UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 6-K
REPORT OF FOREIGN PRIVATE
ISSUER
PURSUANT TO RULE 13a-16
OR 15d-16 OF THE
SECURITIES EXCHANGE ACT
OF 1934
For the month of February, 2022.
Commission File Number: 001-38763
MILLICOM INTERNATIONAL CELLULAR S.A.
(Exact Name of Registrant as Specified in Its
Charter)
2, Rue du Fort Bourbon,
L-1249 Luxembourg
Grand Duchy of Luxembourg
(Address of principal
executive office)
Indicate by check
mark whether the registrant files or will file annual reports under cover of Form 20-F or Form 40-F:
Indicate by check
mark if the registrant is submitting the Form 6-K in paper as permitted by Regulation S-T Rule 101(b)(1):
Indicate by check
mark if the registrant is submitting the Form 6-K in paper as permitted by Regulation S-T Rule 101(b)(7):
MILLICOM INTERNATIONAL
CELLULAR S.A.
INDEX TO FURNISHED MATERIAL
Item
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1.
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Press release dated February 14, 2022
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Millicom
(Tigo) unveils Three Year Operational, Financial and Strategic Targets
Luxembourg,
February 14, 2022 – Millicom (Nasdaq: TIGO) will be holding its 2022 Virtual Investor Day today beginning at 9:00
a.m. ET. Millicom’s CEO Mauricio Ramos and the executive team will discuss the company’s three-year operational goals, financial
targets1 and strategic plans. Key announcements will include:
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1.
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Targeted
organic operating cash flow growth of around 10% per year on average over the next three
years.
This reflects expected:
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Mid-single-digit
annual organic service revenue growth; and
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Annual
CapEx of around $1.0 billion.
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2.
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Targeted
cumulative Equity free cash flow2 of $800 million to $1.0 billion over the next
3 years.
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3.
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Near-term
target to reduce leverage to 2.5x by 2025.
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With
a long-term goal to further reduce leverage to 2.0x.
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4.
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Shareholder
remuneration in the form of share buybacks expected to commence in 2023.
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Buybacks
at a pace consistent with the achievement of leverage reduction targets.
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5.
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Expansion
of the Company’s fixed broadband network by a targeted three million additional home
passings in the next 3 years.
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The
vast majority of the new passings will be FTTH, as the Company accelerates its ongoing transition
to FTTH.
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The
Company expects to cover 20 million home passings in its territory in the medium term.
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The
Company also aims to add over 1 million customer relationship net additions in the next three
years.
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1
All financial targets herein are rebased to reflect Millicom’s IFRS reporting
scope and excluding Africa.
2 Effective
today, we have changed our definition of Equity free cash flow (EFCF) to include spectrum. Please refer to the Financial Measure Descriptions
at the end of this press release.
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6.
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Plan
to create a Tower Company to carve out the Company’s portfolio of owned towers.
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This
structural re-organisation, which will include up to 10,000 towers, will be aimed at enhancing
shareholder return on the Company’s digital infrastructure assets; maximising their
business potential; facilitating the attraction of growth capital from new investors; and
enhancing strategic optionality around the Company’s infrastructure assets.
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This
initiative is expected to be completed in the next 12-18 months
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7.
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Plan
to carve out of TIGO Money
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This
second structural re-organisation is aimed at enhancing shareholder return on the Company’s
nascent Fintech asset; maximising their business potential; facilitating the attraction of
growth capital and complementary Fintech expertise to TIGO Money; and enhancing strategic
optionality for Millicom.
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TIGO
Money has a unique opportunity to increase financial inclusion in TIGO’s market while
capturing a leading share of an estimated $14 billion total addressable fintech market opportunity.
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This
initiative is also expected to be completed in the next 12-24 months
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8.
