Annual Report 2014

cELEBRATING ourCUSTOMERSWhen we reached the 5 crore subscribers milestone last year, we realized once again the enormous responsibility we have on our shoulders. At Grameenphone, 5 crore is not just a number, our 5 crore subscribers are our reason to smile, push on and thrive. As our subscribers use our products and services to empower themselves and change their way of living, we become a part of their success stories too. Our internet and communication platforms help these dreamers to work towards fulfilling their aspirations. When our subscribers make us a part of their success stories, they become a part of our achievements and our reason to go beyond.

Whats Inside this ReportOverview This is Grameenphone 02

Vision, Mission & Values 03

History & Milestones 04

Products & Services 05

Awards 2014 06

Performance Highlights 2014 07

Corporate Information 09

Governance The Shareholders 22-23Organisational Structure 24

Directors Profile 25-29

Management Team Profile 30-33

Corporate Governance in Grameenphone 35-43

Internal Control over Financial Reporting (ICFR) 44

Enterprise Risk Management 45

Audit Committee Report 47

Financial Analysis Five Years Financial Summary 48-49Value Added Statement 2014 50

Contribution to National Exchequer 51

Directors Report 53-69

Auditors Report & Audited Financial Statements 70-112

Business Performance Business Highlights 2014 10-11Chairman and CEO Message 12-13

Management Discussion & Analysis 15-17

Sustainability Corporate Responsibility at Grameenphone 18-19Climate Change-Promoting Green for a Sustainable Lifestyle 20-21

Additional Information

02-09

22-47

48-112

10-17

18-21

114-119 Useful Information for Shareholders 114-116Notice of the 18th Annual General Meeting 118

Proxy Form and Attendance Slip 119

AnnualReport

2 0 1 4grameenphone

this isGrameenphone

AnnualReport

2 0 1 4grameenphone

This is Grameenphone02

MILLIONSUBSCRIBERS51

64 DISTRICTS NOWPOWERED WITH

3G

MOBILE OPERATORIN TERMS OF

SUBSCRIBERS & REVENUE

LARGEST

2013 September 12Awarded 3G License and related 10 Mhz of spectrum by Bangladesh Telecommunication Regulatory Commission.

2012 August 07Awarded 2G License by Bangladesh Telecommunication Regulatory Commission.

1997 March 26Launched its service on the Independence Day of Bangladesh.

2009 November 11Successfully listed on theStock Exchanges in Bangladesh.

1996 November 11Awarded a cellular license in Bangladesh by the Ministry of Posts and Telecommunications.

After eighteen years of operation, 51.50 million subscribers and more than 39 thousand Shareholders as of December 2014 are now empowered under a single network. The network is our strength and we hope this strength will be even stronger with you by our side.

VISION, MISSION& VALUES

Empowersocieties

We

are

here

to help our custom

ers

Mak

e it e

asyKeep prom

ises

Be ins

pirin

gBe respectful

VisionEmpower societiesWe provide the power of digital communication, enabling everyone to improve their lives, build societies and secure a better future for all.

MissionWe are here to helpour customersWe exist to help our customers get the full benefit of being connected. Our success is measured by how passionately they promote us.

Values

Make it EasyEverything we produce should be easy to understand and use. We should always remember that we try to make customers lives easier.

Keep PromisesEverything we do should work perfectly. If it doesnt, were there to put things right. Were about delivery, not over-promising. Were about actions, not words.

Be InspiringWere creative. We bring energy and imagination to our work. Everything we produce should look fresh and modern.

Be RespectfulWe acknowledge and respect local cultures. We want to be a part of local communities wherever we operate. We want to help customers with their specific needs in a way that suits way of their life best.

