Q1 2011 Grameenphone Ltd.

May 2, 2011

Tore JohnsenChief Executive Officer

Growth momentum . . .

+ 6.7%

Aggressive Acquisition• Addition of 2 million subscriptions, quarter

ended with nearly 32 million subscriptions

• Stable subscription market share

• Subsidy driven growth reaching lower ARPU segment and rural people

Strong Revenue Growth• Voice revenue in line with subscription

growth

• Stable growth in data revenues

• Growth in revenue from mobile device

Slide 3

+ 33.8%

Getting closer to customers. . .

Dynamic pricing• Location-based discount offer in tariff

• Efficient utilization of network capacity

• Well accepted by over 1 crore customers

Postpaid revamp• Prioritizing customer need

• Flexibility and comfort

New price plan for SME• Introduced three new price plans

• Customized to cater various necessity

Increase rural footprint• Over 186,000 retail outlets

• Micro-financing through BRAC and CARE

• Bangla contents in handsets

Slide 4

Slide 5

• Stable revenue growth from internet usage

• 2.4Mn internet users, 61% increase from a year ago

• Internet mini-packs getting popular

• Investment in progress to improve data quality

• Data usage trend indicates 3G preparedness

Stable growth in data . . .(in BDT Crore)

Data Revenues

+ 4.4%

+ 41.7%

Embracing future-proof technology . . .

Slide 6

Network modernization• Network up-gradation in progress

• GP appreciates customers’ patient support during temporary service disruptions

• Cutting edge technology and more sophisticated in nature to cater increased service requirement

• Better customer experience

• Simpler network architecture

Driving business growth• Reduced power consumption

• Reduction of carbon footprint withdrawing 7,500 air conditioners

• 50% less space requirement for base stations

14th Annual General Meeting

Slide 7

● 2nd AGM, after getting listed with the stock exchanges, held on 19 April 2011

● Conducted in compliance with all regulatory requirements

● Around 100,000 annual reports distributed within regulatory timeline

● Shareholders approved 2010 financial statements and 120% total cash dividend (including 35% interim dividend) among other agenda

● More than 41,000 shareholders having online banking facility received dividend within 24 hours of AGM completion

Q1 2011 Financials

Raihan ShamsiDeputy CEO andChief Financial Officer

● Growth driven by voice revenue

● Revenue growth in line with subscription growth

● Subscriber-friendly campaigns

● New subscribers contributing in revenue growth

● Revenues from mobile device

Revenues . . .

+ 5.5 %

(in BDT Crore)

Slide 9

+ 21.3 %

Total Revenues

EBITDA margin . . .(in BDT Crore)

Slide 10

● Improved EBITDA driven by revenue growth

● Heavy subsidy of BDT 209 crores

● Cost optimization initiatives in progress

EBITDA EBITDA %

Net Profit after Tax . . .

● BDT 287 crores net profit after tax

● Devaluation of Taka against foreign currencies resulted loss of BDT 29 crores

● Higher income tax expenses, BDT 309 crores in Q1’11

(in BDT Crore)

Slide 11

NPAT NPAT %

Earnings per Share . . .

Slide 12

(in BDT)

● Stabilized EPS in competitive market

● EPS affected by subsidy on SIM Tax

● Profitability maintained through business growth

● Visible result of cost optimization initiatives

Key Financial Figures . . .

Slide 13

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

NAV (BDT Crore)NAV/Share (BDT)

NOCF (BDT Crore)NOCF/Share (BDT)

● Investment for network capacity and data quality

● Implementing the vision of rural footprint

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

● 12 solar BTS rolled out during the quarter

● Invested over BDT 16,000 crores since inception

Investing for sustainable business . . .(in BDT Crore)

Slide 14

Contribution to National Exchequer. . .(in BDT Crore)

Slide 15

Payments against SIM Tax

Payments against Corporate Tax

Other payments to NBR (Import duty, VAT, etc)

Payments to BTRC

Withholding tax and other payments

● BDT 944 crore payments to the national exchequer during the first quarter

● BDT 23 crore more payments against corporate tax compared to last quarter

● Q4’10 import duty was higher due to higher investment on network

● Since inception, Grameenphone’s contribution to the National exchequer stands at BDT 19,446 crores

For every 100 Taka revenue GP earns, 

Govt. gets around 50Taka from various 

sources

Regulatory Landscape

Challenges . . .

Slide 17

− Regulators published renewal framework in Jan’11. 

− Framework proposed upfront fee of $1.6Bn from four renewing operators

− Contains elements not relevant to renewal of license e.g. unified licensing, social obligation fund etc. 

− Renewing operators expressed reservation and provided feedback within timeline

− Regulators have initiated dialogues with renewing operators

2G License Renewal

− Some progress has taken place regarding the 3G licensing

− The regulators need to put up a development roadmap for the telecom industry,including clear guidelines for 3G licensing

− A stable and long term telecom policy is a dire necessity to stimulate industrygrowth and enable the mobile operators to make further investments in newservices and technologies like 3G

Q&A