Sterlite Technologies Limited · NSE:STLTECH

Sterlite Technologies — Q4 FY17 Earnings Presentation

34 slides from Sterlite Technologies's earnings presentation, Apr 27, 2017

  1. Slide 1: Earnings Presentation: Q4 & FY17

    Earnings Presentation: Q4 & FY17 April 27, 2017 1

  2. 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

  3. Slide 3: Hyper Connected world

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  4. Slide 4: Global Trends

    Global Trends Industrial trends Consumer trends Cloud Computing Wearable Tech Smart Homes M2M Artificial Intelligence Driverless Car 8K UHD Video Streaming 4

  5. Slide 5: All New Technologies driving Hyper-Connected Data Networks

    All New Technologies driving Hyper-Connected Data Networks Autonomous Driving 1 ms Augmented Reality Virtual Reality Tactile Internet ULTRA LOW LATENCY 10 ms Denser Data Disaster Alert Real Time Gaming Network Center Cloud Computing Delay near to users 100 ms Wireless Cloud Low Ultra High Personal C

  6. Slide 6: India's GB Consumption: Exponential Data Growth

    Exponential Data Growth on Data Networks 9.9 GB 7-10 GB India’s New 4G Network Entrant 14x in Just 170 Days India’s GB Consumption 14x growth by CY 2020 0.7 GB ~0.7 GB India’s Data GB Consumption Per 2016: GB/User/Month 2020: GB/User/Month Consumption User by 100 Mn Users (GB Per Month on New 4G Ent

  7. Slide 7: Fiber at the Core of Networks

    Fiber at the Core of Networks 7

  8. Slide 8: Supply Dynamics for the Hyper-Connected World

    Supply Dynamics for the Hyper-Connected World Supply Dynamics Spectrum Technology No. of Sites Mbps MHz Bits 3 sectors No. of Sites % of Sites at capacity GB x x x x Sector hertz site during peak hour Day Wireless last mile getting smaller as Backbone networks become denser Ultra High capacity : Hig

  9. Slide 9: Networks are Getting Increasingly Denser

    Networks are Getting Increasingly Denser Site/Km2 93 Cells 17x indoor sites required for 1000x capacity 1,700 13x 26 21 7 100 Traditional Denser networks: Very Dense Ultra Dense network: Outdoor cells Indoor cells Networks: 2014 2015-2017 networks:2017-2020 2020 onwards • Increasing cellular site de

  10. Slide 10: Global IP Traffic driving fiber demand

    Global IP Traffic driving fiber demand Global Annual Fiber Consumption (Mn fkm) 1,200 450 Global Annual IP Traffic (Exabyte's) 400 1,000 350 800 300 250 600 Global IP Traffic Growth: CAGR-36% 200 400 150 Fiber Growth: 100 200 17% 50 - - CY05 CY06 CY07 CY08 CY09 CY10 CY11 CY12 CY13 CY14 CY15 CY16 • G

  11. Slide 11: 5G to drive new demand for fiber

    5G to drive new demand for fiber 1,000.0 Peak Data Rate -Mbps 2,037 Mn fkm 722 Mn fkm 100.0 63.0 0.5 14.7 Mobile 2G- Mobile 3G - Mobile 3G 4G- LTE 5G Network 3G Generation Networks- 4G Generation & FTTH- GSM / GPRS CDMA2000 - WCDMA & FTTH Cumulative Fiber deployed: : Cumulative Fiber deployed: / EV-

  12. Slide 12: India on the Inflexion Curve

    India on the Inflexion Curve 12

  13. Slide 13: India is at the point of data inflexion

    India is at the point of data inflexion 35 1,333 166 30 (12%) 8 20 (25%) 294 (57%) (22%) Data demand ( $ Bn) 23 Voice demand ( $ Bn) (75%) 15 (43%) 873 Internet Access (65%) FY16 FY21 Served ( > 4 Mbps) Underserved ( < 4 Mbps) Share of Data in the total India market size to increase Unserved ( No In

  14. Slide 14: Data Consumption set to explode

    Data Consumption set to explode Smartphone users Mobile internet users Data consumption per user (Mn) (Mn) (GBs/month) ~ 4x ~ 3.2x ~ 14x 7-10 ~ 810 1000 ~ 4x ~ 1.8x ~ 3x ~0.7 ~ 250 391 220 ~0.2 66-69 2013 2016 2021 2013 2016 2020 2013 2016 2020 Mobile broadband internet users Sources: Ericsson, BCG,

  15. Slide 15: Digital India Trend

    Digital India Trend Aadhaar Banking Adoption National Broadband Digital Ecosystem India Digital Stack: largest and most Within three years Infrastructure Creation: Payment Presence-less, Cashless successful IT project more than 270 million creation: banks, UPI, Citizen and Paperless ever undertaken

