Tore JohnsenChief Executive Officer

Grameenphone Ltd.Second Quarter 2011

July 19, 2011

Slide 2

Strong business performance

● Competitive market with net add of 3.5 million

● GP’s addition of 1.8 million subscriptions, reaching deep in rural

● Retained market leadership, increase in market share

● Strong revenue growth (10%), driven by subscription growth and sale of GP branded handsets

● Higher EBITDA driven by revenue growth and controlled opex through cost efficiency initiatives

● Increased profit margin

+ 6%

+ 28%

*

* As per BTRC

26.46 28.65

29.97 31.98

33.82

44.1% 44.0% 43.7% 43.8% 44.3%

Q2'10 Q3'10 Q4'10 Q1'11 Q2'11

Subscriptions (Mn) Market Share

Slide 3

Focus on better customer experience

● Retail channel and distribution expansion through increase in POS by 80,000 in remote areas

● 78,000 calls answered per day through human agents

● More competitive consumer pricing with off-net FnF numbers

● Refreshed postpaid product with zero line rent, increased FnF

● Cap on daily internet usage to avoid unexpected high bills

● Working on a business intelligence tool to understand customer needs better

Slide 4

Leap forward in innovation

● Branded android handset “Crystal”, pioneer to introduce smart-phone at low cost

● “Q100” handset with QWERTY keypad

● Low-cost “C200” handsets through rural retail channels

● Internet mini-pack for social networking

● Credit line for postpaid connections in collaboration with commercial banks

Slide 5

● 26 solar, 1 wind-power sites

● Network swap: future proof architecture and less carbon footprint

● 4,000 air conditioners taken out, savings in power consumption 25MW

● Core network swap completed, BTS swap ongoing

● Continuous monitoring to measure network performance

Network Modernization, Going Green

Slide 6

● Network operations support from local entrepreneurs, reducing cost while helping local community

● Cleaning up Dhaka city to create awareness

● Community Power Project (CPP), jointly with University of Oslo; 136 households getting power in the evenings in the pilot phase

● Bangladesh Energy Regulatory Commission (BERC) is replicating GP’s CPP model to be implemented at national level

● Mobile for Health (M4H) initiatives in collaboration with US-Aid and D-Net. Services for pregnant mothers to aware and educate on health issues through mobile phone

Socially responsible company

Slide 7

● Highest corporate tax payer

● Higher payment against SIM tax

● Payment of BDT 3.9 billion on account of income tax in Q2’11

● Higher duty paid due to higher network equipment import

● Cumulative contribution BDT 208 billion since inception

Contribution to National Exchequer

Contribution to National Exchequer (Mn BDT)

9,984 9,834 9,176 9,442

13,993

Q2'10 Q3'10 Q4'10 Q1'11 Q2'11

* Contribution includes payments to NBR as income tax, SIM tax, duties, VAT and withholding taxes and payments to BTRC for revenue sharing.

Slide 8

● “Emerging Market Service Provider of the Year” for its 2010 business performance by Frost & Sullivan in Asia Pacific ICT Awards 2011.

● “Best Telecom Brand 2010” by the Bangladesh Brand Forum and Nielson Bangladesh for securing largest market share, network and services amid tough competition

Awards and Achievements

Slide 9

Regulatory Landscape

● National Budget 2011-12

− Long awaited reduction in SIM tax

− Growth in telecom industry will accelerate the digitalization of the country

● 2G License and Spectrum Renewal

− Authorities in the verge of finalizing renewal guideline and spectrum pricing

− High and asymmetric proposal for spectrum pricing along with stringent guidelines and elements not relevant to renewal of license still a big uncertainty for the industry’s business continuity

− GP is hopeful for an industry-friendly framework

● Long Term Policy for Telecom Industry

− A stable and long-term policy for the telecom industry needed to stimulate industry growth

− This will help operators to make decision on further investments in new services and technologies like 3G

Raihan ShamsiDeputy CEO andChief Financial Officer

Financial ResultsSecond Quarter 2011

Slide 11

Revenues (Mn BDT)

Boost in Revenue

● BDT 2,061 million increment from Q1’11

● Subscription growth escalated revenues

● Union Council elections

● Growth in SMS and VAS due to several occasions e.g. Bangla new year, SSC results and Council elections

