Performance

How we are doing in ...

Our Latin American footprint covers eight countries and contributes 90% to ’s Group revenue. Our Tigo brand has often become part of the national fabric. Our strategy has paved the way for positive revenue growth as we continue to build the digital highways across the region.

Service revenue Other El Salvador by country 3% 8% 5,078 Guatemala Service Revenue 23% Organic growth +0.9% 12% 18% 26% B2B B2C Mobile US$936m +4.0% Data 2,151 US$1,336m 19.6% EBITDA 22% Revenue Organic growth +2.8% B2C Home by US$1,126m +7.6% service*

The financial information is based on the Management 32% reporting numbers, with Guatemala (55% owned) Honduras and Honduras (66.7% owned) as if fully consolidated. B2C Mobile 11% See Additional information on pages 157 to 160. Voice & Other** * Other service revenue non-allocated to the Business US$1,640m -15.2% Units includes revenues from towers rental and contact center services. Colombia ** Other includes SMS, Mobile Financial Services (MFS), 32% other VAS services and Visitors roaming revenue; DVNE, 11% DVNO, MVNO network access revenue and other small atomized items

30 Millicom Annual Report 2017 Overview Overview Strategy Strategy

More than 60,000 people attended Tigo Music’s three-day international Estereo Picnic festival in Bogota #FEP2017 Performance

We have deep roots in many of the countries Our services to more than half of the population in our where we operate. In some cases, we have We provide Mobile Voice, SMS, and Mobile markets. This has allowed us to more than been providing services for 25 years. Where Data services through our 2G, 3G, and 4G double our 4G smartphone users to 6.9 million we work we are committed to growing our enabled wireless networks in El Salvador, in the region. presence and supporting their economic and Guatemala, Honduras, Bolivia, Colombia In addition, we have grown the size of our social development. and Paraguay. Fixed HFC network by 18.1%, adding almost Our goal Our fixed business provides television and 1.3 million Homes Passed, reaching 56.3% of Our goal remains to become a high Internet in El Salvador, Guatemala, Honduras, our 15 million opportunity. We have also been

performing, customer-centric, high-growth Costa Rica, Bolivia, Colombia, Paraguay and filling this network with subscribers, adding Governance fixed mobile convergent (FMC) digital Nicaragua, and wireline voice in El Salvador, more than 250,000 HFC Homes Connected in operator in Latin America. We want to be the Guatemala, Honduras, Costa Rica, and 2017 and 673,000 HFC Revenue Generating leading provider of digital services and content Colombia. We provide these services through Units (RGUs) in our Home business. to promote and develop the adoption of The a mix of technologies, but are increasingly Over the past six years we have created a near Digital Lifestyle by our customers. focused on expanding our Hybrid Fiber- billion-dollar Tigo Business revenue stream, Coaxial (HFC) network which offers the best Our markets and seen the segment grow rapidly as we customer experience and highest quality Millicom is well established in Latin America continue to expand our infrastructure and service in our markets. and has developed strong connections to service portfolio to become the first-choice the countries where we operate, helping us Revenue reconfiguration partner for the diverse range of private and achieve our goals. In many of our markets As our customers’ expectations change and public clients in the markets where we operate. Financials we are one of the largest employers in the the appetite for Mobile data and fixed One example of this expansion is in Colombia country, and have robust talent identification Internet grows while use of legacy services where we inaugurated a Tier-3 datacenter in programs that help us fill our management such as Voice and SMS decline across the Q4 to expand our portfolio of Cloud services. ranks with local employees who know our world, we have been adapting our business to This way we now include Infrastructure as a markets best. Our expertise can only come the new reality by focusing on bringing high Service (IaaS) and Platform as a Service from decades of working in our communities, quality Internet access to more customers (PaaS) to support our clients by backing up all of which contribute to our success. and providing more services to the corporate and managing their critical information. segment. This focus is paying off and in the We are also one of the largest tax payers second half of 2017 revenue grew 19.6% In addition, we continued presenting relevant in each of the markets we operate in. year-over-year for mobile data and 11.8% new technologies to business leaders and

Thanks to our local commitments, we have a in fixed, more than compensating for the current and potential clients through hosting CR performance historically strong position in our markets with decline in legacy revenue. Tigo Business Forums, to show how we can a revenue market share near or above 40%, support our clients’ growth and their transition To drive this reconfiguration we have been with the exception of Colombia where we are to a digital environment. investing heavily in our mobile and fixed the challenger. networks and expanding our service offering This approach of building, educating, and for businesses. partnering helped us grow our client base by 16.4% in 2017. For Mobile, over the past year we have expanded our 4G Points of Presence (PoP) by 53%, and increased our 4G network coverage

