Sterlite Technologies Limited · NSE:STLTECH

Sterlite Technologies — Q4 FY2020 Earnings Presentation

34 slides from Sterlite Technologies's earnings presentation, May 12, 2020

Slide 1: Earnings Call Q4 FY'20
stl.tech Earnings Call Q4 FY’20 12th May 2020 © 2020-2021 Sterlite Technologies Limited 1
Slide 2: Safe Harbour
Safe Harbour Certain words and statements in this communication concerning Sterlite Technologies Limited (“the Company”) and its prospects, and other statements relating to the Company’s expected financial position, business strategy, the future development of the Company’s operations and the genera
Slide 4: Accelerating the transformation
Accelerating the transformation ₹10,037 Cr ₹ 5,154 Cr ₹ 1,104 Cr ₹ 472 Cr Stable Order Book Revenue EBITDA PAT * Highest ever Next Generation Partnerships Acquisition Investment Solutions Launched for ecosystem creation IDS ASOCS World’s 1st OF & OFC Key Account Mgmt. 358 22% Manufacturer to receive
Slide 5: By continuously developing new products in our offerings
By continuously developing new products in our offerings STL Portfolio Optical Interconnect System Integration Virtualised Access Network Software of Offerings Products Services Products Products New Launches in FY20 © 2020-2021 Sterlite Technologies Limited 5
Slide 6: Investment in technology & capabilities: IIT Madras, 358 Patents
through investment in technology & capabilities Strategic investment virtualised radio capability acquisition access solutions company for cloud customer segment Strategic collaboration vmware IIT Madras develop 5G access solutions for for 5G advancement in India large enterprises and telcos 358 Pat
Slide 7: Resulting in growth & diversification in a year of industry decline
Resulting in growth & diversification in a year of industry decline Customer Segments Geographical Distribution Major Developments (FY’20) Revenues (Rs. Cr.) Revenues (Rs. Cr.) 5,154 5,154  Large order for FTTH roll out from 2% an Indian telco 9% 3% 24%  Multi year contract for optical 22% fibre i
Slide 8: We continue to deliver data networks in record time
We continue to deliver data networks in record time Intrusion Proof Network Smarter Network Modernisation NFS (Indian Army Project) Completed Project Varun (Indian Navy Project): 76% and moving into O&M Completed 0% 100% 0% 100% Transformative Futuristic SDN ready Largest exabyte digital inclusion s
Slide 9: Our strategic focus areas
Our strategic focus areas Technology-led E2E Ecosystem Partnerships Solutions and Investments Increase funnel Increase win-ability Enhance capabilities with M&A & & & win-ratio in top 20 accounts total addressable market organic investments © 2020-2021 Sterlite Technologies Limited 9
Slide 10: Positively impacting lives & environment
Positively impacting lives & environment I Sustainability & Governance Overall impact till date 418,500+ 64,600+ MT World’s 1st 64,000+ Lives through Waste diverted Integrated OF & OFC Lives through Water Health initiatives away from Landfills manufacturer to receive Conservation initiatives ZWL cer
Slide 11: COVID-19 an inflection point for Data Networks Industry
COVID-19 an inflection point for Data Networks Industry © 2020-2021 Sterlite Technologies Limited 11
Slide 12: STL priorities in response
STL priorities in response All facilities in India, China, Brazil & Italy are operational Employee and Customer ecosystem commitment safety fulfillment Cash Flow Network & System integration services are also partially operational Preparedness planning for all for quick restart scenarios © 2020-2021
Slide 13: STL respond to help communities
STL respond to help communities 100,000+ 18 20,000 30,000+ Lives impacted Locations covered Cotton masks made by Jeewan Individuals reached out Jyoti beneficiaries through awareness HOLISTIC COMMUNITY RELIEF PLAN IMPLEMENTED PPE supplies to over 5000 frontline health Food distribution to over 1800+
Slide 14: In short term, there could be a delay in demand recovery
In short term, there could be a delay in demand recovery 3G Cycle 4G Cycle Temporary Pause 5G Cycle H1 FY21 H2 FY21 Degrowth Growth 619 590 553 493 511 507 477 456 429 382 314 246 263 218 173 189 118 140 75 95 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020E 2021E 202
Slide 15: In the medium term, inflection point for data networks industry
In the medium term, this will be the inflection point for data networks industry Surge in traffic Surge in cloud by 30% to 100% demand from & decrease in enterprise segment internet speed Enterprise applications demanding low Working from home is a necessity (to be latency shall push compared to wat
Slide 16: Telcos: 5G Investments to continue
Telcos: 5G Investments to continue *As of January 2020 Live Commercial 5G Network Telcos Planned Commercial • Chinese telcos put 5G Network together plan to spend $25 bn. on 5G  Mobile 5G is now commercially available from 46 operators across 24 markets worldwide. • AT&T sets aside $4bn for  76 op
