Sterlite Technologies Limited · NSE:STLTECH
Sterlite Technologies — Q1 FY2018 Earnings Presentation
30 slides from Sterlite Technologies's earnings presentation, Jul 19, 2017
Slide 1: Earnings Call Presentation
Earnings Call Presentation July 19, 2017 1
Slide 2: Disclaimer
Disclaimer 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 general
Slide 3: Industry Outlook
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Slide 4: Data explosion being driven by expanded ecosystem
Data explosion being driven by expanded ecosystem Evolving technologies, consumption patterns and policy shifts are all coming together to create a vastly expanded ecosystem which will drive a quantum leap in data volumes Network Video Innovation e-Health Social consumption Networking 3D 5G Digital
Slide 5: Data Consumption in India set to explode
Data Consumption in India set to explode Projected 2020 Devices Internet Access Improved Interfacing • Better and more • Improved availability • Health, e-learning, 650 (1.7x) affordable devices are of reliable high speed entertainment, e- No. of users (TRAI) increasing penetration internet at affor
Slide 6: Fiber is at the core of tomorrows network
Fiber is at the core of tomorrows network Optical fiber is the only medium with the bandwidth to accommodate increased data traffic Fiberized Infrastructure key to sustainable future Global IP Traffic driving fiber demand 1,200 450 • Densification of 4G, deeper penetration of FTTx and advent of 5G t
Slide 7: Globally Fiber Demand is Increasing Consistently
Globally Fiber Demand is Increasing Consistently •‘Digital India’ mission by PM • First-ever official demonstration of 5G at • Heavy investments on 5G in 2020-2030 ~ •Smart Cities driving Fiber demand Olympics - South Korea will pump 1.6 $400 bn •Rural Broadband Connectivity- BharatNet trillion won
Slide 8: 5G Requires Deep Fiber
5G Requires Deep Fiber Latency Throughput Connections Mobility Network Architecture 1 ms 10Gps 10,000k 500km/h LINP 5G E2E Per Connections High Speed Ability Latency Connection Per Sq. Km Railway Required Gap 30x~ 50x 100x 100x 1.5x NFV/SDN 4G/LTE 30 ~ 50 ms 100 Mbps 10k 350km/h Inflexible • 5G push
Slide 9: Our Strategic Positioning
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Slide 10: Focused on the Connectivity Opportunity
Focused on the Connectivity Opportunity Global Trends Video consumption Digital Lifestyle IoT, Cloud, AI Denser 4G & 5G network Next Generation Digital Network Creation Opportunity Diverse Customer Base Defense / Other Rural Service Provider Smart Cites Utilities Broadband Across wide spectrum of cu
Slide 11: Uniquely Positioned with silicon to software capability
Uniquely Positioned with silicon to software capability Equipped with a one of its kind Silicon-to-Software capability, which is unparalleled globally.. OPTICAL COMMUNICATION Only global PRODUCTS company to Design, have Smarter Build and Network NETWORK & SYSTEM Manage Solutions INTEGRATION Digital
Slide 12: Strategic Direction
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Slide 13: Building on Fiber strength—grow into new opportunities
Building on Fiber strength—grow into new opportunities Core Glass Technology Adjacent Opportunities Expansion 13
Slide 14: Maximize Shareholders Value
Maximize Shareholders Value SCALAR Growth Focused Growth in Products & Services Strategy $100 Mn+ PAT GROWING 3 Years: 3x Growth Global Market Reach Predictable Outcome Increased Value Added offerings 14
Slide 15: Balanced Approach to drive Shareholders Value
Balanced Approach to drive Shareholders Value Integrated Solutions with focused customer base Defined principles for Inorganic Focus on Technology & Research: Growth: Capability addition Increasing patent portfolio Approach Consistent Returns to the Shareholders: Expanding ROCE for the 30% of PAT as
Slide 16: Scaling our business platform
Scaling our business platform 16
