Analyst: Mohammad Asrarul Haque [email protected] Phone: +880 1753 509329

Robi Limited Earnings Update (2020_Year End) DSE: ; BLOOMBERG: ROBI:BD Current Market Price: 47.7 BDT Sector: Outlook: Neutral

Robi Axiata Limited (ROBI) is the second largest mobile network Industry Telecommunication operator in with 30% of the subscriber market share and Market Cap (mn) 249,849.3 51.5 million total subscribers as of February 2021. ROBI mainly offers Paid-up Capital 52,379.3 voice and data services to the people across the country under its two Rating Validity n/a brand names – Robi & Airtel. 52W High-Low 77.1-15.0

Forward PE 144.6 Key Catalyst Forward PB 0.29  The company’s net profit margins shows an improving trend Year End Forward PE 100.5 riding on the cost reduction and higher efficiency. After merger Current no. of shares 5237.9 with Airtel, the operator has been experiencing some expenses

2017A 2018A 2019A 2020A duplications and operational and financial adjustments that led Financial Information (BDT mn): to operating losses from 2016 to 2018. Against 7.9% CAGR in topline, CAGR in net profit was negative (-8.4%) that indicates Net Sales 68,255.5 67,982.3 74,811.7 75,642.7 that the operator is yet to fully streamline its expenses Gross Profit 15,426.0 19,919.3 27,838.1 28,284.3 duplications. However, this indicates that with normalization of EBITDA (1,245.3) 22,771.1 28,710.3 31,916.8 expenses and due to higher capacity future profits will increase EBIT (1,245.3) 5,650.7 8,843.8 10,397.5 significantly. Profit Before Tax (2,571.7) 2,679.7 3,789.0 5,508.6  As a result of the merger with Airtel in 2016, ROBI’s spectrum Profit After Tax (104.6) 2,147.3 169.1 1,553.3 holding increased significantly. Currently it has 44 MHz of Total Assets 142,101.2 144,614.1 171,968.6 199,464.9 Technology Neutrality Spectrum against 47.4 MHz by market

Total Debt 29,934.0 29,526.1 21,427.2 24,337.1 leader GP. Total Equity 58,670.8 60,591.6 59,588.9 65,956.1  Potential tax benefit from 5% lower tax rate after listing will Retained Earnings 4,867.0 6,787.8 5,785.1 6,914.4 contribute towards higher net profit of the company in the long Cash 1,725.4 2,997.2 4,870.6 9,832.9 run (if tax on PBT exceeds 2% minimum tax on turnover). Dividend (C/B)% 0/0 0/0 0/0 0/0  With the changing business landscape of telecom industry, ROBI Margin: is preparing itself for the future and formed a new subsidiary Gross Profit 22.6% 29.3% 37.2% 37.4% namely “Red Dot Digital Limited” that will focus on Hi-Tech/ EBITDA -1.8% 33.5% 38.4% 42.2% IT/ITES sector, developing software technology for mobile, IoT EBIT -1.8% 8.3% 11.8% 13.7% and FinTech services etc. It started its commercial operation in Pre Tax Profit -3.8% 3.9% 5.1% 7.3% 2020 and recorded 12.6 mn net profit in first year’s operation. Net Profit -0.2% 3.2% 0.2% 2.1% Besides, ROBI already penetrating services in video streaming, Growth (YoY): online entertainment platform for licensed web series in line Sales 33.5% -0.4% 10.0% 1.1% with global trend. Gross Profit 177.2% 29.1% 39.8% 1.6% Risk Factor EBITDA 85.6% 1928.5% 26.1% 11.2% EBIT 85.6% 553.8% 56.5% 17.6%  ROBI’s ARPU & AMPU declined in 2020 due to lower economic

