Grameenphone Ltd. · DSEBD:GP
Grameenphone — Investors Forum, Kuala Lumpur (January 2004)
36 slides from Grameenphone's conference presentation, Jan 8, 2004
Slide 1: GrameenPhone Ltd. Presentation to the Investors Forum
GrameenPhone Ltd. Presentation to the Investors Forum in KL – 08.01.04
Slide 2: Agenda
Agenda: Country Macro Economy & Environmental Scan Country Telecom Market GP Shareholders & Management Structure GP Milestones Behind the Success Story Results – Actual (2001-Q3’ 2003) Contribution to Govt GP Vision
Slide 3: Agenda
Agenda: Country Macro Economy & Environmental Scan Country Telecom Market GP Shareholders & Management Structure GP Milestones Behind the Success Story Results – Actual (2001-Q3’ 2003) Contribution to Govt GP Vision
Slide 4: Bangladesh - Country Overview
Bangladesh- Country Overview ….. Name “The People's Republic of Bangladesh" Location South Asia Boundaries N&W- India, E-India & Mayanmar, S-Bay of Bengal. Area 147,570 sq km. Capital city Dhaka (Area 522 sq km.) Standard time GMT + 6 hours Climate Sub-tropical monsoon Population 135.6 million Relig
Slide 5: Bangladesh - Economic Profile (2002-2003)
Bangladesh- Economic Profile (2002-2003) GDP at current price US$ 52bn Annual per capita GDP US$ 388 GDP growth rate (constant price) 5.3 % Inflation rate (12 months ave) 5.14%percent National Savings rate (FY 01-02) 23.44 % of GDP Investment rate (FY 01-02) 23.15 % of GDP Principal Industries Jute,
Slide 6: Bangladesh - GDP
Bangladesh- GDP 5.9% 3005 5.4% 2732 4.9% 5.3% 5.5% 2535 5.0% 4.9% 5.2% 2371 2197 4.8% 4.6% 4.6% 2002 4.1% 1807 1663 3.3% 1525 1354 1195 1254 1105 1990- 1991- 1992- 1993- 1994- 1995- 1996- 1997- 1998- 1999- 2000- 2001- 2002- 91 92 93 94 95 96 97 98 99 00p 01 02 03p GDP (BDT-Bn)-at Current Market Pric
Slide 7: Bangladesh - Exchange Rate BDT/USD
Bangladesh- Exchange Rate- BDT/USD 23 59 59 58 54 20 51 49 46 15 40 40 41 38 39 36 31 32 33 30 31 26 12 24 25 8 20 7 6 15 5 16 5 7 6 3 5 4 3 3 2 2 3 2 2 0 1 1980 1981 1982 1983 1984 1985 1986 1987 1988 1989 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 Exchange Rate (BDT) Dev
Slide 8: Bangladesh - Inflation %
Bangladesh - Inflation % 10 9 8.87 8.91 8.31 8 7 6.99 6.65 6 5 5.14 4.56 4 3.86 3.28 3.41 3 2.73 2.52 2.36 2 1.58 1 0 0 1 2 3 4 5 6 7 8 9 0 1 2 3 89 -9 90 -9 91 -9 92 -9 93 -9 94 -9 95 -9 96 -9 97 -9 98 -9 99 -0 00 -0 01 -0 02 -0 19 19 19 19 19 19 19 19 19 19 19 20 20 20
Slide 9: Agenda
Agenda: Country Macro Economy & Environmental Scan Country Telecom Market GP Shareholders & Management Structure GP Milestones Behind the Success Story Results – Actual (2001-Q3’ 2003) Contribution to Govt GP Vision
Slide 10: Tele penetration in Bangladesh
Tele penetration in Bangladesh 6.00% 5.00% 1.80% Tele 4.00% 3.00% 1.30% Mobile 2.00% 0.80% GP 1.00% 0.50% BTTB 0.30% AKtel 0.20% CityCell 0.00% 0.00% Sheba 1997 1998 1999 2000 2001 2002 2003 Sheb apenetration rate CityCell penetration rate AKtel penetration rate BTTB penetration rate GP penetration
Slide 11: Mobile Market Progression
