Millicom International Cellular S.A.

Company Overview

Business Model: MILLICOM INTERNATIONAL CELLULAR S.A. operates under the Tigo® and Tigo Business™ brands, providing fixed and mobile telecommunication services. The company's core value proposition revolves around delivering connectivity and digital services across Latin America. Mobile services generated 60% of consolidated service revenue in 2025, while fixed and other services accounted for 38%. Additionally, Mobile Financial Services (Tigo Money) are offered to 2.8 million customers in select markets, with a strategic priority for partial or full divestiture.

Market Position: MILLICOM INTERNATIONAL CELLULAR S.A. maintains a significant market presence across eleven countries in Latin America, including Bolivia, Colombia, Ecuador, El Salvador, Guatemala, Honduras, Nicaragua, Panama, Paraguay, and Uruguay, with fixed and other services also provided in Costa Rica. As of December 31, 2025, the company served 49.3 million mobile customers and 4.6 million customer relationships for fixed services (comprising 4.2 million HFC and FTTH, and 0.3 million DTH subscribers). Its infrastructure includes approximately 2,000 towers (post-2025 deals), 12 Tier III data centers, and over 200,000 kilometers of fiber. The company offers 5G services in Guatemala, Colombia, El Salvador, Uruguay, and Ecuador.

Recent Strategic Developments: In 2025, MILLICOM INTERNATIONAL CELLULAR S.A. completed the monetization of its tower infrastructure business through disposals to SBA Communications Corp. and Atis Group, and acquired operations in Uruguay (Telefonica Moviles del Uruguay S.A. for an enterprise value of $440 million) and Ecuador (Telefónica’s telecommunications operations for an enterprise value of $380 million). A settlement was reached with the U.S. Department of Justice in 2025 regarding historical improper payments, resulting in a Deferred Prosecution Agreement for Comunicaciones Celulares S.A. (TIGO Guatemala). In 2024, Tigo Colombia and Colombia Telecomunicaciones S.A. E.S.P. (“ColTel”) signed an agreement to share mobile networks, forming two joint operations: NetCo ("UNIRED") for RAN infrastructure and Unión Temporal ("UT") for spectrum licenses. Subsequent to 2025, in January and February 2026, MILLICOM INTERNATIONAL CELLULAR S.A. further expanded its presence and consolidated its position in Colombia by acquiring 100% of Empresas Públicas de Medellín’s remaining shares in UNE EPM Telecomunicaciones S.A. (“Tigo Colombia”) for approximately COP 2.1 trillion (~$571 million) and Telefónica’s controlling 67.5% stake in Colombia Telecomunicaciones S.A. E.S.P. (“Coltel”) for approximately $214 million. In February 2026, a joint venture with NJJ completed the acquisition of Telefónica Móviles Chile S.A. for $50 million in cash and potential contingent earn-outs of up to $150 million. The company also agreed to sell its Mobile Financial Services business in Paraguay in January 2026. An attempted merger of Tigo Costa Rica with Liberty Latin America was rejected by the telecommunications regulator in Costa Rica in 2025.

Geographic Footprint: MILLICOM INTERNATIONAL CELLULAR S.A.'s primary operational regions are in Central and South America, with key markets including Bolivia, Colombia, Ecuador, El Salvador, Guatemala, Honduras, Nicaragua, Panama, Paraguay, and Uruguay. Fixed and other services are also provided in Costa Rica. The company is incorporated in the Grand Duchy of Luxembourg, which serves as its principal regulatory jurisdiction for corporate governance.

Cross-Border Operations: MILLICOM INTERNATIONAL CELLULAR S.A. operates through a network of international subsidiaries across its eleven markets. The company engages in joint ventures, notably the Honduras joint venture, and the NetCo ("UNIRED") and Unión Temporal ("UT") operations in Colombia for network and spectrum sharing. A subsequent joint venture with NJJ for Telefónica Móviles Chile S.A. further diversifies its international business structure. Regulatory compliance is managed across multiple jurisdictions, as evidenced by the Deferred Prosecution Agreement with the U.S. Department of Justice for its Guatemalan subsidiary.

