Sterlite Technologies Limited · NSE:STLTECH
Sterlite Technologies — Merger or Acquisition (July 2018)
14 slides from Sterlite Technologies's merger presentation, Jul 6, 2018
Slide 1: Presentation on Acquisition of Metallurgica Bresciana, European Cable Manufacture
Sterlite Technologies Limited Presentation on Acquisition of Metallurgica Bresciana, European Cable Manufacture : July 06, 2018 1
Slide 2: Sterlite Tech Designs, Builds and Manages Smarter Networks
Sterlite Tech Designs, Builds and Manages Smarter Networks We have a unique silicon-to-software capability, which is unparalleled in the world Silicon Optical Fibre System Integration Glass Preform Fibre Cables Software SILICON To SOFTWARE 2
Slide 3: Sterlite Tech's Product Portfolio and Strategy
Sterlite Tech’s Product Portfolio and Strategy High Tech: Centralized Platform for Glass/ Preform R&D Led Model Operational Global Platform for Fiber Draw Excellence Model Application Oriented Solutions: Global Platform for Fiber Cable Systems Local Presence Model 3
Slide 4: Sterlite Tech's Global Presence
Sterlite Tech’s Global Presence With its global manufacturing Sterlite Tech products and Strong Europe presence. platform, Sterlite Tech has solutions are used by 8 out of More than half of UK's data networks ~ 7% of global market share for its top 10 global service providers are wired by Sterlite T
Slide 5: Sterlite Tech's Growing Global Revenue Mix
Sterlite Tech’s Growing Global Revenue Mix +223% 54% of Total Revenues 27% FY18 46% Europe Revenue: 865 Cr 13% 37% of Total Revenues 1,735 13% 24% of Total Revenues Global Revenue Mix 957 11% 537 19% FY17 FY 16 FY 17 FY 18 Europe Revenue: 285 Cr 63% Revenue from exports (INR Cr.) 7% Europe is sustai
Slide 6: Target Overview: Metallurgica Bresciana
Target Overview: Metallurgica Bresciana Metallurgica Bresciana: Designs and manufactures special precision optical fiber cables and specialized copper cables for various communication network applications The production range covers specialized communication cable solutions, as result of continu
Slide 7: Strategic Rationale
Deal Rationale: Metallurgica Bresciana Strategic Rationale Europe Local Increased Market Presence market Share Access with with New and Wider New Products Product Customers Portfolio Portfolio Metallurgica Bresciana is an established European Optical Fiber Cable Manufacture with manufacturing base
Slide 8: Transaction Overview: Metallurgica Bresciana
Transaction Overview: Metallurgica Bresciana Sterlite Tech to acquire 100% of the target from current Financial Parameters CY17 shareholders (Euro Mn) Metallurgica Bresciana adds 3 Mnfkm cabling capacity to our Revenue 48.7 existing 15 Mnfkm cabling capacity Metallurgica Bresciana cabling capa
Slide 9: Proforma Consolidated Financials
Proforma Consolidated Financials Values in INR Cr. Sterlite Tech Metallurgica Bresciana Consolidated Proforma (FY18) TTM Revenue 3,205 364 3,569 EBITDA 789 60 848 PAT 334 35 363 (Post Minority interest) Acquisition is EPS accretive from Day 1 Interest cost of Euro debt ~ 2% 1 Euro = Rs.78.2 9
Slide 10: Sterlite Tech's Strategic Direction Setting
Sterlite Tech’s Strategic Direction Setting 2015 2015 2017 2018 Acquisition of Metallurgica Demerger announced: Acquisition of Elitecore $100 Mn PAT Bresciana,:- adds to Simplification of Technologies (Net Income ) global presence with Corporate Structure Strategic Plan by FY20 3 Mnfkm cable facilit
Slide 11: Demonstrated Value Compounding
Demonstrated Value Compounding +29% 3,205 789 2,594 +44% 2,275 542 475 1,619 345 1,148 181 FY 14 FY 15 FY 16 FY17 FY18 FY 14 FY 15 FY 16 FY17 FY18 Revenue (INR Cr.) EBITDA (INR Cr.) 334 30% +47% 20% 21% 201 18% 154 8% FY 16 FY 17 FY 18 FY 14 FY 15 FY 16 FY17 FY18 3 Year PAT (INR Cr.) - Post de-merge
Slide 12: Strong sales outlook riding on growing order book
Strong sales outlook riding on growing order book Order Book Mix +73% 5223 4573 3832 3018 3140 4095 3335 2339 1541 1641 1477 1499 1493 1239 1128 Q4FY17 Q1FY18 Q2FY18 Q3FY18 Q4FY18 Products Services & Software • Long term customer engagement driving predictability • Customer segment diversification r
Slide 13: Levers of Accelerated Growth
On Accelerated Growth Track Multiplier of Global A Fiber Demand Levers Led by 5G of Latent India Demand Accelerated $100Mn++ e× B for Product and Services Net Income Run-rate Growth (FY20) Strong Execution; C Capability & Market Access Drivers 13
Slide 14: Thank You
(€ Sterlite Tech « Thank You
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