MILLICOM INTERNATIONAL CELLULAR SA

13. COMMITMENTS AND CONTINGENCIES

Litigation & claims

The Group is contingently liable with respect to lawsuits, legal, regulatory, commercial and other legal risks that arise in the normal course of business. As of June 30, 2026, the total amount of claims brought against MIC SA and its subsidiaries is $296 million mainly as explained in the next paragraphs (December 31, 2025: $146 million). The Group's share of the comparable exposure for its joint venture in Honduras and Chile associate is $7 million (December 31, 2025: $3 million).

As at June 30, 2026, $47 million has been provisioned by the Group for these claims and risks in the unaudited interim condensed consolidated statement of financial position (December 31, 2025: $37 million). The Group's share of provisions made by the joint venture and the associate was $7 million (December 31, 2025: $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 results of operations.

During the period, certain former executives of the Group's Guatemala operations continued legal proceedings against Comunicaciones Celulares, S.A. and certain affiliated entities involving employment-related claims. Certain judgments and other court decisions have been issued in favor of claimants in an aggregate amount of approximately $100 million, while additional cases remain pending. The amounts sought by the claimants in these cases are substantially larger than the amounts recognized by the Group in respect of these matters. The Group disputes both liability and certain aspects of the methodology used in determining the amounts claimed and awarded, and continues to pursue available appellate, constitutional, and other legal remedies.

Management has evaluated these matters in accordance with IAS 37Provisions, Contingent Liabilities and Contingent Assetsand, based on the information currently available, management believes that a provision of approximately $4 million represents the best estimate under applicable Guatemalan law of the expenditure required to settle obligations that are considered probable as of June 30, 2026. Due to the inherent uncertainties associated with litigation, however, including ongoing appeals and judicial review processes, and concerns regarding transparency in the Guatemalan legal system, the ultimate outcome of these proceedings may differ from current estimates.

Taxation

At June 30, 2026, the tax risks exposure of the Group's subsidiaries is estimated at $380 million, for which provisions of $40 million have been recorded in tax liabilities; representing management's assessment of the probable cash outflow of eventual claims and required payments related to those risks (December 31, 2025: $376 million of which provisions of $32 million were recorded). The Group's share of comparable tax exposure in its joint venture and associates amounts to $193 million (December 31, 2025: $160 million) for which provisions of $9 million (December 31, 2025: $8 million), were made.

Capital commitments

At June 30, 2026, the Group had fixed commitments to purchase network equipment, other fixed assets and intangible assets of $380 million of which $358 million are due within one year (December 31, 2025: $305 million of which $280 million are due within one year). The Group’s share of commitments in its Honduras joint venture and Chile associate is $36 million of which $36 million are due within one year (December 31, 2025: $31 million out of which $31 million are due within one year). Additionally, the Group's share of commitments in the UNIRED joint operation was $16 million for December 31, 2025.