Grameenphone Ltd. · DSEBD:GP
Grameenphone — FY2010 Earnings Presentation
22 slides from Grameenphone's earnings presentation, Feb 7, 2011
Slide 1: 2010 of Grameenphone Ltd.
2010 of Grameenphone Ltd. February 7, 2011
Slide 2: Oddvar Hesjedal, Chief Executive Officer
Oddvar Hesjedal Chief Executive Officer
Slide 3: A year of growth
A year of growth . . . Aggressive Acquisition + 29% • Addition of 6.7 million subscriptions • Serving 30 million customers at the end of 29.97 2010 • Maintained market leadership at 44% level 23.26 20.99 • Costly subsidy for growth 16.48 Strong Revenue Growth 48% 47% 44% 44% • Steady growth in voice
Slide 4: A year of innovation
A year of innovation . . . New price plans Diversification of business Bring rural customers close Variety in data related products Future proof technology Focus on SME (Ekota) Vehicle tracking Information hotline 123 Slide 4
Slide 5: Market thirst for data
(in BDT Crore) Market thirst for data . . . • Entire network GPRS/Edge enabled + 64% • User-friendly data packages 182 • Mini-pack for economy users • 82% growth in internet user from last year 111 • 78% growth in internet usage 83 • More than 500 CICs facilitate internet 2.6 access across the count
Slide 6: A year of emotional attachment
A year of emotional attachment . . . Letters from freedom Paying respect to 40th In remembrance of fighters during 1971 Victory Day by singing 1952 Language Liberation War National Anthem Movement Slide 6
Slide 7: Another year of social responsibility
Another year of social responsibility . . . E-Upazila Student scholarship programs Supporting autistic and disabled Combat climate change Bijoy er golpo boli (tales of victory) Information boat Partnership with Information Commission Slide 7
Slide 8: A year in Green
A year in Green . . . Green Emission • GP Climate Ambition: „To become the Business Control leading corporate company in climate Offerings initiatives in Bangladesh within 2015‟ • Environmental management system to reduce 15% carbon emission by 2012 & Awareness & Green 30% by 2015 Adaptation Company
Slide 9: A year of achievements
A year of achievements . . . − First AGM as a listed company held on 8th Jun 2010 Biggest AGM − Huge participation from shareholders, complying with all regulatory requirements − For eGov mGovernance initiative of the year for ticketing E-India Award services through mobile phone − Won among 444 wor
Slide 10: Another year with Cricket
Another year with Cricket . . . GP is the fanatic sponsor of Bangladesh National Cricket Team Slide 10
Slide 11: Financials Q4'10 and 2010
Financials Q4‟10 and 2010 Raihan Shamsi Deputy CEO and Chief Financial Officer
Slide 12: Revenues
(in BDT Crore) Revenues . . . + 14 % ● Increase in voice revenue driven by new 7,473 subscriptions 6,530 6,136 ● Subscriber-friendly campaigns 5,430 ● Surge in data usage through mini-pack 4,564 economy users ● Sale of mobile device ● Stable average price with declining ARPU as GP reaches more rural
Slide 13: EBITDA margin
(in BDT Crore) EBITDA margin . . . ● Despite growth in revenue, heavy subsidy reduced profitability 3,725 3,700 ● Subsidy of BDT 680 crores slashed 3,049 18% of EBITDA 2,716 2,566 ● Changes in VAT structure in the approved National Budget 2010-11 57.0% increased opex 56.2% 50.0% 49.7% 49.5% ● Effect
Slide 14: Net Profit after Tax
(in BDT Crore) Net Profit after Tax . . . 22.9% ● BDT 1,071 crores in net profit after tax 14.3% ● Lower net profit driven by heavy subsidy 1,497 ● Higher tax expenses *1,085 1,071 ● Adjustment of BDT 412 crores in deferred tax 16.6% expenses in 2009 844 50.5% 2009 2010 18.5% 15.0% 15.1% 8.9% NPAT N
Slide 15: Earnings per Share
(in BDT) Earnings per Share . . . *Normalized adjusted for deferred tax effect 12.08 6.44 *8.75 7.93 2.34 2.15 2.20 1.24 *1.79 2009 2010 Q4-09 Q1-10 Q2-10 Q3-10 Q4-10 ● 2010 EPS stood at BDT 7.93 compared to BDT 12.08 of 2009 ● Adjusting for effect of deferred tax, normalized EPS for 2009 and Q4‟09
Slide 16: Key Financial Figures
(in BDT Crore) Key Financial Figures . . . Net Asset Value (NAV) Net Operating Cash Flow (NOCF) 5,015 4,803 37.14 3,070 3,128 35.57 24.77 23.16 2009 2010 2009 2010 NAV NAV/Share NOCF NOCF/Share Slide 16
Slide 17: Investing for future
(in BDT Crore) Investing for future . . . ● Heavy investment to build nationwide 1,037 network in earlier years 846 ● Current focus on network & data quality ● Higher capex in Q4‟10; waited till Q3‟10 for better deal for network modernization (Huaweii agreement) ● Market thirst for data usage clearl
Slide 18: Contributions to Government
(in BDT Crore) Contributions to Government . . . 3,715 ● 22% (BDT 665 crore) increase in contribution from last year 371 3,050 431 ● BDT 250 crore more payment against 320 corporate tax in 2010 than 2009 717 ● BDT 18,502 crore accumulated 1,226 contribution to national exchequer since inception till
Slide 19: Regulatory Landscape
Regulatory Landscape
Slide 20: Challenges
Challenges . . . Existing Upcoming SIM BTA Tax 2G − Market is Ready Toll License for 3G − No Licensing framework yet SAF* Free Renewal Hotline 3G − BTA amendments recipe for − Long awaited renewal framework reduced FDI published − SIM Tax – barrier to growth − Biggest challenge for the industry‟s bu
Slide 21: Final Dividend 2010
Final Dividend 2010 ● Grameenphone has so far been reinvesting most of its earnings for business expansion ● Shareholders have their right on the retained earnings ● The 2G renewal fees proposed by regulator make telecom business and future dividends to the shareholders uncertain ● With risks for th
Slide 22: Q&A
Q&A Q&A