Grameenphone Ltd. 1 st Quarter, 2020 Results Yasir Azman, CEO 22 April 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
Empowering Societies Connecting 75.3 Mn customers and 40.4 Mn Data customers BDT 2,461 Cr. paid to National Exchequer in the first three months of 2020 50,000 medical-grade PPE and 10,000 PCR testing kits to support medical front liners to battle COVID-19 in Bangladesh Driving mass awareness in collaboration with a2i, DG Health, BTRC, WHO, UNICEF Efficient use of information technology in collaboration with a2i to tackle community spread Q1 2020 Sensitivity: Open
Highlights Reduced Revenue Growth 14.2 Mn 4G Customers 10,200+ 4G/LTE Sites COVID-19 Situation Q1 2020 Sensitivity: Open
Reduced growth momentum due to increasingly challenging environment Rollout hampered due to halt on NOCs; only 197 • 4G/LTE sites rolled out NETWORK ROLLOUT Strong drive on 4G conversion leading to 14.2 Mn • 4G customers Lower gross add due to number scarcity • MARKET Adaptation of digital platforms in our value chain • OPERATIONS 40 new customer service points across the country • BDT 10 Bn deposited to BTRC, sustaining injunction • CHALLENGING Partial NOCs released by BTRC following Hon’ble court • REGULATORY order ENVIRONMENT GP still disputes the validity of the BTRC audit • Q1 2020 Sensitivity: Open
COVID-19 Situation in Bangladesh 3,300+ cases 100+ deaths till 21 April* General Holidays declared until 25 April* Community lockdown in some areas; civilian movement restricted from 6 PM to 6 AM countrywide* Emergency and essential services operational, including telecommunications and related value chain Military is supporting civil administration to enforce social distancing Bangladesh has been declared at high risk on 16 th April 2020* *IEDCR, News Sources Q1 2020 Sensitivity: Open
COVID-19 Situation - Impact Barriers in Market Operations Reinforced Workforce Reinforced Point Of Sales Q1 2020 Sensitivity: Open
Regulatory Landscape Significant BTRC Tower Co Market Audit Licensing Power Q1 2020 More details on Business Highlights Sensitivity: Open
Grameenphone Ltd. 1 st Quarter, 2020 Results Jens Becker, CFO 22 April 2020 Sensitivity: Open
Growth momentum in Q1’20 impacted amidst regulatory restrictions 4.8% YoY Growth 4.1% YoY Growth EBITDA ** Subscription & Traffic Revenue* 7.0% 7.92 CAPEX/Sales*** Earnings Per Share *Revenues generated by own subscription (excludes interconnection) ** EBITDA before other items, as per IFRS 16 & Q1’19 restated Q3 2019 Q1 2020 ***Capex excluding license & lease; Capex/sales = moving average last 4 quarters Sensitivity: Open
Subscriber acquisition negatively impacted by number series scarcity Total Subscribers (Mn) 76.5 75.7 75.3 75.3 74.1 75.4% 99.6% 96.0% 4G Population Population Geography Coverage Coverage Coverage Q1’19 Q2’19 Q3’19 Q4’19 Q1’20 Q1 2020 Sensitivity: Open
3.0% growth in daily subscription & traffic revenue Total Revenue (BDT Bn) and Growth (YoY) DSTR* (BDT Mn) and Growth (YoY) 36.6 36.2 36.2 36.0 34.9 374 372 371 370 364 11.6% 10.6% 14.2% 13.4% 4.2% 6.6% 3.7% 4.8% 6.7% 3.0% Q1’19 Q2’19 Q3’19 Q4’19 Q1’20 Q1’19 Q2’19 Q3’19 Q4’19 Q1’20 • 3% YoY growth in daily subs & traffic revenue mainly contributed by growth in data revenue Q1 2020 *Daily revenues generated by own subscription (excludes interconnection) Sensitivity: Open