Pre Tax Profit 72.7% 204.2% 41.4% 45.4% activity during the prolonged lockdown period, faster OTT adoption and the imposition of 5% higher supplementary duty Net Profit 98.5% 2153.2% -92.1% 818.6% on telecom services. Challenges likely to persist in coming years Profitability: too. ROAA -0.1% 1.5% 0.1% 0.8%  Due to high competition, the telecom industry is currently facing ROAE -0.2% 3.6% 0.3% 2.5% challenges with respect to falling ARPUs and MoUs although it Payout Ratio 0% 0% 0% 0% still has untapped growth potential in the rural segment. Leverage:  Fast-approaching broadband technology 5G may change the Debt Ratio 21% 20% 12% 12% dynamics of the industry in near future. Debt-Equity 51% 49% 36% 37%  The telecom industry is surrounded by high level of regulatory Interest Cov. Ratio -0.9 1.9 1.7 2.1 uncertainties and Robi is involved in various legal, tax and Valuation: regulatory matters and like other telecom operators it remains ^ Res. EPS (BDT) (0.02) 0.41 0.03 0.30 susceptible to adverse regulatory changes. Actual EPS (BDT) -0.02 0.46 0.04 0.30  Telecom Industry is highly competitive, capital intensive and NAVPS (BDT) 12.4 12.9 12.6 12.6 susceptible to technological changes. Hyper competition may EV/EBITDA -60.51 3.24 2.22 5.3 result in high price competition that may adversely affect the *SOURCE; ROBI AXIATA LTD. DISCLOSURES & EBLSL RESEARCH; business and profitability. ** KEY TERMINOLOGIES ARE PRESENTED AT THE END OF THE REPORT

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EQUITY RESEARCH Robi Axiata Limited (DSE: ROBI; BLOOMBERG: ROBI:BD)

Slow business growth caused by the pandemic along with higher taxation led to lower profitability

Increased economic activities in the second half resulted in moderate recovery despite persisting COVID-19 pandemic The country’s telecom industry was severely affected due to global COVID-19 pandemic since Slow growth in overall revenue March 2020. The country’s overall economic activities slowed-down due to country-wide general due to impact of persisting COVID- holidays along with restriction on public movement for more than two months, with a view to 19 pandemic controlling the spread of the pandemic. However, the situation started to depict signs of gradual recovery from the end of May and performance of the company during the second half of the year also resounded the same tune with improved business performance. On a full year basis, total revenue achieved 1.1% growth on YoY basis with 9.9% de-growth in voice revenue while 26.0% positive growth in data revenue. Revenue growth was driven by subscriber addition and higher data revenue despite impeding industry growth caused by the pandemic. Robi witnessed minor growth in overall revenue on a year on year basis despite attractive growth in data revenue as the operator is yet to recover fully from the effect of the persisting COVID-19 pandemic and its impact on overall economy. The pandemic led locked-down has also affected the industry subscriber acquisition to a great extent and as a result, Robi witnessed negative net subscriber addition in first half of the year. However, as the economic activities of the country started to recover, Robi managed to secure Robi positive net addition in its subscription base in second half of 2020 which has also contributed Holds positively towards the earnings of the company. Overall subscriber base of the company at the end of the year stood at 50.9 million with 3.9% ̴ 29.9% increase on YoY basis. Currently, Robi covers 99.6% of the population coverage, and 99% of the of the SIM 4G population coverage. At the end of Y2020 Robi had 13,204 2G sites, 11,338 3G sites and 13,173 market in 4G sites. Robi expanded is 4G population coverage to 97.4%. Currently provides Bangladesh telecommunication services covering 99.6% of the total population of Bangladesh.

Robi Active Subscribers & YoY Growth 26.8% 60,000 30.0%

50,000 19.5% 25.0%

40,000 50,901 20.0% 46,886 49,004 42,908 30,000 9.3% 15.0% 33,830 20,000 4.5% 3.9% 10.0%

10,000 5.0%

- 0.0% Y2016 Y2017 Y2018 Y2019 Y2020

Subscribers ('000) YoY Growth

Lower contribution from voice and interconnection caused reduction in ARPU Robi’s ARPU in 2020 was BDT121 against BDT124 in previous year, representing 2.3% de-growth. The service ARPU declined by 0.7% YoY in Q4, 2020. ARPU was mainly driven by lower contribution from voice and interconnection, partly offset by higher contribution from data. Along with Slowdown in economic activities slowdown in economic activities and disruption in operations caused by the pandemic, adverse and disruption in operations impact from record rainfall and flood during the year also affected services of the company and contributed towards lower ARPU caused negatively towards the revenue. There were multiple floods in some parts of the country, damaging network infrastructure of the company.

