Grameenphone Ltd.Third Quarter 2010

October 23, 2010

Oddvar HesjedalChief Executive Officer

22.0 23.3 23.9

26.5 28.7

44% 44% 44% 44% 44%

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

Subscriptions (Mn) Market Share %

Captured Growth with Solid Results

+ 8%

+ 30%Aggressive Acquisition

• Addition of 2.2 million subscriptions

• 28.7 million at the end of third quarter

• Maintaining 44% market share in a fierce competitive market

• Subsidizing SIM Tax driving the growth

Consistent Revenue Growth

• BDT 1,934 crore revenue for the third quarter

• Growth in both voice and data traffic

• Solid growth in data revenues

Increased Profitability

• Increased profitability despite heavy subsidy

• New subscriptions paying back

• Cost optimization continues

Slide 3

Slide 4

• Entire network GPRS/Edge enabled

• User-friendly data packages

• Branded internet modem

• More than 550 CICs facilitate internet access

• 18% growth in user than last year

Impressive growth in Data Revenues

29 33

38 43

50

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

+ 15%

+ 70%

(in BDT Crore)

Data Revenues

Information Hotline 123

• One-stop information solution

• Education, news, sports, jobs, entertainment

Vehicle tracking system• Real time location information through

web/SMS

Embracing future proof technology

• Energy-efficient equipments with improved technology to be installed

• 140 off-grid BTS to be operated by solar energy by 2010

Innovation in Product and Technology

Slide 5

Partnering Development of Bangladesh

Student scholarship program

• Joined with “Grameen Shikkha” to aid merit in need

Supporting autistic and disabled

• Sponsored full-fledged treatment centre for autistic children, run by Govt

Combat climate challenges

• Target to reduce carbon emission by 30%

• Use of renewable energy

Slide 6

Contributions to Government

● 71% (BDT 406 crore) more contribution to Government in the third quarter than last year

● BDT 180 crore more payment against corporate tax in nine months of 2010 from the same period of 2009 despite lower corporate tax rate

● BDT 2,800 crore contribution in 2010

● Contribution to Government in 2010 represents 50% of GP‟s revenue

(in BDT Crore)

Slide 7

420

395 482

496

561

95

98 103

102

106

31

65

22

43

32

37

151 37

572

741

817

1,003 978

185 130

231 273

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

SIM Tax NBR BTRC BTCL/BR Withholding Tax

Regulatory Environment

Telecommunication Act

• Amendments approved by the parliament

• Heavy fines upto BDT 300 crores

• Deviations from Criminal Procedure Code

2G License Renewal

• Four operators‟ (including GP) 2G license to be expired in 2011

• Renewal framework yet to be initiated by the Government

3G License

• Framework for issuing 3G License yet to start by the Government

SIM Tax

• Impeding mobile industry growth

• Withdrawal can accelerate digitalization process of Bangladesh

• Penetration can go up to 61% by 2015

New Directives

• New Subscriber Acquisition Form

• Toll free number for customer service

• Quality of Service

• SMS tariff

Slide 8

GP House – a new way of work

Green Building

• Eco-friendly and energy efficient atmosphere

• More than 450,000 square feet

• Water treatment plant

New way of work

• „Paperless‟ and „Open‟ office concept

• Increased employee productivity

Slide 9

Tigers Whitewashed Kiwis

GP is the fanatic sponsor of Bangladesh

National Cricket Team

● Bangladesh whitewashed New Zealand 4-0 in the MicromaxODI Cup.

● The Series win, especially the result, took Bangladesh on a par with West Indies in the International Cricket Council ODI rankings with 67 points, putting the Tigers within the top-eight for the first time.

Slide 10

Interim Dividend 2010

● Declared interim dividend in cash at the rate 35% of the paid up capital (BDT 3.50 per share of BDT 10)

● Based on half-yearly performance of 2010

● Record date of 2nd November 2010

● Will be distributed within the timeframe stipulated by regulators

● 2009 final dividend was distributed in June 2010

Slide 11

Financial ResultsQ3‟10 and Nine Months of 2010

4,856

5,515

YTD Sep'09 YTD Sep'10

● New subscriptions driving the revenue growth

● Subscriber-friendly campaigns and innovative services

● Increased voice revenue in line with subscription growth

● 70% growth in data revenues in the third quarter than last year

Solid Revenue Growth

+ 3 %

+ 17 %

1,652 1,674 1,704

1,877 1,934

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

+ 14 %

(in BDT Crore)

Total Revenues

Slide 13

943 881

944

797

1,004

57% 53% 55%42%

52%

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

Strong EBITDA margin

● Strong EBITDA margin of 52% during the third quarter

● Revenue growth and subscription acquisition cost attributed by subsidy related to SIM tax driving the EBITDA margin

● Continuous cost optimization initiatives

+ 26%

+ 6%

2,843 2,745

59%50%

YTD Sep'09 YTD Sep'10

EBITDA EBITDA %

(in BDT Crore)

- 3%

Slide 14

652

774

13% 14%

YTD Sep'09 YTD Sep'10

175

844

316

168

291

11%

50%

19%

9%

15%

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

Increased Net Profit

● Net profit of BDT 291 crore driven by higher revenue and EBITDA

● Higher net profit margin (15%)

● Lower interest expenses due to low debt

+ 73%

+ 66%

*235

14%

+ 19%

*Normalized

NPAT (BDT Crore) NPAT %

(in BDT Crore)

Slide 15

1.44

6.44

2.34

1.24

2.15

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

Maximizing Shareholders’ Value*Normalized

● 50% growth in third quarter EPS compared to last year

● 7% growth on nine months‟ EPS after listing

● SIM tax restricting EPS growth

5.37 5.73

YTD Sep'09 YTD Sep'10

*1.79

EPS (BDT)

+ 73%

+ 50%

+ 7%

Slide 16

● BDT 134 crore investments in third quarter, mainly in voice & data capacity and network quality enhancements

● Efficient investments to serve with quality

● Population & geographical coverage more than 99% and 89% respectively

Investments for Data & Quality

154

404

116

196

134

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

632

446

YTD Sep'09 YTD Sep'10

(in BDT Crore)

Total Investments

Slide 17

Q&A