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Disclaimer
The following presentation is being made only to, and is only
directed at, persons to whom such presentation may lawfully be
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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
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and observe, such restrictions.
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Q3 2020
Highlights
Recovering Topline
11,000+ 4G/LTE Sites
COVID-19 & Seasonality Impact
Regulatory Impositions
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Recovering topline as economic activity resumes
• Constructive dialog with regulators and authorities established
• Tower Co. agreement approved by regulator
• Limited operations of the Courts under the COVID-19 situation delayed legal proceedings
CHALLENGINGREGULATORY
ENVIRONMENT
• Gradual recovery in economic activity
• Adverse impact from record rainfall and flood
• Rollout continued with 1070 4G/LTE sites added
• 59.6% YoY growth in digital recharge volume
• Reached 17.8 Mn 4G active data users
Q3 2020
OPERATIONAL
UPDATE
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Providing connectivity to 77.6 Mn (+4.1% QoQ)
total customers and 42.0 Mn data customers
BDT 71.3 Bn paid to National Exchequer in the
first nine months of 2020
In partnership with Bidyanondo Foundation,
Grameenphone Employees donated 40,000 Eid
meals to underprivileged families
In partnership with Bangladesh Red Crescent
Society, Grameenphone distributed 62,000 flood
relief packs with an ambition to distribute a total
of 100,000 packs
Grameenphone continues to exercise precaution
for employees, stakeholders, partners & vendors
Empowering Societies
Q3 2020
Sensitivity: Open
Economic activity increased amidst COVID-19
7 months into COVID-19
• Over 370K cases reported
• Cumulative deaths have crossed 5,500
• Overall declining trend in Q3
• All lockdown and restrictions lifted
• Increased economic activity from early September
• Educational Sector still closed
• Situation remains volatile
Q3 2020
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Recovering financial performance in Q3’20 led by increased economic activity
-1.4% YoY GrowthSubscription & Traffic Revenue*
-3.5% YoY GrowthEBITDA **
7.1% CAPEX/Sales***
6.59Earnings Per Share
Q3 2019
*Revenues generated by own subscription (excludes interconnection)** EBITDA before other items, as per IFRS 16 ***Capex excluding license & lease; Capex/sales = moving average last 4 quarters Q3 2020
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3.1Mn subscriber growth including 2.6Mn new 4G data users
Total Subscribers (Mn)
Q3 2020
99.6%Population Coverage
96.0%Geographic Coverage
83.3%4G Population
Coverage
Q2’20
75.7
Q4’19Q3’19 Q1’20
76.5
75.374.5
Q3’20
77.6
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Recovering topline with -1.4% growth in DSTR after -8.1% in Q2’20
*Daily revenues generated by own subscription (excludes interconnection)
Total Revenue (BDT Bn) and Growth (YoY)
Q3 2020
DSTR* (BDT Mn) and Growth (YoY)
36.6 36.2 36.2 33.1
35.6
Q2’20
6.6%
Q3’19
4.2% 3.7%
Q4’19 Q1’20
-8.2%
-2.8%
Q3’20
371 370 374342
366
Q4’19
6.7%
Q3’19 Q2’20
4.8%3.0%
Q1’20
-8.1%
-1.4%
Q3’20
• De-growth in voice revenue, partly offset by growth
in data revenue• Total revenue growth impacted by reduction in local
call termination rate
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Continued growth in data revenue & users
Q3 2020*Revenues generated by own subscription (includes interconnection)** Minimum 150 KB usage within last 3 months
