricing and swap models using
present value calculations. The models incorporate various inputs including the credit quality of counterparties, foreign exchange
spot and forward rates, yield curves of the respective currencies, interest rate curves and forward curves.
C.7.2. Fair value of financial instruments
The fair value of Millicom’s financial instruments are shown at amounts at which the instruments could be exchanged in a current
transaction between willing parties, other than in a forced or liquidation sale. The fair value of all financial assets and all financial
liabilities, except debt and financing approximate their carrying value largely due to the short-term maturities of these instruments.
The fair values of all debt and financing have been estimated by the Group, based on discounted future cash flows at market interest
rates.
Fair values of financial instruments at December 31,
Carrying value
Fair value
Note
2022
2021
2022
2021
(US$ millions)
Financial assets
Derivative financial instruments ......................................................
Other non-current assets .................................................................
Trade receivables, net .......................................................................
Amounts due from non-controlling interests, associates and
joint venture partners .......................................................................
Prepayments and accrued income ..................................................
Supplier advances for capital expenditures ....................................
Other current assets .........................................................................
Restricted cash ..................................................................................
Cash and cash equivalents ...............................................................
Total financial assets ......................................................................
Current ..............................................................................................
Non-current ......................................................................................
Financial liabilities
G.5.
C.5.2.
C.5.1.
Debt and financing (i) .......................................................................
C.3.
Trade payables ..................................................................................
Payables and accruals for capital expenditure ................................
Derivative financial instruments ......................................................
Put option liability ............................................................................
Amounts due to non-controlling interests, associates and joint
venture partners ...............................................................................
Accrued interest and other expenses ..............................................
Other liabilities ..................................................................................
Total financial liabilities ................................................................
Current ..............................................................................................
Non-current ......................................................................................
C.7.4.
G.5.
(i)
Fair values are measured with reference to Level 1 (for listed bonds) or level 2.
19
76
379
15
117
21
197
57
1,039
1,920
1,825
95
6,804
400
428
53
—
58
412
658
8,812
1,601
7,210
21
74
405
65
166
35
269
203
895
2,134
2,015
119
7,744
347
452
1
290
74
539
814
10,260
3,858
6,403
19
76
379
15
117
21
197
57
1,039
1,920
1,825
95
6,327
400
428
53
—
58
412
658
8,335
1,601
6,733
21
74
405
65
166
35
269
203
895
2,134
2,015
119
7,817
347
452
1
290
74
539
814
10,334
3,858
6,476
Millicom 2022 Annual Report 19 4
Notes to the Consolidated Financial Statements
For the years ended December 31, 2022, 2021 and 2020
C.7.3. Equity investments
As at December 31, 2022 and 2021, Millicom has no material investments in equity instruments.
Helios Towers plc (“HT”)
During 2020, Millicom disposed of a total of 85 million shares that it owned in HT for a total net consideration of GBP 130 million
($169 million), triggering a total net gain on disposal of $6 million recorded in the statement of income under ‘Other operating
income (expenses), net’.
In June 2021, Millicom disposed of its remaining 76 million shares it owned in HT for a total net consideration of GBP 115 million
($163 million), triggering a net loss on disposal of $15 million, recorded under ‘other operating income (expenses), net’.
In total, starting June 2020, Millicom sold 162 million shares it held in HT, yielding total proceeds of GBP 244 million ($383 million).
Following these disposals, Millicom has no remaining ownership in HT. The changes in fair value were previously shown under
'Other non-operating (expenses) income, net' (see note B.5.).
C.7.4. Call and put options
Cable Onda call and put options
As part of the acquisition of Cable Onda, the shareholders agreed on certain put and call options as follows - as amended
subsequent to the acquisition of Telefónica Panama. As previously explained in note A.1.2., on June 14, 2022, the Group received the
formal notification from the minority shareholders of Telecomunicaciones Digitales, S.A. (formerly Cable Onda S.A.) confirming the
exercise of their put option right to sell their remaining 20% shareholding to Millicom for a cash amount of approximately
$290 million. The call option expired at the same time.
As of December 31, 2021, the put option liability was valued at $290 million. The call option value was immaterial.
Up to the exercise of the put option, the changes in value of the call option asset and put option liability were recorded in the
Group's statement of income under "Other non-operating (expenses) income, net" (see note B.5.).
D. Financial risk management
Exposure to interest rate, foreign currency, non-repatriation, liquidity, capital management and credit risks arise in the normal course
of Millicom’s business. Each year Group Treasury revisits and presents to the Audit committee updated Group Treasury policy. The
Group analyzes each of these financial risks individually as well as on an interconnected basis and defines and implements strategies
to manage the economic impact on the Group’s performance in line with its policy. This policy was last reviewed in October 2022. As
part of the annual review of the above mentioned risks, the Group targets a strategy with respect to the use of derivatives and
natural hedging instruments ranging from raising debt in local currency (where the Company targets to maintain 40% of debt in
local currency) to maintaining at least a 75/25% mix between fixed and floating rate debt or agreeing to cover up to six months
forward of operating costs and capex denominated in non-functional currencies through a rolling and layering strategy. Millicom’s
risk management strategies may include the use of derivatives to the extent a market would exist in the jurisdictions where the
Group operates. Millicom’s policy prohibits the use of such derivatives in the context of speculative trading.
Accounting policies for derivatives is further detailed in note C.7. On December 31, 2022 and 2021 fair value of derivatives held by
the Group can be summarized as follows:
Derivatives
Cash flow hedge derivatives ..........................................................................................................................................
Net derivative asset (liability) .....................................................................................................................................
(34)
(34)
20
20
2022
2021
(US$ millions)
D.1. Interest rate risk
Debt and financing issued at floating interest rates expose the Group to cash flow interest rate risk. Debt and financing issued at
fixed rates expose the Group to fair value interest rate risk. The Group’s exposure to risk of changes in market interest rates relate to
both of the above. To manage this risk, the Group’s policy is to maintain a combination of fixed and floating rate debt with a target
that more than 75% of the debt be at fixed rate. The Group actively monitors borrowings against this target. The target mix between
Millicom 2022 Annual Report 195
Notes to the Consolidated Financial Statements
For the years ended December 31, 2022, 2021 and 2020
fixed and floating rate debt is reviewed periodically. The purpose of Millicom’s policy is to achieve an optimal balance between cost
of funding and volatility of financial results, while considering market conditions as well as our overall business strategy. At
December 31, 2022, approximately 82% of the Group’s borrowings are at a fixed rate of interest or for which variable rates have been
swapped for fixed rates with interest rate swaps (2021: 64%).
D.1.1. Fixed and floating rate debt
Financing at December 31, 2022
Amounts due within:
1 year
1–2 years
2–3 years
3–4 years
4–5 years
>5 years
Total
131
49
180
383
12
394
(US$ millions)
501
63
564
376
402
777
7.68 %
5.71 %
6.11 %
7.46 %
718
404
1,122
6.49 %
3,466
300
3,766
5,574
1,230
6,804
5.88 %
6.22 %
Fixed rate financing ...............
Floating rate financing ..........
Total ......................................
Weighted average nominal
interest rate ...........................
Financing at December 31, 2021
1 year
1–2 years
2–3 years
3–4 years
4–5 years
>5 years
Total
Amounts due within:
(US$ millions)
91
1,750
1,840
151
55
206
460
26
487
662
181
843
372
386
758
3,219
391
3,610
4,956
2,789
7,744
1.93 %
5.97 %
5.47 %
5.86 %
5.11 %
5.34 %
5.55 %
Fixed rate financing ...............
Floating rate financing ..........
Total ......................................
Weighted average nominal
interest rate ...........................
A 100 basis point fall or rise in market interest rates for all currencies in which the Group had borrowings at December 31, 2022
would increase or reduce profit before tax from continuing operations for the year by approximately $12 million (2021: $28 million).
D.1.2. Interest rate swap contracts
From time to time, Millicom enters into currency and interest rate swap contracts to manage its exposure to fluctuations in interest
rates and currency fluctuations in accordance with its Group Treasury policy. Details of these arrangements are provided below.
MIC S.A. entered into swap contracts in order to hedge the foreign currency and interest rate risks in relation to the 2024 SEK 2
billion senior unsecured sustainability bond and the foreign currency risk in relation to the 2027 SEC 2.2 billion senior unsecured
sustainability bond (issued in May 2019 and January 2022, corresponding to $207.6 million and $252.3 million, respectively, using
the exchange rate at the time of the issuance of each bond - see note C.3.1.). These swaps are accounted for as cash flow hedges as
the timing and amounts of the cash flows under the swap agreements match the cash flows under the SEK bonds. Their maturity
date is May 2024 and January 2027, respectively. The hedging relationship is highly effective and related fluctuations are recorded
through other comprehensive income. At December 31, 2022, the fair values of the swaps amount to a liability of $53 million.
