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.

11.6% YoY Revenue Growth

Q1 2019

Highlights

1.1 Mn New Data Subscribers

Regulatory Environment

74.1 Mn Subscriber Base

Q1 2019

CONTINUED GROWTH IN VOICE

• Growth in voice usage

• 500 Min @BDT 278 30 Days

• BDT 209 rate cutter

NEW REGULATIONS

• PayGo capping at BDT 5

• Minimum 3 day validity

• 2GB 3 Days @BDT 44

Strong business performance driven by voice and market

execution

MARKET EXECUTION

• 100% Data Network

• Digitizing core sales & distribution

• Drive on 4G Conversion

Reached 6.8 Mn active 4G users

Q1 2019

5900+ LTE Sites

58% 4G Devices with 4G SIMs

38.2 Mn

data customers

27% of daily

traffic on 4G

• Despite several rounds of consultations with BTRC and the auditors, our observations regarding the audit were ignored, especially

post February 2018.

• On 2 Apr’19, BTRC sent a demand of BDT 125.79 Bn payable within 10 working days from date of issuance of demand. BDT 84.94

Bn (Principle 22.99 Bn + Interest 61.94 Bn) was claimed by BTRC and BDT 40.86 Bn was claimed on behalf of NBR.

• After assessments, GP considers the demand unfounded and without any legal basis and accordingly on 16 Apr’19, GP responded

to BTRC requesting it to withdraw the claims and to enter into discussions with a view to find an amicable resolution.

• GP is now observing BTRC’s step in view of the response provided.

SMP

Regulations

• On 10 Feb’19 BTRC declared GP as SMP and subsequently issued 2 directives stating certain prohibitions towards GP on 18 Feb’

19.

• On 25 Feb’19, GP filed a writ petition challenging the above directives. Hon’ble High Court issued show cause to respondents

(including BTRC) and allowed GP to advertise.

• On 19 Mar’19, BTRC withdrew and cancelled the 2 directives issued on 18 Feb’19 and asked GP’s for feedback on 20 areas as cited

for further directives.

• On 31 Mar’19, GP responded to BTRC and denied to make any comment on 20 areas as the Letter did not contain any proposed

directives and no reason for issuing directives was given.

QoS Reporting by

Regulator

BTRC

Audit

• On 18 Feb’19 BTRC published the QoS Drive test report in media without considering Industry observations regarding the drive test

methodology. GP along with the Industry rejected the report.

• On 3 Apr’19, BTRC has published QoS bench marking report for 4 division (Barishal, Khulna, Rajshahi & Rangpur).

• Call drop in GP network in all the 4 divisions are within KPI threshold. The industry and GP is still concerned about the non-aligned

drive test modalities .

Q1 2019 – Regulatory Landscape

14.2% YoY Growth in Subscription

& Traffic Revenue*

Q4 2018 - Highlights

EBITDA growth driven by revenue

12.6% Capex/Sales***

6.61 Earnings Per Share

60.6% EBITDA Margin**

*Revenues generated by own subscription (excludes interconnection)

**As per IAS 17

***Capex excluding license fees; Capex/sales = moving average last 4 quarters

14.2%* YoY growth in subscription & traffic revenue

*Daily revenues generated by own subscription (excludes interconnection)

Revenue (BDT Bn) and Growth (YoY)

31.2

32.6

34.3 34.7 34.9

2.0% 0.5%

3.4%

7.7%

11.6%

-2.0%

3.0%

8.0%

13.0%

18.0%

23.0%

28.0%

28.0

30.0

32.0

34.0

36.0

38.0

Q1'18 Q2'18 Q3'18 Q4'18 Q1'19

Q1 2019

2018

132.8

3.4%

• 11.6% YoY growth in total revenue

• 15.1% YoY growth in voice revenue driven by 9.8% growth in subscriber base

DSTR* (BDT Mn) and Growth (YoY)

319 328

348 353

364

5.7%

3.3%

7.6%

11.3%

14.2%

0.0%

5.0%

10.0%

15.0%

20.0%

25.0%

30.0%

250

270

290

310

330

350

370

Q1'18 Q2'18 Q3'18 Q4'18 Q1'19

337

2018

7.0%

18.4% data subscriber and 94.4% volume growth

Q1 2019 *Revenues generated by own subscription (includes interconnection)