Financial Performance

Revenue Analysis

Profitability Metrics:

• Gross Margin: 77.5%
• Operating Margin: 28.2%
• Net Margin: 23.4%

Investment in Growth:

• R&D Expenditure: MILLICOM INTERNATIONAL CELLULAR S.A. does not engage in research and development activities.
• Capital Expenditures: Total consolidated additions to property, plant and equipment, licenses, and other intangibles amounted to $1,226 million in 2025.
• Strategic Investments: Major investment initiatives in 2025 included the acquisition of Telefonica Moviles del Uruguay S.A. for an enterprise value of $440 million and Telefónica’s telecommunications operations in Ecuador for an enterprise value of $380 million. Subsequent to 2025, the company committed approximately $571 million for UNE EPM Telecomunicaciones S.A. and $214 million for Colombia Telecomunicaciones S.A. E.S.P. in Colombia, and $50 million cash (plus potential earn-outs up to $150 million) for Telefónica Móviles Chile S.A.

Currency Impact Analysis:

• Foreign exchange impact on revenue and earnings: MILLICOM INTERNATIONAL CELLULAR S.A. reported net foreign exchange gains of $71 million in 2025. A hypothetical 10% USD weakening/strengthening against other functional currencies would increase/decrease 2025 profit before tax from continuing operations by approximately $81 million.
• Hedging strategies and effectiveness: Approximately 70% of the Group’s borrowings were at a fixed rate or swapped to fixed in 2025. The company targets covering up to six months forward of operating costs and capital expenditures in non-functional currencies and utilizes currency swap contracts to hedge foreign currency risk, such as for its SEK-denominated bond.
• Functional currency considerations: Effective January 1, 2025, the Bolivian Boliviano (BOB) lacked exchangeability into other currencies under IAS 21 Amendments, leading to the use of an estimated exchange rate of 11.32 BOB per U.S. dollar compared to the official rate of 6.91 BOB. Ecuador, El Salvador, and Panama use the U.S. dollar as their official or legal tender.

Business Segment Analysis

Mobile Services

Financial Performance:

• Revenue: $3,286 million (+4.0% YoY)
• Operating Margin: Not explicitly disclosed at the segment level.
• Key Growth Drivers: Growth was driven by an expanding mobile customer base of 49.3 million and the ongoing deployment of 4G and 5G networks. 5G services were available in Guatemala, Colombia, El Salvador, Uruguay, and Ecuador as of December 31, 2025. The company also discontinued 2G services in Colombia, El Salvador, and Uruguay.

Product Portfolio:

• Major product lines and services within segment include mobile voice, data, and broadband services.
• Mobile Financial Services (Tigo Money) are provided to 2.8 million customers in Paraguay, Guatemala, El Salvador, Bolivia, and Honduras.

Market Dynamics:

• Competitive positioning within segment is characterized by varying mobile broadband penetration rates across its markets, ranging from 73% in Bolivia to 51% in Guatemala for 4G networks as of December 31, 2025.
• Key customer types include residential and business users.
• The regulatory environment is shaped by spectrum license terms (typically 10-20 years) and local regulations concerning network operations and consumer protection.

Geographic Revenue Distribution:

• Mobile services generated 60% of consolidated service revenue in 2025.
• Guatemala: 26% of total company revenue.
• Colombia: 22% of total company revenue, experiencing the highest relative revenue increase of 5.1%.
• Panama/Honduras/Paraguay: Contributed 9-11% each of total company revenue.
• Bolivia: 6% of total company revenue, with revenue declining 41.9% due to Boliviano depreciation.
• Growth Markets: Acquisitions in Uruguay and Ecuador in 2025, and subsequent acquisitions in Colombia and Chile in 2026, indicate strategic focus on expanding mobile market share.

Fixed and Other Services

Financial Performance:

• Revenue: $2,068 million (-4.9% YoY)
• Operating Margin: Not explicitly disclosed at the segment level.
• Key Growth Drivers: Performance is driven by 4.6 million customer relationships for fixed services, including 4.2 million on HFC and FTTH networks. The company's extensive fiber network (over 200,000 kilometers) and 12 Tier III data centers underpin these services.

Product Portfolio:

• Major product lines include residential broadband (HFC and FTTH), Digital Home Television (DTH), and enterprise solutions under the Tigo Business™ brand.

Market Dynamics:

• Competitive positioning within segment is reflected in residential broadband penetration rates, which vary from 59% in Colombia to 22% in Nicaragua as of December 31, 2025.
• Key customer types include residential households and enterprise clients.
• The regulatory environment is specific to telecommunications services in each operating jurisdiction.