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STATEMENT OF CONSOLIDATED INCOME Revenue Common Size (% of Sales) 2019 2020 Growth (YoY) 2019 2020 Revenue 74,812 75,643 1.1% 100.0% 100.0% Cost of Operation 46,974 47,358 0.8% 62.8% 62.6% Direct cost of revenue 13,676 13,667 -0.1% 18.3% 18.1% Network operation and maintenance expenses 13,431 12,172 -9.4% 18.0% 16.1% Depreciation and amortization 19,866 21,519 8.3% 26.6% 28.4% GROSS PROFIT 27,838 28,284 1.6% 37.2% 37.4% Operating Expenses 4,110 2,903 -29.4% 5.5% 3.8% Selling and Distribution Expenses 10,701 11,457 7.1% 14.3% 15.1% Administrative Expenses 4,369 3,398 -22.2% 5.8% 4.5% PROFIT FROM OPERATIONS 8,659 10,526 21.6% 11.6% 13.9% PROFIT BEFORE WPPF 3,978 5,785 45.4% 5.3% 7.6% Allocation for WPPF 189 276 45.9% 0.3% 0.4% PROFIT BEFORE TAX 3,789 5,509 45.4% 5.1% 7.3% Provision for Income Tax 2,916 1,701 -41.7% 3.9% 2.2% Provision for Deferred Income Tax 704 2,254 220.3% 0.9% 3.0% PROFIT AFTER TAX FOR THE YEAR 169 1,553 818.6% 0.2% 2.1%

Key Financial Statement Data Year 2015 Year 2016 Year 2017 Year 2018 Year 2019 Year 2020 Revenue 51,628 51,131 68,256 67,982 74,812 75,643 EBITDA 5,240 (8,623) (1,245) 22,771 28,710 31,917 NPAT 2,402 (6,931) (105) 2,147 169 1,553 Total Asset 101,249 133,422 142,101 144,614 171,969 199,465 Current Asset 8,781 14,027 16,802 14,394 15,630 19,537 Non-Current Asset 92,469 119,395 125,299 130,220 156,339 179,928 Cash & Cash Equivalent 1,837 4,014 1,725 2,644 4,517 9,470 Equity 47,161 58,677 58,671 60,592 59,589 65,956 Retained Earnings 11,804 4,873 4,867 6,788 5,785 6,914 Current Liability 36,731 57,797 71,590 68,326 69,973 73,800 Non-Current Liability 17,358 16,948 11,840 15,696 42,407 59,708 Total Debt (Excl. Lease) 14,281 32,562 29,934 29,526 21,427 24,337 Total Lease Obligation 3 - - 510 32,511 34,417 Total Liabilities 54,089 74,745 83,430 84,022 112,380 133,509

Key Quarterly Numbers & Financials Q1,2019 Q2,2019 Q3,2019 Q4,2019 Q1,2020 Q2,2020 Q3,2020 Q4, 2020 Mobile Subscribers (Million nos.) 47.3 47.9 48.2 49 49.7 48 50.1 50.9 Growth (YoY) 3.8% 7.2% 3.1% 4.5% 5.0% 0.1% 4.0% 3.9% Internet Subscribers (Million nos.) 29 30.1 30.7 31.3 32.2 32.2 34.7 35.2 Growth (YoY) 10.1% 13.1% 8.6% 10.4% 11.1% 6.8% 12.9% 12.7% Revenue (BDT mn) 18,291 18,587 19,023 18,911 19,477 17,627 19,337 19,202 Growth (YoY) 12.3% 12.4% 8.6% 7.2% 6.5% -5.2% 1.7% 1.5% EBITDA (BDT mn) 7,148 8,499 7,210 5,948 7,871 8,823 7,881 7,632 Growth (YoY) 143.7% 108.7% 53.8% 20.0% 10.1% 3.8% 9.3% 28.3% EBITDA margin 39.1% 45.7% 37.9% 31.5% 40.4% 50.1% 40.8% 39.7% EBIT (BDT mn) 1,683 2,929 3,426 627 2,804 3,475 2,863 1,546 Growth (YoY) 280.0% 7807.9% 696.7% 1628.2% 66.6% 18.6% -16.4% 146.8% EBITDA margin 9.2% 15.8% 18.0% 3.3% 14.4% 19.7% 14.8% 8.1% NPAT (BDT mn) -246 -322 1,707 -969 188 584 389 393 Growth (YoY) 81.8% 36.0% -65.6% -0.7% 176.3% 281.3% -77.2% 140.5% Net profit margin -1.3% -1.7% 9.0% -5.1% 1.0% 3.3% 2.0% 2.0% ARPU (BDT) 123 125 126 122 125 115 124 121 MB/Sub (MB) 1,622 1,838 1,999 2,194 2,492 2,939 2,964 3,117

