Sterlite Technologies Limited · NSE:STLTECH

Sterlite Technologies — Q4 FY2019 Earnings Presentation

34 slides from Sterlite Technologies's earnings presentation, Apr 23, 2019

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: FY'19 – Transformative Year for STL
FY’19 – Transformative Year for STL ₹ 5,087Cr ₹ 1,164 Cr ₹ 563 Cr 34% Revenue EBITDA PAT ROCE 59% Y-o-Y increase 48% Y-o-Y increase 68% Y-o-Y increase Highest Ever 6 35 ₹ 10,516 Cr Acquisition New “Solutions” New Customer All Time High Metallurgica Launched Wins Order Book Bresciana 50 Mn OF 33 Mn O
Slide 5: The Demand Drivers that led to our Growth in FY'19
The Demand Drivers that led to our Growth in FY’19 Connectivity Solutions (Products) • Increased Fiber Deployments across Europe (13% Y-o-Y Growth), India (16% Y-o-Y Growth) and other parts of the world such as LATAM and Middle East (7% Y-o-Y Growth) • Entry into top two Cloud companies of the World
Slide 6: Translating into New Customer Wins and Deeper Market Penetration
Translating into New Customer Wins and Deeper Market Penetration Customer Segments Geographical Distribution Major Developments (FY’19) Revenues (Rs. Crores) Revenues (Rs. Crores) +124% 5,087 5,087 • More than 3 x increase in exports 7% revenues in 3 years 4% • New Tier-1 telco wins across 24% geogr
Slide 7: Our Portfolio Additions in FY'19
Our Portfolio Additions in FY’19 Snapshot of Our New Launches and Partnerships Integrated FTTX SOLUTION 1,728 FIBER COUNT Cable for Data Centers and Small Cell Sterlite way of FIBRE ROLL OUTS Next-Gen SOFTWARE PLATFORM FOR TELCOS - 50+ partners celebrated in Defence Sterlite way of NETWORK DESIGN -
Slide 8: Agile Delivery and Supply Chain to Cater to Customers
With Agile Delivery and Supply Chain to Cater to the Evolving Needs of the Customers 50 30 22 FY’ 16 FY’18 Jun ’19 Optical Fibre Capacity (Mn fkm) 33 CAPACITY EXPANDING EXPANSION PRESENCE 15 FIBRE AND CABLE SUPPLY CHAIN LOGISTICS  State of art silicon to fiber plant in Aurangabad 8 Sterlite Tech, I
Slide 9: Strong Talent Profile and Industry Leaders
And Strong Talent Profile and Industry Leaders …Strengthening our Technology Expertise Attracting top talent from Ayush S Jitendra Ambica Rajesh Head - SDN-NFV Balakrishnan Rajagopal Gangadhar CTO - Products Head – Head - Wireless Business analytics Workforce Profile Gender Location Qualification Fe
Slide 10: Sustainability & Governance
Sustainability & Governance | Positively Impacting Lives & the Environment Overall impact since 2006 296,800+ 35,000 MT 99% Efficient 64,000+ Lives through Waste diverted Rakholi OFC Plant Lives through Water Health away from Landfills received India’s 1st Conservation initiatives ZWL Certification
Slide 12: STL at an Intersection of Several Mega Trends
STL is at an Intersection of Several Mega Trends that are Leading to Creation of Hyperscale Networks The World is Disrupting… …Democratized by a Hyper Network for all Digitize Deceptive Everything Collaboration grows becomes Data exponentially Demonetize Increased Productivity Dematerialize Software
Slide 13: New Data Centric Networks on Denser Networks and Deep Fiberization
These New Data Centric Networks are Being Built on 1 2 3 4 Compute and Vendor neutral Denser Networks Deep Fiberization Open Source storage at the and disaggregated Edge Access layer end points Fiber intensive network to Vendor neutral and Data Center coming closer will multiply support latency and
Slide 14: Networks Created by Telcos and New Digital Infrastructure Players
And are Being Created by Telcos and New Digital Infrastructure Players in the Ecosystem © 2019-2020 Sterlite Technologies Limited 14
Slide 15: Evolving Network Creation Model by Telcos and New Entrants
Leading to an Evolving Network Creation Model by Telcos and New Entrants Apps Telcos are focusing Cloud players more on are investing platforms into network and content Platforms creation to to stay control relevant customer experience Network Large Enterprises and Citizen centric networks building
Slide 16: Change in Buying Pattern Due to Increased Complexity
Evidenced through the Change in Buying Pattern Due to Increased Complexity Network Increasing Characteristics New End User Volume of are Applications Network Transforming Customers need an end-to-end network solutions partner Leading to emergence of new data network focused solution providers in the
Slide 17: 4 Pronged Strategy for Data Network Creation Opportunity
STL is at the helm of this Data Network Creation Opportunity with its 4 Pronged Strategy 1 INNOVATE New Value Added Journey towards Expanding Products and Offerings Addressable Market 2 $75 Bn 4 SCALE EXPAND With new 2023 Into new Customer portfolios Acquisition and and new applications Geographies
Slide 18: Customer Success Metrics Are Changing