(December 31, 2021: an asset of $6 million).
Our operations in Colombia and El Salvador, entered into several swap agreements in order to hedge foreign currency and interest
rate risks on certain long-term debts. These swaps are accounted for as cash flow hedges and related fair value changes are recorded
through other comprehensive income. As of December 31, 2022, the fair value of the swaps from our operations in El Salvador
amount to a liability of nil (December 31, 2021: a liability of $1 million) and the fair value of the swaps from our operations in
Colombia amounts to an asset of $19 million (December 31, 2021: an asset of $15 million). On January 19, 2022, a portion of the
cross-currency swaps with Bancolombia and JP Morgan were settled in cash in favor of Colombia for $8 million.
Interest rate and currency swaps are measured with reference to Level 2 of the fair value hierarchy.
There are no other derivative financial instruments with a significant fair value at December 31, 2022.
Millicom 2022 Annual Report 19 6
Notes to the Consolidated Financial Statements
For the years ended December 31, 2022, 2021 and 2020
D.2. Foreign currency risks
The Group is exposed to foreign exchange risk arising from various currency exposures in the countries in which it operates. Foreign
exchange risk arises from future commercial transactions, recognized assets and liabilities and net investments in foreign operations.
Millicom seeks to reduce its foreign currency exposure through a policy of matching, as far as possible, assets and liabilities
denominated in foreign currencies, or entering into agreements that limit the risk of exposure to currency fluctuations against the
US dollar reporting currency. In some cases, Millicom may also borrow in US dollars where it is either commercially more
advantageous for joint ventures and subsidiaries to incur debt obligations in US dollars or where US dollar denominated borrowing
is the only funding source available to a joint venture or subsidiary. In these circumstances, Millicom accepts the remaining currency
risk associated with financing its joint ventures and subsidiaries, principally because of the relatively high cost of forward cover,
when available, in the currencies in which the Group operates.
D.2.1. Debt denominated in US dollars and other currencies
Debt denomination at December 31
2022
2021
(US$ millions)
Debt denominated in US dollars ................................................................................................................................
4,100
4,827
Debt denominated in currencies of the following countries:
Guatemala .......................................................................................................................................................................
Colombia .........................................................................................................................................................................
Tanzania ..........................................................................................................................................................................
Bolivia ..............................................................................................................................................................................
Paraguay .........................................................................................................................................................................
El Salvador(i) ...................................................................................................................................................................
Panama(i) ........................................................................................................................................................................
Luxembourg (COP denominated) .................................................................................................................................
Costa Rica ........................................................................................................................................................................
Total debt denominated in other currencies ............................................................................................................
Total debt ......................................................................................................................................................................
595
605
—
260
171
173
773
30
96
605
699
38
310
195
99
846
36
88
2,704
6,804
2,917
7,744
(i) El Salvador's official unit of currency is the U.S. dollar, while Panama uses the U.S. dollar as legal tender. Our local debt in both countries is therefore
denominated in U.S. dollars but presented as local currency (LCY).
At December 31, 2022, if the US dollar had weakened/strengthened by 10% against the other functional currencies of our operations
and all other variables held constant, then profit before tax from continuing operations would have increased/decreased by $20
million (2021: $38 million). This increase/decrease in profit before tax would have mainly been as a result of the conversion of the
USD-denominated net debts in our operations with functional currencies other than the US dollar.
D.2.2. Foreign currency swaps
See note D.1.2. Interest rate swap contracts.
D.3. Non-repatriation risk
Most of Millicom’s operating subsidiaries and joint ventures generate most of the revenue of the Group and in the currency of the
countries in which they operate. Millicom is therefore dependent on the ability of its subsidiaries and joint venture operations to
transfer funds to the Company.
Although foreign exchange controls exist in some of the countries in which Millicom Group companies operate, none of these
controls currently significantly restrict the ability of these operations to pay interest, dividends, technical service fees, royalties or
repay loans by exporting cash, instruments of credit or securities in foreign currencies. However, existing foreign exchange controls
may be strengthened in countries where the Group operates, or foreign exchange controls may be introduced in countries where
Millicom 2022 Annual Report
197
Notes to the Consolidated Financial Statements
For the years ended December 31, 2022, 2021 and 2020
the Group operates that do not currently impose such restrictions. If such events were to occur, the Company’s ability to receive
funds from the operations could be subsequently restricted, which would impact the Company’s ability to make payments on its
interest and loans and, or pay dividends to its shareholders. As a policy, all operations which do not face restrictions to deposit funds
offshore and in hard currencies should do so for the surplus cash generated on a weekly basis. The Company and its subsidiaries
make use of physical cash pooling arrangements in hard currencies to the extent permitted.
In addition, in some countries it may be difficult to convert large amounts of local currency into foreign currency because of limited
foreign exchange markets. The practical effects of this may be time delays in accumulating significant amounts of foreign currency
and exchange risk, which could have an adverse effect on the Group. This is a relatively rare case for the countries in which the
Group operates.
Lastly, repatriation most often results in taxation, which is evidenced in the amount of taxes paid by the Group relative to the
Corporate Income Tax reported in its statement of income.
D.4. Credit and counterparty risk
Financial instruments that subject the Group to credit risk include cash and cash equivalents, pledged deposits, letters of credit,
trade receivables, amounts due from joint venture partners and associates, supplier advances and other current assets and
derivatives. Counterparties to agreements relating to the Group’s cash and cash equivalents, pledged deposits and letters of credit
are significant financial institutions with investment grade ratings. Management does not believe there are significant risks of non-
performance by these counterparties and maintain a diversified portfolio of banking partners. Allocation of deposits across banks
are managed such that the Group’s counterparty risk with a given bank stays within limits which have been set, based on each
bank’s credit rating.
A large portion of revenue of the Group is comprised of prepaid products and services. For postpaid customers, the Group follows
risk control procedures to assess the credit quality of the customer, taking into account its financial position, past experience and
other factors. Accounts receivable also comprise balances due from other telecom operators. Credit risk of other telecom operators
is limited due to the regulatory nature of the telecom industry, in which licenses are normally only issued to credit-worthy
companies. The Group maintains a provision for expected credit losses of trade receivables based on its historical credit loss
experience.
As the Group has a large number of internationally dispersed customers, there is generally no significant concentration of credit risk
with respect to trade receivables, except for certain B2B customers (mainly governments). See note F.1.
D.5. Liquidity risk
Liquidity risk is the risk that an entity will encounter difficulty in meeting obligations associated with financial liabilities. The Group
has significant indebtedness but also has significant cash balances. Millicom evaluates its ability to meet its obligations on an
ongoing basis using a recurring liquidity planning tool. This tool considers the operating net cash flows generated from its
operations and the future cash needs for borrowing, interest payments, dividend payments and capital and operating expenditures
required in maintaining and developing its operating businesses.
The Group manages its liquidity risk through use of bank overdrafts, bank loans, bonds, vendor financing, Export Credit Agencies
and Development Finance Institutions (DFI) loans. Millicom believes that there is sufficient liquidity available in the markets to meet
ongoing liquidity needs. Additionally, Millicom is able to arrange offshore funding. Millicom has a diversified financing portfolio with
commercial banks representing about 23% of its gross financing (2021: 41%), bonds 64% (2021: 46%) and leases 13% (2021: 13%).
Millicom 2022 Annual Report 19 8
Notes to the Consolidated Financial Statements
For the years ended December 31, 2022, 2021 and 2020
Maturity profile of net financial liabilities at December 31, 2022
Outstanding debt and financing .............................................................................
Outstanding amortized costs undiscounted ..........................................................
Lease liability ............................................................................................................
Cash and equivalents ...............................................................................................
Derivative financial instruments .............................................................................
Net cash (debt) including derivatives related to debt ......................................
Future interest commitments related to debt and financing ................................
Future interest commitments related to leases .....................................................
Trade payables (excluding accruals) .......................................................................
Other financial liabilities (including accruals) .........................................................
Trade receivables .....................................................................................................
Other financial assets ...............................................................................................
Net financial liabilities ..........................................................................................
Less than 1
year
1 to 5 years
>5yrs
Total
(US$ millions)
(181)
1
(163)
1,039
—
697
(416)
(106)
(689)
(867)
379
232
(770)
(2,880)
23
(478)
—
(34)
(3,370)
(1,349)
(290)
—
—
—
71
(3,813)
47
(374)
—
—
(4,141)
(111)
(135)
—
—
—
—
(6,875)
71
(1,016)
1,039
(34)
(6,814)
(1,877)
(531)
(689)
(867)
379
303
(4,938)
(4,387)
(10,095)
Maturity profile of net financial liabilities at December 31, 2021
Less than 1
year
1 to 5 years
>5yrs
Total
(US$ millions)
Total debt and financing .........................................................................................
