Sterlite Technologies Limited · NSE:STLTECH

Sterlite Technologies — Investor Presentation (August 2019)

38 slides from Sterlite Technologies's investor presentation, August 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 3: Contents
Contents Topic Page No. STL Overview 4 Unique Capabilities 11 The Future is Even More Exciting 16 Financial Priorities & Performance 23 Key Takeaways 28 Appendix 29 © 2019-2020 Sterlite Technologies Limited 3
Slide 5: STL at a Glance: Data Networks Innovator
STL at a Glance 1 Data Networks Innovator Core Business For the network creators 3 Innovation Engines System Based Solutions including Connectivity, Network Services and Software 4 Customer Segments Communication service providers Citizen networks Large enterprises Cloud & content providers 273 Pate
Slide 6: Technology at the Heart of the Organization
Technology at the Heart of the Organization Academia 3 2 273 Software Innovation Patents Delivery Centres Globally Centres Centre of Excellence, Centre for Smarter Speciality Products Forums Aurangabad Networks, Gurgaon Experience Labs Core research on optical ﬁbre for Technology and applied researc
Slide 7: Backed by Agile Delivery and Global Supply Chain
Backed by Agile Delivery and Global Supply Chain A GLOBAL PRESENCE B WORLD CLASS FACILITIES Silicon to Fiber State of the art integrated manufacturing plant in Aurangabad Industry 4.0 Fully automated machines with Robotic Operations Energy Efficient Total gas management and pollution abatement syste
Slide 8: And Strong Talent Profile in a Conducive Environment
And Strong Talent Profile in a Conducive Environment Expertise within the Organization ranges across the Fields of • Materials Engineering • Data Science & Analytics • Photonics & Glass Science • Wireless Technology • Program Management • Digital Transformation • SDN/NFV • Industrial Automation Hiri
Slide 9: Translating into Customer Wins and Deep Market Penetration
Translating into Customer Wins and Deep Market Penetration FY’19 Revenue by Customer Segment FY’19 Revenue by Geography Market Penetration • Partner of Choice for key Telcos in Citizen China India and Europe Networks RoW 4% 7% 12% • Network creation partner for one of the world’s largest greenfield
Slide 10: Delivering Strong Performance and Value Compounding
Delivering Strong Performance and Value Compounding 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 © 2019-2020 Sterl
Slide 12: Integrating our Unique Capabilities Across the Layers of Data Network
Integrating our Unique Capabilities Across the Layers of Data Network Bringing it all together as… E2E Solution Global Leader in the End to End Data Network Solutions © 2019-2020 Sterlite Technologies Limited 12
Slide 13: Solving Complex Problems of the Creators of Data Networks
Solving Complex Problems of the Creators of Data Networks Mobility Data Centre Mobile Backhaul Data Centre Private Networks Connectivity Cloud Edge Networks Telcos Companies Core Rural Connectivity Long Distance Connectivity Software Access Enterprise Comm. Citizen Large FTTX Fixed Wireless Network
Slide 14: Through Innovative Offerings Across the Layers of the Data Network
Through Innovative Offerings Across the Layers of the Data Network AI Driven Engagement Intellza Affordable & Edge Virtualization Hyper Scale & Fast Deployment Algorithmic & End to End Design Hyper Scale Optical Connectivity © 2019-2020 Sterlite Technologies Limited 14
Slide 15: Just to name a Few amongst Many!
Just to name a Few amongst Many! Solution STL Algorithmic STL TruRibbon STL Intellza Solution (AI FTTx Solution – Solution – Based) Industry first end-to- 4x faster installation end Fibre to the point compared to legacy Up to 70% increase in Solution high-density fibre monetization revenue solution
Slide 17: Industry is Witnessing Major Tech & Capex Shifts
Industry is Witnessing Major Tech & Capex Shifts Massive Connected 5G Data Centres Everything Virtualization has by cloud Enterprises Software arrived companies embrace IoT disrupting networks Source: GSMA, Canalys, Company & Industry Estimates © 2019-2020 Sterlite Technologies Limited 17 17
Slide 18: New Data Centric Networks are Built on Denser Networks
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 19: Dense Fiberization Essential for New Age Networks
Dense Fiberization Essential for New Age Networks Tower Fiberization across the globe 70% 4Bn fkm 5G will require deployed 25-30% 20-30x the number of cells of a conventional cellular network Today For 5G Majority of our map will Fibre Deployment is have 5G…We are doing Key for 5G Rollout 1,000 fibr
Slide 20: India at the Start of Network Creation Cycle
India at the Start of Network Creation Cycle Fiber Kms per Capita 17x 1.7 Potential India has 1.4 huge fiberization potential 0.1 USA China India © 2019-2020 Sterlite Technologies Limited 20
Slide 21: Increasing Addressable Market to $75bn
Creating Unique Opportunities for STL Increasing addressable Market to $75bn 21
Slide 22: Starting the Year with Highest ever Future Visibility Through Order Book
Starting the Year with Highest ever Future Visibility Through Order Book 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.) © 2019-2020 Sterlite Technologies Limited 22
Slide 23: Financial Priorities & Performance
Financial Priorities & Performance © 2019-2020 Sterlite Technologies Limited 23
Slide 24: 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 25: Financial Performance (FY'18 Vs FY'19)
Financial Performance (FY’18 Vs FY’19) 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 1,5
Slide 26: 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
Slide 27: 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 28: Key Takeaways
Key Takeaways STL uniquely placed Increased end point Evolving Network to leverage these consumption of data Architecture opportunities  STL provides Data Network Solutions focussed on mobility, access, core connectivity, network modernization & data centre to its Telcos, Cloud & Content Providers,
Slide 30: Growth in Demand of Optical Fiber has been Unabated across Centuries
Growth in Demand of Optical Fiber has been Unabated across Centuries World’s cumulative deployment of 1Bn fkm cable Optical fiber cable deployment has shrunk drastically from 38 years to 2 years has outpaced the growth of world economy by ~5x 13.9 38 years 5 years 3 years 2 years 1 Bn Fkm 2 Bn Fkm 3
Slide 31: Global Demand for Optical Fiber Continues to Reflect Strong Annual Growth
Global Demand for Optical Fiber Continues to Reflect Strong Annual Growth Optical Fiber Cable Demand (Mn fkm ) 511 493 65 58 North America 429 Europe 48 54 382 51 China +16% 46 43 India 314 Others 40 41 263 246 40 279 218 34 281 37 189 32 244 173 38 29 216 29 30 140 27 156 20 25 11830 132 95 121 262
Slide 32: Fiber Reaching Closer to the End Consumer Creating Multiplicative Demand
With Fiber reaching Closer to the End Consumer Creating a Multiplicative Demand Reduction in average fiber link by 10x, drives a 100x increase in fibers required to support the network Network Densification Fibers to cover 100 Mn connections 1,000,000 Access Today’s 4G Network Future 5G Network 100-
Slide 33: Increasing Barriers to Entry
STL’s Complete Control over the Manufacturing Value Chain High Tech: R&D Led Model PREFORM Restricted: Increasing Barriers to Entry Players < 10 STL is Centralized Platform for Glass/ Preform present across the Operational Excellence Model layer FIBER DRAWING Limited: Players < 50 Global Platform fo
Slide 34: Strong Corporate Governance: Independent Directors
Strong Corporate Governance Independent Directors on the Board of STL Kumud Srinivasan Sandip Das (Non-Executive & Independent Director) (Non-Executive & Independent Director) • VP and Director of Non-Volatile Fab Manufacturing and • One of Asia’s most respected telecommunications professionals Auto
Slide 35: 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 36: Q1FY20 Financial Performance
Q1FY20 Financial Performance P&L (INR Cr.) FY19 Q1FY20 Order-book standing at 9,853 Cr Revenue 5,087 1,432 1% EBIDTA 1,164 332 17% EBITDA % 23% 23% Depreciation 195 68 55% EBIT 969 264 28% Interest 105 46 PBT 864 217 Tax 278 73 Telcos Enterprise Net Income 563 141 Citizen Networks Cloud Players ROCE
Slide 37: Corporate Structure & Shareholding Pattern
Corporate Structure & Shareholding Pattern Corporate structure Shareholding pattern Volcan Vedanta investments 100% Resources Plc. 22.7% 33.3% Public shareholders 53.8% 53.9% 54.0% 46.1% 14.2% 7.3% 9.1% Sterlite Technologies Limited 5.6% 58.0% 100% 75.0% Promoters & Promoter Group Brazil JV China JV