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Saturated voice market along with increased OTT usage causing lower contribution from voice segment The country’s voice market has reached almost saturation point as its industry penetration is now more than 100%. However, there still remains some scope for expanding market as unique market penetration is much lower (estimated 9 million unique mobile user penetration) due to multi-sim market nature in Bangladesh. During the year, Robi’s voice revenue experienced 9.9% de-growth mainly triggered by lower volume usage due to high voice call prices. With ever increasing access to data usage, people’s reliance on app based calls (such as call through messenger, WhatsApp, Viber, Emo etc.) increasing exponentially and posing a negative impact on the voice call volume and revenue from voice calls. However, de-growth in Robi’s voice revenue was offset by robust High voice call prices and reduction 26% growth in data revenue. Fast penetration of OTT applications has been playing a big role in in disposable income of price tipping the inflection point from voice to data usage. As people tend to increase consumption of pressured group encouraging mobile data while they stays at home, it resulted in higher data consumption. Besides, even higher OTT use. though higher OTT use has been reducing voice calls volume over cellular network significantly, it on the other hand resulting into higher consumption of data. Meanwhile, outgoing MoU per subscriber declined by 3.6% to 117 minutes in 2020 from that of 121 minutes in 2019. Adverse economic impact on the disposable income of price pressured group due to ongoing pandemic led to rational consumer spending and putting downside impact on the telecom service revenue.

Revenue from Voice Traffic (BDT bn) Growth in Voice Traffic

6.0% 43.0 3.1% 3.4%

41.7 4.0% 42.0

2.0% 41.0 40.3

0.0%

40.0

39.1 -2.0%

39.0 37.6 -4.0% 38.0 -6.0%

37.0 -8.0% -9.9%

-10.0% 36.0

-12.0%

35.0 Y2018 Y2019 Y2020 Y2017 Y2018 Y2019 Y2020

Increase in supplementary duty has further affected the revenue from voice segment In the budget for the fiscal year 2020-21, the government has increased the supplementary duty (SD) on telecom services from 10% to 15% with effect from 11th June 2020. Due to increase in cost of services, price pressured subscribers also adjusted their usage patterns and that resulted into the reduction of overall voice calls throughout the industry as users are now moving towards more OTT platforms. Average minutes of voice calls continued to decline after moderate economic recovery due to increase in cost of usage. AMPU declined by 2.4% to 168 minutes in 2020 from 172 minutes in 2019.

AMPU ARPU APPM Contribution from data revenue on the rise driven by growing data 0.74 subscription 200 0.74

180 0.73 0.74 Data revenue grew by 26% to BDT 27.2 billion in 2020 and contributed around 36% of total

160 0.73 revenue. Data revenue growth was mainly driven by 12.7% active data subscriber growth and 14%

140

0.73

174 174 171 171 171 171 growth in data ARPU (average data revenue per user per month). Growth in ARPU can be mainly

120 156 156 0.71 0.72 100 attributed towards higher data usage. Increase in data ARPU was also positively impacted by an

0.71 0.72 80 accelerated drive on the expansion of our 4G network capacity, along with the continued focus on

0.71 60 4G conversion. Average MB per user per month (ABMPU) increased by 50.4% to 2,878 MB/ month

0.71 40 in 2020 from that of 1913 MB/month in 2019. Even though Average data consumption per user 0.70

20

115 115 124 121 125 125 per months (AMBPU) also achieved 50% growth, reduction in data prices led to only 14% YoY - 0.70 1Q 2Q 3Q 4Q growth in data ARPU. Growth in AMBPU was mainly driven by 4G conversion. In the latest quarter 2020 (Q4), average price per megabytes (APPMB) witnessed 42.9% YoY growth.