(1,840)
(2,294)
(3,610)
(7,744)
Outstanding amortized costs undiscounted ..........................................................
Lease liability ............................................................................................................
Cash and equivalents ...............................................................................................
Pledged deposits (related to back borrowings) .....................................................
Derivative financial instruments .............................................................................
Net cash (debt) including derivatives related to debt
Future interest commitments related to debt and financing ................................
Future interest commitments related to leases
Trade payables (excluding accruals)
Other financial liabilities (including accruals)
Put option liability
Trade receivables
Other financial assets ...............................................................................................
(171)
895
35
—
(1,082)
(340)
(144)
(624)
(1,143)
(290)
405
310
(591)
(404)
(1,167)
—
—
20
(2,865)
(1,086)
(380)
—
0
—
—
98
—
—
—
(4,014)
(98)
(179)
—
—
—
—
—
895
35
20
(7,961)
(1,524)
(704)
(624)
(1,143)
(290)
405
408
Net financial liabilities ..........................................................................................
(2,907)
(4,234)
(4,291)
(11,431)
D.6. Capital management
The primary objective of the Group’s capital management is to ensure a strong credit rating and solid capital ratios in order to
support its business and maximize shareholder value.
The Group manages its capital structure with reference to local economic conditions and imposed restrictions such as debt
covenants. To maintain or adjust its capital structure, the Group may make dividend payments to shareholders, return capital to
shareholders through share repurchases or issue new shares. At December 31, 2022, Millicom was rated at one notch below
investment grade by the independent rating agencies Moody’s (Ba1 stable) and Fitch (BB+ stable). The Group primarily monitors
capital using net financial obligations to EBITDA.
Millicom 2022 Annual Report
19 9
Notes to the Consolidated Financial Statements
For the years ended December 31, 2022, 2021 and 2020
The Group reviews its gearing ratio (net financial obligations divided by total capital plus net financial obligations) periodically. Net
financial obligations includes interest bearing debt and lease liabilities, less cash and cash equivalents (included restricted cash) and
pledged and time deposits related to bank borrowings. Capital represents equity attributable to the equity holders of the parent.
Net financial obligations to EBITDA
Net financial obligations (i) ..................................................................................................................
EBITDA .................................................................................................................................................
Net financial obligations to EBITDA (ii) ...............................................................................................
C.6.
B.3.
6,780
2,228
3.04
7,981
1,517
5.26
(i)
'Net financial obligations' is debt and lease liabilities less cash and pledged and time deposits.
(ii) The ratio is above 3.0x on an IFRS basis. However, according to the terms of our indentures, this ratio is calculated on a different basis, resulting in a ratio
below 3.0x for covenant purposes. Also, the ratio in 2021 is artificially high as the full debt of Tigo Guatemala had been consolidated from the acquisition
date on November 12, 2021, while the Group consolidated only 1.5 months of Tigo Guatemala's EBITDA.
Note
2022
2021
(US$ millions)
Gearing ratio
Net financial obligations .....................................................................................................................
Equity attributable to Owners of the Company .................................................................................
C.6.
C.1.
Net financial obligations and equity ..................................................................................................
Gearing ratio ........................................................................................................................................
6,780
3,605
10,386
0.65
7,981
2,583
10,564
0.76
Note
2022
2021
(US$ millions)
E. Long-term assets
E.1. Intangible assets
Millicom’s intangible assets mainly consist of goodwill arising from acquisitions, customer lists acquired through acquisitions,
licenses and rights to operate and use spectrum.
E.1.1. Accounting for intangible assets
Intangible assets acquired in business acquisitions are initially measured at fair value at the date of acquisition, and those which are
acquired separately are measured at cost. Internally generated intangible assets, excluding capitalized development costs, are not
capitalized but expensed to the statement of income in the expense category consistent with the function of the intangible assets.
Subsequently intangible assets are carried at cost, less any accumulated amortization and any accumulated impairment losses.
Intangible assets with finite useful lives are amortized over their estimated useful economic lives using the straight-line method and
assessed for impairment whenever there is an indication that the intangible asset may be impaired. The amortization period and the
amortization method for intangible assets with finite useful lives are reviewed at least at each financial year end. Changes in
expected useful lives or the expected beneficial use of the assets are accounted for by changing the amortization period or method,
as appropriate, and treated as changes in accounting estimates.
Amortization expense on intangible assets with finite lives is recognized in the consolidated statement of income in the expense
category consistent with the function of the intangible assets.
Goodwill
Goodwill represents the excess of cost of an acquisition over the Group’s share in the fair value of identifiable assets less liabilities
and contingent liabilities of the acquired subsidiary, at the date of the acquisition. If the fair value or the cost of the acquisition can
only be determined provisionally, then goodwill is initially accounted for using provisional values. Within 12 months of the
acquisition date, any adjustments to the provisional values are recognized. This is done when the fair values and the cost of the
acquisition have been finally determined. Adjustments to provisional fair values are made as if the adjusted fair values had been
Millicom 2022 Annual Report 2 0 0
Notes to the Consolidated Financial Statements
For the years ended December 31, 2022, 2021 and 2020
recognized from the acquisition date. Goodwill on acquisition of subsidiaries is included in intangible assets, net. Goodwill on
acquisition of joint ventures or associates is included in investments in joint ventures and associates. Following initial recognition,
goodwill is measured at cost, less any accumulated impairment losses. Gains or losses on the disposal of an entity include the
carrying amount of goodwill relating to the entity sold.
Where goodwill forms part of a cash-generating unit (or group of cash-generating units) and part of the operation within that unit is
disposed of, the goodwill associated with the operation disposed of is included in the carrying amount of the operation when
determining the gain or loss on disposal. Goodwill disposed of in this manner is measured, based on the relative values of the
operation disposed and the portion of the cash-generating unit retained.
Licenses
Licenses are recorded at either historical cost or, if acquired in a business combination, at fair value at the date of acquisition. Cost
includes cost of acquisition and other costs directly related to acquisition and retention of licenses over the license period. These
costs may include up-front and deferred payments as well as estimates related to fulfillment of terms and conditions related to the
licenses such as service or coverage obligations, especially when there is a clear objective evidence that the cost of fulfilling these
obligations will be significantly onerous for the Group.
Licenses have a finite useful life and are carried at cost less accumulated amortization and any accumulated impairment losses.
Amortization is calculated using the straight-line method to allocate the cost of the licenses over their estimated useful lives.
The terms of licenses, which have been awarded for various periods, are subject to periodic review for, among other things, rate
setting, frequency allocation and technical standards. Licenses are initially measured at cost and are amortized from the date the
network is available for use on a straight-line basis over the license period. Licenses held, subject to certain conditions, are usually
renewable and generally non-exclusive. When estimating useful lives of licenses, renewal periods are included only if there is
evidence to support renewal by the Group without significant cost.
Trademarks and customer lists
Trademarks and customer lists are recognized as intangible assets only when acquired or gained in a business combination. Their
cost represents fair value at the date of acquisition. Trademarks and customer lists have indefinite or finite useful lives. Trademarks
and customer lists used by the Group for its own activities are unlikely to generate largely independent cash inflows and therefore
are tested for impairment annually together with other assets at each cash-generating unit level. Finite useful life trademarks are
carried at cost, less accumulated amortization. Amortization is calculated using the straight-line method to allocate the cost of the
trademarks and customer lists over their estimated useful lives. The estimated useful lives for trademarks and customer lists are
based on specific characteristics of the market in which they exist. Trademarks and customer lists are included in Intangible assets,
net.
Estimated useful lives are:
Estimated useful lives
Trademarks .................................................................................................................................................................................................
Customer lists .............................................................................................................................................................................................
Years
1 to 15
4 to 20
Programming and content rights
Programming and content master rights which are purchased or acquired in business combinations which meet certain criteria are
recorded at cost as intangible assets. The rights must be exclusive, related to specific assets which are sufficiently developed, and
probable to bring future economic benefits and have validity for more than one year. Cost includes consideration paid or payable
and other costs directly related to the acquisition of the rights, and are recognized at the earlier of payment or commencement of
the broadcasting period to which the rights relate.
Programming and content rights capitalized as intangible assets have a finite useful life and are carried at cost, less accumulated
amortization and any accumulated impairment losses. Amortization is calculated using the straight-line method to allocate the cost
of the rights over their estimated useful lives.
Non-exclusive and programming and content rights for periods less than one year are expensed over the period of the rights.
