MILLICOM INTERNATIONAL CELLULAR SA

When I joined Millicom as CEO in March 2015, the company was at a crossroads.

We were #1 or #2 in mobile in most of our Latin American markets, but the company had yet to deploy the 4G networks that would be needed to protect its market leadership. Moreover, cash flow generation from Latin America was being re-invested in Africa, where Millicom had sub-scale operations in six countries scattered across the continent.

One of my first decisions was to exit all of our African investments, and to re-deploy this capital to protect and extend our market leadership in Latin America. Exiting Africa was easier said than done, but over the course of several years, we successfully divested six telecom operations and investments in two non-core assets, completing our exit from the region.

Meanwhile, in our core Latin American markets, we stepped up our investments. We quickly deployed 4G networks to protect and extend our mobile market leadership. We built extensive fiber networks and world-class Tier 3 data centers to provide additional services to both residential and B2B customers. In Colombia, the 2014 merger with UNE had left the company with a legacy copper network that we replaced with fiber-cable. In 2020, we acquired low-frequency spectrum that had historically handicapped Tigo’s competitiveness in that mobile market. Similarly, we acquired AWS spectrum in El Salvador, paving the way for renewed growth and increased scale and profitability from both of these markets.

Along the way and with a clear sense of purpose, we assembled a more diverse and inclusive workforce and became an employer of choice, we strengthened our brand and improved customer experience with robust networks and digital tools, and we made external commitments to do our part to help mitigate climate change.

We also made a few key strategic decisions. In 2018, we entered the Panamanian market, and we are now the clear market leader in what is arguably the fastest-growing economy and most stable country in the region. During the pandemic, we remained steadfast in executing our investment plans, emerging with higher market shares in several markets. In 2021, we increased to 100% our ownership in our Guatemala business, our most-profitable operation, by far.

During 2022 however, it became increasingly clear that our work wasn’t quite done, especially as global inflation and interest rates spiked, putting additional pressure on both our cash flow and our leverage.

We responded to these unforeseen external challenges, with three key initiatives implemented during 2023. First, we developed Project Everest, a broad-based efficiency program aimed at simplifying internal processes to lift productivity and reduce cost. Second, we took additional steps to improve cash flow in Colombia, reaching an agreement with Telefonica to combine our mobile networks and spectrum in that country. Finally, in Guatemala, we re-balanced the industry’s spectrum holdings following two successful auctions, paving the way to a more stable market structure in the future.

Successful execution of these three initiatives in 2023, combined with the significant investments and strategic decisions made over the last several years, position Millicom to deliver robust and sustainable equity free cash flow going forward.

In closing, and on behalf of the entire management team, I would like to thank my fellow Board members for contributing their business expertise and industry knowledge. I want to extend the entire Board’s gratitude to Odilon Almeida, Lars-Johan Jarnheimer, Mercedes Johnson, James Thompson, and José Antonio Rios García for their invaluable contributions over the past several years. And finally, the entire Tigo team express our heartfelt sorrow following the untimely passing of Nicolas Jaeger, our esteemed Board member, colleague, and friend.

Mauricio Ramos

Executive Director, CEO and Interim Chair of the Board of Directors