AnnualReport

2 0 1 4grameenphone

Vision, Mission & Values 03

Overview

BusinessPerform

anceAdditional

Information

Financial AnalysisSustainability

Governance

HISTORY & MILESTONES

AnnualReport

2 0 1 4grameenphone

History & Milestones04

2014 MarFastest coverage of

3G network across all64 districts of Bangladesh

2014 OctCelebrated50 million

subscribers

2005 AprLaunched djuice Brand

2005 AprReached 3 million subscribers

2005 AprLaunched Electronic Recharge System

for the first time in Bangladesh

2005 AugReached 4 million subscribers

2005 SepLaunched EDGE and Voice SMS for

the first time in Bangladesh

2005 OctReached 5 million subscribers

2010 JunFirst AGM held after

public listing

2008 JunReached 20 million

subscribers

2012 DecReached 40 million

subscribers

2013 OctLaunched 3G services

in Bangladesh

2007 AprLaunched Pay For Me service in Bangladesh

2007 DecReached 16 million

subscribers

2009 SepLaunched

GP branded handsets

2009 MayReached 21 million subscribers

2009Launched Call Block service

2009 NovSuccessfully listed on the

Stock Exchanges inBangladesh

2011Launched Customer

Experience Lab

2011Launched E-Care solution

through website

2011Swapped the entire network

2011 DecReached 36.5 million

subscribers

1998Launched M2M service for the

first time inBangladesh

1999Launched Pre-Paid

service for thefirst time inBangladesh 2001

Launched WAP Service for the first time in

Bangladesh

2003 AugReached 1 million

subscribers

2004 AugReached 2 million

subscribers

1997Grameenphones

Inauguration

2006 JanReached 6 million subscribers

2006 JulLaunched Cellbazaar.com

2006 NovCelebrated 10 million

subscribers

2006 DecLaunched Bill Pay service for

the first time in Bangladesh

PRODUCTS & SERVICES

AnnualReport

2 0 1 4grameenphone

Products & Services 05

Overview

BusinessPerform

anceAdditional

Information

Financial AnalysisSustainability

Governance

* In compliance with BTRC guidelines, GP is sharing its passive infrastructure with other licensees under Infrastructure Services.** Introduced different Financial Services in electronic ticketing, bill collection, electronic lottery and partner bank services under the brand MobiCash.

Handset Basic Phone,

Feature Phone & Smartphone (Android,

Apple iPhone, Mozilla Firefox)

Internet Device3G Modem & 3G Router

Instant Messaging Pay for Me

SMS Miss Call Alert Call Block Mobile TV Mobile Email GP World Facebook/Twitter Voice SMS Voice mail SMS MMS Voice Chat SMS Chat Online Mobile Games Welcome Tune Icche Tune Music Radio 3G Music Streaming Video Store Audio-Video Content News Alert Job Alert Sports Alert Election Information Health Line Education Line Blood Line Krishi Tottho Matrimonial Religious Service Muktijuddho Portal Video Doctor Entertainment Box Downloadable Content Infotainment Quick

Search Business Tune

Infrastructure Services*

Financial Services**

Outbound Roaming (Basic,

Data, SMS)Inbound Roaming

(Basic, Data, SMS)International SMS

International MMS

Nishchinto Bondhu djuice Apon

Shohoj Smile Spondon Amontron Village Phone GP

Public Phone BPO Internet SIM Business Solution Shofol

Ekota My Zone Emergency Balance 25 Paisa Offer Bundles

Weekly Packs Daily Pack Nishchinto 11 Paisa Offer Bondhu 27 Taka Super FnF Offer 7 Paisa Offer

STAR Bundle Call Drop Service

BlackBerry Service Web Based

SMS Business SMS Corporate Bulk SMS

Voice Message Broadcast Vehicle Tracking System Team

Tracker Buddy Tracker Train Tracking M-Reporting

GP-Connect M-Centrex E-Bill Go Broadband

3MB 9MB 60MB 500MB 2GB Heavy Browsing Pay As You Go

512kbps Packs4MB, 75MB, 250MB, 1GB, 2GB, Heavy

Browsing, Smart Plan 299, Smart Plan 499, 15MB Internet Scratch Card

1Mbps Packs3GB, Heavy Browsing, Smart Pack 699,

Night Heavy Browsing

Xplore Xplore Legend Business Solution Ekota GP Public Phone Internet SIM Bundles STAR Bundle Call Drop Service

512kbps Packs 4GB,8GB, 16GB,

35GB

800kbps Packs4GB, 8GB, 16GB, 35GB

1Mbps Packs4GB, 8GB, 16GB, 35GB

PREPAID

POSTPAID

ROAMING

DEVICEAD

JACEN

T BUSI

NESS

VALUE AD

DED SERVICES

ENTERPRISE SOLUTIONCOORDINATED WiM

AXINT

ERNET

2G

INTE

RNET

3G

AnnualReport

2 0 1 4grameenphone

Awards 201406

Awards 2014

Awarded best brand in mobile service provider category at the 6th Best Brand Award 2014 organized by Bangladesh Brand Forum in partnership with worlds leading brand research company Millward Brown.

Best Brand Award 2014

Won the awards from the South Asian Federation of Accountants (SAFA), The Institute of Chartered Accountants of Bangladesh (ICAB), the Institute of Chartered Secretaries of Bangladesh (ICSB) and The Institute of Cost and Management Accountants of Bangladesh (ICMAB) in

recognition of transparency, accountability and compliance with local and international standards.