2010 of Grameenphone Ltd.

February 7, 2011

Oddvar HesjedalChief Executive Officer

A year of growth . . .

+ 29%Aggressive Acquisition

• Addition of 6.7 million subscriptions

• Serving 30 million customers at the end of 2010

• Maintained market leadership at 44% level

• Costly subsidy for growth

Strong Revenue Growth• Steady growth in voice revenues

• Impressive growth in data revenues

• Handsets & data cards

• Stretched rural reach, declining ARPU

Growth vs Profitability• Subsidized acquisitions paying back

• Effective cost optimization initiatives

Slide 3

16.48

20.99 23.26

29.97

48% 47% 44% 44%

2007 2008 2009 2010

Subscriptions (Mn) Market Share

A year of innovation . . .

Slide 4

New price plans

Diversification of business

Bring rural customers close

Variety in data related products

Future proof technology

Focus on SME (Ekota)

Vehicle tracking

Information hotline 123

Slide 5

• Entire network GPRS/Edge enabled

• User-friendly data packages

• Mini-pack for economy users

• 82% growth in internet user from last year

• 78% growth in internet usage

• More than 500 CICs facilitate internet access across the country

Market thirst for data . . .

(in BDT Crore)

83

111

182

1.3 1.4

2.6

2008 2009 2010

Data Revenues Data Users (Mn)

+ 64%

A year of emotional attachment . . .

Slide 6

Letters from freedom fighters during 1971

Liberation War

In remembrance of 1952 Language

Movement

Paying respect to 40th

Victory Day by singing National Anthem

Another year of social responsibility . . .

Slide 7

Student scholarship programs

Supporting autistic and disabled

Combat climate change

E-Upazila

Bijoy er golpo boli (tales of victory)

Information boat

Partnership with Information Commission

A year in Green . . .

Slide 8

4 streams of GP Climate Change

Green Company

Emission Control

Green Business Offerings

Awareness & Adaptation

• GP Climate Ambition: „To become the leading corporate company in climate initiatives in Bangladesh within 2015‟

• Environmental management system to reduce 15% carbon emission by 2012 & 30% by 2015

• Solar BTS, use of renewable energy

• Cost and energy efficient green building: GPHouse

A year of achievements . . .

Slide 9

E-India Award

Biggest AGM

Best Published Accounts 2009

AAA Credit Rating

− First AGM as a listed company held on 8th Jun 2010

− Huge participation from shareholders, complying with all regulatory requirements

− For eGov mGovernance initiative of the year for ticketing services through mobile phone

− Won among 444 world-wide nominations

− “Best Published Accounts and Reports Award 2009” by the Institute of Chartered Accountants of Bangladesh (ICAB)

− Jointly 2nd position in “Best Presented Accounts Award 2009” by the South Asian Federation of Accountants (SAFA)

− Grameenphone Ltd. has been awarded the rating of AAA in the Long Term and ST-1 in the Short Term by the Credit Rating Agency of Bangladesh (CRAB)

Best Employer− Received “Best Employer Award 2010” awarded by BDJobs.com,

the largest on-line job portal in Bangladesh

GP is the fanatic sponsor of Bangladesh

National Cricket Team

Another year with Cricket . . .

Slide 10

FinancialsQ4‟10 and 2010

Raihan ShamsiDeputy CEO andChief Financial Officer

● Increase in voice revenue driven by new subscriptions

● Subscriber-friendly campaigns

● Surge in data usage through mini-pack economy users

● Sale of mobile device

● Stable average price with declining ARPU as GP reaches more rural

Revenues . . .+ 14 %

(in BDT Crore)

Slide 12

4,564

5,430

6,136 6,530

7,473

2006 2007 2008 2009 2010

1,674 1,704

1,877 1,934 1,959

Q409 Q110 Q210 Q310 Q410

EBITDA margin . . .

EBITDA EBITDA %

(in BDT Crore)

Slide 13

2,566 2,716

3,049

3,725 3,700

56.2% 50.0% 49.7%57.0%

49.5%

2006 2007 2008 2009 2010

● Despite growth in revenue, heavy subsidy reduced profitability

● Subsidy of BDT 680 crores slashed 18% of EBITDA

● Changes in VAT structure in the approved National Budget 2010-11 increased opex

● Effective cost optimization initiatives

Net Profit after Tax . . .

