Grameenphone Ltd.

2nd Quarter, 2020 Results

Yasir Azman, CEO

15 July 2020

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 Disclaimer

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its contents. Information in the following presentation relating to the
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guide to the future performance of such investments.

This presentation does not constitute an offering of securities or

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Grameenphone Ltd. The release, publication or distribution of this
presentation in certain jurisdictions may be restricted by law, and
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 Highlights

YoY Revenue degrowth

due to COVID-19

Gradual recovery from May

following strong decline in April

Business Continuity Planning

Regulatory Impositions

Q2 2020
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 Revenue de-growth due to COVID-19

• Lockdown and lower economic activity

MARKET • Supplementary Duty increased to 15% from June
OPERATIONS
• Digital reload mix improved 10.0 pp from Feb’20

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

NETWORK
• Fast recovery from Cyclone Amphan
ROLLOUT
• VOLTE launched in June

• Remaining BDT 10 Bn deposited to BTRC, sustaining

CHALLENGING injunction; GP still disputes the validity of this audit
REGULATORY
ENVIRONMENT • SMP directives imposed and implemented under
protest

Q2 2020
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 Empowering Societies
“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-being
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Q2 2020
 COVID-19 Situation & Impact

Barriers in Market Reinforced Reinforced

Operations Workforce Point Of Sales

Q2 2020
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 Regulatory Landscape

Significant
BTRC Tower Co
Market
Audit Licensing
Power

Q2 2020
More details on Business Highlights
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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 Growth -10% YoY Growth

Subscription & Traffic Revenue* EBITDA **

6.3% 5.38
CAPEX/Sales*** Earnings Per Share

*Revenues generated by own subscription (excludes interconnection)

** EBITDA before other items, as per IFRS 16
***Capex excluding license & lease; Capex/salesQ3
= 2019
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)

76.5
75.7
75.3 75.3
74.5

99.6% 96.0% 77.14%

Population Geographic 4G Population
Coverage Coverage Coverage

Q2’19 Q3’19 Q4’19 Q1’20 Q2’20

Q2 2020
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 Gradual recovery in subscription & traffic revenue after hitting rock bottom
in April 2020

Y-Y Subs & Traffic Revenue growth trend in 2020

• Gradual recovery from May’20

onwards after the sharp decline in
0% 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

Q2 2020
*Daily
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 De-growth in daily subscription & traffic revenue due to general holidays

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

36.0 36.6 36.2 36.2

33.1 372.3 371.2 369.5 374.4
342.3
10.6%
13.4%

4.2% 3.7%
6.6% 4.8%
3.0%
6.7%

-8.2% -8.1%

Q2’19 Q3’19 Q4’19 Q1’20 Q2’20 Q2’19 Q3’19 Q4’19 Q1’20 Q2’20

• -8.1% YoY growth in daily subs & traffic

revenue mainly contributed by de-growth in
voice revenue

Q2 2020
*Daily
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 Continued YoY growth in data revenue despite two months of general
holidays (+16.7%)
Data Revenue (BDT Bn) and % of Service Revenue* Active Data Users** (Mn) and % of Sub-base

+2.8%
+16.7%
8.5 39.8 40.6 40.6 40.4 40.9
8.0 8.4
7.8
7.2

52.8% 53.7% 53.1% 53.6% 54.8%

22.5% 24.0% 25.7%

20.2% 21.7%

Q2’19 Q3’19 Q4’19 Q1’20 Q2’20 Q2’19 Q3’19 Q4’19 Q1’20 Q2’20
Data Revenue (Bn) % of Service Revenue Active Data User % of Sub-base

• Data revenue growth mainly driven by 11.7% • 0.5Mn data users added in Q2’20
growth in data ARPU • Continued expansion of 4G network along with 4G
conversion

*Revenues generated by own subscription (includes interconnection)

** Minimum 150 KB usage within last 3 months Q2 2020
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 Service ARPU impacted by lower contribution from voice

