Sterlite Technologies Limited · NSE:STLTECH

Sterlite Technologies — Q4 FY18 Earnings Presentation

23 slides from Sterlite Technologies's earnings presentation, Apr 25, 2018

  1. Slide 1: Q4 FY18 Earnings Call

    Q4 FY18 Earnings Call April 25, 2018 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: Industry Landscape

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  4. Slide 4: Capex and Fiber Consumption Cycle: Network Gen Evolution

    Capex and Fiber Consumption Cycle: Network Gen Evolution 3G to 4G: 1.6x 3G to 4G: 3.0x Top 15 Global Telco Capex (USD Bn) 1,204 2,345 351 2G to 3G: 1.3x 733 300 583 160 62 2G to 3G: 1.9x 189 146 790 376 293 426 309 65 12 32 112 53 59 2G (CY1999 to 2004) 3G (CY2005 to 2010) 4G (CY2011 to 2017) 2G (CY

  5. Slide 5: 5G will be the Centre of Heterogeneous Networks

    5G will be the Centre of Heterogeneous Networks 5G Era 5G capabilities compared to Goals existing LTE Boundless Connectivity for 10x Lower • New radio design <1 ms • Distributed architecture all Latency 1 Vertical/ industrial Network economics 10x Lower IoT • Protocol optimization and innovations <1

  6. Slide 6: Fiber: key component of 5G Infrastructure

    Fiber: key component of 5G Infrastructure 4G Infrastructure 5G Infrastructure Illustrative 5x Small cells architecture Minimum Base 5G (25 Mbps (50 Mbps eNodeB Densification (Macro Cell) per User) per User) No. of Small Cells for 5G 5x 10x compared to 4G Macro Sites Legend Macro Cell Micro Cell 4G F

  7. Slide 7: Evolution in Global demand for Optical Fiber

    Evolution in Global demand for Optical Fiber Global Optical Fiber Demand excluding-China (Mnfkm) North America 207 5G Estimated fiber demand Vs 4G 185 Europe 166 CAGR:11% 158 58 CY2020 onwards India 51 125 132 41 46 Others 119 5.0x 102 48 97 93 37 34 43 85 38 40 40 72 30 29 32 20 21 57 26 27 29 16 3

  8. Slide 8: Our Unique Positioning

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  9. Slide 9: Decoding: Global Fiber Value Chain

    Decoding: Global Fiber Value Chain PREFORM Preform Capacity Global Fiber Demand (In mn fkm) Shortage Restricted: 550 550 STL is Players < 10 500 500 present 450 450 across 400 400 FIBER DRAWING 350 350 the value Limited: 300 300 chain Players < 50 250 250 200 200 150 150 CABLING 100 100 Extensive Co

  10. Slide 10: System Integration

    End to End Capability to Deliver future Data Network Needs Optical System Fibre Future Data Network Stack Silicon Integration System Integration Software Layer Network Layer Passive Layer (Fiber relevance increasing) Glass Fiber Software Preform Cables  Network capex shifting towards Fiber Complete

  11. Slide 11: With Technology at the Core of Our Offerings

    With Technology at the Core of Our Offerings Optical Fiber is a very specialized Technology Product Network Design at the Core of our System Integration Capabilities Highly interdisciplinary technologies • Glass Science • Chemical Engineering Center for Smarter Sterlite Tech • Fluid Mechanics Networ

  12. Slide 12: Business Highlights

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  13. Slide 13: Business Update

    Business Update Execution Update- Products Customer Engagement •Accelerated expansion of greenfield fiber capacity in •Long term service agreement with a major UK based Aurangabad, with Phase-1 coming on board by end of operator and partners in Europe to help Europe CY 18 achieve Europe’s Gigabit so

  14. Slide 14: Growing International Presence with Tier-1 CSP's

    Growing International Presence with Tier-1 CSP’s +223% 27% 54% of Total Revenues FY18 46% 37% of Total Revenues 13% 1,735 13% 24% of Total Revenues 957 Global Revenue Mix Sterlite’s fiber reaches more than 100+ countries 537 11% FY 16 FY 17 FY 18 FY17 19% Revenue from exports (INR Cr.) 63% 7% • Deep

  15. Slide 15: Strong sales outlook riding on growing order book

    Strong sales outlook riding on growing order book Order Book Mix +73% 5223 4573 3832 3018 3140 4095 3335 2339 1541 1641 1477 1499 1493 1239 1128 Q4FY17 Q1FY18 Q2FY18 Q3FY18 Q4FY18 Products Services & Software • Start FY 19 with all time high order book of Rs. 5,223 cr (reflecting ~1.6x of the FY 18

  16. Slide 16: Accelerating the capacity expansion and utilization

    Accelerating the capacity expansion and utilization 50 85 - 100% 40 ~70% 30 28 22 ~40% 12 Mar ’12 Mar ’16 Mar ’17 Sep ’17 Dec ’18 Jun ’19 FY 17 FY 18 FY 19 Sterlite Tech Optical Fibre Capacity ( Mn fkm) Optical Fibre Cable Capacity Utilization  Integrated plant project progressing well to achieve p

  17. Slide 17: Financial Performance

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  18. Slide 18: Demonstrated Value Compounding

    Demonstrated Value Compounding +29% 3,205 789 2,594 +24% +44% 2,275 +45% 542 475 1,619 345 1,148 181 FY 14 FY 15 FY 16 FY17 FY18 FY 14 FY 15 FY 16 FY17 FY18 Revenue (INR Cr.) EBITDA (INR Cr.) 334 30% +47% +66% 20% 21% 201 18% 154 8% FY 16 FY 17 FY 18 FY 14 FY 15 FY 16 FY17 FY18 3 Year PAT (INR Cr.)

  19. Slide 19: Demonstrated growth on QoQ basis

    Demonstrated growth on QoQ basis +20% +44% 835 847 238 744 779 208 707 166 179 164 Q4 FY17 Q1 FY 18 Q2 FY 18 Q3 FY 18 Q4 FY 18 Q4 FY17 Q1 FY 18 Q2 FY 18 Q3 FY 18 Q4 FY 18 Revenue (INR Cr.) EBITDA (INR Cr.) +77% 112 90 71  Highest ever PAT of 112 cr in Q4,FY18 (77% y-o-y growth) 64 61  On course to

  20. Slide 20: Strong Balance Sheet Supported by Healthy Cash generation

    Strong Balance Sheet Supported by Healthy Cash generation 1,007 1.3x 919 Cash flow (Cr.) FY18 884 -12% 1.0x Cash Profit (After Tax ) 552 0.7x Operating Cash Flow 604 Capex 525 Net Cash flow 79 FY16 FY17 FY18 FY16 FY17 FY18 Net Debt (INR cr.) Debt to Equity Ratio 20

  21. Slide 21: Financial Performance: Income Statement & Balance Sheet

    Financial Performance: Income Statement & Balance Sheet P&L (Cr.) FY17 FY18 Balance sheet (Cr.) As on 31st Mar, 2017 As on 31st Mar, 2018 Revenue 2,594 3,205 EBIDTA 542 789 Net Worth 925 1,257 EBITDA % 21% 25% Depreciation 159 182 Net Debt 919 884 EBIT 383 606 EBIT % 15% 19% Total 1,844 2,141 Intere

  22. Slide 22: Levers of e×: On Accelerated Growth Track

    On Accelerated Growth Track Multiplier of Global A Fiber Demand Levers Led by 5G Simplified Business of Latent India Demand Model with predictable e× B for Product and Services Outcome & e× Growth Growth Strong Execution; C Capability & Market Access Drivers 22

  23. Slide 23: Thank You

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