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The Millicom Group (Tables)
12 Months Ended
Dec. 31, 2020
Interests In Other Entities [Abstract]  
Disclosure of main subsidiaries
Our main subsidiaries are as follows:
EntityCountryActivityDecember 31, 2020 % holdingDecember 31, 2019 % holdingDecember 31, 2018 % holding
Latin AmericaIn %In %In %
Telemovil El Salvador S.A. de C.V.El SalvadorMobile, MFS, Cable, DTH100100100
Millicom Cable Costa Rica S.A.Costa RicaCable, DTH100100100
Telefonica Celular de Bolivia S.A.BoliviaMobile, DTH, MFS, Cable100100100
Telefonica Celular del Paraguay S.A.ParaguayMobile, MFS, Cable, PayTV100100100
Cable Onda S.A (i).PanamaCable, PayTV, Internet, DTH, Fixed-line808080
 Grupo de Comunicaciones Digitales, S.A. (formerly Telefonica Moviles Panama, S.A.)(ii)PanamaMobile8080
Telefonia Cellular de Nicaragua sa (ii)NicaraguaMobile100100
Colombia Móvil S.A. E.S.P. (iii)ColombiaMobile50-1 share50-1 share50-1 share
UNE EPM Telecomunicaciones S.A.(iii)ColombiaFixed-line, Internet, PayTV, Mobile50-1 share50-1 share50-1 share
Edatel S.A. E.S.P. (iii)ColombiaFixed-line, Internet, PayTV, Cable50-1 share50-1 share50-1 share
Africa
Sentel GSM S.A.(v)SenegalMobile, MFS
MIC Tanzania Public Limited Company (vi)TanzaniaMobile, MFS98.598.5100
Millicom Tchad S.A. (v)ChadMobile, MFS100
Millicom Rwanda Limited (v)RwandaMobile, MFS
Zanzibar Telecom Limited (vi)TanzaniaMobile, MFS98.598.585
Unallocated
Millicom International Operations S.A.LuxembourgHolding Company100100100
Millicom International Operations B.V.NetherlandsHolding Company100100100
Millicom LIH S.A.LuxembourgHolding Company100100100
MIC Latin America B.V.NetherlandsHolding Company100100100
Millicom Africa B.V.NetherlandsHolding Company100100100
Millicom Holding B.V.NetherlandsHolding Company100100100
Millicom International Services LLCUSAServices Company100100100
Millicom Services UK Ltd (iv)UKServices Company100100100
Millicom Spain S.L.SpainHolding Company100100100
(i)    Acquisition completed on December 13, 2018. Cable Onda S.A. is fully consolidated as Millicom has the majority of voting shares to direct the relevant activities. See note A.1.2..
(ii)    Companies acquired during 2019. See note A.1.2..
(iii)    Fully consolidated as Millicom has the majority of voting shares to direct the relevant activities.
(iv) Millicom Services UK Ltd with registered number 08330497 will take advantage of an audit exemption to prepare stand alone financial statements for the year ended December 31, 2020 as set out within section 479A of the Companies Act 2006.
(v)    Companies disposed of in 2018 or 2019. See note A.1.3.
(vi)    Change in ownership percentages as a result of the in-country restructuring . See note A.1.2.
Balance sheet – non-controlling interests
December 31,
20202019
(US$ millions)
Colombia133170
Panama8199
Others12
Total215271
Profit (loss) attributable to non-controlling interests
202020192018
(US$ millions)
Colombia(23)11(5)
Panama(18)(6)(8)
Others(3)
Total(41)5(16)

The summarized financial information for material non-controlling interests in our operations in Colombia and Panama is provided below. This information is based on amounts before inter-company eliminations.