Sterlite Technologies — Investor Presentation (August 2019) on 6ix

Sterlite Technologies — Investor Presentation (August 2019)

Slide 1: Investor Presentation August'19

Slide 2: Safe Harbour

Slide 3: Contents

Slide 4: STL Overview

Slide 5: STL at a Glance: Data Networks Innovator

Slide 6: Technology at the Heart of the Organization

Slide 7: Backed by Agile Delivery and Global Supply Chain

Slide 8: And Strong Talent Profile in a Conducive Environment

Slide 9: Translating into Customer Wins and Deep Market Penetration

Slide 10: Delivering Strong Performance and Value Compounding

Slide 11: Unique Capabilities

Slide 12: Integrating our Unique Capabilities Across the Layers of Data Network

Slide 13: Solving Complex Problems of the Creators of Data Networks

Slide 14: Through Innovative Offerings Across the Layers of the Data Network

Slide 15: Just to name a Few amongst Many!

Slide 16: The Future is Even More Exciting

Slide 17: Industry is Witnessing Major Tech & Capex Shifts

Slide 18: New Data Centric Networks are Built on Denser Networks

Slide 19: Dense Fiberization Essential for New Age Networks

Slide 20: India at the Start of Network Creation Cycle

Slide 21: Increasing Addressable Market to $75bn

Slide 22: Starting the Year with Highest ever Future Visibility Through Order Book

Slide 23: Financial Priorities & Performance

Slide 24: Financial Priorities under Strong Governance

Slide 25: Financial Performance (FY'18 Vs FY'19)

Slide 26: Debt Profile and Cash Flows

Slide 27: Increasing TAM and Evolving Business Profile

Slide 28: Key Takeaways

Slide 29: Appendix

Slide 30: Growth in Demand of Optical Fiber has been Unabated across Centuries

Slide 31: Global Demand for Optical Fiber Continues to Reflect Strong Annual Growth

Slide 32: Fiber Reaching Closer to the End Consumer Creating Multiplicative Demand

Slide 33: Increasing Barriers to Entry

Slide 34: Strong Corporate Governance: Independent Directors

Slide 35: Sustainability & Governance

Slide 36: Q1FY20 Financial Performance

Slide 37: Corporate Structure & Shareholding Pattern

Slide 38: beyond tomorrow