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Meanwhile, Robi gained 0.53 million data users in Q4, 2020 even though the industry witnessed only 0.45 million net addition during the quarter. The number of data subscribers increased to 35.2 million as of December 2020. 69.2% of Robi's total subscribers are active internet users, which consists of 16.6 million 4G internet users. Increased reliance on internet and data centric activities in the year of pandemic fueled data consumption and revenue growth was supported by 4G user uplift. Robi reached 16.6 mn 4G active data users by the end of 2020 with 73% YoY growth.

Revenue from Data Service (BDT bn) Growth in Data Revenue

30.0 27.2 28.5% 28.0%

28.0% 25.0 21.6

27.5% 20.0 16.9

27.0%

15.0 13.4 26.5% 26.0% 26.0%

10.0

26.0%

5.0

25.5%

- 25.0%

Y2017 Y2018 Y2019 Y2020 Y2018 Y2019 Y2020

Data Subscription & Growth Data Subscription % of total subscription

Data Subscritipn ('000) YoY Growth 75.0% 69.2% 40,000 35,241 50.0% 70.0%

45.0% 35,000 31,265 63.8%

28,310 40.0% 65.0% 30,000 60.4% 44.3% 24,286 35.0%

25,000 18,877 30.0% 60.0% 55.8% 56.6%

20,000 25.0%

20.0% 55.0% 15,000 28.7%

15.0%

10,000 10.0% 50.0% 46.2% 5,000 16.6% 12.7% 5.0%

- 10.4% 0.0% 45.0% Y2016 Y2017 Y2018 Y2019 Y2020 Y2015 Y2016 Y2017 Y2018 Y2019 Y2020

Innovation leading the way towards future business sustainability despite meagre success in the short-term With rising use of OTT services and growing data accessibility in an environment of higher prices for voice traffic, the future business potential from conventional airtime services is shaky. While, broadband internet is getting paced at the same time. As more and more public places are now covered under the broadband WiFi service coverage, where multiple users are availing internet services from single user account. So, the long term outlook for cellular data remained shaky despite high growth scenario at current period. To tackily the upcoming challenges, Robi has taken initiatives to invest significantly in four major digital technology domains of Data Analytics: Big Data and Data Analytics, Blockchain, Artificial Intelligence & Machine Learning (AI/ ML) and Internet of Things (IoT). ROBI has formed a new subsidiary company, RedDot Digital Limited (RedDot) that offers a wide spectrum of IT and digital solutions such as IT application development and maintenance solutions, cloud and data center design solutions, IT consulting and process automation, IoT solutions, etc. to the parent as well as Global business trend in telecom other third-party clients. RedDot launched an “all in one” entertainment platform, that customers sector is changing from could view on their mobile devices or television sets, named as Binge. Some of the key features of conventional voice & data based Binge included: Stream of 3,000+ exciting and diverse content Original web series. Robi’s newly business model. formed subsidiary achieved BDT 140.8 million revenue and BDT 12.6 million net profit in its first years of operation, indicating good future prospect.

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OPEX reduction led to margin improvement despite unfavorable business context caused by the pandemic Operating profit margins of the company increased compared to the previous year (11.6%) driven by reduction in Network operation and maintenance expenses (-9.4%), administration expenses (- 22.2%) and other operating expenses (-29.4%). Robi underperformed industry peers in terms of cost efficiency. With comparatively higher cost of service due to lower economics of scale and high fixed cost, along with lower efficiency in With the streamline of expenses operating cost management, operating profit margin of ROBI is significantly lower (13.9%) than duplications originated due to the the industry leader (45.4%). However the operator has been continually improving its efficiency Robi-Airtel merger, operating with cost reduction. Meanwhile, there has been a significant shift in the adoption of digital profit margin expected to recharge during this pandemic, digital recharge volume increased compared to the same period improve further. last year, which helped in reduction of service, marketing and commissions expenses. Accelerated digital engagement will create the way for future cost reduction for the company by reducing dependency on agent based recharge channel.

