Grameenphone Ltd. – Second Quarter 2013 Vivek Sood, CEO
2Q 2013
Continued growth momentum amidst competition
Subscriptions (Mn) and Market Share● Aggressive subscriber acquisition
● Improvement in top line growth
● Healthy underlying bottom line
● 5% increase in corporate tax rate
● Impact of adverse externalities
2
YoY Growth%
* Q2’13 Market
share estimated
*
39.29
40.95 40.02
41.79
43.97
41.9% 41.6% 41.2% 41.8% 42.0%
Q2'12 Q3'12 Q4'12 Q1'13 Q2'13
+ 12%
3
● New start-up price plan & value for
money offering
● Pioneering data centric bundle
● Segmented device offerings
● Free Life insurance
● International recharge system
● Campaigns for high value users
2Q 2013
Enhanced customer centric market initiatives
4
● Reliable network coverage & quality
− Widening gap on quality
parameters vs. competition
● Wider market coverage
− 564k reload POS
− 47k telco POS
● Improved visibility
● Building financial services
2Q 2013
Strong foothold to win the market
2Q 2013
Strategic partnership for global opportunities
● Best possible strategic advantage to partners
● Leveraging on telecom expertise & global
presence
● Giant step towards transforming BD into BPO
destination
● Strengthened position in offering enterprise
solutions
● Transfer of 51% of the company’s current
shareholding in GPIT
− 382,500 shares of BDT 100 par value
− Cash consideration of $ 26.69 per share*
5
* Subject to adjustment of the consideration for working capital and net debt
2Q 2013
Responsibility towards the community
● ICT infrastructure at University of
Dhaka
● Telemedicine in 20 centres
● Standing beside the victims of Savar
tragedy
− Free mobile call service
− Blood donation program
− 300 recharge booths
6
Upcoming 3G License
− Participation document submission
rescheduled to 1 Aug’13
− Date of auction also rescheduled to
2 Sep’13
− Resolution of 2G license VAT rebate
Directives for
implementation of MNP
− Directive published on 13 Jun’13 with 3
phase execution plan
− Stringent stipulated time frame
− Requested for consultation among BTRC &
AMTOB
NBR’s claim against
replacement SIM
− HC disposed of the writ petition of GP
and other operators on 6 Jun’13
− Instructed the commissioner of large
tax payer unit (LTU) to decide on the
matter
7
2Q 2013
Regulatory updates
Grameen Bank
commission report
− Report asserts irregularities in forming
consortium in 1996
− GP confident over fulfillment of all licensing
obligations
− Appropriate measures to secure investment
9
● Campaign driven usage growth
● Impact of promotional tariff
● Growth in non-voice, device and
adjacent business
● Unstable political environment
● Negative impact of tariff directives
2Q 2013
Gradual revenue growth amid intense competition
Revenue (BDT Bn)
46.4 45.5 47.4
H1'12 H2'12 H1'13
+ 4.1%
+ 2.2%
10
● Aggressive subscription
acquisition and market spending
● Controlled underlying nominal
opex
● Adverse impact of increased
corporate tax rate
● Foreign exchange gain from
currency appreciation
2Q 2013
Budgetary changes impacted net profit
EBITDA (BDT Bn) and EBITDA%
Net Profit after Tax (BDT Bn) and NPAT%
24.7 24.1 23.5
53.3% 52.8%49.5%
H1'12 H2'12 H1'13
9.7
7.8
5.1 21%17%
11%
H1'12 H2'12 H1'13
9.1
19%
Tax adjustment
4.0
11
● Highest ever quarterly revenue in
Q2’13
● Opex savings contributed increased
EBITDA margin
● Contribution from mobile service,
device and adjacent business
● Income tax adjustment of BDT 4Bn
pulled down Q2’13 NPAT
2Q 2013
Quarterly Trend
Revenues (BDT Bn) and EBITDA%
Net Profit after Tax (BDT Bn) and NPAT%
23.2 22.9
22.6
23.5 23.9
52% 52% 54%48% 51%
Q2'12 Q3'12 Q4'12 Q1'13 Q2'13
4.5
3.2
4.6 4.5
0.6
19%
14%
20% 19%
2%
Q2'12 Q3'12 Q4'12 Q1'13 Q2'13
4.6
19%
4.0
Tax adjustment
12
● EPS reduced due to increase in
corporate tax rate
● NAV lowered by dividend payment
and higher corporate tax rate
● NOCF reduced from higher income
tax payment and payments to vendor
2Q 2013
Key financial figures
Earnings per Share (BDT)
NOCF (BDT Bn) and NOCF/Share (BDT)NAV (BDT Bn) and NAV/Share (BDT)
3.31
2.38
3.42 3.36
0.43
Q2'12 Q3'12 Q4'12 Q1'13 Q2'13
Tax adjustment
3.39
H2’12
5.80
H1’12
7.16H1’13
3.78
39.8
30.8 35.5
40.0
33.8
29.46
22.84 26.26
29.62 25.04
Q2'12 Q3'12 Q4'12 Q1'13 Q2'13
5.62 6.00
8.47 9.07
6.02
4.16 4.45
6.27 6.72
4.46
Q2'12 Q3'12 Q4'12 Q1'13 Q2'13
H1’12
11.51H2’12
10.72
H1’13
11.18
2.96
13
● BDT 3.3 billion Investment for quality
enhancement
● Cumulative investment since inception
BDT 217 billion.
● Cumulative contribution to national
exchequer BDT 335 billion
2Q 2013
Investment and contribution
Capex (BDT Bn) and Capex/Sales%
Contribution to Government (BDT Bn)
19%
2G related payments
7.5
5.1
3.3 16.3%
11.2%
7.0%
H1'12 H2'12 H1'13
25.5 24.8
2.4
10.8 27.9
35.7
26.6
H1'12 H2'12 H1'13
14
2Q 2013
Interim dividend 2013
● In the Board meeting held on 17 July 2013, 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 2013 and retained earnings up to
31 December 2012.
● Shareholders as of the record date of 29 July
2013 will be entitled for this interim dividend.