EX-12 8 a2136367zex-12.htm EXHIBIT 12
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EXHIBIT 12

Millicom International Cellular S.A.

Statement Regarding Computation of Ratios of Earnings to Fixed Charges

IFRS Ratios—Ratio of Earnings to Fixed Charges

	Nine Months Ended September 30,	Year Ended December 31,
	2004	2003	2002		2001		2000	1999
		(in thousands of U.S. dollars, except ratios)
Pre-tax income (loss) from continuing operations before adjustment for minority interests in consolidated subsidiaries or income or loss from equity investees	106,768	245,507	(463,797	)	(127,122	)	468,491	(5,837	)

Fixed Charges:
Interest expense and amortization of deferred financing costs, debt discount and premium on all indebtedness	77,326	135,172	185,959		209,912		207,307	160,738
Appropriate portion (¹/3) of rentals	1,723	1,604	2,140		3,671		5,503	7,065

Total fixed charges	79,049	136,776	188,099		213,583		212,810	167,803

Amortization of capitalized interests	48	65	269		770		1,215	1,341
Interests capitalized	—	—	—		—		183	140
Pre-tax income (loss) from continuing operations before adjustment for minority interests in consolidated subsidiaries or income or loss from equity investees plus fixed charges and amortization of capitalized interests less interests capitalized	185,865	382,348	(275,430	)	87,231		682,334	163,167

Ratio of earnings to fixed charges	2.35	2.80	(1	)	(1	)	3.21	(1	)

(1): The ratio of earnings to fixed charges is computed by dividing earnings by fixed charges. Earnings represents pre-tax income from continuing operations before minority interests in consolidated subsidiaries or income or loss from equity investees, fixed charges, amortization of capitalized interest and distributed income of equity affiliates, less capitalized interest. Fixed charges include interest expense (including amortized premiums, discounts and capitalized expenses related to indebtedness) and a reasonable approximation of the interest component of rent expense. Due to the losses in 2002, 2001 and 1999 under IFRS, the ratio of earnings to fixed charges was less than 1:1. Therefore, under IFRS the Company needed to generate additional earnings of $463,529,000, $126,352,000 and $4,636,000 in 2002, 2001 and 1999, respectively, to achieve a ratio of earnings to fixed charges of 1:1.

US GAAP Ratios—Ratio of Earnings to Fixed Charges

	Nine Months Ended September 30,	Year Ended December 31,
	2004	2003		2002		2001		2000	1999
		(restated)		(restated)		(restated)
		(in thousands of U.S. dollars, except ratios)
Pre-tax income (loss) from continuing operations before adjustment for minority interests in consolidated subsidiaries or income or loss from equity investees	261,364	(41,599	)	(305,838	)	(133,466	)	515,754	73,468

Fixed Charges:
Interest expense and amortization of deferred financing costs, debt discount and premium on all indebtedness	88,150	124,782		173,479		191,910		189,468	139,006
Appropriate portion (¹/3) of rentals	1,705	1,252		1,584		2,536		2,369	1,734
Total fixed charges	89,855	126,034		175,063		194,446		191,837	140,740

Dividend from JV's	18,832	43,659		16,857		—		—	—
Amortization of capitalized interests	48	65		269		770		1,215	1,341
Interests capitalized	—	—		—		—		183	140
Pre-tax income (loss) from continuing operations before adjustment for minority interests in consolidated subsidiaries or income or loss from equity investees plus fixed charges and amortization of capitalized interests less interests capitalized	370,099	128,158		(113,648	)	61,750		708,623	215,409

Ratio of earnings to fixed charges	4.12	1.02		(1	)	(1	)	3.69	1.53

(1): The ratio of earnings to fixed charges is computed by dividing earnings by fixed charges. Earnings represents pre-tax income from continuing operations before minority interests in consolidated subsidiaries or income or loss from equity investees, fixed charges, amortization of capitalized interest and distributed income of equity affiliates, less capitalized interest. Fixed charges include interest expense (including amortized premiums, discounts and capitalized expenses related to indebtedness) and a reasonable approximation of the interest component of rent expense. Due to the losses in 2002 and 2001 under U.S. GAAP, the ratio of earnings to fixed charges was less than 1:1. Therefore, under U.S. GAAP the Company needed to generate additional earnings of $291,109,000 and $137,302,000 in 2002 and 2001, respectively, to achieve a ratio of earnings to fixed charges of 1:1.