Tore Johnsen Chief Executive Officer 2012 so far . . . - PowerPoint PPT Presentation

Grameenphone Ltd. First Half of 2012 July 23, 2012 Tore Johnsen Chief Executive Officer

2012 so far . . . ● Competitive mobile market ● Macro-economic pressure ● Focus on customer centricity ● Operational efficiency drives ● Moderate business performance Slide 2

Acquisition focused market . . . + 16% + 4% ● Acquisition drives to capture fair 39.3 share of market growth 37.6 36.5 35.2 ● 2.8 million net customer addition 33.8 ● 60% new customers from rural and semi-urban areas 44.3% 43.6% 42.7% 42.1% 41.9% Q2'11 Q3'11 Q4'11 Q1'12 Q2'12 Subscriptions (Mn) Market Share* * As per BTRC Slide 3

Focus on customer experience . . . STAR subscriber Web top-up and eCare – online customer service program money transfer Customized services Bundle talk time GP Offer Mobile PABX Slide 4

. . . Provided by the superior GP network ● Stabilized network after swap ● Superior quality ● Best indoor coverage ● Energy efficient ● 7,800 BTS locations ● 99%+ population coverage ● 89%+ geographical coverage Slide 5

Increasing internet user . . . + 193% + 51% ● 8.8 million internet users at the end of Q2 2012 8.8 ● Discounted internet package for 5.8 first time user 5.2 ● Internet micro-packs driving 3.4 3.0 growth of rural users ● Popularity of social networking Q2'11 Q3'11 Q4'11 Q1'12 Q2'12 Internet users (Mn) Slide 6

Social attachment . . . Special Olympics for the intellectually disabled ‘Click Green‘ photography contest for awareness on endangered nature Support for access to clean water in the rural areas Internet awareness sessions in “I - camp” Slide 7

International recognition . . . ‘Emerging Market Service Provider of the Year’ at the 2012 Frost & Sullivan Asia Pacific ICT Awards Slide 8

Financial Results First Half of 2012 Fridtjof Rusten Chief Financial Officer

Moderate revenue growth . . . + 7% + 2% ● Slower growth due to intensified competition 46.4 45.7 43.4 ● New customers from low income segment ● Segment based micro campaigns giving positive results ● Non voice revenues showing 1H'11 2H'11 1H'12 promising trend Revenues (Bn BDT) Slide 10

Moderate profitability . . . ● Investing on market and NPAT (Bn BDT) 12.1 acquisition to achieve long term NPAT margin 9.7 objectives 6.8 27% ● Inflationary pressure on opex 21% 16% ● Continuous cost optimization initiatives 1H'11 2H'11 1H'12 EBITDA (Bn BDT) EBITDA margin 25.7 24.7 22.0 56% 53% 51% 1H'11 2H'11 1H'12 Slide 11

Quarterly trend . . . Revenue & EBITDA margin Net Profit after tax 6.5 23.2 23.2 22.8 22.8 22.7 5.6 5.2 4.5 3.9 58% 55% 55% 53% 28% 52% 25% 22% 19% 17% Q2'11 Q3'11 Q4'11 Q1'12 Q2'12 Q2'11 Q3'11 Q4'11 Q1'12 Q2'12 Revenue (Bn BDT) EBITDA margin NPAT (Bn BDT) NPAT margin Slide 12

Key Financial Figures . . . Earnings Per Share(BDT) NOCF and NOCF/Share 11.78 4.81 10.96 4.17 9.93 3.85 9.10 3.31 2.89 8.73 8.12 5.62 7.35 6.74 4.16 1H’11 2H’11 1H’12 1H’11 2H’11 1H’12 13.24 16.84 11.51 5.01 8.98 7.16 Q2'11 Q3'11 Q4'11 Q1'12 Q2'12 Q2'11 Q3'11 Q4'11 Q1'12 Q2'12 NOCF (Bn BDT) NOCF per Share (BDT) NAV and NAV/Share ● Lower EPS mainly for market 45.7 44.1 spending and net finance expenses 39.8 38.9 ● NOCF reduced due to opex payments 32.4 and income tax for 2011-12 return. 33.82 32.65 28.80 29.46 ● Reduced NAV due to payment of final 23.99 dividend for 2011 Q2'11 Q3'11 Q4'11 Q1'12 Q2'12 NAV (Bn BDT) NAV per Share (BDT) Slide 13

Investment & Contribution . . . 7.5 7.5 ● Spectrum rearrangement for efficient use of national asset 5.5 ● BDT 7.5 billion investment on quality improvement in 2012 ● What is good for the shareholders is good for the nation at large 1H'11 2H'11 1H'12 Investments (Bn BDT) First installment of 36.7 2G renewal 27.9 13.5 23.4 23.2 1H'11 2H'11 1H'12 Payment to Govt (Bn BDT) Slide 14

Interim Dividend 2012

Interim Dividend 2012 . . . In the Board meeting held on 21 st July 2012, the Board of Directors has ● declared interim dividend at the rate of 90% in cash (i.e. BDT 9 per share of BDT 10 each) ● Dividend declared from provisional net profit for the first half of 2012 and retained earnings up to 31 December 2011. Shareholders as of the record date of 31 st July 2012 will be entitled for this ● interim dividend. Slide 16

Regulatory Landscape

Regulatory Environment 2G License renewal SIM tax on replacement SIMs ● 2G License still not renewed by BTRC. ● NBR issued a notice claiming BDT 15.8 billion as SIM tax on replacement SIMs, which is inconsistent with ● VAT rebate mechanism still is at the Court and pending existing VAT act and GP stands. for final judgment. ● Court issued a stay order on the notice for 4 months ● The date has been fixed for hearing on 2 nd Oct'12. from the date of order i.e. 4th Jun’ 12. Revised SIM registration guideline Revision of Telecom Policy 1998 ● BTRC has directed not to sell pre-activated new ● Process to review the National Telecom Policy 1998 connections from 11 October 2012. initiated by MOPT with the support of ITU. ● This directive will effect the telecom industry and ● Well appreciated by the industry. operators have raised concerns as below: ● Revised draft by 15 September 2012. − Access to NID database – without which there is no ● Stakeholder consultation sessions arranged by MoPT in mechanism to check subscriber identity. presence of ITU consultant/experts. − No guideline on valid sale process at the retailer ● The MNOs are working to provide feedback to MoPT & level. ITU consultants. − Adequate time for implementation. Regulators’ concern on recent Guideline on 3G License organization change: ● MoPT has opened up a draft guideline for 3G license to facilitate opinion sharing between stakeholders, ● GP has responded to all queries and clarifications from experts and any citizen by 22nd Aug’ 12. BTRC with regard to GP’s recent organizational restructure Slide 18

Q&A Thank You