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

+65.1%
220 219 213 215 2,603
201
2,225
159 158 156 156
146
1,912
1,763
0.72 0.72 0.73 0.73 0.73 0.04 0.04 0.03 0.03 0.03
1,576

62 64 66 71 69

Q2’19 Q3’19 Q4’19 Q1’20 Q2’20 Q2’19 Q3’19 Q4’19 Q1’20 Q2’20

ARPU (BDT) AMPU APPM (BDT) ARPU (BDT) AMBPU APPMB (BDT)

• AMPU growth impacted by general holidays triggered • 65.1% growth in AMBPU mainly driven by 4G
by COVID-19 conversion

Q2 2020
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 Efficient opex management despite CSR contribution under COVID-19

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

-6.7% -10.0%

11.0 10.9 11.1 11.1 22.9 23.4 23.0 22.9

10.3
20.6

63.7% 64.0% 63.5% 63.2%

62.4%

30.6% 29.7% 30.7% 30.8% 31.1%

Q2’19 Q3’19 Q4’19 Q1’20 Q2’20 Q2’19 Q3’19 Q4’19 Q1’20 Q2’20

Opex (BDT Bn) Margin % EBITDA (BDT Bn) Margin %

*EBITDA before other items

Q2 2020
**As per IFRS 16
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 Investment resumed with gradual NOC approval from regulator

*Capex (BDT Bn) and Capex/Sales%

3.9
3.8
• 132 new 4G sites rolled out
• Total number of sites stand at 16,557 along with 2.5
10,351 4G sites 2.1
11.8%
9.7%
9.8% 7.0% 6.3%

0.4

Q2’19 Q3’19 Q4’19 Q1’20 Q2’20

*Capex excluding license & lease

Capex/sales = moving average of last 4 quarters Q2 2020
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 Net profit negatively impacted by lower revenue under COVID-19,
modernization, & finance cost
NPAT (BDT Bn) and Margin* Earnings Per Share (BDT)*

-23.9%
-23.9% 7.92
10.7 7.07 6.81
9.6 9.2
5.38 5.38
7.3 7.3

29.6%
26.5% 25.4%
19.9% 22.0%

Q2’19 Q3’19 Q4’19 Q1’20 Q2’20 Q2’19 Q3’19 Q4’19 Q1’20 Q2’20

NPAT (BDT Bn.) Margin %

*As per IFRS-16 Q2 2020

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 OCF de-growth driven by lower EBITDA

*OCF (BDT Bn) and OCF/Sales% Net debt (BDT Bn) and Net debt/EBITDA**
8.0
0.09

22.5
21.3
19.2 19.0 18.1

62.1%
58.3%
0.9
54.8%
0.01
53.2% 52.6%

(0.04)
(0.04)
(0.04)
Q2’19 Q3’19 Q4’19 Q1’20 Q2’20 (3.2) (3.4)
(3.9)
Q2’19 Q3’19 Q4’19 Q1’20 Q2’20

OCF OCF/Sales % Net Debt Net Debt/EBITDA

*OCF equals EBITDA minus Capex (excluding license & lease) as per IFRS 16
**Net Debt = Short term debt + Long term debt - Cash and Cash
Q2 2020
equivalents (excl. restricted cash) ; 12 months rolling restated EBITDA as
per IFRS
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 Contribution to National Exchequer

801

84.2 85.0
• BDT 46.4Bn (equaling 67% of total revenues)
contributed to national exchequer in 1H’20 61.8
58.6
12.7Bn
• Contribution in the form of taxes, VAT, duties, 4G license
payment
46.4
license/spectrum fees & revenue share

2016 2017 2017 2019 1H 2020 Total

Figures in BDT Bn.

Q1 2020
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 Recommended 130% of PuC cash interim dividend for 2020

BDT 13.30 BDT 13.00 98%

Earnings Per Share Dividend Per Share Payout Ratio
2020 (interim) 2020 (interim) 2020 (interim)

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

1H 2020
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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.

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