Grameenphone Ltd. 2 nd Quarter, 2020 Results Yasir Azman, CEO 15 July 2020 Sensitivity: Open
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. Sensitivity: Open
Highlights YoY Revenue degrowth due to COVID-19 Gradual recovery from May following strong decline in April Business Continuity Planning Regulatory Impositions Q2 2020 Sensitivity: Open
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 SMP directives imposed and implemented under • ENVIRONMENT protest Q2 2020 Sensitivity: Open
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 Q2 2020 Sensitivity: Open
COVID-19 Situation & Impact Barriers in Market Reinforced Reinforced Operations Workforce Point Of Sales Q2 2020 Sensitivity: Open
Regulatory Landscape Significant BTRC Tower Co Market Audit Licensing Power Q2 2020 More details on Business Highlights Sensitivity: Open
Grameenphone Ltd. 2 nd Quarter, 2020 Results Jens Becker, CFO 15 July 2020 Sensitivity: Open
Q2’20 financial performance impacted by countrywide general holidays under COVID-19 -10% YoY Growth -8.1% YoY Growth EBITDA ** Subscription & Traffic Revenue* 6.3% 5.38 CAPEX/Sales*** Earnings Per Share *Revenues generated by own subscription (excludes interconnection) ** EBITDA before other items, as per IFRS 16 Q3 2019 Q2 2020 ***Capex excluding license & lease; Capex/sales = moving average last 4 quarters Sensitivity: Open
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 77.14% 99.6% 96.0% 4G Population Population Geographic Coverage Coverage Coverage Q2’19 Q3’19 Q4’19 Q1’20 Q2’20 Q2 2020 Sensitivity: Open
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 Apr’20 0% • 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 revenues generated by own subscription (excludes interconnection) Sensitivity: Open
De-growth in daily subscription & traffic revenue due to general holidays Total Revenue (BDT Bn) and Growth (YoY) DSTR* (BDT Mn) and Growth (YoY) 36.6 36.2 36.2 36.0 374.4 372.3 371.2 369.5 33.1 342.3 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 revenues generated by own subscription (excludes interconnection) Sensitivity: Open
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% 40.9 40.6 40.6 40.4 39.8 8.5 8.4 8.0 7.8 7.2 54.8% 53.7% 53.1% 53.6% 52.8% 25.7% 24.0% 22.5% 21.7% 20.2% 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 • • 0.5Mn data users added in Q2’20 Data revenue growth mainly driven by 11.7% growth in data ARPU • Continued expansion of 4G network along with 4G conversion *Revenues generated by own subscription (includes interconnection) Q2 2020 ** Minimum 150 KB usage within last 3 months Sensitivity: Open
Service ARPU impacted by lower contribution from voice Service ARPU, AMPU and APPM Data ARPU, AMBPU and APPMB +65.1% 220 219 2,603 215 213 201 2,225 159 158 156 156 146 1,912 1,763 0.04 0.04 0.73 0.72 0.72 0.73 0.73 0.03 0.03 0.03 1,576 71 69 64 66 62 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 Sensitivity: Open
Efficient opex management despite CSR contribution under COVID-19 Opex (BDT Bn) and Margin** EBITDA* (BDT Bn) and Margin** -6.7% -10.0% 11.1 11.1 23.4 11.0 22.9 23.0 10.9 22.9 10.3 20.6 64.0% 63.7% 63.5% 63.2% 62.4% 30.6% 30.7% 30.8% 29.7% 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 Sensitivity: Open
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% 7.0% 9.8% 6.3% 0.4 Q2’19 Q3’19 Q4’19 Q1’20 Q2’20 *Capex excluding license & lease Q2 2020 Capex/sales = moving average of last 4 quarters Sensitivity: Open
Net profit negatively impacted by lower revenue under COVID-19, modernization, & finance cost NPAT (BDT Bn) and Margin* Earnings Per Share (BDT)* -23.9% 7.92 -23.9% 7.07 10.7 6.81 9.6 9.2 5.38 5.38 7.3 7.3 29.6% 26.5% 25.4% 22.0% 19.9% 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 Sensitivity: Open
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) (3.2) Q2’19 Q3’19 Q4’19 Q1’20 Q2’20 (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 16 Sensitivity: Open
Contribution to National Exchequer 801 85.0 84.2 • 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, 46.4 4G license payment license/spectrum fees & revenue share 2016 2017 2017 2019 1H 2020 Total Figures in BDT Bn. Q1 2020 Sensitivity: Open
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 Sensitivity: Open
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 Sensitivity: Open
Thank You Q2 2020 *In consideration of the local regulations, Grameenphone Ltd. does not provide any forward looking statements. Sensitivity: Open
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