** Minimum 150 KB usage within last 3 months

• 18.9% YoY data revenue growth driven by 18.4%

growth in data users

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

5.8 6.1 6.6

7.0 6.9

18.7% 19.0% 19.6% 20.6% 20.0%

15.0%

17.0%

19.0%

21.0%

23.0%

25.0%

27.0%

29.0%

31.0%

33.0%

35.0%

-

1.0

2.0

3.0

4.0

5.0

6.0

7.0

8.0

9.0

10.0

Q1'18 Q2'18 Q3'18 Q4'18 Q1'19

• Drive on 4G conversion and network expansion

contributing to user growth and experience

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

32.2

34.5

36.3 37.1

38.2

47.8% 49.9% 50.9% 51.0% 51.6%

40.0%

45.0%

50.0%

55.0%

60.0%

65.0%

70.0%

75.0%

80.0%

23.0

25.0

27.0

29.0

31.0

33.0

35.0

37.0

39.0

Q1'18 Q2'18 Q3'18 Q4'18 Q1'19

25.5

2018

19.5%

+18.1% YoY

0.7% service ARPU drop and 5.2% data ARPU degrowth from last

quarter

Q1 2019

Service ARPU, AMPU and APPM

• Higher contribution from voice and data, partly offset by fall in

interconnect revenues

155 156 161 157 156

246 245 232

212 216

0.63 0.64 0.69 0.74 0.72

Q1'18 Q2'18 Q3'18 Q4'18 Q1'19

ARPU (BDT) AMPU APPM (BDT)

2018

0.67

157

234

Data ARPU, AMBPU and APPMB

• 64.1% YoY growth in AMBPU

• APPMB declined by 38.8% YoY mainly due to competitive offers

60 59 61 63 60

0.07 0.06 0.05 0.05 0.04

851

986

1149 1224

1397

0

200

400

600

800

1000

1200

1400

0

20

40

60

80

100

120

140

Q1'18 Q2'18 Q3'18 Q4'18 Q1'19

ARPU (BDT) APPMB (BDT) AMBPU

-2.4% YoY

BDT 2.8 Bn normalized EBITDA uplift

Q1 2019

Opex (BDT Bn) and Margin**

*EBITDA before other items

**As per IAS 17

• 3.1 pp EBITDA margin*** improvement

11.6 11.2 11.3 11.1

11.8

37.2% 34.5% 32.8% 31.9% 33.8%

Q1'18 Q2'18 Q3'18 Q4'18 Q1'19

Opex (BDT Bn) Margin %

0.3%

YoY

1.6%

QoQ

13.9%

YoY

1.7%

QoQ

133

2018

133

2018

+7.3% YoY

+0.3% YoY

-1.6% QoQ

+1.3% YoY

+6.2% QoQ

EBITDA* (BDT Bn) and Margin**

18.0

19.6

21.2 21.6

21.1

57.4%

60.2% 61.8% 62.2% 60.6%

30.0%

80.0%

130.0%

180.0%

230.0%

16.0

17.0

18.0

19.0

20.0

21.0

22.0

23.0

Q1'18 Q2'18 Q3'18 Q4'18 Q1'19

EBITDA BDT Bn Margin %

+17.6% YoY

-2.2% QoQ

Many e-mails…sorry. On slide

13 :” One-off positive effect of

BDT 344 Mn” we should state

“One-off positive net effect of

BDT xxx Mn in Q4 and xxxMn for

FY”

• One-off negative effect of BDT 378 Mn in Q1’18

Investment mainly on 2G, 3G, LTE site rollout and network modernization

Q1 2019

• 926 new 4G sites rollout along with network

modernization

• 210 2G and 406 3G sites addition

• Total number of sites stand at 15,939; 4G – 5935

• Investment to continue to provide superior network

experience

3.8

4.5 4.6

3.9 4.2

10.7% 11.6% 13.5% 12.7% 12.6%

0.0%

5.0%

10.0%

15.0%

20.0%

25.0%

30.0%

35.0%

40.0%

45.0%

50.0%

-

1.0

2.0

3.0

4.0

5.0

6.0

7.0

Q1'18 Q2'18 Q3'18 Q4'18 Q1'19

*Capex excluding license fees

Capex/sales = moving average last 4 quarters

*Capex (BDT Bn) and Capex/Sales%

6.4

10.8

8.9 9.1 8.9

20.5%

33.2% 25.9% 26.1% 25.6%

0.0%

10.0%

20.0%

30.0%

40.0%

50.0%

60.0%

70.0%

80.0%

90.0%

100.0%

0

2

4

6

8

10

12

Q1'18 Q2'18 Q3'18 Q4'18 Q1'19

NPAT (BDT Bn) Margin %

Normalized earnings growth of 33.8%

Q1 2019

NPAT (BDT Bn) and Margin*

*On reported basis

51.8%

YoY

2.0%

QoQ

51.9%

YoY

2.1%

QoQ

12.8%

+39.6% YoY

-1.6% QoQ

Earnings Per Share (BDT)

