Results for the period ended December 31, 2011

Results for the period ended December 31, 2011

 

Q4 Highlights

  · Organic local currency revenues up 10.1 % YoY
to $1,177 million
  · EBITDA up 7.9% to $536 million
  · EBITDA margin of 45.5%
  · Normalized earnings per common share of $1.72
  · Capex of $396 million, or 33.6% of revenues
  · Operating Free Cash Flow of $300 million (25.4% of revenues)

FY Highlights

  · Revenues up 12.7% to $ 4,530 million
  · Organic local currency revenue growth of 10.5%
  · EBITDA margin of 46.1%
  · Capex of $848m, including spectrum, in line with our guidance
  · Operating Free Cash Flow of $1,204 million (26.6% of revenues)
  · The Board of Directors to propose a $2.40/s ordinary dividend (2010:
$1.80/s). A new share buyback program of up to $300 million will be executed in
2012.
  · Revised ordinary Dividend Policy: at least $2.00/s (previously $1.20/s) and
no less than 30% of normalized net profit (previously 25%).

2012 forward looking statements

In line with our achievements over the past two years, in 2012 we again aim to
strike the right balance between top line growth, profitability, cash flow
generation and Return on Invested Capital. We expect the EBITDA margin to be in
the mid-40s and operating free cash flow margin to be around 20% of revenues in
2012. We expect capex in 2012 to increase versus 2011 while remaining below 20%
of revenues, as we invest in IT and billing platforms and add further data
capacity.

Financial summary for the quarters to December 31, 2011 and 2010

               Q4     Q4     YoY% change  FY     FY     YoY% change
               2011   2010   (local       2011   2010*  (local
                             currency)                  currency)
$m
Group Revenue  1,177  1,069  10.1%        4,530  4,018  10.5%
EBITDA (i)     536    497    7.3%         2,087  1,896  7.5%
EBITDA margin  45.5%  46.5%               46.1%  47.2%
Normalized     176    170                 738    607
Net Profit
(ii)
Capex (iii)    396    272                 848    704
Operating FCF  300    310                 1,204  1,047
(iv)

*   Pro forma figures to reflect the full consolidation of Honduras

(i) EBITDA: operating profit before interest, taxes, depreciation and
amortization, is derived by deducting cost of sales, sales and marketing costs
and general and administrative expenses from revenues and adding other operating
income
(ii)   Net profit adjusted for non recurring items such as the Deferred Tax
Asset in Colombia in 2011
(iii)  Excluding sale and leaseback of towers transferred to tower companies
(iv)  Operating FCF is defined as EBITDA-Capex- Taxes +/- Working capital
movements and includes proceeds from tower monetization

Mikael Grahne, President and CEO of Millicom, commented:

“We are pleased with the performance achieved this quarter and throughout the
year 2011. We grew our top line by 10.1% in Q4 2011 and we closed the year with
an organic revenue growth of 10.5%, in line with our expectations. Despite our
continued investments in data and Mobile Financial Services (MFS), we managed to
achieve a healthy EBITDA margin of 46.1% for the year 2011. In Q4, a quarter in
which we typically invest more in commercial activity, margins still exceeded
45.5%.

2012 will be a year of investment in services, products, infrastructure and
people as we see numerous growth opportunities in our markets. As we invest to
bring further innovative and affordable services to our customers, we aim to
continue delivering above sector average growth in revenues, cash flow
generation and returns.”

Conference call details

A conference call to discuss the results will be held at 14.00 Stockholm / 13.00
London/ 08.00 New York, on Wednesday, February 8, 2012. The dial-in numbers are:
+46 (0)8 5853 6965, +44 (0)20 7136 2051, or +1 646 254 3366 and the pass code is
9428516#.

A live audio stream of the conference call can also be accessed at
www.millicom.com. Please dial in / log on 5 minutes prior to the start of the
conference call to allow time for registration.

Slides to accompany the conference call will be available at www.millicom.com 30
minutes prior to the start of the call.

A recording of the conference call will be available for 7 days after the
conference call, commencing approximately 30 minutes after the live call has
finished, on: +44 (0)20 7111 1244 / +46 (0)8 5051 3897 or +1 347 366 9565,
access code: 9428516#.

Contacts

Chief Financial Officer
François-Xavier Roger
Tel: +352 27 759 327

Investor Relations
Justine Dimovic
Tel: +352 691 750 479

Emily Hunt
Tel: +44 7779 018 539

Visit our web site at www.millicom.com