Investor Presentaiton

ANNUAL REPORT 2018-2019 30 Bangladesh has achieved an outstanding development in poverty alleviation during the last decade. The rate, incidence as well as depth of poverty have been dropping gradually. Poverty rate declined by 18.2 2000 percent point. According to the 7th Five Year Plan, it has 1800 been targeted to reduce to 18.6 percent by 2020. 1000 SOCIO-ECONOMIC PROGRESS PER GAPITA INCOME (US) 500 I C 171-10 1+14-17 **17-10 XFH-P ANNUAL REPORT 2018-2019 Government has formulated a detailed work plan with a view to achieving environmental targets of SDG's titled Bangladesh Climate Change Strategy and Action Plan, 2009 (BCCSAP 2009) to address the impact of climate change where both adaptation and mitigation activities have been considered. Towards this end, Bangladesh Climate Change Trust Fund (BCCTF) has been formed with national resources. Besides, with the assistance of the development partners Bangladesh Climate Change Resilience Fund (BCCRF) has also been formed. Bangladesh has achieved stable credit rating by Moody's (Ba3) and S&P (BB-) for the ninth consecutive time. 800 400 80 2015-10 CPI Inflation (%) GDP Growth [%] ADP (9) of GDP P 800 70 35 2016-17 60 2.00 30 2017-18 50 2018-10 25 40 30 20 20 15 10 10 0 5 Life Expectancy Literacy Rate (%) Poverty Rista (96) Power Generation (Year) Capacity (1000 MW) 0 Z-14 2014-11 2017-11 2011-11 Food Grain Production (MT Lakh) 100 0 24-11 HL-17 ZETAIL MILH Outlook 2019 25 20 16 10 Oress Foreign Exchange Reserves Billion US$) 2-16 HILL-T ZIT-IL MIM Nearly 71 percent of the country's total commercial consumption of energy is met by natural gas. At present there 27 discovered gas field and the net recoverable stock is 11.92 trillion cubic feet. In order to secure the long term energy supply highest emphasis is given on the diversification of energy sources, particularly on the efficient and best use of energy. Economic sustainability is linked to supportive communication and infrastructure. Towards this end government is implementing different projects on transportation and communication sector as priority basis. Mega-projects like Padma Bridge, Dhaka Elevated Expressway are being implemented. Besides, Railway communication is being invigorated and developed as an environment friendly, safe, affordable and dependable means of transport and communication. At the same time, various programs and projects for development and maintenance of navigability of different river routes, creation of new inland river ports, creating infrastructure facilities for container traffic through inland waterways etc are being implemented. Government has also embarked on modernizing, developing and expanding telecommunication system of the company. Total number of mobile phone subscriber stood at 15.75 crore as of January 2019. Bangladesh has achieved an outstanding development in poverty alleviation during the last decade. The rate, incidence as well as depth of poverty have been dropping gradually. Poverty rate declined by 18.2 percent point. According to the 7th Five Year Plan, it has been targeted to reduce to 18.6 percent by 2020. The scope and allocation of social safety net program are being extended every year under the purview of the National Social Security Strategy (NSSS). During the year 2018-19 a total of Taka 64,176.48 crore was allocated for the purpose. Currently focus has been given to achieving targets set for SDGs in this regard and by 2030 poverty rate to reduce to 9.7 percent while malnutrition rate to less than 10 percent. According to the latest World Bank report, Bangladesh is among the five fastest-growing economy of the world due to stable macro and export - oriented industry-led growth. While Asian Development Bank (ADB) dubbed Bangladesh as the fastest growing economy in the Asia-Paciic region. Continuity of reforms especially in the areas: financial sector, fiscal, infrastructure, human capital and business regulation are important. However, various internal and external risk factors might impede growth prospect. Public investment will remain strong as the government continues to expedite the implementation of large infrastructure projects. Therefore, sustainability of the country's macro economy is important through bringing stability to the financial sector, expanded industrial base, diversified export basket, improved business environment, increasing price competitiveness and human capital development among others. Capital Market in 2018 and Outlook in 2019 Year 2018 was challenging year for the capital market in Bangladesh. DSEX, the broad Index at the DSE, declined by 13.8 percent. Average daily turnover amounted to $ 65.6 million down by 37 percent compared to 2017. Market correction was driven by the financial sector (declined by 18.6 percent) which was affected by rising NPL and interest rate issues. Major factors were positive for Textile sector, which rallied almost 16 percent benefitting from US-China trade war and cheaper BDT. Fuel & Power sector also surged riding on earnings growth. However, rising US interest rate and currency triggered net outlow of foreign portfolio investment across the region. Year 2018 saw major developments in the Capital market. The strategic partnership between DSE and a Chinese consortium of Shanghai and Shenzhen Stock Exchanges was the most important event of the year. Besides, the regulatory move to extend tenure of closed end mutual funds for further 10 years was a significant step. At the same time, three major merger and acquisitions took place which relected increasing interest of global giants in Bangladesh. 31

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