Geographic Revenue Distribution:

• Fixed and other services generated 38% of consolidated service revenue in 2025.
• Colombia: 59% residential broadband penetration.
• Costa Rica: 56% residential broadband penetration (fixed services only).
• Panama: 51% residential broadband penetration.
• Paraguay: 47% residential broadband penetration.
• El Salvador: 44% residential broadband penetration.
• Bolivia: 34% residential broadband penetration.
• Guatemala: 27% residential broadband penetration.
• Honduras: 25% residential broadband penetration.
• Nicaragua: 22% residential broadband penetration.

International Operations & Geographic Analysis

Revenue by Geography:

International Business Structure:

• Subsidiaries: MILLICOM INTERNATIONAL CELLULAR S.A. operates through wholly-owned and majority-owned subsidiaries in its eleven markets.
• Joint Ventures: Key joint ventures include the Honduras joint venture, and the NetCo ("UNIRED") and Unión Temporal ("UT") operations in Colombia for mobile network and spectrum sharing. Subsequent to 2025, a joint venture with NJJ was formed for the acquisition of Telefónica Móviles Chile S.A.
• Licensing Agreements: The company holds various spectrum licenses across its operating countries, typically with terms ranging from 10 to 20 years.

Cross-Border Trade:

• Export Markets: Not explicitly detailed in the filing.
• Import Dependencies: MILLICOM INTERNATIONAL CELLULAR S.A. relies on international suppliers for key components such as handsets, set-top boxes (e.g., Apple, Samsung, Huawei), and network equipment/software (e.g., Huawei, Ericsson, Nokia).
• Transfer Pricing: The company's inter-company transactions and policies are subject to international tax regulations, including the OECD Pillar Two Model rules.

Capital Allocation Strategy

Shareholder Returns:

• Share Repurchases: MILLICOM INTERNATIONAL CELLULAR S.A. repurchased $119 million of its shares in 2025, acquiring 4,216,397 shares at an average price of $28 under a program that expired in May 2025.
• Dividend Payments: The company paid $754 million in dividends to owners in 2025.
• Dividend Yield: Not explicitly stated.
• Future Capital Return Commitments: The Board proposed an annual dividend of $3.00 per share for 2026, payable in four equal quarterly installments.

Balance Sheet Position:

• Cash and Equivalents: $1,552 million as of December 31, 2025.
• Total Debt: $6,886 million (excluding lease liabilities) as of December 31, 2025.
• Net Cash Position: The company reported a net debt position of $5,357 million as of December 31, 2025.
• Credit Rating: MILLICOM INTERNATIONAL CELLULAR S.A. holds credit ratings of Moody’s Ba2 and Fitch BB+. Moody's affirmed the Ba2 rating on October 21, 2025, following a downgrade from Ba1 in February 2024.
• Debt Maturity Profile: The weighted average nominal interest rate for total debt was 6.67% in 2025. Approximately 70% of the Group’s borrowings were at a fixed rate or swapped to fixed. The maturity profile for total debt in 2025 includes $329 million due within one year, $697 million in 1-2 years, $1,047 million in 3-4 years, and $4,851 million due in more than 5 years.

Cash Flow Generation:

• Operating Cash Flow: $1,734 million in 2025.
• Free Cash Flow: $794 million in 2025.
• Equity Free Cash Flow: $916 million in 2025, reaching a record level.
• Cash Conversion Metrics: Not explicitly detailed beyond the above cash flow figures.

Currency Management:

• Cash holdings by major currencies: As of December 31, 2025, $1,370 million of cash and cash equivalents were held in U.S. dollars, and $182 million in other currencies.
• Natural hedging through operational diversification: Not explicitly detailed as a formal strategy, but operations in multiple local currencies inherently provide some diversification.
• Financial hedging instruments and strategies: MILLICOM INTERNATIONAL CELLULAR S.A. targets maintaining at least 40% of its debt in local currency and an approximately 75/25% mix between fixed and floating rate debt. It aims to cover up to six months forward of operating costs and capital expenditures in non-functional currencies and utilizes financial hedging instruments such as currency swap contracts.

Operational Excellence

Production & Service Model: MILLICOM INTERNATIONAL CELLULAR S.A. operates a comprehensive telecommunications service model, delivering fixed and mobile connectivity. This includes the deployment and management of extensive network infrastructure, such as approximately 2,000 towers, over 200,000 kilometers of fiber, and 12 Tier III data centers. The company is actively upgrading its mobile networks, offering 5G services in five markets and discontinuing 2G in others to enhance efficiency and service quality.

