Grameenphone Ltd. – Second Quarter 2013

Vivek Sood, CEO

2Q 2013

Continued growth momentum amidst competition

Subscriptions (Mn) and Market Share● Aggressive subscriber acquisition

● Improvement in top line growth

● Healthy underlying bottom line

● 5% increase in corporate tax rate

● Impact of adverse externalities

2

YoY Growth%

* Q2’13 Market

share estimated

*

39.29

40.95 40.02

41.79

43.97

41.9% 41.6% 41.2% 41.8% 42.0%

Q2'12 Q3'12 Q4'12 Q1'13 Q2'13

+ 12%

3

● New start-up price plan & value for

money offering

● Pioneering data centric bundle

● Segmented device offerings

● Free Life insurance

● International recharge system

● Campaigns for high value users

2Q 2013

Enhanced customer centric market initiatives

4

● Reliable network coverage & quality

− Widening gap on quality

parameters vs. competition

● Wider market coverage

− 564k reload POS

− 47k telco POS

● Improved visibility

● Building financial services

2Q 2013

Strong foothold to win the market

2Q 2013

Strategic partnership for global opportunities

● Best possible strategic advantage to partners

● Leveraging on telecom expertise & global

presence

● Giant step towards transforming BD into BPO

destination

● Strengthened position in offering enterprise

solutions

● Transfer of 51% of the company’s current

shareholding in GPIT

− 382,500 shares of BDT 100 par value

− Cash consideration of $ 26.69 per share*

5

* Subject to adjustment of the consideration for working capital and net debt

2Q 2013

Responsibility towards the community

● ICT infrastructure at University of

Dhaka

● Telemedicine in 20 centres

● Standing beside the victims of Savar

tragedy

− Free mobile call service

− Blood donation program

− 300 recharge booths

6

Upcoming 3G License

− Participation document submission

rescheduled to 1 Aug’13

− Date of auction also rescheduled to

2 Sep’13

− Resolution of 2G license VAT rebate

Directives for

implementation of MNP

− Directive published on 13 Jun’13 with 3

phase execution plan

− Stringent stipulated time frame

− Requested for consultation among BTRC &

AMTOB

NBR’s claim against

replacement SIM

− HC disposed of the writ petition of GP

and other operators on 6 Jun’13

− Instructed the commissioner of large

tax payer unit (LTU) to decide on the

matter

7

2Q 2013

Regulatory updates

Grameen Bank

commission report

− Report asserts irregularities in forming

consortium in 1996

− GP confident over fulfillment of all licensing

obligations

− Appropriate measures to secure investment

Grameenphone Ltd. – Second Quarter 2013

Fridtjof Rusten, CFO

9

● Campaign driven usage growth

● Impact of promotional tariff

● Growth in non-voice, device and

adjacent business

● Unstable political environment

● Negative impact of tariff directives

2Q 2013

Gradual revenue growth amid intense competition

Revenue (BDT Bn)

46.4 45.5 47.4

H1'12 H2'12 H1'13

+ 4.1%

+ 2.2%

10

● Aggressive subscription

acquisition and market spending

● Controlled underlying nominal

opex

● Adverse impact of increased

corporate tax rate

● Foreign exchange gain from

currency appreciation

2Q 2013

Budgetary changes impacted net profit

EBITDA (BDT Bn) and EBITDA%

Net Profit after Tax (BDT Bn) and NPAT%

24.7 24.1 23.5

53.3% 52.8%49.5%

H1'12 H2'12 H1'13

9.7

7.8

5.1 21%17%

11%

H1'12 H2'12 H1'13

9.1

19%

Tax adjustment

4.0

11

● Highest ever quarterly revenue in

Q2’13

● Opex savings contributed increased

EBITDA margin

● Contribution from mobile service,

device and adjacent business

● Income tax adjustment of BDT 4Bn

pulled down Q2’13 NPAT

2Q 2013

Quarterly Trend

Revenues (BDT Bn) and EBITDA%

Net Profit after Tax (BDT Bn) and NPAT%

23.2 22.9

22.6

23.5 23.9

52% 52% 54%48% 51%

Q2'12 Q3'12 Q4'12 Q1'13 Q2'13

4.5

3.2

4.6 4.5

0.6

19%

14%

20% 19%

2%

Q2'12 Q3'12 Q4'12 Q1'13 Q2'13

4.6

19%

4.0

Tax adjustment

12

● EPS reduced due to increase in

corporate tax rate

● NAV lowered by dividend payment

and higher corporate tax rate

● NOCF reduced from higher income

tax payment and payments to vendor

2Q 2013

Key financial figures

Earnings per Share (BDT)

NOCF (BDT Bn) and NOCF/Share (BDT)NAV (BDT Bn) and NAV/Share (BDT)

3.31

2.38

3.42 3.36

0.43

Q2'12 Q3'12 Q4'12 Q1'13 Q2'13

Tax adjustment

3.39

H2’12

5.80

H1’12

7.16H1’13

3.78

39.8

30.8 35.5

40.0

33.8

29.46

22.84 26.26

29.62 25.04

Q2'12 Q3'12 Q4'12 Q1'13 Q2'13

5.62 6.00

8.47 9.07

6.02

4.16 4.45

6.27 6.72

4.46

Q2'12 Q3'12 Q4'12 Q1'13 Q2'13

H1’12

11.51H2’12

10.72

H1’13

11.18

2.96

13

● BDT 3.3 billion Investment for quality

enhancement

● Cumulative investment since inception

BDT 217 billion.

● Cumulative contribution to national

exchequer BDT 335 billion

2Q 2013

Investment and contribution

Capex (BDT Bn) and Capex/Sales%

Contribution to Government (BDT Bn)

19%

2G related payments

7.5

5.1

3.3 16.3%

11.2%

7.0%

H1'12 H2'12 H1'13

25.5 24.8

2.4

10.8 27.9

35.7

26.6

H1'12 H2'12 H1'13

14

2Q 2013

Interim dividend 2013

● In the Board meeting held on 17 July 2013, the

Board of Directors has declared interim dividend

at the rate of 90% in cash (i.e. BDT 9 per share

of BDT 10 each)

● Dividend declared from provisional net profit for

the first half of 2013 and retained earnings up to

31 December 2012.

● Shareholders as of the record date of 29 July

2013 will be entitled for this interim dividend.

Thank you

Q&A