Grameenphone Ltd. – First Quarter

Michael Patrick Foley, CEO

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

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distributed should inform themselves about, and observe, such restrictions.

Highlights

1.1 Mn new data

subscribers

Launch of 4G

services

67.5 Mn

subscribers

1Q 2018

Intense market

competition

Set to offer best 4G experience in combination of

additional spectrum and neutrality

• Same data portfolio for simplicity

• 4G SIM replacement with free 1.5 GB

• D2D replacement service for convenience

• Free replacement for high value customers

• Affordable 4G handset portfolio

1Q 2018

Robust 4G rollout to ensure seamless experience

691 sites rollout by March 2018

4800+ sites by July 2018

All district cities under coverage

1Q 2018

Network modernization to consolidate superior position

• Up-gradation of all radio units

• Re-farming & spectrum

efficiency

• Technology neutral equipment;

Single RAN

• Capacity enhancement with

new technology

• Reduced power consumption

• Lean site design with less

footprint

Coverage and

experience

Capacity and future

readiness Efficiency and

resilience

1Q 2018

Healthy topline growth amidst continuing competitive

environment

• Prolonged winter with lower

activity during January

• Generous data offers on 4G

SIM replacement and channel

incentives

• New subscriber acquisition offer

• ½ paisa/second on-net offer for

BDT 21 and 49

• Marginal drop in APPM

• Positive results in revenue

generating base and usage

• 3 new offers under contextual

marketing platform

• New 1.5 GB offer at BDT 104

• 4G SIM replacement, device and

service experience is key

Seasonality and

market competition

Consolidation of

voice offers Competitive pressure

on data price

1Q 2018

Simplification journey is a strategic priority for value creation

1Q 2018

Customer processes

simplification &

digitalization

Simplest for B2B

Self-service

transformation Robust IT services

Regulatory landscape

• BTRC audit commenced on

3 Aug’2016

• Received a summary of the

draft audit observations on

11 Dec'17

• After the submission of

feedback on 18 Jan’18, a

tri-party meeting was held

on 18 Feb’18 regarding

clarification

• Waiting for the final

outcome of the report

• On 30 Nov’17 BTRC

awarded MNP license

• BTRC published final

process on 21 Mar’18

keeping the previous

implementation deadline of

31 Mar’18 intact

• Revised deadline agreed

with BTRC in presence of

ICT adviser is 31 Jul’18

• Fiber sub-lease option was

cancelled by BTRC due to

NTTN license guideline

• GP-BR joint committee

agreed upon an

arrangement and draft

agreement was sent to

BTRC

• BR will lease and GP is

entitled to 63% of revenue

• On process of regulatory

approval

GP-Railway Fiber

Contract

Tower Co. licensing

guideline BTRC Audit

• Licensing guideline was

published on 1 Apr’18

• MNOs will not be eligible to

participate

• 4 licenses will be awarded

with application deadline of

13 May’18

• Industry holds its existing

position on legal rights to

build, maintain, operate

and co-locate towers

Mobile Number

Portability Services

(MNPS)

1Q 2018

Grameenphone Ltd. – First Quarter

Karl Erik Broten, CFO

Healthy topline growth with stable EBITDA

5.7% Subscription

and Traffic revenue

growth*

57.6% EBITDA

margin**

10.7%

Capex/Sales***

BDT 4.74

Earnings per share

*Revenues generated by own subscription (excludes interconnection)

**As per IAS 18

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

1Q 2018

Changes in contracts and accounting practices

Handset Revenue

• Prime consideration of principal versus

agent

• Grameenphone acts as an agent while

selling handsets

• Revenue from sale of handset is

recognized on net basis

• Prime consideration of principal versus

agent in whole arrangement

• Arrangement for branded content sale is

a joint operation

• Revenue from such joint operation is

recognized on proportionate(net) basis

VAS Revenue

1Q 2018

7.1% normalized subscription and traffic revenue growth*

• 3.9% voice revenue growth

• BDT 1.3 Bn lower content and device revenue

*Normalized for accounting practice changes

**Daily revenues generated by own subscription (excludes interconnection)

1Q 2018

30.6

32.4 33.2

32.2 31.2

11.1%15.5%

12.8%8.0%

2.0%

Q1'17 Q2'17 Q3'17 Q4'17 Q1'18

301

318 323 317 319

14.8%18.0%

15.3%12.4%

5.7%

Q1'17 Q2'17 Q3'17 Q4'17 Q1'18

DSTR** (BDT Mn) and Growth (YoY) Revenue (BDT Bn) and Growth (YoY)