Indefeasible rights of use
There is no universally-accepted definition of an indefeasible rights of use (IRU). These agreements come in many forms. However,
the key characteristics of a typical arrangement include:
•
The right to use specified network infrastructure or capacity;
Millicom 2022 Annual Report 2 01
Notes to the Consolidated Financial Statements
For the years ended December 31, 2022, 2021 and 2020
•
•
•
•
For a specified term (often the majority of the useful life of the relevant assets);
Legal title is not transferred;
A number of associated service agreements including operations and maintenance (O&M) and co-location agreements. These
are typically for the same term as the IRU; and
Any payments are usually made in advance.
IRUs are accounted for either as a lease, or service contract based on the substance of the underlying agreement.
IRU arrangements will qualify as a lease if, and when:
•
•
•
•
The purchaser has an exclusive right for a specified period and has the ability to resell (or sublet) the capacity; and
The capacity is physically limited and defined; and
The purchaser bears all costs related to the capacity (directly or not) including costs of operation, administration and
maintenance; and
The purchaser bears the risk of obsolescence during the contract term.
If all of these criteria are not met, the IRU is treated as a service contract.
An IRU of network infrastructure (cables or fiber) is accounted for as a right of use asset (see E.3.), while capacity IRU (wavelength) is
accounted for as an intangible asset.
The costs of an IRU recognized as service contract is recognized as prepayment and amortized in the statement of income as
incurred over the duration of the contract.
E.1.2. Impairment of non-financial assets
At each reporting date Millicom assesses whether there is an indication that a non-financial asset may be impaired. If any such
indication exists, or when annual impairment testing for a non-financial asset is required, an estimate of the asset’s recoverable
amount is made. The recoverable amount is determined based on the higher of its fair value less cost to sell, and its value in use, for
individual assets, unless the asset does not generate cash inflows that are largely independent of those from other assets or groups
of assets.
Where the carrying amount of an asset exceeds its recoverable amount, the asset is considered impaired and is written down to its
recoverable amount. Where no comparable market information is available, the fair value, less cost to sell, is determined based on
the estimated future cash flows discounted to their present value using a discount rate that reflects current market conditions for
the time value of money and risks specific to the asset. The foregoing analysis also evaluates the appropriateness of the expected
useful lives of the assets. Impairment losses related to assets of continuing operations are recognized in the consolidated statement
of income in expense categories consistent with the function of the impaired asset.
At each reporting date an assessment is made as to whether there is any indication that previously recognized impairment losses
may no longer exist or may have decreased. If such indication exists, the recoverable amount is estimated. Other than for goodwill, a
previously recognized impairment loss is reversed if there has been a change in the estimate used to determine the asset’s
recoverable amount since the last impairment loss was recognized. If so, the carrying amount of the asset is increased to its
recoverable amount. The increased amount cannot exceed the carrying amount that would have been determined, net of
depreciation, had no impairment loss been recognized for the asset in prior years. Such reversal is recognized in profit or loss.
After such a reversal, the depreciation charge is adjusted in future periods to allocate the asset’s revised carrying amount, less any
residual value, on a systematic basis over its remaining useful life.
Millicom 2022 Annual Report 2 02
Notes to the Consolidated Financial Statements
For the years ended December 31, 2022, 2021 and 2020
E.1.3. Movements in intangible assets
Movements in intangible assets in 2022
Goodwill
Licenses
Customer
Lists
IRUs
Trademark Other (i)
Total
(US$ millions)
Opening balance, net ....................................
4,098
1,120
Additions ..........................................................
Amortization charge .........................................
Impairment (ii) ...................................................
Disposals, net ...................................................
Transfer to/from held for sale ...........................
Transfers ...........................................................
Exchange rate movements ..............................
—
—
—
—
(12)
—
(26)
195
(96)
—
(9)
(18)
(7)
(91)
Closing balance, net ...........................................
Cost or valuation ..............................................
Accumulated amortization and impairment ..
4,059
4,059
—
1,094
1,786
(692)
Net ....................................................................
4,059
1,094
970
—
(106)
—
—
—
—
—
864
1,199
(335)
864
71
1
(14)
—
—
(17)
3
(4)
40
158
(118)
40
920
—
(1)
—
—
(10)
—
—
910
1,237
(327)
910
379
150
(130)
(6)
—
(2)
28
(25)
394
1,133
(740)
394
7,558
345
(345)
(6)
(9)
(57)
24
(147)
7,361
9,573
(2,212)
7,361
Movements in intangible assets in 2021
Goodwill
Licenses
Customer
Lists
IRUs
Trademark Other (i)
Total
(US$ millions)
Opening balance, net ....................................
Change in scope (see note A.1.2.) .....................
1,659
2,472
Additions ..........................................................
Amortization charge .........................................
Impairment .......................................................
Disposals, net ....................................................
Transfers ............................................................
Exchange rate movements ..............................
Closing balance, net .......................................
Cost or valuation ..............................................
Accumulated amortization and impairment ..
—
—
—
—
—
(33)
4,098
4,098
—
870
370
29
(82)
—
—
—
(67)
1,120
1,778
(658)
Net ....................................................................
4,098
1,120
423
605
—
(56)
—
—
—
(1)
970
1,209
(239)
970
86
2
—
(14)
—
—
2
(5)
71
206
(135)
71
77
910
—
(67)
—
—
1
—
920
1,251
(331)
920
289
25
135
(100)
(1)
(1)
46
(15)
379
1,059
(681)
379
3,403
4,384
164
(320)
(1)
(1)
49
(121)
7,558
9,602
(2,044)
7,558
(i)
Other includes mainly software costs
(ii) During the year ended December 31, 2022, Millicom early terminated an IT software contract and also decommissioned the existing software. As a
result, Millicom recorded a settlement provision of $7 million under operating expenses and recorded a decommissioning cost of this software for a
total amount of $12 million, as accelerated amortization and impairment charges.
E.1.4. Cash used for the purchase of intangible assets
Cash used for intangible asset additions
Additions ......................................................................
Change in accruals and payables for intangibles .......
Cash used for additions .................................................
258
(79)
179
127
(29)
98
419
(315)
101
2022
2021
2020
(US$ millions)
Millicom 2022 Annual Report
2 03
Notes to the Consolidated Financial Statements
For the years ended December 31, 2022, 2021 and 2020
E.1.5. Goodwill and indefinite useful life trademarks
Allocation of Goodwill to cash generating units (CGUs)
2022
2021
(US$ millions)
Guatemala (see note A.1.2.) ...........................................................................................................................................
2,470
2,472
Panama ...........................................................................................................................................................................
El Salvador .......................................................................................................................................................................
Costa Rica ........................................................................................................................................................................
Paraguay .........................................................................................................................................................................
Colombia .........................................................................................................................................................................
Tanzania .........................................................................................................................................................................
Nicaragua ........................................................................................................................................................................
Bolivia ..............................................................................................................................................................................
907
194
118
44
123
—
199
3
907
194
110
47
149
12
203
3
Total ....................................................................................................................................................................................
4,059
4,098
Allocation of indefinite useful life trademarks to cash generating units (CGUs)
Guatemala .......................................................................................................................................................................
Tanzania .........................................................................................................................................................................
Total ....................................................................................................................................................................................
2022
2021
(US$ millions)
910
—
910
910
10
920
Goodwill and indefinite useful life trademarks from CGUs are tested for impairment at least once a year and more frequently if events
or changes in circumstances indicate that the carrying value may be impaired. Impairment losses on goodwill are not reversed.
Goodwill arising on business combinations is allocated to each of the Group’s CGUs or groups of CGUs that are expected to benefit
from the synergies of the combination, irrespective of whether other assets or liabilities of the Group are assigned to those units or
groups of units. Each unit or group of units to which the goodwill is allocated:
•
•
Represents the lowest level within the Group at which the goodwill is monitored for internal management purposes; and
Is not larger than an operating segment.
Impairment is determined by assessing the value-in-use and, if appropriate, the fair value less costs to sell of the CGU (or group of
CGUs), to which goodwill relates.
Impairment testing at December 31, 2022
Goodwill and indefinite useful life trademarks were tested for impairment by assessing the recoverable amount against the carrying
amount of the CGU based on discounted cash flows. The recoverable amounts are based on value-in-use. The value-in-use is
determined based on the method of discounted cash flows. The cash flow projections used (operating profit margins, income tax,
working capital, capex and license renewal cost) are extracted from business plans approved by management and presented to the
Board, covering a fifteen-year planning horizon. The Group uses a fifteen-year planning horizon to obtain a stable business outlook,
in particular due to the long investment cycles in the industry and the long-term planned and expected investments in licenses and
spectrum. Cash flows beyond this period are extrapolated using a perpetual growth rate. Management validates the reasonableness
of the results of the test by comparing the share price implied by the 'sum of the parts' with the market share price. Any gap is
reviewed, analyzed and documented. When value-in-use results are lower than the carrying values of the CGUs, management
determines the recoverable amount by using the fair value less cost of disposal (FVLCD) of the CGUs. FVLCD is usually determined by
using recent offers received from third parties (Level 1).