Spectrum renewal & fresh acquisition will enable the operator to offer better service quality In March 2021, Robi acquired 2.6 MHz in 1800 band and 5 MHz in 2100 band at a toal cost of $225.6 million along with 15% VAT. The operator will have to deposit 25 per cent of the spectrum BTRC held fresh spectrum auction price by March 23 this year. The rest will be paid in instalments at 15 per cent per year over a five- in March 2021. year period. Earlier in December 2020, Robi also renewed 1.6 MHz spectrum allocation on 900 Band and 10 MHz on 1800 Band for additional 10 years, which were due to expire on 19 December 2020. Robi needs to pay nearly $2.4 million, or over BDT 20 billion, for the spectrum renewal in six instalments over a five-year period ending in 2025.

Potential Tax reversal in future may lead to higher profitability Effective tax rate declined to 71.8% in 2020 from 95.5% in 2019. Income tax expense of 2019 was significantly higher mainly due to the increase of minimum tax (0.75% to 2% of gross receipts) imposed by the government. Due to listing with capital market, Robi's corporate tax rate has been reduced by at least five percentage points and hence, NPAT margin to be raised significantly. However, ROBI reported BDT 2254 mn deferred taxes in 2020 any future reversal of tax expenses may have positive impact on the bottom-line. (Currency in BDT mn) 2019 2020 Revenue 74,811.7 75,642.7 Profit Before Tax 3,789.0 5,508.6 Current Tax Provision 2,916.2 1,701.2 Current Tax as % of Revenue 3.9% 2.2% Current Tax as % of PBT 77.0% 30.9% Deferred Tax Expenses 703.7 2,254.1 Reconciliation of Effective Tax Rate Tax Using Company’s Tax Rate 1,705.0 2,203.4 Corporate Tax Rate 45% 40% Tax effect of Provision for non-deductible expense 978.0 932.3 Income subject to different tax rate including impact of tax rate change -271.9 -117.5 Other components of tax as per ITO 1984 1,208.7 937.0 Total Tax Expenses 3,619.9 3,955.3 Effective Tax Rate 95.5% 71.8% Balance Sheet Items Deferred Tax Assets 3,031.6 1,052.2 Current Tax liabilities 5,914.2 5,608.2

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Long term Financial Performance Review Robi outperformed GP in terms of revenue generation over the last five years. Last 5 year’s CAGR Year-wise improvement in profit in revenue of the company was 7.9% against 5.9% by the market leader GP. Robi outperformed margins helping towards higher GP in terms of revenue generation over the last five years. Last 5 year’s CAGR in revenue of the profitability but minimum company was 7.9% against 5.9% by the market leader GP. In 2020, 36% of the revenue was turnover tax rate affected the generated by data segment and contribution from data revenue is growing significantly in line with bottom-line. the industry. In 2019, 56% revenue was contributed by voice segment while 29% of the revenue was generated by data segment. However, in line with the industry, contribution from data revenue is growing significantly. In 2019, revenue from data increased to BDT 19,928.8 million from BDT 15,578.6 million in 2018 registering 27.9% growth following 24.9% growth in previous year. Total operating expenses reported 7.4% decline and operating profit growth was 21.6% in 2020 than the previous year. Robi’s profitability was negatively impacted in 2016 and 2017 due to the merger and integration with Airtel. After successful integration of merged entities (Robi and Airtel), in spite of significant improvement in its operational profitability (EBITDA), Robi couldn’t get much benefit due to imposition of higher taxes in the form of minimum tax (0.75% to 2.0%), increase of Supplementary Duty (5% to 10%), higher SIM tax (100 to 200) etc.

About Robi Axiata Ltd. Robi Axiata Limited., a venture by Axiata Group, is the second leading telecom company in Bangladesh

