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Grameenphone Ltd. 3rd Quarter, 2019 Results

Michael Patrick Foley, CEO

21 October 2019

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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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Highlights

Solid Growth with

Strong Margins

9300+Total

4G/LTE sites

75.7 Mn Total

Subscribers

Challenging Regulatory

Environment

Q3 2019 Q3 2019

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Solid topline growth despite a very challenging regulatory environment

• 1812 4G sites rolled out

• 11.0 Mn 4G customers

• Improved resilience

• Focus on GA market share

• Seasonality impact

• Product portfolio revamp

• Show cause notice

• Halt on NOCs

• 10% SD & BDT 200 SIM Tax

NETWORK

ROLLOUT

MARKET

OPERATIONS

CHALLENGINGREGULATORY

ENVIRONMENT

Q3 2019

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MyGPThe Fastest Growing

#1 MyTelenor App

Q3 2019

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Q3 2019 Regulatory LandscapeMore details on Business Highlights

BTRC

Audit

Tower CoLicensing

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Supply Chain SustainabilityPromoting Responsible Business Practice in the Supply Chain

Findings ClosureWithin Stipulated

Timeline

ComplianceAcross Value Chain

2500Supply Chain Inspections

in last three (3) years

15000Man-Hours of Capacity

Building since 2016

100%Supplier Code of Conduct

Endorsement

1100Suppliers

Grameenphone strives for high standards on sustainability and continuous improvement in its operations throughout the supply chain.

Grameenphone’s Supplier Conduct Principles (SCP) are based on internationally recognized standards, including requirements on human rights,

health and safety, labor rights, environment and anti-corruption. It is mandatory for all the contracting parties to agree to these principles.

Grameenphone’s approach to supply chain sustainability is to legally oblige the supplier to uphold responsible business practice, monitor

compliance to GP’s requirements and to do capacity building among suppliers. All suppliers are obliged to extend the supplier requirements

further down in their own supply chain.

Q3 2019

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Grameenphone Ltd. 3rd Quarter, 2019 Results

Jens Becker, CFO

21 October 2019

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EBITDA growth with strong margins

6.7% YoY GrowthSubscription & Traffic Revenue*

61.8% EBITDA Margin**

9.8% CAPEX/Sales***

5.38Earnings Per Share

Q3 2019

*Revenues generated by own subscription (excludes interconnection)**As per IAS 17***Capex excluding license fees; Capex/sales = moving average last 4 quarters Q3 2019

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6.0% subscriber growth while reaching 69% 4G/LTE population coverage

Total Subscribers (Mn)

30 September 2019

71.4

72.7

74.1

75.3

75.7

69.0

70.0

71.0

72.0

73.0

74.0

75.0

76.0

77.0

3Q'18 4Q'18 1Q'19 2Q'19 3Q'19

99.55%Population Coverage

95.97%Geographical

Coverage

68.97%4G Population

Coverage

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6.7% YoY growth in subscription & traffic revenue

*Daily revenues generated by own subscription (excludes interconnection)

Revenue (BDT Bn) and Growth (YoY)

34.3 34.7 34.9

36.0 36.6

3.4%

7.7%

11.6%10.6%

6.6%

-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

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

Q3 2019

• 6.6% YoY growth in total revenue

• 3.9% YoY growth in voice revenue driven by

6.0% growth in subscriber base

DSTR* (BDT Mn) and Growth (YoY)

348 353

364

372 371

7.6%

11.3%

14.2%13.4%

6.7%

250

270

290

310

330

350

370

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

• Diminishing advantage of unified floor tariff

• Impact of regulatory challenges and macro

factors

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11.8% data subscriber and 70.4% data volume growth

Q3 2019*Revenues generated by own subscription (includes interconnection)** Minimum 150 KB usage within last 3 months

• 17.3% YoY data revenue growth driven by

growth in users and ARPU

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

6.6 7.0 6.9

7.2

7.8

19.6%20.6%

20.0% 20.2%

21.7%

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

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

• Drive on 4G conversion and network expansion

contributing to user growth and experience

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

36.337.1

38.2

39.840.6

50.9% 51.0% 51.6%52.8% 53.7%

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

41.0

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

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1.5% YoY service ARPU decline and 3.3% YoY data ARPU growth