Millicom Annual Report 2017 31 Latin America performance review – continued

Our results Digital innovation A member of our communities Our strategy is starting to pay off as service We operate in fast-moving and competitive Corporate responsibility is an integral part revenue has grown by 0.9% year-over-year in markets and sell our products through some of our business success and strategy. The very 2017 but year-over-year by 2.3% in Q3 and by of the largest commercial distribution nature of our relationships with many of our 3.1% in Q4. This growth has been driven by networks in the region and interact with countries means that our growth is intrinsically our 12.9% year-over-year growth in strategic millions of customers every day through linked to theirs. When they grow, we grow. service revenue (Mobile Data + Home) and our stores, call centers, and online portals. Therefore, supporting local development 6.4% growth in subscription revenue (B2C With our need to respond quickly to market is not simply a side effect, but a shared goal, Postpaid + B2C Home + B2B). This changes and customer needs, we continuously inextricably linked with our business. reconfiguration, along with a series of develop and implement solutions across our efficiency initiatives whose effects will be felt business to improve efficiency and serve our We work with key stakeholders in understanding even more in the future, has helped us drive customers better. where we can make a difference in the EBITDA growth by 2.8% year-over-year. communities where we operate, where we can In 2017, for our B2C Mobile customers we have greater positive impacts in people’s lives Within each business unit our results were developed the Tigo Shop and Mi Tigo apps and how we can work together to bring them also very positive. that allow customers themselves to answer the benefits of the online world through an the most common questions and permit us to B2C Mobile service revenue declined by understanding of a productive and responsible know our customers better and communicate 2.4% year-over-year due to the drop in legacy use of online tools. with them more effectively. Internally we have revenue, but growth improved to 0.2% in Q4 put in place high performance data platforms We understand the significance of as Mobile data fully compensated for the to speed up transaction times. These also give incorporating corporate responsibility principles decline in legacy Voice and SMS revenue. us the ability to perform just-in-time marketing throughout our organization and throughout This compensation in mobile revenue is the campaigns to support our fast-moving our value chain. That’s why for example we result of our strategy to connect more users commercial business. For our front-line staff work closely with suppliers, promoting with 4G through smartphones. With this we provide state-of-the-art digital care tools sustainable practices that will make them more strategy, B2C Mobile data revenue grew that allow for greater customer understanding competitive while managing our own risks. 19.6%, driven by our addition of almost and more personalized care. 3.5 million new 4G smartphone data users In 2018 we will continue improving our internal bringing our total close to seven million. processes and procedures to help us be more These customers are particularly important lean and better able to serve our customers. and are proving our strategy as they use over 50% more data per month when they migrate from 3G to 4G. Building, educating, and In our Home business, our investments in partnering has helped us building new fixed HFC infrastructure are grow our client base.” paying off. This year we passed 1.3 million new homes with HFC and connected more than 250,000 new homes with 673,000 new HFC RGUs. This strategy, combined with renewed focus on bundling, has driven Home service revenue up by 7.6% this year. At the same time, we have increased our differentiation in the market with the launch of our next generation TV service, Tigo ONEtv, in Colombia, which we plan to deploy across the rest of our markets in 2018. Customers first As our markets become more competitive, we are responding by retooling our operations, touch points, and processes to align with our customers’ needs and wants. This focus on our customers is central to our continued success, and it touches everything we do.

Tigo Bolivia’s customer service network features more than 2,800 agents nationwide in addition to customer care centers, flagship stores and Tigo branches

32 Millicom Annual Report 2017 Overview Overview

Tigo ONEtv: Bringing the next generation of TV to Latin America Strategy Strategy Performance

The future is now. We continue to enhance our products and services through convergence-focused IT capabilities that bring entertainment to our customers’ fingertips. Governance 2017 marked an important milestone As pay-TV, fixed line broadband and mobile Tigo ONEtv is enabling Millicom to in the way Millicom offers TV content continue to grow at a fast pace in Latin effectively address its diverse customer to customers. In collaboration with TiVo America, Tigo ONEtv caters to a very real segments and take advantage of the Corporation, we launched Tigo ONEtv in need in our customers’ lives providing them opportunities offered demand for content. Colombia, with plans for expansion across with content that they value. Since its launch in mid-September 2017, the rest of our Latin American markets. Millicom has therefore integrated content more than ten thousand homes have This cutting-edge service, a first in the from cable television and video streaming accessed the service across Colombia. region, combines a high-quality websites under one roof. With an offer that We will roll it out to the rest of our Latin entertainment experience with advanced includes content from Sony’s Crackle, American markets during 2018. With the personalization and recommendations, FOX, YouTube and HBO, customers can now increasing rollout, and by expanding the seamless integration of content, and Financials watch a full range of content, integrated possibility of streaming lineal channels out robust multiscreen capabilities. through one set-top box, using one of the set-top box, Millicom positions itself remote control. as the provider of choice for content among customers looking for a personalized and integrated experience. CR performance

Millicom Annual Report 2017 33 Latin America performance review – continued

Millicom creates value by being proactive to change.” Marc Beuls, CEO, 1997

During the 1990s Millicom reported simultaneous interests in more than 20 countries worldwide, as rapid economic development created significant demand

