Annual Report 2018

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Annual Report 2018 ANNUAL REPORT 2018 ANNUAL REPORT Grameenphone Ltd. GPHouse Bashundhara, Baridhara, Dhaka-1229, Bangladesh Tel: +880-2-9882990, +88 01799882990 Fax: +880-2-9882970 Website: www.grameenphone.com EXPLORE Grameenphone wants to contribute to meet climate challenges and aims to reduce the consumption of resources and overall impact on the environment. In an effort to minimize paper consumption, we limit the MORE scope of the printed annual report within regulatory requirement. Grameenphone’s website provides extensive information about the Company and its current activities: www.grameenphone.com ANNUAL REPORT 2018 We live in a world where pocket-sized devices have become the gateway for limitless exploration and unbound resources, something previously unimaginable. Now knowledge, wisdom and opportunities are just a few clicks away, heralding a new horizon of technological empowerment. At Grameenphone, we help overcome boundaries through digitalisation. Our products’ platforms serve as a catalyst to realising dreams. We believe in continuous innovation and ensuring the best customer experience in everything we do. Welcome to our Annual Report 2018 This report aims to inform stakeholders about our financial and non-financial performances in 2018. This includes a look at how we create value over time and how our strategy addresses the challenges, risks and opportunities Grameenphone faces in a fast-changing world. WHAT’S INSIDE 01 Overview 02 Business Performance An introduction to our report with a snapshot of our An insight into our operation and how our strategy is business, key events and achievements in 2018 delivered 02 How We Create Value 15 Our Performance 2018 05 Our Culture 16 Quarterly Business Highlights 2018 06 Our Ethical Conduct 18 Message from the Chair and the CEO 07 Our Strategy 08 Our Journey 04 Governance 09 Products & Services Our framework for Corporate Governance, Management 10 Our Recognitions 2018 Team and the role and contribution of our Board 13 Corporate Information 28 The Shareholders 30 Organisational Structure 03 Sustainability 32 Directors’ Profile Our sustainability efforts 38 Management Team Profile 20 Sustainability and Partnership to Reduce Inequalities 41 Corporate Governance in Grameenphone 22 Climate Change - Moving Towards Green 51 Internal Control over Financial Reporting (ICFR) 25 Human Resources Management 52 Enterprise Risk Management 55 Audit Committee Report 56 Nomination and Remuneration Committee Report 05 Financial Analysis Our financial performance and statutory financial statements with associated audit report and supporting notes 06 Additional Information 58 Six Years’ Financial Summary Corporate Information and Notice 60 Value Added Statement 2018 150 Useful Information for Shareholders 61 Contribution to the National Exchequer 154 Notice of the 22nd Annual General Meeting 63 Directors’ Report 155 Proxy Form and Attendance Slip 87 Management's Discussion and Analysis 93 Auditors’ Report & Audited Financial Statements ANNUAL GENERAL MEETING View Our Annual Report 2018 ND OF GRAMEENPHONE LTD. Report Online Go green and help reduce 22 Place : International Convention City carbon footprints. Bashundhara (ICCB), Hall-1 (Gulnaksha) Joar Sahara, Khilkhet, Dhaka-1229 Visit: www.grameenphone.com Time : 10:30 AM to view the online version of this Date : 23 April 2019 Annual Report. >See page 154 for AGM notice Overview Technological evolution has led us all to experience an increasingly virtual life, connected to every HOW WE corner of the globe. The easy access and benefits of connectivity are leaving an indelible mark on our lives. Grameenphone believes that connected societies are empowered societies. We focus not only on CREATE VALUE connecting people and businesses but also creating value for our customers, our investors, our people and For Our Customers the communities in which we operate. We have invested We cover BDT347.4b since our inception 99.5% of the Bangladeshi BDT 34b population in 2018 to rollout more than five thousand 4G LTE sites, expanding 2G Our 3G population coverage is and 3G coverage, capacity enhancement, the widest in Bangladesh at as well as building higher IT readiness 95.2% MILLION 72.7 SUBSCRIBERS 5,000+ MILLION 4G MOBILE DATA USERS 4G Sites 20%+ 37.1 data traffic on 4G 10.7m 4G Devices on the Grameenphone network at the end of 2018 Digitising the Customer Journey 251 K MAU 3.38 million MAU 2.44 million MAU 1.49 million MAU Superior 376,285 Retail 2 UNIQUE RECHARGE * MAU- Monthly Average User GP Lounges OUTLETS 5.55 million Sub Base 1.85 million MAU 4.54 million MAU Presence for Customer experience of Digital Services 6,836 For Our Investors GP EXPRESS STORES 280% OVER dividend Including Interim Best Telecom Brand in Bangladesh 31,000 Dividend 2018 awarded by SHAREHOLDERS Bangladesh Brand Forum BDT 28 Per Share ACCOLADES Last 5-years Best presented Annual Report 2017 Total Shareholder by SAFA and ICAB Return 2 Best Corporate Governance Excellence award 2017 +129% by ICSB * As of 31 December 2018 How We Create Value Annual Report 2018 Ltd. Grameenphone