Colombia
202020192018
(US$ millions)
Revenue1,3461,5321,661
Total operating expenses(470)(543)(667)
Operating profit129164147
Net (loss) for the year(46)23(10)
50% non-controlling interest in net (loss)(23)11(5)
Total assets (excluding goodwill)2,5892,2561,966
Total liabilities2,3031,8911,620
Net assets286365346
50% non-controlling interest in net assets143183173
Consolidation adjustments(10)(13)(12)
Total non-controlling interest133170161
Dividends and advances paid to non-controlling interest(4)(12)(2)
Net cash from operating activities370363348
Net cash from (used in) investing activities(311)(260)(270)
Net cash from (used in) financing activities(47)(67)(75)
Exchange impact on cash and cash equivalents, net(15)(18)
Net increase in cash and cash equivalents(3)36(15)
Panama
20202019 (ii)2018 (i)
(US$ millions)
Revenue58547517
Total operating expenses(197)(148)(8)
Operating profit(60)(15)(39)
Net (loss) for the year(89)(31)(39)
20% non-controlling interest in net (loss)(18)(6)(8)
Total assets (excluding Millicom's goodwill in Cable Onda)1,7341,9051,082
Total liabilities1,3271,411556
Net assets407494526
20% non-controlling interest in net assets8199105
Total non-controlling interest8199105
Net cash from operating activities193167(2)
Net cash from (used in) investing activities(100)(693)12
Net cash from (used in) financing activities(69)580(3)
Net increase in cash and cash equivalents24547
(i)    Cable Onda was acquired on December 13, 2018 and 2018 figures therefore only include results and cash flows from the date of acquisition.
(ii)    In 2019, Cable Onda acquired Telefonica Panama for $587 million (note A.1.2.), financed by issuing a $600 million Senior Notes due 2030 (note C.3.1.) The 2019 figures include the full year results and cash flows of Cable Onda, as well as 4 months of Telefonica Panama which was consolidated from September 1, 2019. Figures have been restated as a result of the finalization of the purchase accounting for Cable Onda. See note A.1.2..
Disclosure of business combination
The finalization of the purchase accounting for the recent acquisitions had an effect on the following financial statements line items of the statement of financial position as of December 31, 2019:
Impact of finalization/update of purchase accounting of
(in millions of U.S dollars)December 31, 2019NicaraguaPanamaDecember 31, 2019Reason for the change
As reportedRestated
STATEMENT OF FINANCIAL POSITION
ASSETS
Intangible assets, net3,219(4)(20)3,195(i)
Property, plant and equipment, net2,883172,899(ii)
Right-of-use asset (non-current)977341,012(ii)
Other current assets18147192(iii)
LIABILITIES
Lease liabilities (non-current)96722988(ii)
Lease liabilities (current)9711107(ii)
Deferred tax liabilities2796285(iv)
EQUITY
Retained profits2,2222,222
Non-controlling interests271271
    (i)    Impact on goodwill resulting from the adjustments explained below for Nicaragua and Panama.
(ii)    See Panama section below. Mainly relates to lease accounting policy alignment, final property, plant and equipment step-up and final purchase price adjustment.
    (iii)    See Nicaragua and Panama section below. Reflects the final price adjustment agreed for Nicaragua and Panama.
    (iv)    Deferred tax impact of these previously explained adjustments.
Provisional Fair values (100%)
Final Fair values (100%)
Changes
(US$ millions)
(US$ millions)
(US$ millions)
Intangible assets (excluding goodwill) (i)131 131 — 
Property, plant and equipment (ii)149 149 — 
Right of use assets (iii)131 131 — 
Other non-current assets— 
Current assets (excluding cash) (iv)23 23 — 
Trade receivables (v)17 17 — 
Cash and cash equivalents— 
Total assets acquired459 459  
Lease liabilities (iii)131 131 — 
Other liabilities (vi)118 118 — 
Total liabilities assumed249 249  
Fair value of assets acquired and liabilities assumed, net210 210  
Acquisition price430 426 (4)
Goodwill220 216 (4)
(i)    Intangible assets not previously recognized at the date of acquisition, are mainly customer lists for an amount of $81 million, with estimated useful lives ranging from 4 to 10 years. In addition, a fair value step-up of $39 million on the spectrum held by Nicaragua has been recognized, with a remaining useful life of 14 years.
(ii)    A fair value step-up of $39 million has been recognized on property, plant and equipment, mainly on the core network ($25 million) and owned land and buildings ($8 million). The expected remaining useful lives were estimated at 6-7 years on average.