2006 Millicom is the second best performing stock on the NASDAQ 2004 Millicom’s commercial 2007 Tigo brand is launched; Growth in data services inspired by an for Blackberry and abbreviation of the WiMAX 1999 Spanish word “contigo” (“with you”) iPhone launched thanks Wireless Personal to ARM 11 chip Communication Service (PCS) phone systems Paraguay’s fiber optic introduced, providing 2005 network goes nationwide 1997 faster mobile Internet Enhanced Data GSM access Pre-paid SIM cards Environment technology Micro recargas launched in ten markets, launched to speed up (micro recharges) first in Latin America, data services from $500 pesos no contract needed 2000 Tigo revolutionizes Millicom shares listed 1992 CPP (Calling Party Pays) Tigo Paraguay launches mobile service on Nasdaq Global Internet Service Paraguay and products launched affordability with Select Market Provider brand Telesurf, El Salvador launch their charge-per-second and 70 million Internet users for faster wireless “Triple A” strategy in first mobile network mini-charge products worldwide, according Internet access place: Affordability, services 1991 to the International Accessibility and Telecel (later Tigo) Data Corporation (IDC) Availability President Jaime Paz becomes first mobile Zamora places Bolivia’s operator in Paraguay first mobile call

34 Millicom Annual Report 2017 Overview Strategy Performance Governance Financials CR performance 35 25 years of innovation

Colombia Tigo Sports unveils new broadcasting central center and recording studios in Asuncion, Paraguay Guatemala Tigo launches App by App operations Millicom Connectedsign GSMA’s Commitment Women initiative Tigo LatAm operations Crianza partner with Tecnologica as part of Child Online Protection program Tigo ranks for the first time among top 2017 fully launches Tigo convergent, next- TV service generation ONEtv Tier3 Titanium opens datacentre in Tigo HFC cable network in LatAm adds 1.3 million homes passed. New record! multinational 20 all across companies industries to work for in Latin America, in Great Place to Work (GPTW) awards Tigo Paraguay million(3.6 customers) of years 25 celebrates service on Impact Business Child Rights assessment co-developed by tool Millicom / UNICEF for wider use within the industry network mobile

Guatemala Salvador El 2016 506k Homes Passed added to fixed-line network new (4 cities) Tigo Play launch in NETFLIXpartnership services residential and bundles All you can App launch in First Tigo Business Forum exclusive for SMBs First state-of-the-art Tier 3 data center Tigo Paraguay launches Telemedicina Salvador’s El Tigo schools” “connecting program wins LatAm CEMEFIregion award for best practice in public / private sector alliance 25th Millicom’s anniversary film The Digital wins Torch global PR award for Employee Best Communications 2015 social media Exclusive announced partnerships Guatemala Tigo introduces 4G Tigo Sports App launches in key markets Tigo Shop App launch Tigo passes 60 million customers, mobile operating markets in 15

Millicom has a been on Millicom journey.” transformational Boardman, Tom Chairman, 2018 Colombia via new Tigo Online platform Tigo Money launched launched Money Tigo Bolivia in servicesB2B unveiled 2014 merger TigoUne in completed broadband Star Tigo network cable and launched First Tigo Business Forum hosted in Guatemala FIFA World Cup App launched Direct to Home satellite in launched technology Bolivia launched4G LTE in Bolivia and Honduras Tigo Sports Paraguay launched LatAm’s first Child Online Protection workshop, hosted in Paraguay 2013 network4G LTE in shared / Colombia Empresa spectrum with Telecomunicaciones de de Bogota

Music) services Unlimited music service streaming (Tigo concession Colombia for renewed contract years ten remittance International Guatemala in services Mobile launches Tigo Services Financial (MFS) in Guatemala and Honduras and Tigo TV soccer coverage in HD 2012 2011 HSPA+ (3G tech known as EvolvedHigh Speed Packet Access) in Colombia purchase Smartphone US$100 below fall prices and voice “Paquetigos” customizedSMS packages High Definition tv in on-air channels Costa Rica New fibre optic cable connects Bolivia to networks international Financial Mobile Tigo Services (MFS) launch Salvador El in Navega acquisition expands fixed line B2B

The Tigo brand is proud to sponsor national soccer teams Porteño Cerro champions league Paraguay’s as such 2010 communications USSD protocol more for responsive messaging services First Tigo Fest (multi-artist concert) 2009 Open-band phones market to launched campaign Devolvato with customers rewards minutes to the value of phone purchased their penetration Broadband in Latin America at 4.9% Paraguay has access to Internet international backbone Tigo portfolio platform money Mobile Tigo Cash launches in Paraguay 3G and 3.5G networks launch in key Tigo markets Acquisition of Amnet in adds America Central cable residential network services to 2008 Millicom Annual Report 2017