28% data user and 75% volume growth 1Q 2018

Active Data Users** (Mn) and % of Sub-base Data Revenue (BDT Bn) and % of Service Revenue*

• Competitive data offers driving user growth and

customer experience

*Revenues generated by own subscription (includes interconnection)

** Minimum 150 KB usage within last 90 days

• 23.9% data revenue growth

4.7 5.1

5.7 5.6 5.8

15.9%16.5%

17.8% 17.9%18.7%

Q1'17 Q2'17 Q3'17 Q4'17 Q1'18

25.2 27.030.0

31.2 32.2

42.2% 43.9% 46.9% 47.7% 47.8%

Q1'17 Q2'17 Q3'17 Q4'17 Q1'18

621 660

754 807

851

Q1'17 Q2'17 Q3'17 Q4'17 Q1'18

ARPU (BDT) AMBPU APPMB (BDT)

6.2% service ARPU and 3.0% data ARPU drop 1Q 2018

61

63 63

60 60

0.10 0.10 0.08 0.07 0.07

Data ARPU, AMBPU and APPMB Service ARPU, AMPU and APPM

• 6.0% service AMPU decline

• Improving daily voice AMPU

• 37% AMBPU growth along with 28% user growth

• 29% APPMB decline from competitive offers

165 171 170 161 155

262 261 257 247 246

0.63 0.65 0.66 0.65 0.63

Q1'17 Q2'17 Q3'17 Q4'17 Q1'18

ARPU (BDT) AMPU APPM (BDT)

10.1 10.0

11.0 11.0 11.6

32.8% 30.9% 33.2% 34.1% 36.9%

Q1'17 Q2'17 Q3'17 Q4'17 Q1'18

Stable EBITDA with higher investment in market

• One off appeal deposit fee of BDT 379Mn

• 4G related spending and higher acquisition costs

• Normalized opex growth of 11.5%***

*EBITDA before other items

**As per IAS 18

**Normalized for appeal deposit fee and IAS 18

1Q 2018

5.0%

QoQ

14.7%

YoY

• Normalized EBITDA margin of 58.8%***

17.8

19.9 19.5 19.0

18.0

58.1% 61.2% 58.7% 58.8% 57.6%

Q1'17 Q2'17 Q3'17 Q4'17 Q1'18

5.0%

QoQ

1.2%

YoY

EBITDA* (BDT Bn) and Margin** Opex (BDT Bn) and Margin**

Investment mainly for network coverage and capacity

1Q 2018

*Capex (BDT Bn) and Capex/Sales% • Regulatory capex of BDT 17.1 Bn for 4G license,

spectrum and tech-neutrality conversion fee

• 691 4G sites rollout after launch on 19 Feb’18

• 303 2G and 184 3G sites addition during Q1

• Total number of 2G and 3G sites stands at

13,297 and 12,516

• Investment to continue to provide superior

network experience

*Capex excluding license fees

Capex/sales = moving average last 4 quarters

4.5

3.3

2.1

4.7

3.8

13.9% 12.4% 12.0% 11.3% 10.7%

Q1'17 Q2'17 Q3'17 Q4'17 Q1'18

6.6

7.9

7.0

6.06.4

21.4% 24.4% 21.0% 18.5% 20.4%

Q1'17 Q2'17 Q3'17 Q4'17 Q1'18

Marginal decline in earnings 1Q 2018

Earnings Per Share (BDT)* NPAT (BDT Bn) and Margin*

• Accelerated depreciation of BDT 519 Mn for core network modernization

7.0%

QoQ

2.5%

YoY

4.86

5.87

5.16

4.42 4.74

Q1'17 Q2'17 Q3'17 Q4'17 Q1'18

7.0%

QoQ

2.5%

YoY

*On reported basis

BDT 14.1 Bn OCF and Net debt/EBITDA of 0.04 1Q 2018

Net debt (BDT Bn) and Net debt/EBITDA** *OCF (BDT Bn) and OCF/Sales%

*OCF equals EBITDA minus Capex on a reported basis

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

12 months rolling EBITDA

13.3

16.617.5

14.3 14.1

43.4%51.2% 52.5%

44.2% 45.2%

Q1'17 Q2'17 Q3'17 Q4'17 Q1'18

7.6 7.3

12.2

1.8

3.4

0.11 0.100.16

0.020.04

Q1'17 Q2'17 Q3'17 Q4'17 Q1'18

Summary

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

• Launch of 4G services with robust rollout

and modernization plan

• Healthy topline and subscriber growth in a

competitive quarter

• Consolidated superior network experience

and market offers to drive growth