(iii)    The Group measured the lease liability at the present value of the remaining lease payments (as defined in IFRS 16) as if the acquired lease were a new lease at the acquisition date. The right-of-use assets have been adjusted by $7 million to be measured at the same amount as the lease liabilities.
(iv)    Current assets include indemnification assets for tax contingencies at a fair value of $11 million - see (v) below.
(v)    The fair value of trade receivables acquired was $17 million.
(vi)    Other liabilities include the fair value of certain possible tax contingent liabilities for $1 million and a deferred tax liability of $50 million resulting from the above adjustments
The updated provisional purchase accounting and differences compared to the provisional fair values reported as at December 31, 2019 are shown below:
Provisional Fair values (100%)Final Fair values (100%)Differences
(in millions of U.S dollars)
Intangible assets (excluding goodwill) (i)1781824
Property, plant and equipment (ii)11012717
Right of use assets (iii)478134
Other non-current assets33
Current assets (excluding cash)2323
Trade receivables (iv)2121
Cash and cash equivalents1010
Total assets acquired39144655
Lease liabilities488133
Other debt and financing7474
Other liabilities (v)1011076
Total liabilities assumed22426239
Fair value of assets acquired and liabilities assumed, net16718416
Acquisition price594587(7)
Goodwill426403(23)
(i)    Intangible assets not previously recognized at the date of acquisition, are mainly customer lists for an amount of $55 million, with estimated useful lives ranging from 3 to 17 years. In addition, a fair value step-up of $7 million on the spectrum held by Panama has been recognized, with a remaining useful life of 17 years. Finally, a fair value step-up of $3 million has been recognised on certain software.
(ii)     A fair value step-up of $17 million has been recognized on property, plant and equipment, mainly on the core network ($11 million) and owned land and buildings ($4 million). The expected remaining useful lives were estimated at 3 to 8 years.
(iii)     The accounting policy alignment resulted in an increase in the right-of-use assets and lease liabilities of approximately $30 million. Subsequently, the right-of-use assets have been adjusted by $4 million to be measured at an amount equal to the lease liabilities.
(iv)     The fair value of trade receivables acquired was $21 million.
(v)    Other liabilities include a deferred tax liability of $21 million resulting from the above adjustments
Disclosure of valuation methods and key estimates The following valuation methods and key estimates were used for the valuation of the main classes of fixed assets:
Major class of assets
Valuation method
Key assumption 1
Key assumption 2
Key assumption 3
Spectrum
Market approach - Market comparable transactions
Discount rate : 14%
Terminal growth rate: 2.5%
Estimated duration: 14 years
Customer lists
Income approach - Multi-Period
Excess Earnings Method
Discount rate: 14-15%
Monthly Churn rate: From 1.2% for B2B to 2.9% for B2C
EBITDA margin: ~ 36% to 41%
Land and buildings
Market approach
Economic useful life (range): 10-30 years
Price per square meter: from $2 to $57
N/A
Core network
Cost approach
Economic useful life (range): 5-27 years
Remaining useful life (minimum) : 1.7 years
N/A
The following valuation methods and key estimates were used for the valuation of the main classes of fixed assets:
Major class of assets
Valuation method
Key assumption 1
Key assumption 2
Key assumption 3
Customer lists
Income approach - Multi-Period
Excess Earnings Method
Discount rate: 9.8-10.8%
Monthly Churn rate: ~3.8% in average
EBITDA margin: ~ 41.5%
Property, plant and equipmentCost approachEconomic useful life (range): 3-27 yearsRemaining useful life (minimum): 3-27 yearsN/A
Disclosure of interests in joint ventures
Our main joint ventures are as follows:
Entity
Country
Activity
December 31, 2020 % holdingDecember 31, 2019 % holding
Comunicaciones Celulares S.A. (i)GuatemalaMobile, MFS5555
Navega.com S.A. (i)GuatemalaCable, DTH5555
Telefonica Celular S.A. (i)HondurasMobile, MFS66.766.7
Navega S.A. de CV (i)HondurasCable66.766.7
Bharti Airtel Ghana Holdings B.V.GhanaMobile, MFS5050
(i)Millicom owns more than 50% of the shares in these entities and has the right to nominate a majority of the directors of each of these entities. However, key decisions over the relevant activities must be taken by a super majority vote. This effectively gives either shareholder the ability to veto any decision and therefore neither shareholder has sole control over the entity. Therefore, the operations of these joint ventures are accounted for under the equity method.
