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Grameenphone Ltd. 2nd Quarter, 2020 Results

Yasir Azman, CEO

15 July 2020

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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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Q2 2020

Highlights

YoY Revenue degrowth due to COVID-19

Gradual recovery from May following strong decline in April

Business Continuity Planning

Regulatory Impositions

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Revenue de-growth due to COVID-19

• Rollout resumed in June; 132 4G/LTE sites added

• Fast recovery from Cyclone Amphan

• VOLTE launched in June

• Lockdown and lower economic activity

• Supplementary Duty increased to 15% from June

• Digital reload mix improved 10.0 pp from Feb’20

• Remaining BDT 10 Bn deposited to BTRC, sustaining injunction; GP still disputes the validity of this audit

• SMP directives imposed and implemented under protest

NETWORK

ROLLOUT

MARKET

OPERATIONS

CHALLENGINGREGULATORY

ENVIRONMENT

Q2 2020

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“Dakche Amar Desh” initiative with BRAC to

provide emergency food assistance to 100,000

affected families

50,000 PPE for medical front-liners

“Bangladesh Challenge” in partnership with a2i,

Google and ICT Division to identify essential and

emergency locations

30 GB data @ BDT 1 for 6 months for 25,000

doctors; opted in by 19,000 doctors

10 Cr. free minutes to 1 Cr. prepaid customers

Affordable connectivity with reduced call rate for

all 74.5 Mn customers

Work from home, digital enablement, PPE for

employee well-beingQ2 2020

Empowering Societies

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COVID-19 Situation & Impact

Q2 2020

Barriers in Market Operations

Reinforced Workforce

Reinforced Point Of Sales

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Regulatory Landscape

Q2 2020 More details on Business Highlights

Tower CoLicensing

Significant Market Power

BTRC Audit

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Grameenphone Ltd. 2nd Quarter, 2020 Results

Jens Becker, CFO

15 July 2020

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Q2’20 financial performance impacted by countrywide general holidays under COVID-19

-8.1% YoY GrowthSubscription & Traffic Revenue*

-10% YoY GrowthEBITDA **

6.3% CAPEX/Sales***

5.38Earnings Per Share

Q3 2019

*Revenues generated by own subscription (excludes interconnection)** EBITDA before other items, as per IFRS 16 ***Capex excluding license & lease; Capex/sales = moving average last 4 quarters Q2 2020

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Subscriber base decreased by 0.8Mn while reaching 15.2Mn 4G data users

Total Subscribers (Mn)

Q2 2020

99.6%Population Coverage

96.0%Geographic Coverage

77.14%4G Population

Coverage

75.375.3

Q2’19 Q1’20Q3’19 Q4’19

75.7

76.5

Q2’20

74.5

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Gradual recovery in subscription & traffic revenue after hitting rock bottom in April 2020

*Daily revenues generated by own subscription (excludes interconnection)

Q2 2020

• Gradual recovery from May’20 onwards after the sharp decline in Apr’20

• Yet to reach positive YoY growth by the end of Jun’20

Jan'20 Feb'20 Mar'20 Apr'20 May'20 Jun'20

Y-Y Subs & Traffic Revenue growth trend in 2020

0%

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De-growth in daily subscription & traffic revenue due to general holidays

*Daily revenues generated by own subscription (excludes interconnection)

Total Revenue (BDT Bn) and Growth (YoY)

Q2 2020

DSTR* (BDT Mn) and Growth (YoY)

36.0 36.6 36.2 36.2 33.1

Q3’19

10.6%

Q4’19Q2’19

6.6%4.2% 3.7%

Q1’20 Q2’20

-8.2%

372.3 371.2 369.5 374.4342.3

4.8%

Q3’19Q2’19

13.4%

6.7%

Q4’19

3.0%

Q1’20 Q2’20

-8.1%

• -8.1% YoY growth in daily subs & traffic

revenue mainly contributed by de-growth in

voice revenue

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Continued YoY growth in data revenue despite two months of general holidays (+16.7%)

Q2 2020*Revenues generated by own subscription (includes interconnection)** Minimum 150 KB usage within last 3 months

• Data revenue growth mainly driven by 11.7%

growth in data ARPU

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

• 0.5Mn data users added in Q2’20

• Continued expansion of 4G network along with 4G

conversion

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

7.2 7.8 8.0

8.5 8.4

21.7%20.2%

Q2’19

22.5%

Q3’19 Q4’19

24.0%

Q1’20 Q2’20

25.7%

+16.7%

39.8 40.6 40.6 40.4 40.9

53.7%52.8% 53.6%

Q2’19 Q3’19

53.1%

Q4’19 Q1’20 Q2’20

54.8%

+2.8%

Data Revenue (Bn) % of Service Revenue Active Data User % of Sub-base

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Service ARPU impacted by lower contribution from voice