Our Customer Success Metrics are Changing to Adapt to Changing Customers’ Expectations FY’16 - FY’18 FY’19 & Beyond Deep Customer Customer Engagement through Satisfaction Key Account Management The shift has been necessitated by changing customers’ expectations No. of solutions co-created with Produ
Slide 19: And So Are Our Solutions
And So Are Our Solutions Mobility Long Haul Network Data Centre Access Connectivity Modernisation • Mobile Backhaul • FTTx • Rural connectivity • Defence • Data Centre • Private Networks • Fixed Wireless • Long Distance Communication connectivity connectivity Network • Network Security Citizen Telco
Slide 20: Deeper Share of Wallet Through Expanding Offerings
Thereby Catering to Customer’s Deeper Share of Wallet Through our Expanding Offerings over the Years E2E Connectivity Products Total + Addressable Network Design and Roll Outs Market + Programmable Networks $ 75 Bn + Data Network Solutions (2023) Wireless + $ 20 Bn Fiber + Cable + Next-gen OSS/BSS (
Slide 21: Evolved Demand Drivers for FY20 and Beyond
Leading to Evolved Demand Divers for FY 20 and Beyond Long Haul Network Mobility Access Data Center Connectivity Modernisation • Increasing penetration of fixed wireline broadband (FTTx) in Europe & India • 5G roll outs across different geographies are expected to begin in 2020 and pick pace between
Slide 22: Our Outlook
Our Outlook 1 • Growing TAM of $75 Bn by 2023; Out of this, STL current Market share <1% Market Opportunity • Data network capex investments forecasted to grow across customer segment • Strongly positioned to generate new customer wins and deepen share of wallet 2 • Four pronged strategy of Expand,
Slide 23: Focussed Customer Segments and Five Pillars
With Focussed Customer Segments, Solutions Centric Approach and Built on The Foundation of Five Pillars Customer Communication Internet Citizen Service Content Defence Segments Providers Providers Networks Solutions Mobility| Access| Long Haul Connectivity | Network Modernisation| Data Centre Strong
Slide 24: All Time High Order Book & Strong Visibility
Starting FY’20 with an All Time High Order Book & Strong Visibility 2.1x 10,516 1.6x 5,223 5,087 1.2x 1x 3,018 3,205 2,275 2,594 2,253 FY16 FY17 FY18 FY19 Revenues (INR Cr.) Order Book (INR Cr.) Order Book at an all time high of Rs. 10,516 Crore © 2019-2020 Sterlite Technologies Limited 24
Slide 25: Adopting a New Identity
We are Now Adopting a New Identity to Reflect Our Transformation • Leading Unconstrained • Confident to disrupt • Global citizen • Cordial • Simple © 2019-2020 Sterlite Technologies Limited 25
Slide 27: Q4'FY19 Highlights
Q4’FY19 Highlights ₹ 1,791Cr Customer Engagement • Entry to one of the biggest cloud providers through a innovative solution for Revenue data centre connectivity 112% Y-o-Y increase • Secured large order for Rural broadband connectivity in state of Maharashtra ₹ 328 Cr Technology EBITDA 38% Y-o-Y in
Slide 28: Demonstrated Growth on Q-o-Q basis
Demonstrated Growth on Q-o-Q basis +112% +38% 1,791 328 304 279 1,335 238 252 1,084 847 877 Q4 FY18 Q1 FY19 Q2 FY19 Q3 FY19 Q4 FY19 Q4 FY18 Q1 FY19 Q2 FY19 Q3 FY19 Q4 FY19 Revenue (INR Cr.) EBITDA (INR Cr.) +47% 165 146 112 121 131  Highest ever Revenue of Rs. 1,791 Cr (112% y-o-y growth)  Highest
Slide 29: Increasing TAM and Evolving Business Profile
Increasing TAM and Evolving Business Profile $75 Bn Driven by double digit growth in profits with increasing ROCE profile $20 Bn $5Bn $20 Bn $5Bn 2019 & Beyond Offerings : Global Data Network Solutions $5Bn (Mobility, Access, Long Haul Connectivity and N/W Modernisation) 2014-2017 Customers: Telcos,
Slide 30: Creating Value for our Shareholders
Creating Value for our shareholders 5,087 1,164 +31% +35% 3,205 789 2,594 542 2,275 475 FY 16 FY17 FY18 FY19 FY 16 FY17 FY18 FY19 Revenue (INR Cr.) EBITDA (INR Cr.) 563 34% 30% +54% 334 20% 21% 201 154 FY 16 FY 17 FY 18 FY 19 FY 16 FY17 FY18 FY19 PAT (INR Cr. ) ROCE We remain committed to our strate
Slide 31: Financial Priorities under Strong Governance
Financial Priorities under Strong Governance Growth Earnings Capital Allocation • Profitable Organic • Drive sustainable EPS • Focus on Free Cash Flow Growth growth Generation • EPS accretive strategic • Attain earning objectives • Sound Leverage and acquisitions across economic cycles Working Capit
Slide 32: Financial Performance
Financial Performance P&L (INR Cr.) FY18 FY19 Growth (%) Balance Sheet (INR Cr.) FY18 FY19 Revenue 3,205 5,087 59% EBIDTA 789 1,164 48% Net Worth 1,257 1,815 EBITDA % 25% 23% Net Debt 884 1,733 Depreciation 182 195 Total 2,141 3,548 EBIT 606 969 60% Interest 104 105 Fixed Assets 1,512 2,356 PBT 503
Slide 33: Debt Profile and Cash Flows
Debt Profile and Cash Flows 1,733 477 The business continues to 97 generate strong operational cash flow 884 The increase in debt is on 855 account of organic & inorganic investments done 579 for future growth The benefits of these investments will start getting visible from FY20 onwards Net Debt Op