For the year ended December 31, 2022, management concluded that no impairment should be recorded in the Group consolidated
financial statements.
Impairment testing at December 31, 2021
Millicom 2022 Annual Report 20 4
Notes to the Consolidated Financial Statements
For the years ended December 31, 2022, 2021 and 2020
For the year ended December 31, 2021, management concluded that no impairment should be recorded in the Group consolidated
financial statements.
Key assumptions used in value in use calculations
The process of preparing the cash flow projections considers the current market condition of each CGU, analyzing the
macroeconomic, competitive, regulatory and technological environments, as well as the growth opportunities of the CGUs.
Therefore, a growth target is defined for each CGU, based on the appropriate allocation of operating resources and the capital
investments required to achieve the target. The foregoing forecasts could differ from the results obtained through time; however,
the Company prepares its estimates based on the current situation of each of the CGUs. Relevance of budgets used for the
impairment test is also reviewed annually, with management performing regressive analysis between actual figures and budget/
Long Range Plans (LRPs) used for previous year impairment test.
The cash flow projections for all CGUs is most sensitive to the following key assumptions:
•
•
•
•
EBITDA margin is determined by dividing EBITDA by total revenues.
CAPEX intensity is determined by dividing CAPEX by total revenues.
Perpetual growth rate does not exceed the countries' GDP.
Weighted average cost of capital (“WACC”) is used to discount the projected cash flows.
The most significant estimates used for the 2022 and 2021 impairment test are shown below:
CGU
Average EBITDA
margin (%) (i)
Average CAPEX
intensity (%) (i)
Perpetual growth
rate (%)
WACC rate after tax
(%)
2022
2021
2022
2021
2022
2021
2022
Bolivia .....................................
Colombia ................................
Guatemala ..............................
Costa Rica ...............................
El Salvador ..............................
Nicaragua ...............................
Panamá ..................................
Paraguay ................................
Tanzania .................................
41.2
36.0
51.2
37.5
41.0
46.8
46.9
44.5
n/a
42.7
36.1
54.7
35.5
39.3
45.9
47.0
42.6
38.0
15.2
17.2
11.6
15.5
13.0
14.5
14.9
14.9
n/a
16.6
17.4
12.3
15.1
12.9
16.0
17.2
15.4
12.5
1.0
2.0
1.0
2.0
1.0
2.5
1.0
1.0
n/a
1.0
2.0
1.0
2.0
1.0
3.0
1.0
1.0
1.0
9.8
11.4
10.1
11.8
14.1
15.0
8.8
10.0
n/a
2021
11.6
8.9
8.4
11.1
14.7
12.5
7.0
8.3
13.2
(i) Average is computed over the period covered by the plan.
Sensitivity analysis to changes in assumptions
Management performed a sensitivity analysis on key assumptions within the test. The following maximum increases or decreases,
expressed in percentage points, were considered for all CGUs:
Reasonable changes in key assumptions (%)
Financial variables
WACC rates .......................
Perpetual growth rates ....
Operating variables
EBITDA margin .................
CAPEX intensity ................
2022
+/- 2
+/-1
+/-2
+/-1
2021
+/-1
+/-1
+/-2
+/-1
At December 31, 2022, the sensitivity analysis shows a comfortable headroom between the recoverable amounts and the carrying
values for all CGUs, except for Colombia and Nicaragua.
If the assumptions used in the impairment test were changed to a greater extent than as presented in the following table, the
changes would, in isolation, trigger a potential impairment loss being recognised in the year ended December 31, 2022.
Millicom 2022 Annual Report 2 05
Notes to the Consolidated Financial Statements
For the years ended December 31, 2022, 2021 and 2020
Change required for carrying value to
equal recoverable amount
CGU
Colombia
Nicaragua
Financial variables
WACC rate ...................................................
+82bps
+117bps
Perpetual growth rates ..............................
n/a
Operating variables
Average EBITDA margin .............................
-107bps
CAPEX intensity ..........................................
+13bps
n/a
n/a
n/a
At December 31, 2021the sensitivity analysis shows a comfortable headroom between the recoverable amounts and the carrying
values for all CGUs.
E.2. Property, plant and equipment
E.2.1. Accounting for property, plant and equipment
Items of property, plant and equipment are stated at historical cost less accumulated depreciation and accumulated impairment.
Historical cost includes expenditure that is directly attributable to acquisition of items. The carrying amount of replaced parts is
derecognized.
Depreciation is calculated using the straight-line method over the shorter of the estimated useful life of the asset and the remaining
life of the license associated with the assets, unless the renewal of the license is contractually possible.
Estimated useful lives
Duration
Buildings .................................................................................................... Up to 40 years
Networks (including civil works) ............................................................... 5 to 15 years
Other .......................................................................................................... 2 to 7 years
The carrying values of property, plant and equipment are reviewed for impairment when events or changes in circumstances
indicate that the carrying value may not be recoverable. The assets’ residual value and useful life is reviewed, and adjusted if
appropriate, at each statement of financial position date. An asset’s carrying amount is written down immediately to its recoverable
amount if its carrying amount is greater than its estimated recoverable amount.
Construction in progress consists of the cost of assets, labor and other direct costs associated with property, plant and equipment
being constructed by the Group, or purchased assets which have yet to be deployed. When the assets become operational, the
related costs are transferred from construction in progress to the appropriate asset category and depreciation commences.
Subsequent costs are included in the asset’s carrying amount or recognized as a separate asset, as appropriate, when it is probable
that future economic benefits associated with the item will flow to the Group and the cost of the item can be measured reliably.
Ongoing routine repairs and maintenance are charged to the statement of income in the financial period in which they are incurred.
Costs of major inspections and overhauls are added to the carrying value of property, plant and equipment and the carrying amount
of previous major inspections and overhauls is derecognised.
Equipment installed on customer premises which is not sold to customers is capitalized and amortized over the customer contract
period.
A liability for the present value of the cost to remove an asset on both owned and leased sites (for example cell towers) and for
assets installed on customer premises (for example set-top boxes), is recognized when a present obligation for the removal exists.
The corresponding cost of the obligation is included in the cost of the asset and depreciated over the useful life of the asset, or lease
period if shorter.
Borrowing costs that are directly attributable to the acquisition or construction of a qualifying asset are capitalized as part of the cost
of that asset when it is probable that such costs will contribute to future economic benefits for the Group and the costs can be
measured reliably.
Millicom 2022 Annual Report 2 0 6
Notes to the Consolidated Financial Statements
For the years ended December 31, 2022, 2021 and 2020
E.2.2. Movements in tangible assets
Movements in tangible assets in 2022
Network
Equipment
Land and
Buildings
Construction in
Progress
Other(i)
Total
(US$ millions)
Opening balance, net ...................................................
2,691
Additions .........................................................................
Impairments/reversal of impairment, net ......................
Disposals, net ...................................................................
Depreciation charge ........................................................
Asset retirement obligations ...........................................
Transfers ..........................................................................
Transfer from/(to) assets held for sale (see note E.4) ......
Exchange rate movements .............................................
Closing balance, net .....................................................
Cost or valuation .............................................................
Accumulated depreciation and impairment .................
Net at December 31, 2022 ............................................
Movements in tangible assets in 2021
157
—
(16)
(791)
17
577
(141)
(153)
2,340
8,071
(5,731)
2,340
200
3
—
(5)
(21)
—
22
(6)
(12)
180
348
(168)
180
428
655
—
(8)
—
—
(632)
(13)
(11)
418
418
—
418
63
9
1
—
(28)
—
12
(6)
(2)
50
345
(296)
50
3,382
823
—
(29)
(840)
18
(21)
(166)
(178)
2,989
9,183
(6,194)
2,989
Network
equipment
Land and
buildings
Construction in
progress
Other(i)
Total
(US$ millions)
Opening balance, net ...................................................
2,175
Change in Scope (see note A.1.2.) ...................................
Additions .........................................................................
Impairments/reversal of impairment, net ......................
Disposals, net ...................................................................
Depreciation charge ........................................................
Asset retirement obligations ...........................................
Transfers ..........................................................................
Exchange rate movements .............................................
Closing balance, net .....................................................
Cost or valuation .............................................................
Accumulated depreciation and impairment .................
Net at December 31, 2021 ............................................
657
30
—
(10)
(651)
31
572
(114)
2,691
8,512
(5,821)
2,691
(i)
Other mainly includes office equipment and motor vehicles.
185
35
—
—
—
(16)
1
5
(10)
200
358
(158)
200
308
29
752
(3)
(4)
—
—
(646)
(7)
428
428
—
428
87
6
4
(1)
—
(73)
—
41
(2)
63
385
(322)
63
2,755
727
787
(4)
(14)
(739)
32
(28)
(133)
3,382
9,683
(6,301)
3,382
Borrowing costs capitalized for the years ended December 31, 2022, 2021 and 2020 were not significant.