Global Supply Chain Architecture: Key Suppliers & Partners:

• Handsets & Set-top Boxes: Apple, B-Mobile, Blu, Honor, Maxwest, Motorola, OPPO, Samsung, Tecno, Vivo, Xiaomi, and ZTE.
• Network Equipment & Software: Huawei, Ericsson, Nokia, PPC, Fiberhome, Harmonic, Kaon, Vantiva, Juniper, Intraway, and VMWare.
• Supplier Finance Program: A supplier finance program with Citibank was implemented in March 2022, covering operations in El Salvador, Honduras, Nicaragua, Panama, Paraguay, and Guatemala, with an outstanding balance of $163 million at December 31, 2025.

Facility Network:

• Manufacturing: Not applicable, as MILLICOM INTERNATIONAL CELLULAR S.A. is a telecommunications service provider.
• Research & Development: MILLICOM INTERNATIONAL CELLULAR S.A. does not engage in research and development activities.
• Distribution: The company leverages its extensive network infrastructure and local operational presence across its eleven markets for service delivery and distribution.

Operational Metrics:

• Mobile customers: 49.3 million as of December 31, 2025.
• Fixed customer relationships: 4.6 million as of December 31, 2025.
• Tower infrastructure: Approximately 2,000 towers (after 2025 deals).
• Data centers: 12 Tier III data centers.
• Fiber network: Over 200,000 kilometers (including its Honduras joint venture).
• Mobile broadband (4G) penetration rates ranged from 51% (Guatemala) to 73% (Bolivia) across its markets as of December 31, 2025.
• Residential broadband penetration rates ranged from 22% (Nicaragua) to 59% (Colombia) across its markets as of December 31, 2025.

Market Access & Customer Relationships

Go-to-Market Strategy: Distribution Channels:

• Direct Sales: Implied through its extensive operational footprint and local sales forces in each of its eleven markets.
• Channel Partners: Not explicitly detailed in the filing.
• Digital Platforms: Not explicitly detailed in the filing.

Customer Portfolio: Enterprise Customers:

• Tier 1 Clients: Not explicitly named, but the company manages credit risk from "certain B2B customers (mainly governments)."
• Strategic Partnerships: Not explicitly detailed for customer relationships.
• Customer Concentration: MILLICOM INTERNATIONAL CELLULAR S.A.'s cash flow is highly dependent on its operations in Guatemala.

Regional Market Penetration:

• [Region/Country]: The company reports varying market penetration rates for mobile broadband (4G) and residential broadband across its operating regions. For example, mobile broadband penetration ranged from 73% in Bolivia to 51% in Guatemala, while residential broadband penetration ranged from 59% in Colombia to 22% in Nicaragua as of December 31, 2025.
• Growth Markets: Recent acquisitions in Uruguay and Ecuador in 2025, and subsequent acquisitions in Colombia and Chile in 2026, demonstrate a strategy to deepen market penetration and expand customer relationships in key growth markets.

Competitive Intelligence

Global Market Structure & Dynamics

Industry Characteristics: The telecommunications industry in MILLICOM INTERNATIONAL CELLULAR S.A.'s operating regions is characterized by ongoing network modernization (4G/5G rollout, fiber expansion), strategic infrastructure monetization (tower sales and leasebacks), and consolidation activities. The company reported a revenue organic growth of 2.0% and service revenue organic growth of 2.8% in 2025.

Competitive Positioning Matrix:

Direct Competitors

Primary Competitors:

• Telefónica: Historically a significant competitor in markets where MILLICOM INTERNATIONAL CELLULAR S.A. has recently acquired operations (Uruguay, Ecuador, Colombia, Chile).
• Liberty Latin America: Demonstrated competitive overlap through the attempted merger with Tigo Costa Rica.
• Other local and regional telecommunications providers in each operating market.

Regional Competitive Dynamics: The competitive landscape varies by geographic market. MILLICOM INTERNATIONAL CELLULAR S.A. actively manages competitive dynamics through strategic acquisitions to consolidate market share (e.g., in Uruguay, Ecuador, Colombia, and Chile) and through network sharing agreements (e.g., with Colombia Telecomunicaciones S.A. E.S.P. in Colombia) to enhance efficiency and competitive positioning.

Risk Assessment Framework

Strategic & Market Risks

Global Market Dynamics:

• Technology Disruption: The rapid evolution of telecommunications technology, including 5G and fiber optics, necessitates continuous investment and adaptation to remain competitive across markets.
• Customer Concentration: MILLICOM INTERNATIONAL CELLULAR S.A.'s cash flow is highly dependent on its operations in Guatemala, posing a concentration risk.
• Market Competition: Intense competition in its operating markets drives strategic initiatives such as network sharing and consolidation.

