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Grameenphone Ltd. 4th Quarter, 2019 Results

Michael Patrick Foley, CEO

28 January 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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Connecting 76.5 Mn customers

and 40.6 Mn Data customers

BDT 8,505 Cr. paid to National

Exchequer in 2019

Providing deep sea connectivity

Building a safe online world for

900,000 children in 580 schools

Empowering start-up community

through GP Accelerator

31 December 2019

Empowering Societies

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Highlights

Q4 2019

4th Quarter 2019

36.2 Bn Revenue (+4.2% YoY)

61.2% EBITDA Margin

9.2 Bn Profit After Taxes

10,000+ 4G/LTE Sites

Full Year 2019

143.7 Bn Revenue (+8.1% YoY)

87.8 BDT Bn EBITDA (+10.0% YoY)

46.2% SIM Market Share*

17% Data Revenue Growth

Final Dividend 130% of PuC

*BTRC Published data as of Dec’19**As per IAS 17

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Solid topline growth driven by growth in data and voice revenue

• 715 4G/LTE sites rolled out

• 11.9 Mn 4G customers

• Improved network resilience

• Focus on 4G SIM conversion

• Nationwide trade campaigns

• Negative impact from seasonality

• Appellate Division Ruling on Injunction

• Non-cooperation from BTRC on NOCs

• Tower Co. still unresolved

NETWORK

ROLLOUT

MARKET

OPERATIONS

CHALLENGINGREGULATORY

ENVIRONMENT

Q4 2019

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Regulatory Landscape

Q4 2019 More details on Business Highlights

BTRC

Audit

Significant Market Power

Tower CoLicensing

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Grameenphone Ltd. 4th Quarter, 2019 Results

Jens Becker, CFO

28 January 2020

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BTRC Audit

• GP has disputed the whole audit demand based on errors in substance, methodology, procedure

• Grameenphone has been continuing engagement with the authorities with a view to find a transparent and amicable

resolution.

• Significant uncertainty about validity of demand and outcome of dispute

• Therefore, as of now, no reliable estimation of liability can be derived

• The errors in the audit findings

• The unprecedented long period covered (20+ years)

• The inclusion of already settled/resolved matters

• The erroneous claim on behalf of third parties

• The inclusion of sub-judice matters

Absence of a merit-based

determination through

any solution process

+

Q4 2019

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Solid financial performance with strong margins

4.8% YoY GrowthSubscription & Traffic Revenue*

61.2% EBITDA Margin**

9.7% CAPEX/Sales***

6.81Earnings Per Share

Q3 2019

*Revenues generated by own subscription (excludes interconnection)**As per IAS 17 & restated***Capex excluding license & lease; Capex/sales = moving average last 4 quarters Q4 2019

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5.1% subscriber growth while covering 75% population under 4G network

Total Subscribers (Mn)

Q4 2019

99.6%Population Coverage

96.0%Geography Coverage

74.5%4G Population

Coverage72.7

76.5

75.3

Q4’18 Q1’19 Q2’19 Q3’19 Q4’19

74.1

75.7

+5.1%

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4.8% growth in subscription & traffic revenue; Full Year +9.6%

*Daily revenues generated by own subscription (excludes interconnection)

Total Revenue (BDT Bn) and Growth (YoY)

Q4 2019

DSTR* (BDT Mn) and Growth (YoY)

34.7 34.9 36.0 36.6 36.2

Q2’19Q1’19

6.6%7.7%

Q3’19

11.6%

Q4’18

10.6%

4.2%

Q4’19

143.7

2019

8.1%

353 364 372 371 370

13.4%

Q3’19Q2’19Q1’19Q4’18

11.3%

6.7%

14.2%

4.8%

Q4’19

369

2019

9.6%

• 4.8% YoY growth in subs & traffic revenue

mainly contributed by growth in data & voice

revenue

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14.2% growth in data revenue with 9.5% growth in data user

Q4 2019*Revenues generated by own subscription (includes interconnection)** Minimum 150 KB usage within last 3 months

• Data revenue driven by growth in users and 3.3%

growth in data ARPU

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

• Continued expansion of 4G network along with 4G conversion

• 2.1pp improvement in data user penetration

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

7.0 6.9 7.2 7.8 8.0

21.7%20.6%

Q3’19Q4’18

20.0% 20.2%

Q1’19 Q2’19

22.5%

Q4’19

+14.2%

29.8

2019

21.1%

37.1 38.2 39.8 40.6 40.6

53.7%

Q2’19

51.0%52.8%

Q4’18 Q1’19

51.6%

Q3’19

53.1%

Q4’19

+9.5%

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Marginal decline in service ARPU while 3.3% growth in data ARPU

