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Grameenphone Ltd. 3rd Quarter 2020 Results

Yasir Azman, CEO

19 October 2020

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Disclaimer

The following presentation is being made only to, and is only

directed at, persons to whom such presentation may lawfully be

communicated (’relevant persons’). Any person who is not a

relevant person should not act or rely on this presentation or any of

its contents. Information in the following presentation relating to the

price at which relevant investments have been bought or sold in the

past or the yield on such investments cannot be relied upon as a

guide to the future performance of such investments.

This presentation does not constitute an offering of securities or

otherwise constitute an invitation or inducement to any person to

underwrite, subscribe for or otherwise acquire securities in

Grameenphone Ltd. The release, publication or distribution of this

presentation in certain jurisdictions may be restricted by law, and

therefore persons in such jurisdictions into which this presentation is

released, published or distributed should inform themselves about,

and observe, such restrictions.

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Q3 2020

Highlights

Recovering Topline

11,000+ 4G/LTE Sites

COVID-19 & Seasonality Impact

Regulatory Impositions

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Recovering topline as economic activity resumes

• Constructive dialog with regulators and authorities established

• Tower Co. agreement approved by regulator

• Limited operations of the Courts under the COVID-19 situation delayed legal proceedings

CHALLENGINGREGULATORY

ENVIRONMENT

• Gradual recovery in economic activity

• Adverse impact from record rainfall and flood

• Rollout continued with 1070 4G/LTE sites added

• 59.6% YoY growth in digital recharge volume

• Reached 17.8 Mn 4G active data users

Q3 2020

OPERATIONAL

UPDATE

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Providing connectivity to 77.6 Mn (+4.1% QoQ)

total customers and 42.0 Mn data customers

BDT 71.3 Bn paid to National Exchequer in the

first nine months of 2020

In partnership with Bidyanondo Foundation,

Grameenphone Employees donated 40,000 Eid

meals to underprivileged families

In partnership with Bangladesh Red Crescent

Society, Grameenphone distributed 62,000 flood

relief packs with an ambition to distribute a total

of 100,000 packs

Grameenphone continues to exercise precaution

for employees, stakeholders, partners & vendors

Empowering Societies

Q3 2020

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Economic activity increased amidst COVID-19

7 months into COVID-19

• Over 370K cases reported

• Cumulative deaths have crossed 5,500

• Overall declining trend in Q3

• All lockdown and restrictions lifted

• Increased economic activity from early September

• Educational Sector still closed

• Situation remains volatile

Q3 2020

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Grameenphone Ltd. 3rd Quarter 2020 Results

Jens Becker, CFO

19 October 2020

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Recovering financial performance in Q3’20 led by increased economic activity

-1.4% YoY GrowthSubscription & Traffic Revenue*

-3.5% YoY GrowthEBITDA **

7.1% CAPEX/Sales***

6.59Earnings Per Share

Q3 2019

*Revenues generated by own subscription (excludes interconnection)** EBITDA before other items, as per IFRS 16 ***Capex excluding license & lease; Capex/sales = moving average last 4 quarters Q3 2020

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3.1Mn subscriber growth including 2.6Mn new 4G data users

Total Subscribers (Mn)

Q3 2020

99.6%Population Coverage

96.0%Geographic Coverage

83.3%4G Population

Coverage

Q2’20

75.7

Q4’19Q3’19 Q1’20

76.5

75.374.5

Q3’20

77.6

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Recovering topline with -1.4% growth in DSTR after -8.1% in Q2’20

*Daily revenues generated by own subscription (excludes interconnection)

Total Revenue (BDT Bn) and Growth (YoY)

Q3 2020

DSTR* (BDT Mn) and Growth (YoY)

36.6 36.2 36.2 33.1

35.6

Q2’20

6.6%

Q3’19

4.2% 3.7%

Q4’19 Q1’20

-8.2%

-2.8%

Q3’20

371 370 374342

366

Q4’19

6.7%

Q3’19 Q2’20

4.8%3.0%

Q1’20

-8.1%

-1.4%

Q3’20

• De-growth in voice revenue, partly offset by growth

in data revenue• Total revenue growth impacted by reduction in local

call termination rate

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Continued growth in data revenue & users

Q3 2020*Revenues generated by own subscription (includes interconnection)** Minimum 150 KB usage within last 3 months