Slide 17: Investments by citizen networks, enterprises & cloud companies to continue
Investments by citizen networks, enterprises & cloud companies to also continue Citizen Networks Enterprises Cloud We think the massive Many companies are As COVID-19 and widespread looking at long-term impacts every dependence on investments aspect of our work broadband during the crisis in their n
Slide 19: Customer investments are creating newer generation of networks
The investments by our customers are leading to creation of newer generation of networks which is unlike any past network 4G Data Network 5G Data Network Less end points & wireless last SIGNIFICANT NETWORK CREATION BY TELCOS Data Growth (5G, Edge Network creation, FTTH Rollouts and Rural Connectivit
Slide 20: STL reorganized to provide end to end solutions
STL reorganized to to take advantage of this opportunity by providing end to end solutions for our customers 4 Customer Telcos Citizen Cloud Enterprises Trends Segments Networks Companies SIGNIFICANT 4 End-to-end Solutions NETWORK CREATION BY TELCOS LARGE-SCALE Optical Fibre FTTx Access Network NETW
Slide 21: An example of Solution: FTTx mantra
An example of Solution: FTTx mantra Customer Problem Statement To connect Fibre to Network Software BSS dTelco Products the premises P OSS (MANO) Virtualised Access O ONT (CPE) In least time Products D Virtualised OLT At lowest cost Optical Interconnect S White Box Products Having a long network lif
Slide 22: These E2E Solutions are delivering results
These E2E Solutions are delivering results Faster Fibre provisioning for a leading French Carrier Transformative digital inclusion connecting 4,045 village in Maharashtra 30% Time saving faster installation 2x Deployment speed 5x More storage space utilisation 1.5 dB Future ready Optical Fibre IP MP
Slide 23: STL focus: become the default partner to our customers
STL focus is Telcos To become the default Optical Connectivity partner to our customers for Citizen all their data & IT networking Networks requirements Fibre deployment Cloud Companies With our unique integrated end to end solutions FTTx Access Network combined from our offerings Enterprises Networ
Slide 26: Starting the year with a stable order book
Starting the year with a stable order book 10,516 10,037 Order Book Revenue 5,223 5,087 5,154 3,018 2,594 3,205 FY17 FY18 FY19 FY20 Open Order Book Customer Segment wise Open Order Book Split Enterprises O&M 16% 25% Telcos 39% 45% 0.3% 75% Citizen networks Cloud Rest © 2020-2021 Sterlite Technologie
Slide 27: Open Order Book Spread & Order Inflow
Open Order Book Spread & Order Inflow Order Book Spread Order Book Inflow ~ 6,000 2,662 2,076 ~ 4,000 1,606 FY21 FY 22 and beyond Q4FY19 Q3FY20 Q4FY20 Strong RFQ Participation Funnel ~ Rs. 8,500 Cr © 2020-2021 Sterlite Technologies Limited 27
Slide 28: Creating sustainable value for shareholders in the long term
Creating sustainable value for shareholders in the long term +23% 5,087 5,154 +23% 1,164 1,104 789 3,205 2,594 542 2,275 475 FY 16 FY17 FY18 FY19 FY20 FY 16 FY17 FY18 FY19 FY20 Revenue (INR Cr.) EBITDA (INR Cr.) +32% 563 34% 472 30% 334 20% 21% 22% 201 154 FY 16 FY 17 FY 18 FY 19 FY20 FY 16 FY17 FY1
Slide 29: Quarterly financials
Quarterly financials 1,791 328 332 298 1,432 1,360 247 1,203 1,160 226 Q4 FY19 Q1 FY20 Q2 FY20 Q3 FY20 Q4 FY20 Q4 FY19 Q1 FY20 Q2 FY20 Q3 FY20 Q4 FY20 Revenue (INR Cr.) EBITDA (INR Cr.) 165 160 141 91 80  Revenue at Rs. 1,160 Cr  EBITDA at Rs. 226 Cr  PAT at Rs. 80 Cr Q4 FY19 Q1 FY20 Q2 FY20 Q3 F
Slide 30: with prudent cash management
with prudent cash management 1,970 51 Free Cash Flow @ consolidated level Rs. Cr. 1,733 170 116 Cash Profit after Tax 774 522 421 (Increase) / Decrease in working Capital (252) Operating Cash Flow 522 CAPEX (421) Free Cash Flow 100 Net Debt Operating Capex Inorganic Dividend Exceptional Net Debt 31-
Slide 31: Financials: Abridged version
Financials: Abridged version P&L (INR Cr.) FY19 FY20 growth (%) Balance Sheet (INR Cr.) FY19 FY20 Revenue 5,087 5,154 1% Net Worth 1,815 2,023 EBIDTA 1,164 1,104 -5% EBITDA % 23% 21% Net Debt 1,733 1,970 Depreciation 195 290 Total 3,548 3,993 EBIT 969 813 Interest 105 221 Fixed Assets 2,356 2,536 Ex
Slide 32: BUYBACK 2020: we continue to remain bullish
BUYBACK 2020: we continue to remain bullish Objective is to seek fair value of stock price to improve shareholder return Buyback from Open market route from all shareholders except promoters group Company having sufficient liquidity to support buyback in current uncertain times Maximum buyback size:
Slide 33: Summary
Summary STL with its focus on key account management, technology led E2E solutions, ecosystem partnerships & investments has led to growth in FY20 when the industry has seen a decline COVID-19 is an inflection point for data networks industry & it shall accelerate our society's digital transition. T