Operational & Execution Risks

Global Supply Chain Vulnerabilities:

• Supplier Dependency: The company relies on a limited number of key international suppliers for handsets, set-top boxes, and network equipment (e.g., Huawei, Ericsson, Nokia, Apple, Samsung).
• Regional Disruptions: Operational continuity can be affected by regional events, such as the partial disruption of the mobile network in Honduras due to storm damage in 2020.
• Trade Restrictions: Not explicitly detailed as a current risk, but reliance on international suppliers implies exposure to potential trade restrictions.

Financial & Regulatory Risks

Currency & Financial Risks:

• Foreign Exchange: Exposure to multiple currencies, with a 10% USD weakening/strengthening against other functional currencies potentially impacting 2025 profit before tax by approximately $81 million. The Bolivian Boliviano (BOB) experienced exchangeability issues in 2025, impacting revenue in Bolivia.
• Interest Rate Risk: Approximately 30% of the Group’s borrowings were at floating rates in 2025. A 100 basis point change in market interest rates would impact 2025 profit before tax by approximately $20 million.
• Credit & Liquidity: Consolidated indebtedness (excluding lease liabilities) was $6,886 million, with net debt of $5,357 million as of December 31, 2025. The company maintains credit ratings of Moody’s Ba2 and Fitch BB+.
• Non-Repatriation Risk: Dependence on subsidiaries and joint ventures to transfer funds, though no significant restrictions currently impede transfers for interest, dividends, fees, or loan repayments.

Regulatory & Compliance Risks:

• Multi-Jurisdictional Compliance: Operations across eleven countries expose the company to diverse and complex regulatory frameworks.
• Trade Regulations: The US government's imposition of a 1% tax on money sent abroad, effective January 2026, could impact certain operations.
• Tax Regulations: Estimated tax risks exposure of $376 million for subsidiaries as of December 31, 2025. The company is subject to OECD Pillar Two Model rules, with certain jurisdictions not meeting transitional safe harbour rules. Unrecognized tax losses amounted to $5,226 million, with $4,848 million in Luxembourg.
• FCPA Violations: Comunicaciones Celulares S.A. (TIGO Guatemala) entered a Deferred Prosecution Agreement with the U.S. Department of Justice for historical improper payments, incurring approximately $118 million in penalties and forfeiture in 2025.

Geopolitical & External Risks

Country-Specific Risks:

• Political Risk: Regulatory changes, such as the rejection of the Tigo Costa Rica merger by the telecommunications regulator, can impact strategic initiatives.
• Economic Risk: Economic instability and currency devaluation, such as the Bolivian Boliviano depreciation and 20.40% inflation in Bolivia in 2025, can significantly affect financial performance.
• Regulatory Changes: Local law changes, including those related to spectrum licenses, consumer protection, and network operations, can affect business models and compliance costs.

Innovation & Technology Leadership

Research & Development Focus: Global R&D Network: MILLICOM INTERNATIONAL CELLULAR S.A. does not engage in research and development activities. Innovation Pipeline: Not applicable.

Intellectual Property Portfolio:

• Patent Strategy: MILLICOM INTERNATIONAL CELLULAR S.A. does not own any patents.
• Licensing Programs: Not explicitly detailed.
• IP Litigation: Not explicitly detailed.

Technology Partnerships:

• Strategic Alliances: MILLICOM INTERNATIONAL CELLULAR S.A. engages in strategic alliances such as the mobile network sharing agreement with Colombia Telecomunicaciones S.A. E.S.P. in Colombia.
• Research Collaborations: Not explicitly detailed.

Leadership & Governance

Executive Leadership Team

International Management Structure: The Group Leadership Team received aggregate compensation of $14.6 million in 2025. The company's operations across multiple countries imply a regional leadership structure, though specific roles and reporting relationships are not detailed.

