Tore Johnsen Chief Executive Officer 2012 so far . . . - - PowerPoint PPT Presentation

Tore Johnsen

Chief Executive Officer

Grameenphone Ltd.

First Half of 2012

July 23, 2012

• Competitive mobile market
• Macro-economic pressure
• Focus on customer centricity
• Operational efficiency drives
• Moderate business performance

2012 so far . . .

Slide 2

33.8 35.2 36.5 37.6 39.3 44.3% 43.6% 42.7% 42.1% 41.9% Q2'11 Q3'11 Q4'11 Q1'12 Q2'12

+ 4% + 16%

Acquisition focused market . . .

• Acquisition drives to capture fair

share of market growth

• 2.8 million net customer addition
• 60% new customers from rural

and semi-urban areas

Subscriptions (Mn) Market Share*

Slide 3

Focus on customer experience . . .

Mobile PABX GP Offer

STAR subscriber program Web top-up and money transfer eCare – online customer service Customized services Bundle talk time

Slide 4

• Stabilized network after swap
• Superior quality
• Best indoor coverage
• Energy efficient
• 7,800 BTS locations
• 99%+ population coverage
• 89%+ geographical coverage

. . . Provided by the superior GP network

Slide 5

3.0 3.4 5.2 5.8 8.8

Q2'11 Q3'11 Q4'11 Q1'12 Q2'12 Internet users (Mn)

Increasing internet user . . .

+ 51% + 193%

• 8.8 million internet users at the

end of Q2 2012

• Discounted internet package for

first time user

• Internet micro-packs driving

growth of rural users

• Popularity of social networking

Slide 6

Internet awareness sessions in “I-camp” Special Olympics for the intellectually disabled Support for access to clean water in the rural areas ‘Click Green‘ photography contest for awareness on endangered nature

Social attachment . . .

Slide 7

‘Emerging Market Service Provider of the Year’ at the 2012 Frost & Sullivan Asia Pacific ICT Awards

International recognition . . .

Slide 8

Fridtjof Rusten

Chief Financial Officer

Financial Results

First Half of 2012

43.4 45.7 46.4

1H'11 2H'11 1H'12

Revenues (Bn BDT)

Moderate revenue growth . . .

+ 2% + 7%

• Slower growth due to intensified

competition

• New customers from low income

segment

• Segment based micro campaigns

giving positive results

• Non voice revenues showing

promising trend

Slide 10

22.0 25.7 24.7 51% 56% 53%

1H'11 2H'11 1H'12

6.8 12.1 9.7 16% 27% 21%

1H'11 2H'11 1H'12

Moderate profitability . . .

• Investing on market and

acquisition to achieve long term

• bjectives
• Inflationary pressure on opex
• Continuous cost optimization

initiatives

NPAT (Bn BDT) NPAT margin EBITDA (Bn BDT) EBITDA margin

Slide 11

22.7 22.8 22.8 23.2 23.2 53% 58% 55% 55% 52%

Q2'11 Q3'11 Q4'11 Q1'12 Q2'12

3.9 5.6 6.5 5.2 4.5 17% 25% 28% 22% 19%

Q2'11 Q3'11 Q4'11 Q1'12 Q2'12

Quarterly trend . . .

NPAT (Bn BDT) NPAT margin Revenue (Bn BDT) EBITDA margin Revenue & EBITDA margin Net Profit after tax

Slide 12

45.7 32.4 38.9 44.1 39.8 33.82 23.99 28.80 32.65 29.46

Q2'11 Q3'11 Q4'11 Q1'12 Q2'12

9.10 11.78 10.96 9.93 5.62 6.74 8.73 8.12 7.35 4.16

Q2'11 Q3'11 Q4'11 Q1'12 Q2'12

Earnings Per Share(BDT) NOCF and NOCF/Share NAV and NAV/Share NOCF (Bn BDT) NOCF per Share (BDT) NAV (Bn BDT) NAV per Share (BDT) 2.89 4.17 4.81 3.85 3.31

Q2'11 Q3'11 Q4'11 Q1'12 Q2'12

2H’11 8.98 1H’11 5.01 1H’12 7.16 1H’12 11.51 2H’11 16.84 1H’11 13.24

Key Financial Figures . . .

• Lower EPS mainly for market

spending and net finance expenses

• NOCF reduced due to opex payments

and income tax for 2011-12 return.

• Reduced NAV due to payment of final

dividend for 2011

Slide 13

23.2

23.4 36.7 27.9

13.5

1H'11 2H'11 1H'12

5.5 7.5 7.5

1H'11 2H'11 1H'12

Investments (Bn BDT)

Investment & Contribution . . .

• Spectrum rearrangement for efficient

use of national asset

• BDT 7.5 billion investment on quality

improvement in 2012

• What is good for the shareholders is

good for the nation at large

Payment to Govt (Bn BDT)

Slide 14

Interim Dividend 2012

Interim Dividend 2012 . . .

Slide 16

• In the Board meeting held on 21st July 2012, the Board of Directors has

declared interim dividend at the rate of 90% in cash (i.e. BDT 9 per share

• f BDT 10 each)
• Dividend declared from provisional net profit for the first half of 2012 and

retained earnings up to 31 December 2011.

• Shareholders as of the record date of 31st July 2012 will be entitled for this

interim dividend.

Regulatory Landscape

2G License renewal

• 2G License still not renewed by BTRC.
• VAT rebate mechanism still is at the Court and pending

for final judgment.

• The date has been fixed for hearing on 2nd Oct'12.

Regulatory Environment

Revised SIM registration guideline

• BTRC has directed not to sell pre-activated new

connections from 11 October 2012.

• This directive will effect the telecom industry and
• perators have raised concerns as below:

− Access to NID database – without which there is no mechanism to check subscriber identity. − No guideline on valid sale process at the retailer level. − Adequate time for implementation.

SIM tax on replacement SIMs

• NBR issued a notice claiming BDT 15.8 billion as SIM

tax on replacement SIMs, which is inconsistent with existing VAT act and GP stands.

• Court issued a stay order on the notice for 4 months

from the date of order i.e. 4th Jun’12.

Revision of Telecom Policy 1998

• Process to review the National Telecom Policy 1998

initiated by MOPT with the support of ITU.

• Well appreciated by the industry.
• Revised draft by 15 September 2012.
• Stakeholder consultation sessions arranged by MoPT in

presence of ITU consultant/experts.

• The MNOs are working to provide feedback to MoPT &

ITU consultants.

Slide 18

Regulators’ concern on recent

• rganization change:
• GP has responded to all queries and clarifications from

BTRC with regard to GP’s recent

• rganizational

restructure

Guideline on 3G License

• MoPT has opened up a draft guideline for 3G license

to facilitate opinion sharing between stakeholders, experts and any citizen by 22nd Aug’12.

Thank You

Q&A