Grameenphone Ltd. – 3rd Quarter 2014

Vivek Sood, CEO

46.04 47.11

48.68 49.23 50.29

41.6% 41.4% 42.2% 42.2%

Q3'13 Q4'13 Q1'14 Q2'14 *Q3'14

Subscriptions (Mn) and Market Share

2

● Revenue growth impacted by

– FIFA world cup

– Inclement weather

– Reduction in international call

termination rate

● Healthy margins and improved

normalized bottom line

● Crossed 50 Mn subscriber milestone

● Growing subscriber market share

● Competition remains intense

3Q 2014

Moderate revenue growth impacted by external factors

YoY Growth%

Service revenue generated by own subscription minus interconnection

EBITDA before other items

OCF equals EBITDA minus Capex (excluding license fees)

+ 9.2%

2.4%

Revenue

2.8%

Service

72%

Data

54%

EBITDA

43%

OCF

*Other operator sub base of Sep’14 end not yet published

3

● Value for money product and service offerings

● Managing sales and price perception through

rural activation program

● Creating impact zones for high visual appeal

● Regional empowerment for faster execution

● Moving ahead with attractive campaigns and

execution

– Focusing on innovative service offerings

– Engaging extensive trade push

– Driving more granular micro campaigns

3Q 2014

Strong presence in the competitive environment

4

3Q 2014

Implementing Internet for ALL ambition

● Impressive internet user & volume growth

● Monetization a challenge in intense data price

competitive market

● Attractive consumer led pioneering initiatives

– Firefox OS based low cost smart phone

– Free Facebook browsing to onboard new

subscribers

– Micro packs for first time small screen users

● Launched 3G smart bundles with more

affordability

● Offered double speed on 3G

Active Internet Users (Mn)*

* Minimum 150 KB usage within last 90 days

7.61

8.228.56

9.05

9.7510.18

Apr'14 May'14 Jun'14 Jul'14 Aug'14 Sep'14

5

3Q 2014

Enhanced network supremacy with coverage and quality

● 167 new 2G sites rolled out throughout the

country

● 72 new 3G sites with improved coverage

● Added capacity to cater higher data traffic

● Transformation ongoing for future readiness

with all IP based network

● Tools to monitor real time customer experience

● Further investment to strengthen network

leadership position

3G Site Rollout (Cumulative)

2,143 2,160

2,232

Q1'14 Q2'14 Q3'14

NBR’s claim against

replacement SIM

− LTU formed a committee consisting of AMTOB,

BTRC and NBR to resolve

− Procedure inconsistent with original terms of

reference

− Operators position unchanged on principle issue

− Resolution through administrative mechanism has

been recently sought from Finance minister

6

3Q 2014

Regulatory updates

Imposition of 1% surcharge

on mobile usage

− On 15 Sep’14, Cabinet approved this on the total

income accrued from all services through a SIM

− The tax would be additional to the existing 15%

VAT on mobile phone service usage

− Will be passed on to customers

50% cut in International Call

Termination rates

− BTRC issued directive with $ 0.015 floor price for 6

months on ‘test basis’ with effect from 19 Sep’14

− Revenue sharing distribution increased to 22.5%

− AMTOB requested for initiation of consultation

process to address relevant issues

Grameenphone Ltd. – 3rd Quarter 2014

Dilip Pal, CFO

ARPU, AMPU and APPM

178 165 166 170 165

255 240 240 250 243

0.70 0.69 0.69 0.68 0.68

Q3'13 Q4'13 Q1'14 Q2'14 Q3'14

ARPU (BDT) AMPU APPM (BDT)

● Revenue growth driven by improvement in

data and VAS segment

● Adverse impact of external factors on voice

● Consistency of growth in YTD revenue

● ARPU erosion mainly driven by voice

● Stress on APPM from competitive offers

3Q 2014

Moderate revenue growth…

-7.2%

Deconsolidation of GPIT considered from Q3’13

YTD Revenue (BDT Bn) and Growth (YoY)

Revenue (BDT Bn) and Growth (YoY)

25.0 24.3 24.9

26.2 25.6

9.4% 9.2%6.3%

9.8%

2.4%

Q3'13 Q4'13 Q1'14 Q2'14 Q3'14

72.3 76.7

4.5% 6.1%

YTD 2013 YTD 2014

NPAT, Tax, D&A (BDT Bn) and NPAT%

*EBITDA (BDT Bn) and Margin

3Q 2014

Healthy EBITDA & NPAT . . .

* EBITDA before other items

● EBITDA growth of 4.8% with further

margin improvement

● Efficiency in opex management

● 13.4% growth in NPAT normalizing

GPIT gain (1.0Bn) in Q3’13

● Higher depreciation from additional

investment

● Foreign exchange gain

13.3

12.5

13.4

14.2 14.0

53.2% 51.2% 53.7% 54.0% 54.3%

Q3'13 Q4'13 Q1'14 Q2'14 Q3'14

22.9%16.4% 20.7% 20.7% 20.9%

3.8 4.2 4.2 4.1 4.3

0.71.2 0.4 0.4 0.2

4.1 3.0 3.6 4.2 4.1

4.7 4.0 5.25.4 5.3

1.0

13.3

12.5 13.4

14.2 14.0

Q3'13 Q4'13 Q1'14 Q2'14 Q3'14

D&A FC & Others Tax NPAT GPIT gain

10

● Higher EPS (normalized) resulted from

higher net profit.

● Improved OCF from higher EBITDA,

and lower capex.

● NAV resulted from accumulated profit,

partly offset by dividend payment.

3Q 2014

Key financial figures . . . Earnings per Share (BDT)

NAV (BDT Bn) and NAV/Share (BDT) *OCF (BDT Bn) and OCF/Share (BDT)

*OCF equals EBITDA minus Capex

Gain from sale of GPIT

- 6.8% / +13.4%

3.49

0.76

4.25

2.95

3.82 4.01 3.96

Q3'13 Q4'13 Q1'14 Q2'14 Q3'14

27.2 31.1

36.3 35.0

27.5

20.11 23.06

26.88 25.90 20.35

Q3'13 Q4'13 Q1'14 Q2'14 Q3'14

10.09

6.26

10.64 10.4911.12

7.48

4.63

7.88 7.77 8.23

Q3'13 Q4'13 Q1'14 Q2'14 Q3'14

*Capex (BDT Bn) and Capex/Sales%

Contribution to Government (BDT Bn)

11

● YTD investment of BDT 9.3 Bn in

Capex

● BDT 46.5 Bn contribution to national

exchequer, comprising 61% of total

revenue

3Q 2014

Investment & contribution . . .

* Excluding license fees

*

2G & 3G related payments

3.2

6.2

2.8

3.7

2.8

12.9%

25.5%

11.1% 14.1% 11.1%

Q3'13 Q4'13 Q1'14 Q2'14 Q3'14

17.5 6.9

31.0

11.9 10.7

23.5

12.3

Q3'13 Q4'13 Q1'14 Q2'14 Q3'14

12

Summing up

Growth momentum is intact with some adversity

Strong presence in market amidst intensified competition

Initiatives are ongoing for Internet for ALL ambition

Further investment in network for strengthening leadership position

Thank You