Grameenphone Ltd. 2013 Vivek Sood, CEO
2013 Solid performance amidst depressed environment Strong subscriber acquisition Subscriptions (Mn) and Market Share + 17.7% 47.11 Restored growth 36.49 40.02 Corporate tax rate increase Healthy underlying bottom line Securing 10 MHz of 3G spectrum Strategic partnership with Accenture 42.7% 41.2% 41.4% 2011 2012 2013 Operating Cash Flow (BDT Bn) & Margin 34.64-0.86% 2.40 36.17 35.86 38.2 39.6% 38.9% 39.4% 37.1% 19% 2011 2012 2013 3G Capex Operating cash flow defined as EBITDA before other items, less capex excl spectrum fees Deconsolidation of GPIT considered in 2013 only 2
2013 Committed focus towards customer centricity Competitive value for money offerings Efficient execution of market combat plan Improvement in price perception Strengthened foothold in the market Wider distribution coverage Increased retail advocacy Improved visibility 3
2014 Strategic priorities going forward Internet for all Loved by customers Efficient operator Financial Services 4
Regulatory updates NBR s claim against replacement SIM Directives for implementation of MNP LTU formed a committee consisting of AMTOB, BTRC and NBR to resolute Process of final report deviated from original agreement Industry is taking up with relevant stakeholders Quality of Service(QoS) directive Directive published on 13 Jun 13 with 3 phase execution plan Further consultation among BTRC & AMTOB may initiate shortly Draft on revision of SIM registration directive Interim directive published by BTRC on 23 Jan 14 Necessary industry alignment and feedback to BTRC is under process GP expects to be compliant with the parameters Received a draft directive on 27 Dec 13 Decision taken for formation of a subcommittee Subcommittee consultation process will be initiated soon 5
Financial Highlights Mainur Rahman Bhuiyan, CFO (Acting)
2013 Solid revenue growth Growth driven by new subscriptions Market competitive offers Full year impact of 10s pulse directive Underlying revenue growth Focus on operational excellence remains Revenues (BDT Bn) and EBITDA% 96.6 89.1 91.9 +5.1% 53.5% 53.1% 51.3% 2011 2012 2013 Revenues (BDT Bn) and EBITDA% Investment in market and organizational efficiency impacted EBITDA margin 22.6 23.5 23.9 25.0 24.3 + 7.3% 54.1% 47.2% 51.1% 57.4% 49.3% Revenue Growth% YoY Q4'12 Q1'13 Q2'13 Q3'13 Q4'13
2013 Net profit impacted by budgetary changes Net Profit after Tax (BDT Bn) and NPAT% Gain from GPIT sales transaction Higher interest expenses. Adverse impact of increased corporate tax rate. - 16% 18.9 17.5 17.9 3.2 21.2% 19.0% 14.7 18.6% 15.2% 2011 2012 2013 Net Profit after Tax (BDT Bn) and NPAT% 19.2% 4.6 4.4 4.6 5.7-14% 4.0 20.4% 18.9% 4.0 19.1% 22.9% 16.4% Tax adjustment Net Profit Growth% YoY 2.3% 0.6 Q4'12 Q1'13 Q2'13 Q3'13 Q4'13 8
2013 Key Financial Figures... Earnings per Share (BDT) Lower EPS resulted from lower net profit. NOCF higher from efficient working capital management. 13.99 Tax adjustment 12.96 13.28 2.39 10.89 NAV lowered by dividend payment to shareholders. 2011 2012 2013 NOCF (BDT Bn) and NOCF/Share (BDT) NAV (BDT Bn) and NAV/Share (BDT) 40.6 30.0 37.1 38.9 35.5 31.1 30.09 22.23 27.46 28.80 26.26 23.06 2011 2012 2013 2011 2012 2013 9
2013 Investment & Contribution... Continuous investment in quality and coverage. Capex (BDT Bn) and Capex/Sales% 13.0 12.6 12.7 * 3G license BDT 17.2 billion. BDT 2.4 billion spend for 3G roll out. Investment since inception BDT 243billion. 14.6% 13.7% 13.1% 2011 2012 2013 Contribution to Government (BDT Bn) 2G & 3G related payments Contribution to national exchequer BDT 355 billion since inception. 59.3 13.5 62.7 13.2 69.1 17.5 45.8 49.5 51.6 2011 2012 2013 * Excluding 2G & 3G License 10
2013 Final dividend 2013 Recommended final dividend for 2013 @ BDT 5 per share Total cash dividend for 2013 BDT 14 per share including BDT 9 per share cash interim dividend Record date for entitlement 20 th Feb 14 Subject to approval in the 17 th AGM on 9 th April 2014 11
Internet for ALL Allan Bonke, CMO
To put internet in the hands of all Bangladeshi, empowering them to transform the way they live, work, learn & play.
The barriers of internet penetration in Bangladesh Awareness Access Entry Relevance
igen a pioneer initiative from GP to build awareness
2G to Broad Band an operator with solution for all Providing Access EDGE: The basic and nationwide coverage 3G: Speed with mobility Wi-Fi: Speed in hotspots focusing on experience Wi-Max: Faster & Premium internet at home and enterprise to offload 3G Feature Phones Smart Devices
Entry playing catalyst role bringing device price down
Relevance GP continues to bring the best services Video Call On line Schooling GP Entertainment Store Bangla Apps Video Doctor Mobile TV
Enjoying Bangladesh-Srilanka test last session inside the car! Thank you #Grameenphone 3G for 'Making it Easy'!! with Yeasir M Khan
Empowering Society
GP s Transformation to 3G Tanveer Mohammad, CTO
Fastest rollout of 3G in Bangladesh 1 st Site On Air within 10 days of License Dhaka, Chittagong, Sylhet on air Oct 2013 7 Divisional Cities on air Dec 2013 Additional 5 District s also rolled out in Dec 2013
All district cities to be covered by April 2014 Another 8 Districts by Feb 2014 All the District Cities by April 2014
Dhaka city with 1000+ 3G Sites October 2013 Gulshan, Baridhara, Basundhara November 2013 Uttara, Cantonment, Dhanmondi, Kalabagan, Mirpur, Farmgate, December 2013 Airport, Khilkhet, Badda, Rampura, Malibag, Magbazar, Newmarket Area January 2014 Azimpur, Banasree, Santinagar, Old Dhaka, Amin Bazar February 2014 Rayerbazar, Kamrangirchor, Jurain, Jatrabari, Syedabad
Technological Advantages in GP 3G Network High Speed Data service High speed internet, online movies & games, Education & health services Enhanced Speech Quality Faster Accessibility of Voice Service
Thank you