The carrying values of Millicom’s investments in joint ventures were as follows:
Carrying value of investments in joint ventures at December 31
%20202019
(US$ millions)
Honduras operations (i)66.7 610708
Guatemala operations (i)55 2,0312,089
AirtelTigo Ghana operations50 
Total2,6422,797
(i)    Includes all the companies under the Honduras and Guatemala groups.
The table below summarizes the movements for the year in respect of the Group’s joint ventures carrying values:
Guatemala(i)
Honduras (i)
Ghana(ii)
(US$ millions)
Opening balance at January 1, 20192,104 730 32 
Accounting policy changes— — — 
Results for the year152 27 (40)
Utilization of past unrecognized losses— — (5)
Capital increase— — 
Dividends declared during the year(170)(37)— 
Currency exchange differences(12)
Closing balance at December 31, 20192,089 708  
Disposal of the Group's investment in Navega to Celtel (iii)— (83)— 
Results for the year144 27 — 
Dividends declared during the year(199)(55)— 
Currency exchange differences(3)13 — 
Closing balance at December 31, 20202,031 610  
(i)    Share of profit (loss) is recognized under ‘Share of profit in the joint ventures in Guatemala and Honduras’ in the statement of income.
(ii)    Share of profit (loss) is recognized under ‘Income (loss) from other joint ventures and associates, net’ in the statement of income.
(iii)     See note G.5.
Disclosure of summarised financial information of joint venture Summarized financial information for the years ended December 31, 2020, 2019 and 2018 of the Guatemala Honduras and Ghana operations is as follows. This information is based on amounts before inter-company eliminations.
Guatemala
202020192018
(US$ millions)
Revenue1,503 1,434 1,373 
Depreciation and amortization(323)(313)(283)
Operating profit452 429 387 
Financial income (expenses), net (i)(95)(66)(56)
Profit before taxes347 356 309 
Charge for taxes, net(83)(79)(69)
Profit for the year264 277 240 
Net profit for the year attributable to Millicom144 152 131 
Dividends and advances paid to Millicom47 209 211 
Total non-current assets (excluding goodwill)2,195 2,517 2,280 
Total non-current liabilities751 1,216 981 
Total current assets742 717 718 
Total current liabilities523 251 221 
Total net assets1,662 1,767 1,796 
Group's share in %55 %55 %55 %
Group's share in USD millions914 972 988 
Goodwill and consolidation adjustments1,117 1,117 1,116 
Carrying value of investment in joint venture2,031 2,089 2,104 
Cash and cash equivalents188 189 217 
Debt and financing – non-current619 1,152 928 
Debt and financing – current24 21 — 
Net cash from operating activities598 588 545 
Net cash from (used in) investing activities(289)(205)(173)
Net cash from (used in) financing activities(308)(412)(455)
Exchange impact on cash and cash equivalents, net(2)(3)
Net increase in cash and cash equivalents(1)(28)(86)
(i)    In 2020, Financial expenses include a $18 million charge related to early redemption of bonds - see below.
Guatemala financing
In 2014, Intertrust SPV (Cayman) Limited, acting as trustee of the Comcel Trust, a trust established and consolidated by Comcel for the purposes of the transaction, issued $800 million 6.875% Senior Notes to refinance existing local and MIC S.A. corporate debt. The bond was issued at 98.233% of the principal and had an effective interest rate of 7.168%. The bond was guaranteed by Comcel and listed on the Luxembourg Stock Exchange.

