Digital connectivity for tomorrow’s world… - millicom.com

1 Millicom Annual Report 2017 Digital connectivity for tomorrow s are a leading provider of cable and mobile services dedicated to emerging markets. We operate under the Tigo brand in eight countries across Latin America and three in Africa. We set the pace when it comes to providing high-speed broadband, innovative services and our trademark The Digital Lifestyle to more than 50 million purpose is to build the Digital highways that connect people, improve lives and develop our communities. Our mission is to provide the best, most secure Digital highways to be the first choice for customers in all our connectivity for tomorrow s further information on Millicom s results, please refer to our Reporting Center: Millicom Annual Report 2017 What s inside this reporting This is our second integrated Annual Report that combines our corporate responsibility and financial reports to provide all our stakeholders with a clear and comprehensive overview of our business.

2 It reflects both the strong social and economic impact of our products and services on the communities we serve, and our responsible business practices throughout our operations. Our reporting is also in line with our commitment to transparency, and is a key element of building trust with all : The financial information presented in the front section of the Annual Report is with Guatemala (55% owned) and Honduras ( owned) as if fully consolidated, while the Group equity accounts for those operations in the IFRS consolidated financial statements.

3 See Additional information on pages 157 to at a glanceOur year in numbersChairman s statementMarket overviewOur business model0203040810 Strategy Chief Executive Officer s statementOur strategyMeasuring progress against strategy121415 PerformanceChief Financial Officer s reviewRisk managementHow we are doing in Latin AmericaHow we are doing in AfricaGrowing responsibly and with purpose1725303844 GovernanceChairman s report Shareholder and Board governance corporate Governance Framework Shareholders and shareholders meeting Board of Directors and Board committees Board profile skills and experience Board program Board committeesAudit CommitteeCompliance and Business Conduct CommitteeCompensation Committee.

4 Remuneration ReportMillicom CEO and Executive TeamManagement responsibility statement48494951525558616167697686 FinancialsIndependent auditor s reportIntroductionConsolidated statement of incomeConsolidated statement of comprehensive incomeConsolidated statement of financial positionConsolidated statement of cash flowsConsolidated statement of changes in equityNotes to the consolidated financial statements889399100101103104105CR performanceIndependent limited assurance report corporate responsibility is crucial to our success 1. Privacy and freedom of expression 2.

5 Child rights and online protection 3. Acting with integrity: anti-corruption compliance 4. Reducing our environmental footprint 5. Diversity 6. Taking care of our people: health and safety 7. Responsible supply chain management 8. Social investment 16216416616917 2175179182184187 Millicom Annual Report 2017 1 Overview Strategy Performance Governance FinancialsCR performance2:29pm100%TigoTigo SportsTigo MusicTigo MoneyTigo ShopMi TigoTigo ONE tvTigo BusinessThrough our Tigo and Tigo Business brands, we provide a wide range of Digital services, including high-speed data, cable TV, voice and SMS, Mobile Financial Services (MFS), and business Latin America (Latam), we provide both mobile and fixed services in six countries Bolivia, Colombia, El Salvador, Guatemala, Honduras, and Paraguay.

6 In addition, we provide fixed services in Costa Rica and Nicaragua. In Africa, we provide mobile services in Tanzania and Chad, as well as Ghana, where we operate as a joint venture since the last quarter of 2017. In 2017, we reached agreements to divest our operations in Rwanda and Senegal, with regulatory approval still pending in the latter provide services to million mobile customers and million cable and broadband households. We have million mobile data subscribers, including more than seven million on the 4G networks available in eight of our nine mobile at a glanceB2C MobileB2C HomeB2B Our Millicom Annual Report 2017 Operating Cash Flow ($m)1 Year-over-year growth4G smartphone data users (m)2 Year-over-year change+ 6%2x20171,19720161, homes passed (m)3 Year-over-year changeEmployees4As of year end 2017+18% 18 , Our year in figures at Group level for:Footnotes.

7 1 Operating Cash Flow (OCF) is EBITDA less capex (excluding spectrum, license and finance lease capitalization).2 Total Group (Latam and Africa).3 Hybrid fiber-coaxial (HFC) homes passed is the total number of premises that have capability to be connected to the network without any significant investment in the Excluding Senegal and Ghana. Emtelco (Colombia call center) headcount is excluded from this report and any internal reporting because their costs are classified as direct costs and not employee related costs. Overview Strategy Performance Governance FinancialsCR performanceMillicom Annual Report 2017 3 The change we have driven in our business for the past two years has not only increased our effectiveness but also helped us transform the lives and businesses of millions of customers in all our markets.

8 Chairman s statement4 Millicom Annual Report 2017 Ours is a powerful story of transformation and growth, for Millicom and for all our strategy is clear and simple; we build high-speed data networks, both mobile and fixed. The simplicity of our strategy, which you can read about on pages 14 to 15, helps drive operational effectiveness, and our business is leaner and more agile than ever. We now have a solid foundation on which to build and I am pleased to see that revenue growth is already beginning to reflect strategy is transforming the external landscape, too.

9 By accelerating deployment of our high-speed data networks, we have substantially increased access to the Digital highways for millions of people across our markets. Our new networks also benefit thousands of businesses, from start-ups to large multinationals, as you can discover in our Performance review on pages 17 to creating a more efficient organization and keeping a sharp focus on costs, we have continued to increase our free cash flow generation and strengthen our financial position. We are pleased to recommend a final dividend of US$ per share this year.

10 You can read more about this in our Financials section on pages 88 to responsibilityWe think of our core business as a social good. Our corporate responsibility program, pages 162 to 188, directly addresses the wider impacts our business operations have in our communities. We focus on applying our technological expertise to address gaps in development in the societies where we operate. We believe that our commitment to corporate responsibility differentiates us in our markets, makes us more competitive, and helps us strengthen our position as an employer of choice in the region.