● Attractive campaigns and consumer pricing

+ 10%

+ 21%

18,768 19,338 19,585 20,672

22,732

Q2'10 Q3'10 Q4'10 Q1'11 Q2'11

Slide 12

7,971

10,042 9,552 9,886

12,066

42.5%51.9% 48.8% 47.8% 53.1%

Q2'10 Q3'10 Q4'10 Q1'11 Q2'11

Increased profitability+ 22%

+ 51%

● BDT 2,180 million increment in EBITDA, BDT 1,031 million increment in net profit

● Revenue growth and controlled opex line through cost efficiency initiatives driving profitability

● BDT 1,651 million subsidy on SIM tax, BDT 443 million lower from last quarter

EBITDA (Mn BDT) EBITDA margin

NPAT (Mn BDT) NPAT margin

+ 36%

+ 133%

1,676

2,906 2,966 2,867

3,899

8.9%

15.0% 15.1% 13.9%17.2%

Q2'10 Q3'10 Q4'10 Q1'11 Q2'11

Slide 13

1,957

1,342

3,998

2,061

3,451

Q2'10 Q3'10 Q4'10 Q1'11 Q2'11

Capex for modernization and efficiency

+ 67%

+ 76%

Investment (Mn BDT)

● BDT 3,451 million investment for the quarter in line with plan

● 134 new base stations to expand coverage and capacity

● Capex mainly for network swap equipments

● Investment on business intelligence tool for better customer experience

● Cumulative investment since inception now stands at BDT 163 billion

Slide 14

49,227 52,133 50,374

53,241

45,662

36.46 38.61 37.31 39.43 33.82

Q2'10 Q3'10 Q4'10 Q1'11 Q2'11

1.24

2.15 2.20 2.12

2.89

Q2'10 Q3'10 Q4'10 Q1'11 Q2'11

7,663 6,730

9,549 8,788 8,969

5.67 4.98

7.07 6.51 6.64

Q2'10 Q3'10 Q4'10 Q1'11 Q2'11

Financial KPIsEarnings Per Share NOCF and NOCF/Share

NAV and NAV/Share*

* NAV and NAV/share has been restated based on reversal of tax provision for prior year

NOCF (Mn BDT) NOCF per Share (BDT)

NAV (Mn BDT) NAV per Share (BDT)

EPS (BDT)

● Impressive earnings per share due to higher profitability

● Increase in NOCF was mainly driven by revenue growth and finance income, offset by payments made in course of operation

● NAV decreased mainly due to payment of final dividend of the year 2010

Slide 15

4,833

5,872 6,766

13.5%15.1% 15.6%

1H'10 2H'10 1H'11

17,407 19,594

21,952

48.6% 50.3% 50.6%

1H'10 2H'10 1H'11

35,810 38,924

43,404

1H'10 2H'10 1H'11

Half Yearly Results

+ 12%

+ 21%

Revenues EBITDA

Net Profit After Tax

NPAT (Mn BDT) NPAT margin

EBITDA (Mn BDT) EBITDA marginRevenues (Mn BDT)

Compared to 1H’10,

● BDT 7,595 million (21%) increment in revenues against 28% subscription growth

● BDT 4,545 million increment in EBITDA, driven by revenue growth

● BDT 1,933 crore higher net profit with 2.1 percentage point improvement in margin

Slide 16

49,227 50,374 45,662

36.46 37.31 33.82

1H'10 2H'10 1H'11

14,998 16,279

17,757

11.11 12.06 13.15

1H'10 2H'10 1H'11

3.58

4.35 5.01

1H'10 2H'10 1H'11

Half Yearly ResultsEarnings per Share

NOCF (Mn BDT) NOCF per Share (BDT)Earnings per Share (BDT)

NOCF and NOCF/Share

NAV and NAV/Share*

* NAV and NAV/share has been restated based on reversal of tax provision for prior year

NAV (Mn BDT) NAV per Share (BDT)

● Steady growth in Earnings per share over the periods

● NOCF on an increasing curve, driven by cash generated from business

● NAV decreased due to payment of final dividend for the year 2010

Slide 17

Interim Dividend for 2011

● In the Board meeting held on 18th July 2011, the Board of Directors has declared interim dividend at the rate of 140% in cash (i.e. BDT 14 per share).

● The interim dividend has been considered as per the company’s approved dividend policy which allows special dividend of this kind.

● Being a debt-free company, GP’s current capital structure allows debt financing, which has been approved by the shareholders in the 14th AGM.

● Payment requirement for upcoming License renewal and future capex can be met through borrowings from both local and foreign sources and operational cash generation

Thank You