  16. Slide 16: Sterlite Tech: Uniquely Positioned

    Sterlite Tech: Uniquely Positioned 16

  17. Slide 17: 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

  18. Slide 18: Focus on Integrated offerings for each customer

    Focus on Integrated offerings for each customer Pre-Sale Execution Post - Execution Solution Matrix Design Build Manage Products   Fiber and Cable Access Solutions: systems for FTTx, FTTx, IBS, DAS, Smart Services    Long distance, Metro and Access Cities Suites Software    Design Fiber Netw

  19. Slide 19: With Technology at the Core of Our Offerings

    With Technology at the Core of Our Offerings Center of Excellence, Center for Smarter Networks, Sterlite Academy Aurangabad Gurgaon  State of art research focused on material science and Glass composition for advanced fiber optics  Strong Patent portfolio of 146 patents across geographies  Buildi

  20. Slide 20: Way forward

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  21. Slide 21: Global Scale to drive growth for products

    Global Scale to drive growth for products Global Optical Fiber Cable Demand ( Mn fkm ) Our Capacity ( Mn fkm ) 425 50 382 41 38 44 314 40 263 33 246 30 28 40 28 32 32 243 29 216 22 156 132 121 12 15 16 18 6 9 58 63 69 72 80 CY 2012 CY2013 CY 2014 CY 2015 CY 2016 3M CY 2012 3M CY 2016 Exit Capacity 9

  22. Slide 22: Increasing global reach adding new geographies

    Increasing global reach adding new geographies Africa Others +75% America Asia 3% 0% 37% of Total Revenues 8% 1% Middle East 6% +18% 24% of Total Revenues 29% of Total Revenues 50% China 957 547 31% 465 Europe FY ’15 FY ’16 FY17 International Revenue ( INR Cr.) FY17 Geographical split in revenues fr

  23. Slide 23: Long Term Customer Engagement to Drive Predictability

    Long Term Customer Engagement to Drive Predictability 3018 2674 2324 2099 1541 1124 33% 445 700 47% 1654 1624 1550 1477 Q1FY17 Q2FY17 Q3FY17 Q4FY17 20% Q4FY17 Order Book Mix Product: Orber Book Services & Software: Order Book India Public India Private  Predictable Revenue Profile with growing orde

  24. Slide 24: Notable Achievements of FY17

    Notable Achievements of FY 17 24

  25. Slide 25: FY17: Business Highlights at a glance

    FY17:Business Highlights at a glance Gandhinagar Municipal Corporation (GMC) announced the launch of its Accelerated capacity expansion of 30 Selected as one of the two global Fiber new citizen-centric Smart City. Mn fkm by Mid of 2017. Next phase of cable supplier to a large global Telco expansion

  26. Slide 26: Awards and Accolades

    Awards and Accolades 1 2 3 4 Won the ‘Broadband Sterlite Tech recognized as Sterlite Tech featured Bagged two Infrastructure Leader Asia’s Best Telecom Vendor among ‘100 Best Companies Frost & Sullivan India Award’ at the Telecom under the Category ‘BSS to work for Women in Manufacturing Excellence

  27. Slide 27: Q4 FY17 Consolidated Financial Update

    Q4 FY17 Consolidated Financial Update All financial Numbers reported are as per Indian Accounting Standard (Ind-AS) 27

  28. Slide 28: Quarterly Financial Performance

    Quarterly Financial Performance +15% +19% 732 707 166 614 604 139 145 551 122 109 Q4 FY16 Q1 FY17 Q2 FY17 Q3 FY17 Q4 FY17 Q4 FY16 Q1 FY17 Q2 FY17 Q3 FY17 Q4 FY17 Revenue (INR Cr.) EBITDA (INR Cr.) +16%  Company registered sales growth of 15% on YoY basis 64 55 51 49  EBITDA grew by 19% on YoY basi

  29. Slide 29: Financial Performance: P&L, BS

    Financial Performance: P&L, BS P&L FY16 FY17 Balance sheet FY16 FY17 Revenue 2,275 2,594 Net Worth 786 925 EBIDTA 475 542 EBITDA % 21% 21% Net Debt 1,005 919 Depreciation 125 159 Total 1,791 1,844 EBIT 350 383 EBIT % 15% 15% Fixed Assets 1,170 1,238 Interest 119 123 Net Working 621 606 Capital PBT 2

  30. Slide 30: Financial Performance: Cash Flow

    Financial Performance: Cash Flow Cash flow FY17 +28% 1,005 1.3x Cash Profit ( After Tax ) 379 919 -9% 1.0x Operating Cash Flow 371 Capex 213 Free Cash Flow 158 Dividend 72 FY16 FY17 FY16 FY17 Net Cash flow 86 Net Debt Debt to Equity Ratio Values in INR Cr. 30

  31. Slide 31: 5 Year Performance

    5 Year Performance +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 EBITDA CAGR growth

  32. Slide 32: Strategic Direction

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  33. Slide 33: Strategic Direction

    Strategic Direction Consistent Returns to the E A Integrated Solutions with Shareholders: focused customer base 30% of PAT as dividend Strategic Direction Defined principles for D B Focus on Technology & Inorganic Growth: Research: Increasing patent Capability addition portfolio C Expanding ROCE for

  34. Slide 34: Thank You

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