• Data revenue growth mainly driven by 8% growth
in data ARPU
Data Revenue (BDT Bn) and % of Service Revenue*
• 1.1Mn data users added in Q3’20
• Continued expansion of 4G network along with 4G
conversion
Active Data Users** (Mn) and % of Sub-base
7.8 8.0 8.5 8.4 8.7
24.0%
Q1’20
21.7%
Q3’19
22.5%
Q4’19
25.7%
Q2’20 Q3’20
24.8%
+11.4%
40.6 40.6 40.4 40.9 42.0
54.8%53.1%53.7%
Q3’19 Q1’20
53.6%
Q4’19 Q2’20 Q3’20
54.1%
+3.4%
Data Revenue (Bn) % of Service Revenue Active Data User % of Sub-base
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Growth in data usage continued with YoY +46.5% in Q3’20
Service ARPU, AMPU and APPM
Q3 2020
158 156 156146 153
219 213 215201
217
0.72
Q1’20
0.73
Q3’19
0.73
Q4’19
0.73
Q2’20 Q3’20
0.71
-3.4%
Data ARPU, AMBPU and APPMB
64 66 71 69 70
0.04 0.030.030.03
Q3’19
2,225
Q4’19
1,912
2,603
0.031,763
Q3’20
2,582
Q1’20 Q2’20
+46.5%
ARPU (BDT) AMBPU APPMB (BDT)
• Growth in AMBPU mainly driven by 4G conversion
ARPU (BDT) AMPU APPM (BDT)
• Service ARPU recovering with -3.4% growth after
-8.2% growth in Q2’20
Sensitivity: Open
Efficient opex management with YoY -0.9% growth
Q3 2020
Opex (BDT Bn) and Margin**
*EBITDA before other items**As per IFRS 16
EBITDA* (BDT Bn) and Margin**
10.9 11.1 11.1 10.3
10.8
Q1’20
29.7% 30.7% 30.8%
Q3’19 Q4’19
31.1%
Q2’20 Q3’20
30.2%
-0.9%
Opex (BDT Bn) Margin %
23.4 23.0 22.9
20.6 22.6
Q4’19
63.5%
Q1’20
64.0%
Q3’19
63.2%62.4%
Q2’20 Q3’20
63.6%
-3.5%
EBITDA (BDT Bn) Margin %
Sensitivity: Open
Resumed 4G network expansion with increased investment
Q3 2020
• 1070 new 4G sites rolled out
• Total number of sites stood at 16,481 along
with 11,421 4G sites
*Capex excluding license & leaseCapex/sales = moving average of last 4 quarters
*Capex (BDT Bn) and Capex/Sales%
2.1
3.9
0.4
2.5
3.2
Q2’20Q4’19
7.0%9.8%
Q1’20Q3’19
9.7%
Q3’20
6.3%7.1%
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Net profit at 8.9 Bn; YoY comparison impacted by one-offs in Q3’19
Q3 2020
NPAT (BDT Bn) and Margin*
*As per IFRS-16
Earnings Per Share (BDT)*
7.3
9.2
10.7
7.3
8.9
29.6%25.4%
Q3’19
19.9%
Q1’20Q4’19
22.0%
Q2’20 Q3’20
25.0%
+22.4%
NPAT (BDT Bn.) Margin %
5.38
6.81
7.92
5.38
6.59
Q2’20Q3’19 Q4’19 Q1’20 Q3’20
+22.4%
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OCF de-growth driven by higher capex and lower EBITDA
Q3 2020
*OCF (BDT Bn) and OCF/Sales%
*OCF equals EBITDA minus Capex (excluding license & lease) as per IFRS 16**Net Debt = Short term debt + Long term debt - Cash and Cash equivalents (excl. restricted cash) ; 12 months rolling EBITDA as per IFRS 16
Net debt (BDT Bn) and Net debt/EBITDA**
21.3
19.0
22.5
18.1 19.4
Q3’19 Q2’20
58.3%
52.6%
Q1’20Q4’19
62.1%
54.8% 54.6%
Q3’20
-9.1%
OCF OCF/Sales %
(3.2)(3.9)
(3.4)
5.0
(0.04)
0.06
(0.04)
Q3’19 Q4’19 Q2’20
0.9
(0.04)
Q1’20
0.01
Q3’20
Net Debt Net Debt/EBITDA
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Contribution to National Exchequer
• BDT 71.3Bn (equaling 68% of total revenues) contributed to national exchequer in 2020
• Contribution in the form of taxes, VAT, duties, license/spectrum fees & revenue share
Q3 2020
58.6 61.8
84.2 85.0
71.3
20192016 2017 2018 YTD’20
12.7Bn 4G license payment
825.8
Total
Figures in BDT Bn.
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Recovering topline growth following increased economic activity
We are dedicated to using our technology expertise in supporting recovery from COVID-19
Continued growth in data & users reinforces our focus on strengthening our network with planned investment
Q3 2020
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