Service ARPU, AMPU and APPM

• Full year service ARPU remained stable

Q4 2019

157 156 159 158 156

212 216 220 219 213

Q3’19

0.74 0.72

Q2’19Q4’18

0.720.72

Q1’19 Q4’19

0.73

-0.8%

157

217

0.73

2019

Data ARPU, AMBPU and APPMB

64 61 62 64 66

0.05

1,234

Q1’19

1,763

Q4’19

1,912

0.03

1,418

Q3’19

0.04

Q4’18

0.04

1,576

Q2’19

0.04

+3.3%

ARPU (BDT) AMBPU APPMB (BDT)

• Growth in data ARPU mainly driven by 54.9% growth

in AMBPU despite competitive pressure on pricing

ARPU (BDT) AMPU APPM (BDT)

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BDT 0.7Bn EBITDA growth in Q4’19; Full year +10.0%

Q4 2019

Opex (BDT Bn) and Margin**

*EBITDA before other items**As per IAS 17, restated

EBITDA* (BDT Bn) and Margin**

11.2 11.9 11.8 11.7 11.9

Q3’19

32.4%

Q4’18

34.2%

Q2’19Q1’19

31.9%32.8% 33.0%

Q4’19

+6.3% +2.3%

Margin %Opex (BDT Bn)

47.4

33.0%

2019

21.5 21.0 22.1 22.6 22.1

Q2’19

61.8%

Q3’19Q4’18

61.4%60.2%

Q1’19

61.8% 61.2%

Q4’19

+3.1% -2.1%

EBITDA (BDT Bn) Margin %

87.8

61.1%

2019

• Full year EBITDA margin improved by 1.1pp • Full year Opex/Sales ratio improved by 1.5pp

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H2’19 Investment impacted by restrictions on approvals

Q4 2019

• Focused investment on 4G roll-out, data capacity

enhancement & coverage expansion

• 715 new 4G sites and 128 new 3G sites rolled out

• Total number of sites stand at 16,506 along with

10,022 4G sites

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

*Capex (BDT Bn) and Capex/Sales%

3.9 4.2

3.8

2.1

3.9

Q3’19

12.6%12.7%

Q4’18

9.8%

Q1’19

11.8%

Q2’19

9.7%

Q4’19

16.9

13.9

9.7%

2019

12.7%

2018

Capex Capex/Sales%

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7.0% growth in earnings with a strong margin of 25.4%

Q4 2019

NPAT (BDT Bn) and Margin*

*On reported basis, restated

Earnings Per Share (BDT)*

8.6 8.5

9.6

7.3

9.2

24.8%

Q4’18

24.4% 26.5%

Q1’19 Q3’19Q2’19

19.9%25.4%

Q4’19

+7.0%

NPAT (BDT Bn.) Margin %

34.5

2019

24.0%

6.36 6.29

7.07

5.38

6.81

Q3’19Q4’18 Q1’19 Q2’19 Q4’19

+7.0%24.71

25.56

2018 2019

+3.5%

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BDT 18.2 Bn OCF and Net debt/EBITDA of -0.04

Q4 2019

*OCF (BDT Bn) and OCF/Sales%

*OCF equals EBITDA minus Capex (excluding license & lease) as per IAS17**Net Debt = Short term debt + Long term debt - Cash and Cash equivalents (excl. restricted cash) ; 12 months rolling restated EBITDA as per IAS17

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

17.5 16.8 18.4

20.5

18.2

Q2’19

51.0%56.1%

Q4’18

50.5%

Q3’19

48.2%

Q1’19

50.3%

Q4’19

OCF/Sales %OCF

73.9

51.5%

2019

2.8

(5.3)

8.0

(3.1)(3.9)

(0.06)

Q2’19

0.09

0.03

Q4’18 Q1’19

(0.04)

Q3’19

(0.04)

Q4’19

Net Debt Net Debt/EBITDA

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51.1 58.6 61.8

84.2 85.0

20172015 2016 2018 2019

Contribution to the Bangladesh Economy

• BDT 85Bn (equaling 59.2% of total revenues) contributed to national exchequer in 2019

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

Contribution to National Exchequer BDT Bn

754.5

Total

12.7 4G license payment

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2019

Recommended 130% of PuC cash full year dividend for 2019

BDT 13.00Dividend Per Share

2019 (Full Year)

50.86%Payout Ratio2019 (Full Year)

BDT 25.56Earnings Per Share

2019 (Full Year)

• Shareholders as of the record date 17 February 2020 will be entitled

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Solid business performance with strong margins in a very challenging environment

Building network for better data experience and strong distribution ecosystem remains our focus for future growth and efficiency

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Q&A

Q4 2019

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