Mobile Market Progression Citycell, 14% Aktel, 14% GP, 68% 2001- 694K Sheba, 4% Citycell, 13% Aktel, 14% 2002- 1.13M GP, 69% Sheba, 4% 2003- 1.56M (as of September) Citycell, 14% Aktel, 16% GP, 67% Sheba, 3%
Slide 12: Telecom Market
Telecom Market International statistics indicate a total domestic telecom market of 2 to 3 million subscribers in Bangladesh Developed countries spend 3.0% of GDP on telecom services on average. Due to insufficient infrastructure and profitability, developing countries spend only 1.3% of GDP on tele
Slide 13: Agenda
Agenda: Country Macro Economy & Environmental Scan Country Telecom Market GP Shareholders & Management Structure GP Milestones Behind the Success Story Results – Actual (2001-Q3’ 2003) Contribution to Govt GP Vision
Slide 14: Shareholders and Senior Lenders
SHAREHOLDERS SENIOR LENDERS Loan: NOK 75 Million Ordinary Shareholders Shareholders’ Loan USD 20 Million Capital Composition
Slide 15: Organogram & Management
Organogram & Management Board of Directors Treasury Committee Operational Committee Managing Director (671) + 140 Director (60) Director (107) Finance + Company Secretary Sales & Marketing Director (189)+140 Director (30) Technical Corporate Affairs Director (194) Director (10) Customer Relations Hu
Slide 16: Agenda
Agenda: Country Macro Economy & Environmental Scan Country Telecom Market GP Shareholders & Management Structure GP Milestones Behind the Success Story Results – Actual (2001-Q3’ 2003) Contribution to Govt GP Vision
Slide 17: Milestones
Milestones ….. Nov. 96 - Received license. Mar 97 - Launched services in Dhaka. Apr. 97 - Signed interconnection agreement with BTTB. Sept. 97 - Leased railway fiber optics. Jun’ 98 - Started services in Chittagong. June 99 - Completed coverage of license obligation by launching system in Khulna. Ju
Slide 18: Milestones
Milestones May 00 - Reaching positive monthly net profit result and EBITDA. Jun 00 - Covering all 6 divisional towns. Jun 00 - Crossing 100,000 subscribers. Jan 01 - Approval of GP’s 3 year Project amounting to USD 591 by BOI. This is the highest investment project so far in Bangladesh. Jun 01 - Sol
Slide 19: Agenda
Agenda: Country Macro Economy & Environmental Scan Country Telecom Market GP Shareholders & Management Structure GP Milestones Behind the Success Story Results – Actual (2001-Q3’ 2003) Contribution to Govt GP Vision
Slide 20: Behind the Success Story: We Cover the Most
58 Districts in 6 Division -Sep 2003 Behind the Success Story We Cover the Most Existing Coverage Status Dhaka Dist Sylhet Dist 17 (17) 4 (4) Chittagong Dist Khulna Dist 8 (11) 10 (10) Barisal Dist Rajshahi Dist 5 (6) 15 (16)
Slide 21: Products
Products….. GP Regular - Post paid with PSTN connectivity GP National - Post paid with mobile to mobile EASY Prepaid - Prepaid with mobile to mobile EASY Gold - Prepaid with PSTN connectivity Village Phone -Postpaid with PSTN connectivity subsidised tariff
Slide 22: Value Added Service
Value Added Service Voice Mail SMS WAP SMS Push Pull News Service SMS Banking Event base SMS
Slide 23: Behind the Success Story: Points of Sales and Base Stations
Behind the Success Story 391 Point of Sales 57 Individual Agents 702 Base Stations 174 Roaming Partners
