Business overview and strategic direction

Vivek Sood, CEO Grameenphone Ltd.

2

Key developments since last event

19%

● Fair share of subscriber acquisition

● Restored revenue growth momentum

● Increasing operating cash flows

● Securing 10 MHz of 3G spectrum

● Strategic partnership with Accenture

● Corporate tax rate increase

Operating cash flow defined as EBITDA before other items, less capex excl spectrum fees

LTM = Last twelve months (4Q2012 – 3Q2013)

Deconsolidation of GPIT considered in 2013 only

Subscriptions (Mn) and Market Share

Operating Cash Flow (BDT Bn) & Margin

29.97

36.49 40.02

46.04

44.0% 43.0% 41.0% 42.0%

2010 2011 2012 Sep'13

28.54

34.64 36.17

40.15

38% 39% 39%42%

2010 2011 2012 LTM

Relative Market Performance in DSE***

3

● 43% annualized accumulated return

● 8.5% average annual dividend yield

● Stated dividend policy

Healthy shareholder return

19%

Dividend Per Share (BDT) and Yield*

12.0

20.5

14.0

9.00

4.9%

12.5%

8.0%

5%

2010 2011 2012 2013 (Interim)

*Considering year end GP closing price of DSE

**Including dividends reinvested

*** Price and index rebased

Feb’13 Nov’13Aug’13May’13

Total Shareholder Return**

Nov’12 Nov’13May’13

0%

2%

4%

6%

8%

10%

12%

14%

50

70

90

110

130

% of Total Turnover (RHS) GP Price DSEX DSE30

-25%

-15%

-5%

5%

15%

25%

35%

45%

4

Competitive and dynamic

industry

● Competitive acquisition drive continuing

● Voice continue to dominate with

immense data potential

● Pressure on price from competition

● Customer experience to differentiate

● Operational efficiency will be critical

● Regulatory uncertainty

5

● Recovery of economic momentum to

stimulate per capita income

● 43% of real mobile penetration*

● 16% mobile internet penetration**

● Large subscriber base to act as enabler

of financial services

● Partner to cater BPO and enterprise

solutions

Significant opportunities in a

changing environment

* Mobile penetration , GP estimates Sep’13

** Active Internet users, GP estimates 2013

6

Strategic priorities going forward

Internet for all Loved by customers Efficient operations

7

Regulatory landscape

Mobile

Number

Portability

National

Telecom

Policy

Spectrum

Management

& Roadmap

Telecom Act

A forward leaning company with revitalized market machineries

Allan Bonke, CMO Grameenphone Ltd.

Strengthened foothold in the market

9

Hero products and rate cutters Innovative customer offers

STAR program Price Perception

On-Net

(Bondhu)

Off-Net

(Amontron)

Any Net

(Nishchinto)

Recharge

based

Commitm

ent based Bundles

Dynamic

Pricing

Value for money index

Strengthened foothold in the market

10

Promoting brand

Trade campaigns Distribution/Retail meets

Drive visibility

Entering the era of Internet for All- Leading the mobile internet

11

Most preferred data Service Provider

to our target segments

- Best seamless experience, anywhere, anytime

- Value pricing, worry free experience

- New & relevant digital services, contents, apps

- Device bundling, retailing etc

Taking position of Partner in building

digital Bangladesh

- Build awareness, making internet meaningful

- M-Health, E-Education, E-Governance

- Empowering the nation with the opportunity

- Access to digital future, reducing the divide

To put internet in the hands of all Bangladeshi,

empowering them to transform the way they live, work, learn & play.

Entering the era of Internet for All- Launch of 3G

12

3G Device portfolio & trial offer for customers360 Degree ATL Communication

Initial coverage in

Dhaka, Chittagong

and Sylhet

- Use 3G in current sim

- No change in voice tariff

- Video call provisioning

- Simple Data Plans

2 speed tiers (512 kbps & 1 Mbps)

Smart Packs

2GB Standard Packs

Unlimited Packs (FuP)

3G Coverage

Internet for All- Removing the barriers

13

Smart DevicesFeature Phones

EDGE: The basic and nationwide coverage

3G: Speed with mobility

Wi-Fi: Speed in hotspots focusing on

experience

Wi-Max: Faster & Premium internet at home

and enterprise to offload 3G

Creating AwarenessEnabling through Devices

Providing Access

Long term focus to combat market challenges

14

Customer Centricity Segmented regional approach

Aspiring product and services Partnership for Internet and Content

Technological Superiority and its Transformation

Tanveer Mohammad, CTO Grameenphone Ltd.