● BDT 1,071 crores in net profit after tax

● Lower net profit driven by heavy subsidy

● Higher tax expenses

● Adjustment of BDT 412 crores in deferred tax expenses in 2009

(in BDT Crore)

Slide 14

844

316

168

291 297

50.5%

18.5%8.9% 15.0% 15.1%

Q409 Q110 Q210 Q310 Q410

*235

14.0%

NPAT NPAT %

22.9%14.3%

1,497

1,071

2009 2010

*1,08516.6%

*Normalized adjusted for

deferred tax effect

NPAT NPAT %

Earnings per Share . . .

*Normalized adjusted for

deferred tax effect

● 2010 EPS stood at BDT 7.93 compared to BDT 12.08 of 2009

● Adjusting for effect of deferred tax, normalized EPS for 2009 and Q4‟09 was BDT 8.75 and BDT 1.79 respectively

Slide 15

6.44

2.34

1.24

2.15 2.20

Q4-09 Q1-10 Q2-10 Q3-10 Q4-10

*1.79

12.08

7.93

2009 2010

*8.75

(in BDT)

Key Financial Figures . . .

Slide 16

5,015 4,803

37.14 35.57

2009 2010

3,070 3,128

24.77 23.16

2009 2010

(in BDT Crore)

Net Asset Value (NAV) Net Operating Cash Flow (NOCF)

NAV NAV/Share NOCF NOCF/Share

● Heavy investment to build nationwide network in earlier years

● Current focus on network & data quality

● Higher capex in Q4‟10; waited till Q3‟10 for better deal for network modernization (Huaweii agreement)

● Market thirst for data usage clearly indicates 3G preparedness

● Grameenphone so far invested BDT 15,796 crores since inception

Investing for future . . .

(in BDT Crore)

Slide 17

1,037

846

2009 2010

116

196

134

400

Q110 Q210 Q310 Q410

Contributions to Government . . .

● 22% (BDT 665 crore) increase in contribution from last year

● BDT 250 crore more payment against corporate tax in 2010 than 2009

● BDT 18,502 crore accumulated contribution to national exchequer since inception till 2010

(in BDT Crore)

Slide 18

SIM Tax

Corporate Tax

Other NBR payments (Import duty, VAT, etc)

BTRC

Withholding tax and other payments

265 787

1,098

1,226 717

431 320

371

651

900

2009 2010

3,050

3,715

For every 100 Taka revenue

GP earns, Govtgets 50 Taka

*2009 contribution includes BDT 333 crore for spectrum purchase

Regulatory Landscape

Challenges . . .

Slide 20

BTASIM

Tax

3G

Toll

Free

Hotline

SAF*

2G License

Renewal

* SAF: New subscriber acquisition form with rigorous registration requirements as set by regulator

− BTA amendments recipe for reduced FDI

− SIM Tax – barrier to growth

− Subscriber registration guideline slowed down market growth

− Tolll-free hotline will reduce network quality & increase cost

− Long awaited renewal framework published

− Biggest challenge for the industry‟s business continuity

− Exorbitant and asymmetricproposal in spectrum pricing

− Will directly affect the development of ICT

− Market is Ready for 3G

− No Licensing framework yet

Existing Upcoming

Final Dividend 2010

● Grameenphone has so far been reinvesting most of its earnings for business expansion

● Shareholders have their right on the retained earnings

● The 2G renewal fees proposed by regulator make telecom business and future dividends to the shareholders uncertain

● With risks for the future, a good dividend is in the shareholders‟ interest

● The Board of Directors has recommended final dividend for the year 2010 at the rate of 85% in cash recommended (i.e. BDT 8.5 per share) on 6 February 2011

● With the above recommended final dividend, total cash dividend for 2010 stands at 120% (inclusive of 35% cash interim dividend declared and paid during 2010), which is subject to the shareholders‟ approval in the 14th AGM on 19 April 2011

Slide 21

Q&AQ&A