• Data revenue growth mainly driven by 8% growth

in data ARPU

Data Revenue (BDT Bn) and % of Service Revenue*

• 1.1Mn data users added in Q3’20

• Continued expansion of 4G network along with 4G

conversion

Active Data Users** (Mn) and % of Sub-base

7.8 8.0 8.5 8.4 8.7

24.0%

Q1’20

21.7%

Q3’19

22.5%

Q4’19

25.7%

Q2’20 Q3’20

24.8%

+11.4%

40.6 40.6 40.4 40.9 42.0

54.8%53.1%53.7%

Q3’19 Q1’20

53.6%

Q4’19 Q2’20 Q3’20

54.1%

+3.4%

Data Revenue (Bn) % of Service Revenue Active Data User % of Sub-base

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Growth in data usage continued with YoY +46.5% in Q3’20

Service ARPU, AMPU and APPM

Q3 2020

158 156 156146 153

219 213 215201

217

0.72

Q1’20

0.73

Q3’19

0.73

Q4’19

0.73

Q2’20 Q3’20

0.71

-3.4%

Data ARPU, AMBPU and APPMB

64 66 71 69 70

0.04 0.030.030.03

Q3’19

2,225

Q4’19

1,912

2,603

0.031,763

Q3’20

2,582

Q1’20 Q2’20

+46.5%

ARPU (BDT) AMBPU APPMB (BDT)

• Growth in AMBPU mainly driven by 4G conversion

ARPU (BDT) AMPU APPM (BDT)

• Service ARPU recovering with -3.4% growth after

-8.2% growth in Q2’20

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Efficient opex management with YoY -0.9% growth

Q3 2020

Opex (BDT Bn) and Margin**

*EBITDA before other items**As per IFRS 16

EBITDA* (BDT Bn) and Margin**

10.9 11.1 11.1 10.3

10.8

Q1’20

29.7% 30.7% 30.8%

Q3’19 Q4’19

31.1%

Q2’20 Q3’20

30.2%

-0.9%

Opex (BDT Bn) Margin %

23.4 23.0 22.9

20.6 22.6

Q4’19

63.5%

Q1’20

64.0%

Q3’19

63.2%62.4%

Q2’20 Q3’20

63.6%

-3.5%

EBITDA (BDT Bn) Margin %

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Resumed 4G network expansion with increased investment

Q3 2020

• 1070 new 4G sites rolled out

• Total number of sites stood at 16,481 along

with 11,421 4G sites

*Capex excluding license & leaseCapex/sales = moving average of last 4 quarters

*Capex (BDT Bn) and Capex/Sales%

2.1

3.9

0.4

2.5

3.2

Q2’20Q4’19

7.0%9.8%

Q1’20Q3’19

9.7%

Q3’20

6.3%7.1%

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Net profit at 8.9 Bn; YoY comparison impacted by one-offs in Q3’19

Q3 2020

NPAT (BDT Bn) and Margin*

*As per IFRS-16

Earnings Per Share (BDT)*

7.3

9.2

10.7

7.3

8.9

29.6%25.4%

Q3’19

19.9%

Q1’20Q4’19

22.0%

Q2’20 Q3’20

25.0%

+22.4%

NPAT (BDT Bn.) Margin %

5.38

6.81

7.92

5.38

6.59

Q2’20Q3’19 Q4’19 Q1’20 Q3’20

+22.4%

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OCF de-growth driven by higher capex and lower EBITDA

Q3 2020

*OCF (BDT Bn) and OCF/Sales%

*OCF equals EBITDA minus Capex (excluding license & lease) as per IFRS 16**Net Debt = Short term debt + Long term debt - Cash and Cash equivalents (excl. restricted cash) ; 12 months rolling EBITDA as per IFRS 16

Net debt (BDT Bn) and Net debt/EBITDA**

21.3

19.0

22.5

18.1 19.4

Q3’19 Q2’20

58.3%

52.6%

Q1’20Q4’19

62.1%

54.8% 54.6%

Q3’20

-9.1%

OCF OCF/Sales %

(3.2)(3.9)

(3.4)

5.0

(0.04)

0.06

(0.04)

Q3’19 Q4’19 Q2’20

0.9

(0.04)

Q1’20

0.01

Q3’20

Net Debt Net Debt/EBITDA

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Contribution to National Exchequer

• BDT 71.3Bn (equaling 68% of total revenues) contributed to national exchequer in 2020

• Contribution in the form of taxes, VAT, duties, license/spectrum fees & revenue share

Q3 2020

58.6 61.8

84.2 85.0

71.3

20192016 2017 2018 YTD’20

12.7Bn 4G license payment

825.8

Total

Figures in BDT Bn.

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Recovering topline growth following increased economic activity

We are dedicated to using our technology expertise in supporting recovery from COVID-19

Continued growth in data & users reinforces our focus on strengthening our network with planned investment

Q3 2020

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Thank You

Q3 2020

*In consideration of the local regulations, Grameenphone Ltd. does not provide any forward looking statements.