Board Composition: The Board of Directors comprises eight members, all of whom are non-executive and independent from the company and its executive management. Four directors are affiliated with Atlas Investissement S.A.S., the largest shareholder (Maxime Lombardini, Jules Niel, Pierre-Alain Allemand, Pierre-Emmanuel Durand). Mr. Maxime Lombardini was re-elected Chair of the Board in May 2025. Ms. Justine Dimovic chairs the Audit and Compliance Committee and is designated as an "audit committee financial expert." Atlas Investissement S.A.S. owned 42.2% of the voting shares as of December 31, 2025, with the Niel Family Group beneficially owning 44.1% as of February 28, 2026. Directors (excluding Jules Niel) collectively own less than 1% of outstanding shares. MILLICOM INTERNATIONAL CELLULAR S.A. follows Luxembourg law for corporate governance, which has differences compared to Nasdaq rules in areas such as quorum, director nominations, and compensation committee independence.

Regulatory Environment & Compliance

Multi-Jurisdictional Regulatory Framework: Primary Regulatory Environments:

• Luxembourg: As the country of incorporation, MILLICOM INTERNATIONAL CELLULAR S.A. adheres to Luxembourg corporate governance laws and is subject to the OECD Pillar Two Model rules.
• Colombia: Subject to regulations regarding spectrum licenses (e.g., 700 MHz and 1900 MHz bands), network sharing agreements, and historical prohibitions on handset and service bundling.
• El Salvador & Honduras: Mobile operators are required to shut down or reduce signal capacity near prisons. El Salvador's Consumer Protection Law reform impacts data allowance and automatic renewals.
• Paraguay: Regulations include extensions for unused prepaid data allowance. Paraguay is also subject to OECD Pillar Two Model rules.
• Bolivia: The regulator prohibited automatic deductions for on-demand data. The Bolivian Boliviano (BOB) experienced exchangeability issues in 2025. Bolivia is subject to OECD Pillar Two Model rules.
• Guatemala: Comunicaciones Celulares S.A. (TIGO Guatemala) entered a Deferred Prosecution Agreement with the U.S. Department of Justice for FCPA violations. Spectrum licenses (e.g., 2600 MHz) are due to expire in 2026.
• Uruguay: Subject to OECD Pillar Two Model rules.

Cross-Border Compliance:

• Export Controls: Not explicitly detailed in the filing.
• Sanctions Compliance: Not explicitly detailed in the filing.
• Anti-Corruption: The company has a Code of Conduct, and its Guatemalan subsidiary entered a Deferred Prosecution Agreement with the U.S. Department of Justice for FCPA violations, paying approximately $118 million in penalties and forfeiture.

International Tax Strategy:

• Transfer Pricing: MILLICOM INTERNATIONAL CELLULAR S.A.'s inter-company pricing policies are subject to scrutiny under international tax regulations.
• Tax Treaties: Not explicitly detailed in the filing.
• BEPS Compliance: Most jurisdictions within the MILLICOM INTERNATIONAL CELLULAR S.A. Group meet transitional safe harbour rules for the OECD Pillar Two Model rules, with exceptions including Luxembourg, Paraguay, United Kingdom, Uruguay, and Bolivia. No material top-up tax resulted in 2025 and 2024. The company has significant unrecognized tax losses, including $4,848 million in Luxembourg.

Environmental & Social Impact

Global Sustainability Strategy: Environmental Commitments: Not explicitly detailed in the filing. Carbon Neutrality: Not explicitly detailed in the filing. Renewable Energy: Not explicitly detailed in the filing.

Regional Sustainability Initiatives:

• [Region/Country]: UNE EPM Telecomunicaciones S.A. in Colombia entered into an ESG Linked agreement with Bancolombia. MILLICOM INTERNATIONAL CELLULAR S.A. also has a $600 million ESG-linked revolving credit facility.
• Supply Chain: Not explicitly detailed in the filing.

Social Impact by Region:

• Community Investment: Not explicitly detailed in the filing.
• Labor Standards: Approximately 12% of employees participated in collective employment agreements as of December 31, 2025. The company reported one employee fatality and two fatalities in contracted services in 2024.

Currency Management & Financial Strategy

Multi-Currency Operations: Currency Exposure:

Hedging Strategies:

• Transaction Hedging: MILLICOM INTERNATIONAL CELLULAR S.A. aims to cover up to six months forward of operating costs and capital expenditures in non-functional currencies to mitigate short-term foreign exchange risk.
• Translation Hedging: While not explicitly detailed as a specific strategy, the company quantifies the impact of USD weakening/strengthening on profit before tax, indicating awareness of translation exposure.
• Economic Hedging: Not explicitly detailed in the filing.
• The company utilizes currency swap contracts, such as hedging the foreign currency risk of its SEK-denominated bond and intercompany receivables. Speculative trading with derivatives is prohibited.