Overview Business Performance Sustainability Governance Financial Analysis Additional Information For Our Employees Partnership with leading learning platforms to provide employees with Company sponsored One of the first app of its diverse eLearning library kind for HR and admin services offering over 15 services in one digital platform Launched GPHRBot- a telegram messenger BOT to 58+ provide ‘one-stop-solution’ Average Hours per employee spent on e-learning to all employee queries on policies, benefits and HR services on-the-GO! Employees spent 10,500 Hours on Classroom 70+ Learning Children accommodated in Day Care Centre For Our Society Child online safety Sensitised over directly educated more than 73,000 400,000 Teachers/Parents Social Media Campaign Generated More than Students We have contributed in over 208 schools 10mViews BDT 669.5b to the National Exchequer GP Accelerator Program We supported since our inception To help and encourage early stage social innovation and tech start-ups, 26 we have created a platform under GP start-ups Over Accelerator program throughout the 185,000 program and students from 1,453 schools Nationwide participated across the country in 5 Enrichment book reading program, of which this year with over 19,647 students were recognised Program and BDT 2.98m Alor Pathshala More than in cash grants 1.5m 3 BDT 14m+ books downloaded while over 1.35m non-financial support people visited alorpathshala.org How We Create Value Annual Report 2018 Ltd. Grameenphone Dreams that push the boundary of possibilities are the ones that end up changing the world. Grameenphone commits itself to reducing inequalities through technology. Making education based services the catalyst, Grameenphone is determined to make positive changes in how people learn and enlighten their communities. Overview Business Performance Sustainability Governance Financial Analysis Additional Information OUR Our strategy spells out what we do; our behaviours explain how we deliver; and our purpose is our reason for CULTURE existence. Being a part of or a partner to Grameenphone means sharing our commitment and passion for these key elements that shape our culture. STRATEGY BEHAVIOURS Internet Access Always Explore Personalisation Create Together Efficient operations OUR PURPOSE Keep Promises Digital positions Be Respectful Connecting you to what matters most. Empowering societies. Our purpose Connecting you to what matters most | Empowering Societies Connecting customers to what matters most has been the core of our business. Today internet connectivity impacts nearly every part of our lives, and we believe in making it personalised and relevant for our customers. It’s about more than good business; it’s empowering societies. Our behaviours We have four behaviours that guide the way we work: We believe growth comes from learning We believe diverse teams find better every day. We’re curious and we dare to solutions. We seek different perspectives, Always challenge, test, fail fast and pivot. share, involve and help each other Create Explore succeed. Together We believe that trust is key in all our We believe in the unique human ability to relationships. We take ownership and pride understand what matters for people. We Keep in delivering with precision and integrity. meet everyone at eye level, listen and Be Promises show that we care. Respectful 5 In addition to our purpose and behaviours, everyone working with or for Grameenphone is required to commit to, abide by and annually renew their signature on our Code of Conduct. Our Culture Annual Report 2018 Ltd. Grameenphone Overview OUR The Code of Conduct is the foundation of our corporate culture and sets out high standards of integrity on how we do business. ETHICAL Our Code guides us through day-to-day dilemmas and is the basis for how we behave as guardians of Grameenphone’s integrity. It helps us to make informed decisions and explains CONDUCT where to go for more information and guidance. The Code sets four key principles that are the basis of our ethical culture and define the core of our business conduct. Our Principles 2018 HIGHLIGHTS We play by the rules We follow laws, regulations and our policies and, if in conflict, we uphold the highest standard New Code of Conduct The new Code of Conduct covers all We are accountable for our actions possible compliance aspects and We actively seek information, understand our responsibilities, provides proper guidance. It helps us and recognise our wider impact on the societies in which we carry out our duties in an ethical and operate responsible manner. We are transparent and honest E-learning training module We are open and truthful about our challenges A dilemma based compliance training module was launched in November to We speak up enhance our understanding of the Code We ask questions when in doubt and raise concerns without of Conduct. concern of retaliation Ethics & Compliance Community We successfully laid down the foundations of a cross-company community of compliance professionals from different local and multinational businesses operating in Bangladesh.
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