Millicom 2022 Annual Report
2 07
Notes to the Consolidated Financial Statements
For the years ended December 31, 2022, 2021 and 2020
E.2.3. Cash used for the purchase of tangible assets
Cash used for property, plant and equipment
Additions .............................................................................................................................................
Change in advances to suppliers ........................................................................................................
Change in accruals and payables for property, plant and equipment .............................................
Other ....................................................................................................................................................
Cash used ...........................................................................................................................................
2022
2021
2020
(US$ millions)
823
(3)
(20)
—
800
787
(6)
(40)
(1)
740
649
(4)
(22)
(1)
622
E.3. Right of use assets
Right-of-use assets are measured at cost comprising the following:
•
•
•
•
the amount of the initial measurement of lease liability
any lease payments made at or before the commencement date less any lease incentives received
any initial direct costs, and
restoration costs
Refer to note C.4. for further details on lease accounting policies.
Movements in right of use assets in 2022
Right-of-use assets
Land and
buildings
Sites rental
Tower
rental
(US$ millions)
Other
network
equipment
Capacity
Other
Total
Opening balance, net
169
201
Additions .......................................................
Modifications .................................................
Impairments ..................................................
Disposals ........................................................
Depreciation ..................................................
Asset retirement obligations ........................
Transfer to/from held for sale .......................
Transfers ........................................................
Exchange rate movements ...........................
Closing balance, net
Cost of valuation ...........................................
Accumulated depreciation and impairment
Net at 31 December 2022
23
11
(1)
(3)
(38)
—
(3)
—
(16)
142
249
(107)
142
23
18
—
(1)
(42)
2
(2)
(14)
(4)
181
325
(144)
181
587
77
104
—
(5)
(83)
—
(158)
17
(34)
505
780
(275)
505
25
2
1
—
—
(4)
1
—
(7)
—
16
28
(11)
16
29
—
—
—
—
(5)
—
—
3
—
28
39
(11)
28
13
2
1
—
—
—
—
—
—
—
13
22
(9)
13
1,024
127
135
(1)
(9)
(173)
3
(163)
(2)
(54)
884
1,442
(558)
884
Apart from the impact of the disposal of our operations in Tanzania, there have been no unusual significant events affecting lease
liabilities (and right-of-use assets) during the year ended December 31, 2022.
Movements in right of use assets in 2021
Millicom 2022 Annual Report
20 8
Notes to the Consolidated Financial Statements
For the years ended December 31, 2022, 2021 and 2020
Right-of-use assets
Land and
buildings
Sites rental
Tower rental
Capacity
Other
network
equipment
Other
Total
Opening balance, net
Change in scope .......................
Additions ...................................
Modifications ............................
Impairments ..............................
Disposals ...................................
Depreciation .............................
Asset retirement obligations ....
Transfers ....................................
Exchange rate movements .......
Closing balance, net
Cost of valuation .......................
Accumulated depreciation
and impairment ........................
Net at 31 December 2021
E.4. Assets held for sale
147
16
37
14
(1)
(2)
(36)
1
—
(9)
169
254
(85)
169
(US$ millions)
93
107
14
8
—
(2)
(22)
—
4
(1)
201
317
(116)
201
607
48
53
3
—
(2)
(81)
—
(17)
(24)
587
908
(320)
587
14
17
—
—
—
—
(1)
—
(1)
—
29
34
(5)
29
31
3
—
1
—
(1)
(4)
—
(5)
—
25
40
(14)
25
2
13
1
(1)
—
—
(2)
—
—
—
13
21
(8)
13
895
204
106
25
(1)
(7)
(145)
—
(18)
(34)
1,024
1,573
(549)
1,024
If Millicom decides to sell subsidiaries, investments in joint ventures or associates, or specific non-current assets in its businesses,
these items qualify as assets held for sale if certain conditions are met and necessary regulatory approvals obtained.
E.4.1. Classification
Non-current assets (or disposal groups) are classified as assets held for sale and stated at the lower of carrying amount and fair value
less costs to sell if their carrying amount is expected to be recovered principally through sale, not through continuing use. Liabilities
of disposal groups are classified as Liabilities directly associated with assets held for sale.
E.4.2. Millicom’s assets held for sale
As of December 31, 2022 and 2021 no assets qualified as assets held for sale.
For further details on assets held for sale and discontinued operations, please refer to note A.4.
F. Other assets and liabilities
F.1. Trade receivables
Millicom’s trade receivables mainly comprise interconnect receivables from other operators, postpaid mobile and residential cable
subscribers, as well as B2B customers. The nominal value of receivables adjusted for impairment approximates the fair value of trade
receivables.
Gross trade receivables ..................................................................................................................................................
Less: provisions for expected credit losses ....................................................................................................................
Trade receivables, net ..................................................................................................................................................
2022
2021
(US$ millions)
694
(315)
379
722
(316)
405
Millicom 2022 Annual Report
20 9
Notes to the Consolidated Financial Statements
For the years ended December 31, 2022, 2021 and 2020
Aging of trade receivables
Neither past
due nor
impaired
Past due (net of
impairments)
30–90 days
>90 days
Total
(US$ millions)
2022:
Telecom operators ...................................................................................................
Own customers ........................................................................................................
Others .......................................................................................................................
Total
2021:
Telecom operators ...................................................................................................
Own customers ........................................................................................................
Others .......................................................................................................................
Total
7
211
39
257
18
210
58
286
13
54
7
74
3
59
12
74
5
39
5
48
4
34
8
46
25
304
51
379
25
303
77
405
Trade receivables are initially recognized at fair value and subsequently measured at amortized cost using the effective interest
method, less provision for expected credit losses. The Group recognizes an allowance for expected credit losses (ECLs) applying a
simplified approach in calculating the ECLs. Therefore, the Group does not track changes in credit risk, but instead recognizes a loss
allowance based on lifetime of ECLs at each reporting date. The Group has established a provision matrix that is based on its
historical credit loss experience, adjusted for forward-looking factors specific to the debtors and the economic environment. The
provision for expected credit losses is recognized in the consolidated statement of income within 'Cost of sales'.
Loans and receivables are non-derivative financial assets with fixed or determinable payments that are not quoted in an active
market. They are included in current assets, except for those maturing more than 12 months after the end of the reporting period.
These are classified within non-current assets. Loans and receivables are carried at amortized cost using the effective interest
method. Gains and losses are recognized in the statement of income when the loans and receivables are derecognized or impaired,
as well as through the amortization process.
F.2. Inventories
Inventories are stated at the lower of cost and net realizable value. Cost is determined using the first-in, first-out method. Net
realizable value is the estimated selling price in the ordinary course of business, less applicable variable selling expenses.
Inventories
Telephone and equipment ............................................................................................................................................
SIM cards .........................................................................................................................................................................
Other ...............................................................................................................................................................................
Inventory at December 31, ..........................................................................................................................................
F.3. Trade payables
2022
2021
(US$ millions)
39
4
10
53
43
5
15
63
Trade payables are initially recognized at fair value and subsequently measured at amortized cost using the effective interest
method where the effect of the passage of time is material.
From time to time, the Group enters into agreements to extend payment terms with various suppliers, and with factoring companies
when such payments are discounted. The corresponding amount pending payment as of December 31, 2022, is recognized in 'Trade
payables' for an amount of $17 million (2021: $38 million).
Millicom 2022 Annual Report 210
Notes to the Consolidated Financial Statements
For the years ended December 31, 2022, 2021 and 2020
F.4. Current and non-current provisions and other liabilities
Provisions are recognized when the Group has a present obligation (legal or constructive) as a result of a past event, if it is probable
that an outflow of resources embodying economic benefits will be required to settle the obligation and a reliable estimate can be
made of the amount of the obligation. Where the Group expects some or all of a provision to be reimbursed, for example under an
insurance contract, the reimbursement is recognized as a separate asset, but only when the reimbursement is virtually certain.
The expense relating to any provision is presented in the statement of income net of any reimbursement. If the effect of the time
value of money is material, provisions are discounted using a current pre-tax rate that reflects, where appropriate, risks specific to
the liability. Where discounting is used, increases in the provision due to the passage of time are recognized as interest expenses.
F.4.1. Current provisions and other liabilities
Current
Deferred revenue ............................................................................................................................................................
Customer deposits ..........................................................................................................................................................
Current legal provisions .................................................................................................................................................
Tax payables ...................................................................................................................................................................
Customer and MFS distributor cash balances ...............................................................................................................
Withholding tax on payments to third parties ..............................................................................................................