Service ARPU, AMPU and APPM

Q2 2020

159 158 156 156146

220 219 213 215201

0.72

Q3’19Q2’19

0.72

Q4’19

0.73 0.73

Q1’20 Q2’20

0.73

Data ARPU, AMBPU and APPMB

62 64 66 71 69

0.04

1,912

Q1’20Q2’19

0.04 0.03

Q3’19

0.03

2,225

Q2’20

2,603

0.031,576

Q4’19

1,763

+65.1%

ARPU (BDT) AMBPU APPMB (BDT)

• 65.1% growth in AMBPU mainly driven by 4G

conversion

ARPU (BDT) APPM (BDT)AMPU

• AMPU growth impacted by general holidays triggered

by COVID-19

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Efficient opex management despite CSR contribution under COVID-19

Q2 2020

Opex (BDT Bn) and Margin**

*EBITDA before other items**As per IFRS 16

EBITDA* (BDT Bn) and Margin**

11.0 10.9 11.1 11.1 10.3

30.6%

Q4’19Q2’19

29.7% 30.7%

Q3’19

30.8%

Q1’20 Q2’20

31.1%

-6.7%

Opex (BDT Bn) Margin %

22.9 23.4 23.0 22.9

20.6

63.5%63.7%

Q2’19

64.0%

Q3’19 Q4’19

63.2%

Q1’20 Q2’20

62.4%

-10.0%

EBITDA (BDT Bn) Margin %

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Investment resumed with gradual NOC approval from regulator

Q2 2020

• 132 new 4G sites rolled out

• Total number of sites stand at 16,557 along with

10,351 4G sites

*Capex excluding license & leaseCapex/sales = moving average of last 4 quarters

*Capex (BDT Bn) and Capex/Sales%

3.8

2.1

3.9

0.4

2.5

9.7%

Q4’19Q2’19

11.8%

Q3’19

9.8% 7.0%

Q1’20 Q2’20

6.3%

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Net profit negatively impacted by lower revenue under COVID-19, modernization, & finance cost

Q2 2020

NPAT (BDT Bn) and Margin*

*As per IFRS-16

Earnings Per Share (BDT)*

9.6

7.3

9.2

10.7

7.3

26.5%

Q2’19 Q4’19

19.9%

Q3’19

25.4%29.6%

Q1’20

22.0%

Q2’20

-23.9%

NPAT (BDT Bn.) Margin %

7.07

5.38

6.81

7.92

5.38

Q3’19Q2’19 Q2’20Q4’19 Q1’20

-23.9%

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OCF de-growth driven by lower EBITDA

Q2 2020

*OCF (BDT Bn) and OCF/Sales%

*OCF equals EBITDA minus Capex (excluding license & lease) as per IFRS 16**Net Debt = Short term debt + Long term debt - Cash and Cash equivalents (excl. restricted cash) ; 12 months rolling restated EBITDA as per IFRS 16

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

19.2 21.3

19.0

22.5

18.1

62.1%

Q3’19

53.2%

Q4’19Q2’19

58.3%

52.6%

Q1’20

54.8%

Q2’20

OCF/Sales %OCF

8.0

(3.2)(3.9)

(3.4)

0.9

(0.04)

Q3’19

0.09

Q2’19

(0.04)

Q4’19

(0.04)

Q1’20 Q2’20

0.01

Net Debt Net Debt/EBITDA

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Contribution to National Exchequer

• BDT 46.4Bn (equaling 67% of total revenues) contributed to national exchequer in 1H’20

• Contribution in the form of taxes, VAT, duties, license/spectrum fees & revenue share

Q1 2020

58.6 61.8

84.2 85.0

46.4

20172016 2017 2019 1H 2020

12.7Bn 4G license payment

801

Total

Figures in BDT Bn.

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1H 2020

Recommended 130% of PuC cash interim dividend for 2020

BDT 13.00Dividend Per Share

2020 (interim)

98%Payout Ratio2020 (interim)

BDT 13.30Earnings Per Share

2020 (interim)

• Shareholders as of the record date 05 August 2020 will be entitled

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Growth momentum negatively impacted due to COVID-19

We are committed to contributing to society and using our technology expertise to battle COVID-19

Continued growth in data reinforces our focus on strengthening our network with planned investment

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Thank You

Q2 2020

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