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Setting
of ambitious ESG Targets
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The
Company has submitted for validation its near-term Science-Based Targets, in line with a
maximum 1.5°C increase and the Paris Climate Agreement. The Company has also become part
of Race to Zero, the UN-backed campaign aimed at promoting a healthy, resilient, zero carbon
recovery.
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The
Company has set a target of gender parity by 2030. This will include equal gender representation
across the entire organisation, as well as in its upper management
positions globally. In addition, the Company will continue to train 100% of its employees annually on DE&I; only work with strategic
suppliers with DE&I policies & training in place; and continue to promote inclusion of other under-represented groups.
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Ahead
of the event, Ramos said, “Today, we are outlining our vision for Tigo, a purpose-driven company with a big market opportunity,
a clear strategic focus, and a passionate team that makes things happen, the right way, and with Sangre Tigo. The targets we are laying
out today are bold and ambitious, and we have well-defined plans in place to achieve them. We hope you will join us as we discuss these
plans in more detail today."
Access
instructions and presentation materials are available on Millicom’s
website.
-END-
For
further information, please contact
Press:
Vivian
Kobeh, Director Corporate Communications
+1-786-628-5300
press@millicom.com
Yocasta
Valdez, Group Manager Digital Media & Communications
+1-305-929-5417
press@millicom.com
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Investors:
Michel
Morin, VP Investor Relations
+1-786-628-5270
investors@millicom.com
Sarah
Inmon, Director Investor Relations
+1-786-628-5303
investors@millicom.com
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About
Millicom
Millicom
(NASDAQ U.S.: TIGO, Nasdaq Stockholm: TIGO_SDB) is a leading provider of fixed and mobile telecommunications services dedicated to emerging
markets in Latin America and Africa. Through our TIGO® and Tigo Business® brands, we provide a wide range of digital services
and products, including TIGO Money for mobile financial services, TIGO Sports for local entertainment, TIGO ONEtv for pay TV, high-speed
data, voice, and business-to-business solutions such as cloud and security. As of December 31, 2021, Millicom employed approximately
21,000 people and provided mobile services through its digital highways to around 58 million customers, with a fiber-cable footprint
of more than 12 million homes passed. Founded in 1990, Millicom International Cellular S.A. is headquartered in Luxembourg. For more
information, visit: millicom.com. Connect with Millicom
on Twitter,
Instagram,
Facebook and
LinkedIn.
Forward-Looking
Statements
Statements
included herein that are not historical facts, including without limitation statements concerning future strategy, plans, objectives,
expectations and intentions, projected financial results, liquidity, growth and prospects, are forward-looking statements. Such forward-looking
statements involve a number of risks and uncertainties and are subject to change at any time. In the event such risks or uncertainties
materialize, Millicom’s results could be materially adversely affected. In particular, there is uncertainty about the spread of
the COVID-19 virus and the impact it may have on Millicom’s operations, the demand for Millicom’s products and services,
global supply chains and economic activity in general. The risks and uncertainties include, but are not limited to, the following:
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global
economic conditions and foreign exchange rate fluctuations as well as local economic conditions
in the markets we serve;
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Potential
disruption due to diseases, pandemics, political events, piracy or acts by terrorists, including
the impact of the recent outbreak of the COVID-19 virus and the ongoing efforts throughout
the world to contain it;
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telecommunications
usage levels, including traffic and customer growth;
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competitive
forces, including pricing pressures, the ability to connect to other operators’ networks
and our ability to retain market share in the face of competition from existing and new market
entrants as well as industry consolidation;
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legal
or regulatory developments and changes, or changes in governmental policy, including with
respect to the availability of spectrum and licenses, the level of tariffs, tax matters,
the terms of interconnection, customer access and international settlement arrangements;
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adverse
legal or regulatory disputes or proceedings;
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the
success of our business, operating and financing initiatives and strategies, including partnerships
and capital expenditure plans;
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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;
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relationships
with key suppliers and costs of handsets and other equipment;
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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;
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the
availability, terms and use of capital, the impact of regulatory and competitive developments
on capital outlays, the ability to achieve cost savings and realize productivity improvements;
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technological
development and evolving industry standards, including challenges in meeting customer demand
for new technology and the cost of upgrading existing infrastructure;
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the
capacity to upstream cash generated in operations through dividends, royalties, management
fees and repayment of shareholder loans; and
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other
factors or trends affecting our financial condition or results of operations.