Other current liabilities(i) ...............................................................................................................................................
93
13
9
61
47
15
66
Total ................................................................................................................................................................................
305
2022
2021
(US$ millions)
(i) Includes $8 million (2021: $25 million) of tax risk liabilities not related to income tax.
F.4.2. Non-current provisions and other liabilities
Non-current
Non-current legal provisions .........................................................................................................................................
Long-term portion of asset retirement obligations ......................................................................................................
Long-term portion of deferred income on tower sale and leasebacks recognized under IAS 17 ..............................
Long-term employment obligations .............................................................................................................................
Other non-current liabilities ...........................................................................................................................................
Total ................................................................................................................................................................................
16
155
32
37
55
295
2022
2021
(US$ millions)
110
15
24
88
194
11
106
548
22
177
46
56
63
364
F.4.3. Non-current payables and accruals for capital expenditure
Non-current payables and accruals for capital expenditure include an amount of $414 million (December 31, 2021: $402 million) in
relation to spectrum and license payables in Colombia. The major part of this payable is related to the acquisition, in December
2019, of licenses granting the right to use a total of 40 MHz in the 700 MHz band. This 20-year license will expire in 2040. During the
same auction, Tigo Colombia also acquired 55 MHz in the 1900 band and 30 MHz of AWS. Tigo Colombia agreed to a total notional
consideration of COP 2.45 billion (equivalent to approximately $615 million using the December 31, 2022 exchange rate), of which
approximately 55% is payable in cash and 45% in coverage obligations to be met by 2025.
An initial payment of approximately $33 million was made in 2020, with the remainder payable in 12 annual installments beginning
in 2026 and ending in 2037. The 55% cash portion bears interest at the Colombia-10 years Treasury Bond rate. In April and May 2020,
local management received permission to operate 40 Mhz in the 700 MHz band and accounted for the spectrum as an Intangible
asset at an amount of $388 million corresponding to the net present value of the future payments, plus other costs directly
attributable to this acquisition. The related future interest commitments will be recognized as interest expense over the next 17
Millicom 2022 Annual Report Notes to the Consolidated Financial Statements
For the years ended December 31, 2022, 2021 and 2020
years. The remaining 45% consideration due as coverage obligations are currently being estimated and will be recognized in the
statement of financial position as incurred.
F.5. Assets and liabilities related to contract with customers
Contract assets, net
Long-term portion ...............................................................................................................................................................
Short-term portion ...............................................................................................................................................................
Less: provisions for expected credit losses .........................................................................................................................
Total .....................................................................................................................................................................................
21
61
(5)
77
2022
2021
(US$ millions)
Contract liabilities
Long-term portion ...............................................................................................................................................................
Short-term portion ...............................................................................................................................................................
Total .....................................................................................................................................................................................
2
87
88
2022
2021
(US$ millions)
211
18
54
(4)
69
2
95
97
The Group recognized revenue for $91 million in 2022 (2021: $86 million) that was included in the contract liability balance at the
beginning of the year.
The transaction price allocated to the remaining performance obligations (unsatisfied or partially unsatisfied) as at December 31,
2022 is $81 million ($81 million is expected to be recognized as revenue in the 2023 financial year and the remaining $1 million in
the 2024 financial year or later). This amount does not consider contracts that have an original expected duration of one year or less,
neither contracts in which consideration from a customer corresponds to the value of the entity’s performance obligation to the
customer (i.e. billing corresponds to accounting revenue).
Contract costs, net (i)
Net at January 1 .................................................................................................................................................................
Change in scope ..................................................................................................................................................................
Contract costs capitalized ...................................................................................................................................................
Amortization of contract costs ............................................................................................................................................
Net at December 31 ...........................................................................................................................................................
8
—
5
(3)
10
5
2
2
(1)
8
(i)
Incremental costs of obtaining a contract are expensed when incurred if the amortization period of the asset that Millicom otherwise would have
recognized is one year or less.
2022
2021
(US$ millions)
Millicom 2022 Annual Report
212
Notes to the Consolidated Financial Statements
For the years ended December 31, 2022, 2021 and 2020
G. Additional disclosure items
G.1. Fees to auditors
Audit fees .............................................................................................................................................
Audit related fees ................................................................................................................................
Tax fees ................................................................................................................................................
Other fees ............................................................................................................................................
Total ....................................................................................................................................................
G.2. Capital and operational commitments
2022
2021
2020
(US$ millions)
5.1
1.3
0.2
0.2
6.8
5.2
1.4
0.1
0.4
7.1
5.8
0.5
0.1
0.1
6.4
Millicom has a number of capital and operational commitments to suppliers and service providers in the normal course of its
business. These commitments are mainly contracts for acquiring network and other equipment, and leases for towers and other
operational equipment.
G.2.1. Capital commitments
At December 31, 2022, the Company and its subsidiaries had fixed commitments to purchase network equipment, other fixed assets
and intangible assets of $406 million of which $259 million are due within one year (December 31, 2021: $761 million of which $428
million were due within one year). The Group’s share of commitments from the joint ventures is $29 million, of which $29 million are
due within one year (December 31, 2021: $41 million, all of which were due within one year).
G.3. Contingent liabilities
G.3.1. Litigation and legal risks
The Company and its operations are contingently liable with respect to lawsuits, legal, regulatory, commercial and other legal risks
that arise in the normal course of business. As of December 31, 2022, the total amount of claims brought against Millicom and its
subsidiaries is $239 million (December 31, 2021: $246 million). The Group's share of the comparable exposure for its joint venture in
Honduras is $13 million (December 31, 2021: $13 million).
As at December 31, 2022, $25 million has been provisioned by its subsidiaries for these risks in the consolidated statement of
financial position (December 31, 2021: $36 million). The Group’s share of provisions made by the joint venture in Honduras was $1
million (December 31, 2021: $1 million). While it is not possible to ascertain the ultimate legal and financial liability with respect to
these claims and risks, the ultimate outcome is not anticipated to have a material effect on the Group’s financial position and
operations.
On May 25, 2020, as a result of the termination of the Costa Rica acquisition, Telefónica filed a complaint, followed by an amended
complaint on August 3, 2020, against us in the Supreme Court of New York. The amended complaint asserts claims for breach of
contract and alleges, among other things, that we were required to close the transaction because the closing conditions specified in
the sale and purchase agreement for the acquisition had been satisfied. The complaint seeks, among other relief, a declaration of
Telefónica’s rights, and unspecified damages, costs, and fees. We believe the complaint is without merit and that our position will
ultimately be vindicated through the judicial process.
Other
At December 31, 2022, Millicom has various other less significant claims which are not disclosed separately in these consolidated
financial statements because they are either not material or the related risk is remote.
G.3.2. Tax related risks and uncertain tax position
The Group operates in developing countries where the tax systems, regulations and enforcement processes have varying stages of
development creating uncertainty regarding the application of the tax law and interpretation of tax treatments. The Group is also
subject to regular tax audits in the countries where it operates. When there is uncertainty over whether the taxation authority will
accept a specific tax treatment under the local tax law, that tax treatment is therefore uncertain. The resolution of tax positions taken
Millicom 2022 Annual Report 213
Notes to the Consolidated Financial Statements
For the years ended December 31, 2022, 2021 and 2020
by the Group, through negotiations with relevant tax authorities or through litigation, can take several years to complete and, in
some cases, it is difficult to predict the ultimate outcome. Therefore, judgment is required to determine liabilities for taxes.
In assessing whether and how an uncertain tax treatment affects the determination of taxable profit (tax loss), tax bases, unused tax
losses, unused tax credits and tax rates, the Group assumes that a taxation authority with the right to examine amounts reported to
it will examine those amounts and have full knowledge of all relevant information when making those examinations.
The Group has a process in place, and applies significant judgment, in identifying uncertainties over income tax treatments.
Management considers whether or not it is probable that a taxation authority will accept an uncertain tax treatment. On that basis,
the identified risks are split into three categories (i) remote risks (risk of outflow of tax payments are up to 20%), (ii) possible risks (risk
of outflow of tax payments assessed from 21% to 49%) and probable risks (risk of outflow is more than 50%). The process is repeated
every quarter by the Group.
If the Group concludes that it is probable or certain that the taxation authority will accept the tax treatment, the risks are categorized
either as possible or remote, and it determines the taxable profit (tax loss), tax bases, unused tax losses, unused tax credits or tax
rates consistently with the tax treatment used or planned to be used in its income tax filings. The risks considered as possible are not
provisioned but disclosed as tax contingencies in the Group consolidated financial statements while remote risks are neither
provisioned nor disclosed.
If the Group concludes that it is probable that the taxation authority will not accept the Group’s interpretation of the uncertain tax
treatment, the risks are categorized as probable, and are presented to reflect the effect of uncertainty in determining the related
taxable profit (tax loss), tax bases, unused tax losses, unused tax credits or tax rates by generally using the most likely amount
method – the single most likely amount in a range of possible outcomes.