Sterlite Technologies — Q4 FY2020 Earnings Presentation on 6ix

Sterlite Technologies — Q4 FY2020 Earnings Presentation

Slide 1: Earnings Call Q4 FY'20

Slide 2: Safe Harbour

Slide 3: Anand Agarwal, CEO

Slide 4: Accelerating the transformation

Slide 5: By continuously developing new products in our offerings

Slide 6: Investment in technology & capabilities: IIT Madras, 358 Patents

Slide 7: Resulting in growth & diversification in a year of industry decline

Slide 8: We continue to deliver data networks in record time

Slide 9: Our strategic focus areas

Slide 10: Positively impacting lives & environment

Slide 11: COVID-19 an inflection point for Data Networks Industry

Slide 12: STL priorities in response

Slide 13: STL respond to help communities

Slide 14: In short term, there could be a delay in demand recovery

Slide 15: In the medium term, inflection point for data networks industry

Slide 16: Telcos: 5G Investments to continue

Slide 17: Investments by citizen networks, enterprises & cloud companies to continue

Slide 18: The future is even more exciting

Slide 19: Customer investments are creating newer generation of networks

Slide 20: STL reorganized to provide end to end solutions

Slide 21: An example of Solution: FTTx mantra

Slide 22: These E2E Solutions are delivering results

Slide 23: STL focus: become the default partner to our customers

Slide 24: Anupam Jindal, CFO

Slide 25: Financials

Slide 26: Starting the year with a stable order book

Slide 27: Open Order Book Spread & Order Inflow

Slide 28: Creating sustainable value for shareholders in the long term

Slide 29: Quarterly financials

Slide 30: with prudent cash management

Slide 31: Financials: Abridged version

Slide 32: BUYBACK 2020: we continue to remain bullish

Slide 33: Summary

Slide 34: Thanks