On November 18, 2020, the $800 million aggregate principal amount of its outstanding 6.875% Senior Notes due 2024 was early redeemed at a redemption price equal to 102.292%of the principal amount of the Notes to be redeemed plus accrued and unpaid interest of $16 million, resulting in an aggregate amount of $834 million. The redemption premium ($18 million) and additional interest ($7 million), as well as the remaining unamortized deferred costs of $8 million were recorded as financial expenses during the year. This early redemption was financed through local financing in local currency as well as by shareholder loans (see note G.5.).
The impact on the Group's statement of income is a $18 million expense (at 55% ownership) reported on the line "Share of profit in the joint ventures in Guatemala and Honduras".
On October 5, 2020, Comcel executed a credit agreement with Banco Industrial for GTQ 1,697 million (approximately $218 million using the exchange rate as of December 31, 2020) for a 5 year term to refinance other credit agreements with Banco Industrial and to finance and refinance working capital, capital expenditures and general corporate purposes.
Honduras
202020192018
(US$ millions)
Revenue552 594 586 
Depreciation and amortization(132)(132)(133)
Operating profit77 102 91 
Financial income (expenses), net(24)(37)(29)
Profit before taxes58 60 52 
Charge for taxes, net(19)(21)(18)
Profit for the year39 39 34 
Net profit for the year attributable to Millicom27 27 23 
Dividends and advances paid to Millicom24 28 32 
Total non-current assets (excluding goodwill)461 516 506 
Total non-current liabilities533 469 386 
Total current assets300 312 304 
Total current liabilities236 183 226 
Total net assets(8)176 198 
Group's share in %66.7 %66.7 %66.7 %
Group's share in USD millions(5)117 132 
Goodwill and consolidation adjustments615 591 598 
Carrying value of investment in joint venture610 708 730 
Cash and cash equivalents60 40 25 
Debt and financing – non-current390 384 298 
Debt and financing – current10 39 85 
Net cash from operating activities151 169 147 
Net cash from (used in) investing activities(145)(77)(87)
Net cash from (used in) financing activities14 (77)(50)
Net (decrease) increase in cash and cash equivalents20 15 9 
AirtelTigo Ghana
202020192018
(US$ millions)
Revenue132 142 187 
Depreciation and amortization(42)(69)(110)
Operating loss(30)(72)(100)
Financial income (expenses), net(41)(77)(42)
Loss before taxes(85)(123)(135)
Charge for taxes, net— — — 
Loss for the period(85)(123)(135)
Net loss for the period attributable to Millicom (40)(68)
Total non-current assets (excluding goodwill)204 168 277 
Total non-current liabilities289 245 277 
Total current assets41 42 71 
Total current liabilities218 187 134 
Total net assets(263)(223)(63)
Group's share in %50 %50 %50 %
Group's share in USD millions(132)(111)(31)
Goodwill and consolidation adjustments89 90 63 
Unrecognised losses(42)(22)— 
Carrying value of investment in joint venture— — 32 
Cash and cash equivalents19 
Debt and financing – non-current289 245 276 
Debt and financing – current40 27 17 
Net cash from operating activities(8)(5)(19)
Net cash from (used in) investing activities— — (8)
Net cash from (used in) financing activities(6)42 
Net increase in cash and cash equivalents(4)(11)15 
Disclosure of interests in associates
The Group’s associates are as follows:
December 31, 2020December 31, 2019
Entity
Country
Activity(ies)
% holding
% holding
Africa
West Indian Ocean Cable Company Limited (WIOCC)Republic of MauritiusTelecommunication carriers’ carrier9.1 9.1 
Latin America
MKC Brilliant Holding GmbH (LIH)GermanyOnline marketplace, retail and services35.0 35.0 
Unallocated
Milvik AB(i)SwedenOther9.7 11.4 
(i) Millicom ownership in Milvik AB has been diluted in 2020 as a result of a capital injection to which the Group did not participate.

At December 31, 2020 and 2019, the carrying value of Millicom’s main associates was as follows:
Carrying value of investments in associates at December 31
20202019
(US$ millions)
Milvik AB10 11 
West Indian Ocean Cable Company Limited (WIOCC)14 14 
Total24 25