Sterlite Technologies — Q4 FY2019 Earnings Presentation on 6ix

Sterlite Technologies — Q4 FY2019 Earnings Presentation

Slide 1: Earnings Call – Q4 FY19

Slide 2: Safe Harbour

Slide 3: Anand Agarwal, CEO

Slide 4: FY'19 – Transformative Year for STL

Slide 5: The Demand Drivers that led to our Growth in FY'19

Slide 6: Translating into New Customer Wins and Deeper Market Penetration

Slide 7: Our Portfolio Additions in FY'19

Slide 8: Agile Delivery and Supply Chain to Cater to Customers

Slide 9: Strong Talent Profile and Industry Leaders

Slide 10: Sustainability & Governance

Slide 11: The Future is Even More Exciting

Slide 12: STL at an Intersection of Several Mega Trends

Slide 13: New Data Centric Networks on Denser Networks and Deep Fiberization

Slide 14: Networks Created by Telcos and New Digital Infrastructure Players

Slide 15: Evolving Network Creation Model by Telcos and New Entrants

Slide 16: Change in Buying Pattern Due to Increased Complexity

Slide 17: 4 Pronged Strategy for Data Network Creation Opportunity

Slide 18: Customer Success Metrics Are Changing

Slide 19: And So Are Our Solutions

Slide 20: Deeper Share of Wallet Through Expanding Offerings

Slide 21: Evolved Demand Drivers for FY20 and Beyond

Slide 22: Our Outlook

Slide 23: Focussed Customer Segments and Five Pillars

Slide 24: All Time High Order Book & Strong Visibility

Slide 25: Adopting a New Identity

Slide 26: Anupam Jindal, CFO

Slide 27: Q4'FY19 Highlights

Slide 28: Demonstrated Growth on Q-o-Q basis

Slide 29: Increasing TAM and Evolving Business Profile

Slide 30: Creating Value for our Shareholders

Slide 31: Financial Priorities under Strong Governance

Slide 32: Financial Performance

Slide 33: Debt Profile and Cash Flows

Slide 34: beyond tomorrow