If an uncertain tax treatment affects both deferred tax and current tax, the Group makes consistent estimates and judgments for
both. For example, an uncertain tax treatment may affect both taxable profits used to determine the current tax and tax bases used
to determine deferred tax.
If facts and circumstances change, the Group reassesses the judgments and estimates regarding the uncertain tax position taken.
At December 31, 2022, the tax risks exposure of the Group's subsidiaries is estimated at $221 million, for which provisions of $38
million have been recorded in tax liabilities; representing the probable amount of eventual claims and required payments related to
those risks (2021: $342 million of which provisions of $69 million were recorded). The decrease compared to December 31, 2021
mainly relates to the sale of our operations in Tanzania as well as the adherence to a tax amnesty in one of our operations. The
Groups' share of comparable tax exposure and provisions in its joint ventures amounts to $97 million (2021: $68 million) and $7
million (2021: $3 million), respectively.
G.4. Non-cash investing and financing activities
Non-cash investing and financing activities from continuing operations
Note
2022
2021
2020
(US$ millions)
Investing activities
Acquisition of property, plant and equipment .......................................................
Acquisition of lease right of use assets obtained in exchange of lease liabilities .
Asset retirement obligations ...................................................................................
E.2.2.
E.3.
E.2.2.
Financing activities
Share based compensation .....................................................................................
B.4.1.
(23)
127
18
29
(47)
106
32
17
(27)
92
19
24
G.5. Related party balances and transactions
The Group’s significant related parties are:
•
EPM and subsidiaries (EPM), the non-controlling shareholder in our Colombian operations (see note A.1.4.);
• Miffin Associates Corp and subsidiaries (Miffin), our joint venture partner in Guatemala until November 12, 2021, date on which
Miffin ceased to be a related party, as Millicom signed and closed an agreement to acquire the remaining 45% equity interest in
our joint venture business in Guatemala from Miffin (see note A.1.2.).
Millicom 2022 Annual Report 214
Notes to the Consolidated Financial Statements
For the years ended December 31, 2022, 2021 and 2020
•
Cable Onda partners and subsidiaries, the non-controlling shareholders in Tigo Panama (see note A.1.2.), until June 29, 2022,
date on which Cable Onda Partners ceased to be a related party as the non-controlling shareholders of Tigo Panama exercised
their put option right to sell their remaining 20% shareholding to Millicom.
Empresas Públicas de Medellín (EPM)
EPM is a state-owned, industrial and commercial enterprise, owned by the municipality of Medellin, and provides electricity, gas,
water, sanitation, and telecommunications. EPM owns 50% of our operations in Colombia. Transactions with EPM represent mainly
purchases in the form of leases.
Miffin Associates Corp (Miffin)
As mentioned above, Miffin ceased to be a related party to the Group from November 12, 2021. Transactions with Miffin represented
recurring commercial operations such as purchase of handsets, and sale of airtime.
Cable Onda Partners
As mentioned above, our prior partners in Panama ceased to be a related party to the Group from June 29, 2022. Our prior partners
in Panama were, until June 29, 2022, the non-controlling shareholders of Tigo Panama and owned 20% of the company, and
indirectly 20% of Grupo de Comunicaciones Digitales S.A. (formerly Telefónica Móviles Panamá, S.A.), which was acquired by Tigo
Panama in August 2019. Transactions and balances with Tigo Panama Partners companies are disclosed under 'Other' in the tables
below given their individual immateriality.
The Company had the following transactions with related parties:
Expenses
2022
2021
2020
(US$ millions)
Purchases of goods and services from Miffin (i) .................................................................................
Purchases of goods and services from EPM .......................................................................................
Other expenses ...................................................................................................................................
Total ....................................................................................................................................................
—
(45)
(18)
(63)
(165)
(39)
(16)
(220)
(216)
(37)
(57)
(310)
Income and gains
2022
2021
2020
(US$ millions)
Sale of goods and services to Miffin (i) ...............................................................................................
Sale of goods and services to EPM .....................................................................................................
Other revenue .....................................................................................................................................
Total ....................................................................................................................................................
—
11
1
11
299
14
2
314
(i) Miffin entities are not considered as related parties since November 12, 2021.
The Company had the following balances with related parties:
Liabilities
December 31
2022
2021
(US$ millions)
Payables to Honduras joint venture(iii) .........................................................................................................................
Payables to EPM ..............................................................................................................................................................
Payables to Panama non-controlling interests (ii) ........................................................................................................
Other accounts payable .................................................................................................................................................
Total ................................................................................................................................................................................
48
39
—
2
88
(ii)
consolidated financial statements).
The non-controlling shareholders in Tigo Panama are not considered as related parties since June 29, 2022 (see note A.1.2.to our audited
(iii) Mainly dividends.
327
15
2
343
69
38
1
2
110
Millicom 2022 Annual Report 215
Notes to the Consolidated Financial Statements
For the years ended December 31, 2022, 2021 and 2020
Assets
Receivables from EPM ....................................................................................................................................................
Receivables from Honduras joint venture (i) .................................................................................................................
Receivables from Panama non-controlling interests (ii) ...............................................................................................
Other accounts receivable .............................................................................................................................................
Total ................................................................................................................................................................................
December 31
2022
2021
(US$ millions)
2
13
—
—
15
2
62
1
5
70
(i)
In November 2020, our operations in Honduras completed a shareholding restructuring whereby Telefónica Celular S.A. acquired the shares of
Navega S.A. de C.V. from its existing shareholders. The sale consideration was payable in several installments with an expected final settlement in
November 2023. During 2022, our operations in Honduras early repaid the related outstanding amount in its entirety.
(ii) The non-controlling shareholders in our Panama operations are not considered as related parties since June 29, 2022 (see note A.1.2. to our audited
consolidated financial statements).
H. Subsequent Events
Potential acquisition
On January 25, 2023, Millicom confirmed that a potential acquisition of all outstanding shares in Millicom is being discussed with
Apollo Global Management and Claure Group. There is no certainty that a transaction will materialize nor as to the terms, timing or
form of any potential transaction.
Colombia financing
On January 5, 2023, UNE issued a COP230 billion (approximately $50 million) bond consisting of two tranches with three and four
and a half-year maturities. Interest rates are variable, based on CPI + a margin, and are payable in Colombian peso.
Millicom 2022 Annual Report Corporate Information
M i l l i c o m 2 0 2 2 A n n u a l R e p o r t
2 1 6
AUDITOR
Ernst & Young
Société anonyme
35E Avenue John F. Kennedy
Luxembourg, L-1855
U.S. STOCK TRANSFER AGENT/
SWEDISH CUSTODIAN
Questions or requests related to stock transfers,
lost certificates, or account changes should be
directed to:
U.S. STOCK TRANSFER AGENT
Shareholder Services
1-877-830-4936
1-720-378-5591
shareholder@broadridge.com
http://shareholder.broadridge.com/
SWEDISH CUSTODIAN
Skandinaviska Enskilda Banken AB (“SEB”)
sfogcosebissueragent@seb.se
46-8-763-55-60
INVESTOR RELATIONS
Investors@millicom.com
MEDIA CONTACT
Press@Millicom.com
ANNUAL GENERAL MEETING
The Annual General Meeting of Shareholders is
scheduled to be held on May 4, 2023 in
Luxembourg.
HEADQUARTERS
Millicom International Cellular S.A.
2 Rue du Fort Bourbon
Luxembourg, L-1249
BOARD OF DIRECTORS
José Antonio Ríos García
Chairman, Director
Pernille Erenbjerg
Deputy Chair, Director
Odilon Almeida
Director
Bruce Churchill
Director
Tomas Eliasson
Director
Lars-Johan Jarnheimer
Director
Mercedes Johnson
Director
Mauricio Ramos
Director
James Thompson
Director
EXECUTIVE TEAM
Mauricio Ramos
Chief Executive Officer
Sheldon Bruha
Executive Vice President,
Chief Financial Officer
Esteban Iriarte
Executive Vice President,
Chief Operating Officer
Xavier Rocoplan
Executive Vice President,
Chief Technology and Information Officer
Karim Lesina
Executive Vice President,
Chief External Affairs Officer
Salvador Escalón
Executive Vice President,
Chief Legal and Compliance Officer
Susy Bobenrieth
Executive Vice President,
Chief Human Resources Officer
2
0
2
2
M
i
l
l
i
c
o
m
A
n
n
u
a
l
R
e
p
o
r
t
C
O
N
N
E
C
T
.
G
R
O
W
.
T
H
R
I
V
E
.
For further information, please contact:
investors@millicom.com
millicom.com