Superior Quality Network Loved by Customers

GP Network continues to grow both in Voice & DataJan

Feb

Ma

r

Apr

May

Jun

Jul

Aug

Sep

Oct

Nov

Dec

Jan

Feb

Ma

r

Apr

May

Jun

Jul

Aug

Sep

Oct

2012 2013

Network Calling MinsData Volume Growth

Jan

Feb

Mar

Apr

May

Jun

Jul

Aug

Sep

Oct

Nov

Dec

Jan

Feb

Mar

Apr

May

Jun

Jul

Aug

Sep

Oct

2012 2013

GP’s Robust Network handling record traffic

Eid Ul Fitr Traffic Comparison 2013 vs. 2012

0:0

0

1:0

0

2:0

0

3:0

0

4:0

0

5:0

0

6:0

0

7:0

0

8:0

0

9:0

0

10:0

0

11:0

0

12:0

0

13:0

0

14:0

0

15:0

0

16:0

0

17:0

0

18:0

0

19:0

0

20:0

0

21:0

0

22:0

0

23:0

0

EID-ul-Fitr'13 (9-Aug-13) EID-ul-Fitr'12 (20-Aug-12)

• Highest ever traffic 1393 K Erl

catered

• Sustained 1 Mil Erl for 8 hours

• 23% higher than 2012 Eid

• No Network Outage

• Excellent QoS

Focus to strengthen rural footprint84% Leadership

Quality of Service maintained up to Thana Level

58%

84%

Focus to strengthen rural footprint

Subscriber Feedback: Operator

has a good network

89

4539

11

Source: Brand Tracker

Global Benchmarking reflects GP’s Call Drop Strength

0.5%

GP vs. Indian Operators Call Drop Rate

0

0.5

1

1.5

2

2.5

0 2 4 6 8 10 12

Aircel Airtel BSNL

Idea Uninor Vodafone• GP Call drop rate is below

0.5%. This is one of the best

in the region

• Global Benchmarking puts

GP among top operators in

terms of Call DropsGP Call Drop %

Data Source: Telecom Regulatory Authority of India (TRAI)

Fastest Network expansion across the country was the

key …..

62 115 164 232 343 427 5891281

2518

3833

5893

6698 7005 7031 7349

8178 8473

• 8473 sites

• 8 Switching stations

• 1074 KErl network capacity

46 Mn

Innovative Capacity Features changing Capacity

Enhancement Techniques

• Enhanced Dual Band (EDB)

enabled 27% capacity

Efficiency

• MSC in Pool (MIP)

Core redundancy in handling

traffic surges

• Dynamic Power Sharing

Radio resource efficiency

Network Analytics in User Level

Technology is moving towards Individual Customer’s Network Experience

measurement

Opex & Capex EfficiencyEfficient Operations

Opex and Capex Efficiency still continues

Opex/Network Mins

0.01

0.018

0.026

0.034

0

1000

2000

3000

4000

Q1-12 Q2-12 Q3-12 Q4-12 Q1-13 Q2-13 Q3-13

Opex (MnBDT) Opex/Network Min (BDT)

Capex/Net Add Sub

Vendor contract negotiation on equipment price, Site design optimization, efficient capacity

mgt. contributed in keeping the Capex downtrend in 2013.

2007 2008 2009 2010 2011 2012 2013

Technology Capex (Mn USD) CapEx over Add. Sub (USD)

License, 15%

Leased Lines, 3%

Rent, 11%

Manning, 20%

O&M, 10% Service, 19%

Energy, 21%

Others, 2%

Opex 2013

Continuous Focus on Operational Efficiency, enabling

Better Profitability

2010 2011 2012 2013*

*2013 till September

5.58

6.8

9 9

2010 2011 2012 2013

Electricity Tariff – cost/unit

Energy Cost/BTS/Month

Network Investment 2006-13 (Mn BDT)

GP Investment continues in Network

2006 2007 2008 2009 2010 2011 2012 2013

• Network Investment

BDT 130 Bn in last 8 yrs. 61%

investment in 8473 sites.

Network Investment continues in

2G Voice and Data in 2014 as well

as aggressive 3G Rollout

• Customer interfacing

Platforms for 2014

Significant Network Investment from 2006-08 in new site rollout and fiber laying has

enabled comparatively lower Capex in the following 2 years 2009-10.

Efficiency in Going Green Initiatives

• 400+ Green BTS

2500 tons CO2/year savings

• Community Power Project

136 Households

• GPHouse Green Workplace

Energy savings 11 GW-Hr/Year

• Recyling Swap Cabinets

15,381 BTS cabinets recycled

Into a New Era of 3GInternet for All

GP 3G On air

• Dhaka City – 30 Sep 2013

• Ctg. & Sylhet – 10 Oct 2013

• All Divisional Cities – Dec 2013

• Rest District Cities – Feb 2014

• Major Thanas – June 2014

3G Rollout sees GP covering major areas in 2013

Key take way

• GP Continues to provide Best

Quality network in Bangladesh

with Innovative features for

Capacity Mgt.