Service ARPU, AMPU and APPM

• Higher contribution from data, partly offset by lower

interconnect revenue

• 0.4% service ARPU decline QoQ

161 157 156 159 158

232

212 216 220 219

0.690.74 0.72 0.72 0.72

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

ARPU (BDT) AMPU APPM (BDT)

Data ARPU, AMBPU and APPMB

• 50.1% YoY growth in AMBPU

• APPMB declined by 31.2% YoY mainly due to competitive

offers

62 64 61 62 64

0.05 0.05 0.04 0.04 0.04

1174 1234

1418

1576

1763

0

200

400

600

800

1000

1200

1400

1600

1800

0

20

40

60

80

100

120

140

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

ARPU (BDT) APPMB (BDT) AMBPU

Q3 2019

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BDT 1.5 Bn EBITDA growth driven by higher gross profit

Q3 2019

Opex (BDT Bn) and Margin**

*EBITDA before other items, 12 month moving average**As per IAS 17, restated

+2.1%YoY

-1.3% QoQ

EBITDA* (BDT Bn) and Margin**

+7.3%YoY

+2.2% QoQ

11.4

11.2

11.9

11.8

11.7

33.3%32.4%

34.2%32.8% 31.9%

23.0%

28.0%

33.0%

38.0%

43.0%

48.0%

53.0%

10.5

10.7

10.9

11.1

11.3

11.5

11.7

11.9

12.1

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

Opex (BDT Bn) Margin %

21.1

21.5

21.0

22.1

22.6

61.3% 61.8%60.2%

61.4% 61.8%

56.0%

61.0%

66.0%

71.0%

76.0%

81.0%

86.0%

91.0%

96.0%

20.0

20.5

21.0

21.5

22.0

22.5

23.0

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

EBITDA BOI (BDT Bn) Margin %

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Investment mainly on network modernization and 4G/LTE site rollout

Q3 2019

• 1812 new 4G sites rollout along with network

modernization

• Total number of sites stand at 16,389; 4G –

9,307

• Investment to continue to provide superior

network experience

4.6

3.9

4.2

3.8

2.1

13.5% 12.7% 12.6% 11.8%9.8%

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

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

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

*Capex (BDT Bn) and Capex/Sales%

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8.4 8.6 8.5

9.6

7.3

24.6% 24.8% 24.4%26.5%

19.9%

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

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

NPAT (BDT Bn) Margin %

YTD EPS stands at 18.75, registering a 2% YTD YoY growth

Q3 2019

NPAT (BDT Bn) and Margin*

*On reported basis, restated

-13.9%YoY

-23.9% QoQ

Earnings Per Share (BDT)*

-13.9%YoY

-23.9% QoQ

6.25 6.36 6.29

7.07

5.38

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

• NPAT adversely impacted by one-offs

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BDT 20.5 Bn OCF and Net debt/EBITDA of -0.04

Q3 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 restated EBITDA

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

14.2

2.7

-5.4

7.8

-3.3

0.18 0.03-0.07

0.09

-0.04

-1.00

-0.50

0.00

0.50

1.00

1.50

-10.0

-5.0

0.0

5.0

10.0

15.0

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

Net Debt Net/Debt to EBITDA

16.417.5

16.8

18.4

20.5

47.8%

50.5%

48.2%

51.0%

56.1%

45.0%

50.0%

55.0%

60.0%

65.0%

0

5

10

15

20

25

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

OCF Margin %

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Investment & Payment to the Bangladesh Economy

19.321.1

14.5

34.0

10.0

2015 2016 2017 2018 9M 2019

Investment* BDT Bn

17.144G License

Fees

• BDT 61.4 Bn (equaling 57% of total revenues) contributed to exchequer in the first nine months of 2019

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

Payment to National Exchequer BDT Bn

51.1

58.661.8

84.2

61.4

0

10

20

30

40

50

60

70

80

90

2015 2016 2017 2018 9M 2019

12.7 *

357

Total

731

Total

Total represents cumulative figures since inception*Based on IAS 17

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Solid business performance in a very challenging environment

EBITDA growth driven by gross profit

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

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Q&A

Q3 2019

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