Slide 17: Scaling Product Business
Scaling Product Business 50 85 – 100% 60-65% 30 28 22 40% 12 Mar ’12 Mar ’16 Mar ’17 Sep ’17 Jun ’19 FY 17 FY 18 FY 19 Sterlite Tech :Optical Fibre Capacity ( Mn fkm) Optical Fibre Cable Capacity Utilization Expanding our Optical Fiber capacity to 50 Mn fkm at a green field facility Capacity is
Slide 18: Increasing Global Reach
Increasing Global Reach 77% 1% 3% 4% 7% 6% 1% 9% 2% 11% 4% 27% 14% 45% 53% 9% 28% 38% 41% Exports Q1 FY17 ( 181Cr) Exports Q4 FY17 ( 261 Cr) Exports Q1 FY18 ( 320 Cr) China Asia Europe America Middle East Africa 43% of Revenue from Exports in Q1 FY18 Vs 30% in Q1 FY17 18
Slide 19: Long Term Customer Engagement to Drive Predictability
Long Term Customer Engagement to Drive Predictability 3140 3018 2674 2324 1541 1641 22% 1124 700 46% 1624 1550 1477 1499 32% Q2FY17 Q3FY17 Q4FY17 Q1FY18 Q1FY18 Order Book Mix India Private Telco’s Product Order Book International Markets Services & Software: Order Book Government • Predictable Reven
Slide 20: Business Updates
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Slide 21: Q1 FY18: Key Developments at a glance
Q1 FY18: Key Developments at a glance Won Kakinada Smart City Project • Kakinada Smart City Corporation selected Sterlite Tech as its implementation partner to deliver various Smart City related ICT solutions Power- packed FTTX • Sterlite Tech won the CIIAWARD for Customer Smarter Obsession 2016, am
Slide 22: Kakinada Smart City Win
Kakinada Smart City Win Smart Pole School ECB School Disaster Mgmt with Automatic CCTVs: weather station & PA Lightening detection VMD station Wi-Fi Pan City Fiber Bus stops Schools Network of Govt. offices IoT Platform 120 Km DC/CCC and DR/NOC Command Control Center with GIS & ERP Integrations Smar
Slide 23: Our Smart City Pipeline
Our Smart City Pipeline Punjab Rajasthan Chandigarh Smart CIty Jaipur Smart CIty Ludhiana Smart CIty Ajmer Smart CIty Kota Smart CIty Udaipur Smart CIty Madhya Pradesh Gujarat Bhopal Smart CIty Dholera Smart CIty Ahmedabad Smart CIty Vadodara Smart CIty Indore Smart CIty Surat Smart City – ITCS Jaba
Slide 24: Human Capital Addition to deliver Fast-track Growth
Human Capital Addition to deliver Fast-track Growth Steve is responsible Sanjeev joined as Richard is responsible Anshoo joined as Nischal joined as for CSP’s in North Chief Delivery and to strengthen Europe, Strategic Advisor for Chief Transformation American Market for Technology Officer, SI Middl
Slide 25: Financial Highlights
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Slide 26: Quarterly Financial Performance
Quarterly Financial Performance +23% +32% 732 707 744 166 162 603 145 551 122 109 Q1 FY17 Q2 FY17 Q3 FY17 Q4 FY17 Q1 FY18 Q1 FY17 Q2 FY17 Q3 FY17 Q4 FY17 Q1 FY18 Revenue (INR Cr.) EBITDA (INR Cr.) +61% 64 61 Company registered sales growth of 23% on YoY basis 51 49 38 EBITDA grew by 32% on YoY b
Slide 27: Financial Performance
Financial Performance P&L (INR Cr) FY16 FY17 Q1 FY18 Revenue 2,275 2,594 744 EBIDTA 475 542 162 EBITDA % 21% 21% 22% Depreciation 125 159 41 EBIT 350 383 121 EBIT % 15% 15% 16% Interest 119 123 27 PBT 231 260 94 Tax 65 40 26 PAT (After Minority interest) 154 201 61 ROCE 20% 21% 26% 27
Slide 28: Financial Performance
Financial Performance +51% 1,005 1.3x Cash flow Q1 FY 18 919 -14% 860 1.0x Cash Profit ( After Tax ) 110 0.9x Operating Cash Flow 116 Capex (57) Net Cash flow 59 FY16 FY17 Q1 FY18 FY16 FY17 Q1 FY18 Net Debt Debt to Equity Ratio Values in INR Cr. 28
Slide 29: 5 Year Journey – Telecom Business
5 Year Journey – Telecom Business +24% 2,594 +38% 542 2,275 475 1,619 345 1,096 1,148 151 181 FY 13 FY 14 FY 15 FY 16 FY17 FY 13 FY 14 FY 15 FY 16 FY17 Revenue EBITDA +44% 383 20% 21% 350 18% 249 7% 8% 90 94 FY 13 FY 14 FY 15 FY 16 FY17 FY 13 FY 14 FY 15 FY 16 FY17 EBIT ROCE • Stronger growth in EBI
Slide 30: Thank You
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