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A
further list and description of risks, uncertainties and other matters can be found in Millicom’s Registration Statement on Form
20-F, including those risks outlined in “Item 3. Key Information—D. Risk Factors,” and in Millicom’s subsequent
U.S. Securities and Exchange Commission filings, all of which are available at www.sec.gov. To the extent COVID-19 adversely affects
Millicom’s business and financial results, it may also have the effect of heightening many of the risks described in 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.
Non
IFRS Measures
This
press release contains financial measures not prepared in accordance with IFRS. These measures are referred to as “non-IFRS”
measures and are defined below. The non-IFRS financial measures are presented in this press release as Millicom’s management believes
they provide investors with an additional information for the analysis of Millicom’s results of operations, particularly in evaluating
performance from one period to another. Millicom’s management uses non-IFRS financial measures to make operating decisions, as
they facilitate additional internal comparisons of Millicom’s performance to historical results and to competitors' results, and
provides them to investors as a supplement to Millicom’s reported results to provide additional insight into Millicom’s operating
performance. Millicom’s 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, and Millicom’s financial results calculated in accordance with IFRS and reconciliations to those financial statements
should be carefully evaluated.
Financial
Measure Descriptions
Service
revenue is revenue related to the provision of ongoing services such as monthly subscription fees, airtime and data usage fees, interconnection
fees, roaming fees, mobile finance service commissions and fees from other telecommunications services such as data services, short message
services, installation fees and other value-added services excluding telephone and equipment sales.
EBITDA
is operating profit excluding impairment losses, depreciation and amortization, and gains/losses on fixed asset disposals. In respect
of the segments Latam or Africa it is shown after the allocation of Corporate Costs and inter-company eliminations.
Organic
growth represents year-on-year growth excluding the impact of changes in FX rates, perimeter, and accounting. Changes in perimeter
are the result of acquisitions and divestitures. Results from divested assets are immediately removed from both periods, whereas the
results from acquired assets are included in both periods at the beginning (January 1) of the first full calendar year of ownership.
Net
debt is Debt and financial liabilities less cash and pledge and time deposits.
Net
financial obligations is Net debt plus lease liabilities.
Leverage
is the ratio of net financial obligations over LTM (Last twelve month) EBITDA, proforma for acquisitions and disposals made during
the last twelve months.
CapEx
is balance sheet capital expenditure excluding spectrum and license costs and lease capitalizations.
Operating
Cash Flow (OCF) is EBITDA less Capex.
Operating
Free Cash Flow (OFCF) is OCF less changes in working capital and other non-cash items and taxes paid.
Equity
Free Cash Flow (EFCF) is OFCF less finance charges paid (net), less lease interest and principal repayments, less spectrum, less
dividends and advances for dividends paid to non-controlling interests, plus dividends and other cash repatriation received from joint
ventures.
Please
refer to our 2020 Annual Report for a list and description of additional non-IFRS measures as well as reconciliations to their nearest
IFRS equivalent.
This
information was prior to this release inside information and is information that Millicom is obliged to make public pursuant to the EU
Market Abuse Regulation. This information was submitted for publication, through the agency of the contact person set out above, at 13:00
CET on February 14, 2022.
SIGNATURES
Pursuant to the
requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned,
thereunto duly authorized.
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MILLICOM INTERNATIONAL CELLULAR
S.A.
(Registrant)
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By:
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/s/ Salvador Escalon
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Name:
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Salvador Escalon
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Title:
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Executive Vice President, General Counsel
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Date: February 14,
2022
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