4.74

8.00

6.58 6.72 6.61

Q1'18 Q2'18 Q3'18 Q4'18 Q1'19

+39.6% YoY

-1.6% QoQ

Also we should have a couple of

bullet points on slide 15 on the

big jump in NPAT and EPS. We

had this one year ago on the

same slide :” Net one-off

negative adjustment of BDT 2.0

Bn”, so this together with the

higher EBITDA should be

highlighted. K

• One-off negative effect of BDT 518 Mn in Q1’19 for VRS

and business transformation costs

BDT 17.0 Bn OCF and Net debt/EBITDA of -0.06

Q1 2019

*OCF (BDT Bn) and OCF/Sales%

*OCF equals EBITDA minus Capex (excluding license) as per IAS17

**Net Debt = Short term debt + Long term debt - Cash and Cash equivalents

12 months rolling EBITDA

14.1 15.2

16.6 17.7

17.0

45.2% 46.5% 48.3% 50.9% 48.7%

0.0%

10.0%

20.0%

30.0%

40.0%

50.0%

60.0%

70.0%

80.0%

90.0%

100.0%

0

5

10

15

20

Q1'18 Q2'18 Q3'18 Q4'18 Q1'19

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

3.4

9.2

14.2

2.7

-5.4

0.04

0.12

0.18

0.03

-0.06

-0.30

-0.20

-0.10

0.00

0.10

0.20

0.30

0.40

-10.0

-5.0

0.0

5.0

10.0

15.0

Q1'18 Q2'18 Q3'18 Q4'18 Q1'19

Net Debt Net/Debt to EBITDA

Investment & Payment to the Bangladesh Economy

27

19.3 21.1

14.5

34.0

4.2

2015 2016 2017 2018 3M 2019

Investment BDT Bn

17.14 Bn 4G License

Fees

• 16.9 Bn Capex in 2018 mainly for new 2G, 3G, LTE sites,

modernization

• BDT 20.3 Bn (58.1% of revenues) contributed to exchequer in the first quarter of 2019

• Contribution includes in the form of taxes, VAT, duties, fees, *4G license & spectrum assignment

51.1

58.6

61.8

71.5

2015 2016 2017 2018 3M 2019Payment to National Exchequer BDT Bn

51.1

58.6 61.8

71.5

20.3

2015 2016 2017 2018 3M 2019

12.7 Bn*

84.2

Leases

• Scopes included contracts for BTS site rentals, site sharing, Outlets and office spaces, house rents,

spectrums, Telecom license fees, Fibre optic network leases etc.

• Effective from 1st January 2019 using the modified retrospective approach

• Opening balance impact on 1st January 2019:

• Rights of Use Assets BDT 61.7 Bn, out of which BDT 50.5 Bn is from reclassification

• Increase in lease liability of BDT 11.6 Bn

• P&L Impact in Q1’19:

• Reduction in Opex of BDT 817.6 Mn and

• Increase in depreciation of BDT 590.2 Mn and increase in Finance cost of BDT 280.0 Mn

• Balance as of 31st March 2019: Right of Use assets BDT 59.9 Bn and Lease liability BDT 19.9 Bn

New International Financial & Reporting Standard (IFRS) adopted

16

Summary

This is a placeholder text. This text

can be replaced with your own text.

The text demonstrates how your own

text will look when you replace the

placeholder with your own text.

If you don’t want to use the style and

size of the fonts as used in this

placeholder it is possible to replace it

by selecting different options.

The text demonstrates how your own

text will look when you replace the

placeholder with your own text.

If you don’t want to use the style and

size of the fonts as used in this

placeholder it is possible to replace it

by selecting different options.

Strong business performance in a challenging environment

EBITDA growth with strong margins

Building strong data network enabling personalization remains our focus for future growth & efficiency

Q1 2019 *In consideration of the local regulations, Grameenphone Ltd. does not provide any forward looking statements.

Q&A