Strong YoY growth in data revenue (+24.6%) Active Data Users** (Mn) and % of Sub-base Data Revenue (BDT Bn) and % of Service Revenue* +5.7% +24.6% 40.6 40.6 40.4 39.8 8.5 38.2 8.0 7.8 7.2 6.9 53.7% 53.6% 53.1% 52.8% 51.6% 24.0% 22.5% 21.7% 20.2% 20.0% Q1’19 Q2’19 Q3’19 Q4’19 Q1’20 Q1’19 Q2’19 Q3’19 Q4’19 Q1’20 Data Revenue (Bn) % of Service Revenue Active Data User % of Sub-base • • Data revenue growth mainly driven by 16.1% Number series scarcity affected data user growth growth in data ARPU • Continued expansion of 4G network along with 4G conversion *Revenues generated by own subscription (includes interconnection) Q1 2020 ** Minimum 150 KB usage within last 3 months Sensitivity: Open
Stable service ARPU along with continued growth in data usage Service ARPU, AMPU and APPM Data ARPU, AMBPU and APPMB +56.9% 2,225 220 219 216 215 213 1,912 1,763 159 158 156 156 156 1,576 0.04 0.04 0.04 0.73 0.72 0.72 0.72 0.73 0.03 0.03 1,418 71 62 64 66 61 Q1’19 Q2’19 Q3’19 Q4’19 Q1’20 Q1’19 Q2’19 Q3’19 Q4’19 Q1’20 ARPU (BDT) AMPU APPM (BDT) ARPU (BDT) AMBPU APPMB (BDT) • 56.9% growth in AMBPU mainly driven by 4G • AMPU growth impacted by prolonged winter & general conversion holidays triggered by COVID-19 Q1 2020 Sensitivity: Open
Efficient opex management supporting EBITDA development Opex (BDT Bn) and Margin** EBITDA* (BDT Bn) and Margin** +4.8% +0.2% 11.1 11.1 11.1 23.4 11.0 22.9 23.0 10.9 22.9 21.8 64.0% 63.7% 63.5% 63.2% 62.5% 31.8% 30.6% 30.7% 30.8% 29.7% Q1’19 Q2’19 Q3’19 Q4’19 Q1’20 Q1’19 Q2’19 Q3’19 Q4’19 Q1’20 Restated Restated Opex (BDT Bn) Margin % EBITDA (BDT Bn) Margin % *EBITDA before other items Q1 2020 **As per IFRS 16, Q1’19 restated Sensitivity: Open
Q1’20 investment impacted by regulatory restrictions *Capex (BDT Bn) and Capex/Sales% 4.2 • 197 new 4G sites and 34 new 3G sites rolled out 3.9 3.8 • Total number of sites stand at 16,542 along with 10,219 4G sites 12.6% 11.8% 2.1 9.7% 7.0% 9.8% 0.4 Q1’19 Q2’19 Q3’19 Q4’19 Q1’20 *Capex excluding license & lease Q1 2020 Capex/sales = moving average of last 4 quarters Sensitivity: Open
Net profit positively impacted by FX gain and prior periods’ one -off NPAT (BDT Bn) and Margin* Earnings Per Share (BDT)* +25.8% 7.92 7.07 10.7 6.81 9.6 6.29 9.2 8.5 5.38 7.3 29.6% 26.5% 25.4% 24.4% 19.9% Q1’19 Q2’19 Q3’19 Q4’19 Q1’20 Q1’19 Q2’19 Q3’19 Q4’19 Q1’20 Restated Restated NPAT (BDT Bn.) Margin % *As per IFRS- 16, Q1’19 restated Q1 2020 Sensitivity: Open
OCF growth driven by lower capex *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 17.7 62.1% 58.3% 50.6% 53.2% 52.6% (0.04) (0.04) (0.04) (3.2) (0.06) (3.4) (3.9) (5.3) Q1’19 Q2’19 Q3’19 Q4’19 Q1’20 Restated Q1’19 Q2’19 Q3’19 Q4’19 Q1’20 Restated 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 Q1 2020 equivalents (excl. restricted cash) ; 12 months rolling restated EBITDA as per IFRS 16 Sensitivity: Open
Contribution to National Exchequer 779.1 85.0 84.2 • BDT 24.6Bn (equaling 68% of total revenues) contributed to national exchequer in Q1’20 61.8 58.6 51.1 • Contribution in the form of taxes, VAT, duties, 12.7Bn 4G license payment license/spectrum fees & revenue share 24.6 2015 2016 2017 2017 2019 Q1’20 Total Figures in BDT Bn. Q1 2020 Sensitivity: Open
Growth momentum negatively impacted due to increasingly challenging environment Committed to contributing to society and using our technology expertise to battle COVID-19 Building network for better data experience and strong distribution ecosystem remains our focus for future growth and efficiency Sensitivity: Open
Thank You Q1 2020 *In consideration of the local regulations, Grameenphone Ltd. does not provide any forward looking statements. Sensitivity: Open
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