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
● 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
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