Slide 24: Behind the Success Story: Motivated Employees
Behind the Success Story 684 Motivated Employees 51-55 4 46-50 11 WE HAVE MADE IT HAPPEN 41-45 15 36-40 46 31-35 172 26-30 340 20-25 96 Employees at different age groups
Slide 25: Branding
Branding …… p Be the No - 1 p Ensure presence p Build image p Educate p Highlight achievements p Drawing attention p Creating lobby in favor p Provide sales support p Being the trend setter p Favorable press & media
Slide 26: Branding: Be the No 1
Branding WE HAVE MADE IT HAPPEN Be the No 1
Slide 27: Agenda
Agenda: Country Macro Economy & Environmental Scan Country Telecom Market GP Shareholders & Management Structure GP Milestones Behind the Success Story Results – Actual (2001-Q3’ 2003) Contribution to Govt GP Vision
Slide 28: Financial Results
Financial Results Mn USD * Revenue / EBITDA% EBITDA 152 153 94 95 87 61.9% 62.0% 50 57.1% Actual 2001 Actual 2002 Actual 2003 (upto Actual 2001 Actual 2002 Actual 2003 (upto Q3) Q3) * Revenue excludes HSs and GRLF
Slide 29: Financial Results
Financial Results Mn USD * Revenue /Net Profit (at)% Net Profit (after tax) 152 153 87 31.6% 48 45 29.0% 29 32.7% Actual 2001 Actual 2002 Actual 2003 (upto Actual 2001 Actual 2002 Actual 2003 (upto Q3) Q3) * Revenue excludes HSs and GRLF
Slide 30: Financial Results
Financial Results Mn USD Return on Fixed Assets Return on Capital (ROFA) Employed (ROCE) 244 211 163 199 152 23% 128 32% 18% 18% 22% 22% Actual 2001 Actual 2002 Actual 2003 (upto Q3) Actual 2001 Actual 2002 Actual 2003 (upto Q3) Net Profit after tax / Fixed Assets (Cumulative EOY) Net Profit after t
Slide 31: Financial Results
Financial Results Mn USD CAPEX & Accum CAPEX (Mn USD) CAPEX Per Sub (USD) 244 346 211 272 163 236 168 174 159 148 120 126 48 48 33 Actual 2001 Actual 2002 Actual 2003 (upto Actual 2001 Actual 2002 Actual 2003 (upto Q3) Q3) CAPEX Accumulated CAPEX Network CAPEX /add sub Total CAPEX /add sub Cumulativ
Slide 32: Agenda
Agenda: Country Macro Economy & Environmental Scan Country Telecom Market GP Shareholders & Management Structure GP Milestones Behind the Success Story Results – Actual (2001-Q3’ 2003) Contribution to Govt GP Vision
Slide 33: Contribution to Government
Contribution to Government 90.6M Total Contribution so far amounts 70.7M USD 284Mn 56.6M 31.4M 15.5M 11.1M 7.9M 0.2M 2003-up to 1996 1997 1998 1999 2000 2001 2002 Sept BR - 2.8 0.6 0.8 1 1.1 1.7 4.8 BTTB - - 3.1 3.9 9 6.6 19.3 10.2 MOPT/BTRC 0.2 0.6 0.6 1.6 4.1 10.2 12.2 7.7 Tax and Levies-direct -
Slide 34: Agenda
Agenda: Country Macro Economy & Environmental Scan Country Telecom Market GP Shareholders & Management Structure GP Milestones Behind the Success Story Results – Actual (2001-Q3’ 2003) Contribution to Govt GP Vision
Slide 35: Our Vision
Our Vision To be the leading provider of telecommunication services all over Bangladesh with satisfied customers, shareholders and enthusiastic employees.
Slide 36: Thank you. Any questions?
sh £¥ GrameenPhone Thank you Any questions ?
GrameenPhone — Investors Forum, Kuala Lumpur (January 2004) on 6ix