Robi Axiata Limited (Robi) is the second largest mobile network operator in Bangladesh having 30% of the subscriber market share. Robi mainly offers voice and data services to the people across the country under two brands – Robi & Airtel. Robi offers data services over 3G universal mobile service (UMTS) and 4G long term evolution (LTE) network, short messaging services (SMS), diverse range of value-added services (VAS) and Major Events Date advanced digital and IoT solutions. Its services are available both Incorporated as TM International (Bangladesh) Limited 22-Oct-95 on pre-paid and post-paid platforms. 2G, 3G and 4G services are Launch of 2G service 15-Sep-97 offered in all 64 districts. Robi Axiata is a subsidiary Company of Change in Company- rebrand (from “Aktel” to “Robi”) 19-Aug-10 Axiata Investments (Labuan) Limited, which is also the subsidiary Launch of 3G service 28-Sep-13 Merger of Limited with Robi Axiata Limited 16-Nov-16 of the leading Asian telecom giant, Axiata Group Berhad, based Launch of 4G/LTE service 20-Feb-18 in Malaysia.  Incorporation: October 22, 1995, as TM International (Bangladesh) Limited Robi mainly offers voice and data  Commercial Operation: October 22, 1995 services to the people across the  Key Personnel: Mahtab Uddin Ahmed, (MD & CEO), Dato’ Mohd Izzaddin Bin Idris Chairman, country under two brands – Robi Vivek Sood Director, Dr. Shridhir Sariputta Hansa Wijayasuriya, Director, Randeep Singh & Airtel. Sekhon, Director, Nakul Sehgal, Director  Business Location: 53 Gulshan South Avenue Gulshan 1, Dhaka 1212.

Category of Shareholders No. of Shares % of Shareholding (in mn) Post-IPO Sponsors/Directors Axiata Investments (Labuan) Limited 3,238.3 61.8% Axiata Group Berhad 0.0 0.0% Bharti International (Singapore) Pte. Limited 1,178.5 22.5% Institutions (NTT DOCOMO INC.) 297.3 5.7% Other Shareholders* 0.0 0.00% Employee Share Purchase Plan (ESPP) 136.1 2.6% Eligible Investors other than Mutual Fund & CIS 116.3 2.2% Mutual Fund & Collective Investment Schemes (CIS) 38.8 0.7% General Public excluding NRB 193.9 3.7% Non Resident Bangladeshi (NRB) 38.8 0.7% Post-IPO 5,237.9 100.0% *Other shareholders include Neasden Asset Limited, Ephraim Assets Limited, Calamint Investments Limited and Thurso Investments Limited having 10 share for each valued BDT 10 per share.

Page 7 of 8 This research report is a property of EBL Securities Ltd. | Bangladesh Equities | 07 April 2021 N.B.: Disclaimer of the EBL Securities Ltd, the author(s) certification and rating definition have been provided at the end of the report. EQUITY RESEARCH Robi Axiata Limited (DSE: ROBI; BLOOMBERG: ROBI:BD)

Robi is the second largest mobile network operator in Bangladesh with 51.5 million subscribers as of end of February 2021 (out of total 173.357 million mobile subs cribers in Bangladesh) providing voice, data and other Spectrum Band Total Allocation (MHz) Allocation (MHz) Expiry internet based 900 9 7.4 10.11.2026 innovative digital 1.6 19.12.2030 services. It provides 4G 1800 20 7.4 10.11.2026 service in all 64 districts 10 19.12.2030 of the country and 2.6 07.03.2036 have the extensive 2100 15 10 11.09.2028 international 5 07.03.2036 coverage with 540 operators across 185 countries along with substantial 4G roaming footprint in 32 countries. It is the first mobile operator of the country to have commercially launched Voice over Long Term Evolution (VOLTE) technology on its 4G network and successfully conducted the trial of 5G.

Key Terminologies Used 1. AMPU: Average Minutes Per User Per Month 2. ARPU: Average Revenue Per User Per Month 3. APPM: Average Price Per Minutes 4. DPS: Dividend Per Share 5. EBIT= Earnings before Interest and Tax 6. EBITDA= Earnings before Interest, Tax, Depreciation & Amortization 7. EPS= Earnings per Share. 8. Free Float Share= Total shareholding- Sponsor or directors holding 9. GP: Ltd. 10. LTM: Trailing 12 Months 11. NAVPS= Net Asset Value Per Share 12. NPAT: Net Profit after Tax 13. OPEX= Operating Expenditure 14. PBT: Profit Before Tax 15. ROA= Return on Average Assets 16. ROE= Return on Average Equity 17. SMS: Short Message Service 18. VAS: Value Added Services 19. 2G, 3G & 4G/LTE: Second-Generation, Third Generation, Forth Generation/ Long- Term Evolution Cellular Technology

Page 8 of 8 This research report is a property of EBL Securities Ltd. | Bangladesh Equities | 07 April 2021 N.B.: Disclaimer of the EBL Securities Ltd, the author(s) certification and rating definition have been provided at the end of the report.