• Capex and Opex Efficiency

through efficient Capacity Mgt.

techniques and continuous

improvement

• Fastest Rollout of 3G compared

to competition with superior quality

Financial priorities and ambitions

Mustafa Alim Aolad, Head of Corporate Finance and Treasury

34

Impressive turn around amidst competition

19%

● Growth momentum in top line

– Service revenue

– Contribution form adjacent business

– Device initiatives

● Mostly stable EBITDA

– Customer acquisition

– Market combat plan

– Regulatory directives on tariff

– SIM tax reduction

– Opex efficiency

EBITDA is before other items

LTM = Last twelve months (4Q2012 – 3Q2013)

Deconsolidation of GPIT considered in 2013 only

Revenues (BDT Bn) and EBITDA%

74.73

89.0591.92

94.97

50% 53% 53% 51%

2010 2011 2012 LTM

35

Moderated profitability and capex prioritization

19%

● Healthy underlying bottom line

– 5% increase in corporate tax rate

– Spectrum amortization

– Interest on borrowings

– Controlled nominal opex

– Gain from GPIT sales transaction

– Foreign exchange gain

● Investment for quality enhancement

● Structured rollout of 3G

Capex excl spectrum fees

LTM = Last twelve months (4Q2012 – 3Q2013)

Deconsolidation of GPIT considered in 2013 only

Net Profit after Tax (BDT Bn) and NPAT%

Capex (BDT Bn) and Capex/Sales%

4.5

10.70

18.8917.50

15.33

14%

21% 19%16%

2010 2011 2012 LTM

4.64

19.97Tax adjustment

8.45

12.96 12.62

8.69

11%

15% 14%

9%

2010 2011 2012 LTM

36

Strive towards a more balanced capital structure

19%

Reduce the Cost of Capital

Diversify Funding Sources

Asset and Liability

Matching

Guiding thoughts…….

● Increase gearing with regular dividend distribution

● Ensure liquidity for strategic investments

● Alignment of long term asset and liability

Way Forward…..

● Assess investment opportunities

● Explore financing alternatives

● Arrange incremental funding

37

Systemic approach towards cost efficient operator

19%

• Methodical improvement approaches on Opex, Capex, Working Capital & Business Process

Efficiency have given good results in last few years

• Smartly managed the burden of macro-economic impact, increased regulatory cost and business

driver growth through driver based focused initiatives.

• Moving ahead on 2014 and beyond, Granular level concentration on structural Opex and business

model change would be the prime areas to address

19

%

Opex

Excellence

Business

Process

EfficiencyWorking

Capital

Efficiency

Capex

Optimization

Savings as % of Opex

LTM = Last twelve months (4Q2012 – 3Q2013)

3.28%

4.44%4.97%

2011 2012 LTM

38

Ambitions on delivering value

19%

• Higher single digitRevenue Growth

• Retain leadershipRevenue Market

Share

• Maintain at current levelEBITDA Margin

• Mostly at current levelCapex/Sales

• Improve gearing inline with planDebt

39

Disclaimer

19%

This presentation includes “very high level guidance on the future ." These may include, withoutlimitation, statements relating to our future business development and economic performance,future earnings and cash flow, our business strategy, regulatory changes, future policy of theBangladeshi Government relating to the telecommunications industry in Bangladesh, ourcompetitive position and the effects of competition, and the amount and nature of our capitalexpenditures and capital commitments. These guidance represents our current views withrespect to future events and are not a guarantee of future performance. You are cautioned not torely on these very high level guiding statements. A number of important factors could causeactual results or outcomes to differ materially from those expressed in any forward-lookingstatement.

We have obtained certain market data, industry forecasts and data used in this presentationfrom market research, publicly available information, including governmental publications, andindustry publications. Industry publications generally state that the information containedtherein has been obtained from sources believed to be reliable, but that the accuracy andcompleteness of the information is not guaranteed. While we believe these industry forecastsand market data are reliable, we have not independently verified this information, and we makeno representation as to the accuracy of this information.

Because the market data included in this presentation is derived from multiple sources, youshould not assume that it has been compiled on a consistent basis. You should exercise cautionwhen comparing market data from different sources or across different time periods. We makeno representation that such market data is accurate or complete or that it has been compiled orpresented on a consistent basis.