Sterlite Technologies Limited · NSE:STLTECH

Sterlite Technologies — Q2 FY2020 Earnings Presentation

26 slides from Sterlite Technologies's earnings presentation, Oct 24, 2019

  1. Slide 1: Earnings Call Q2 FY'20

    Earnings Call Q2 FY’20 24th October 2019 © 2019-2020 Sterlite Technologies Limited

  2. 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

  3. Slide 3: Year till date H1 FY'20

    Year till date H1 FY’20 © 2019-2020 Sterlite Technologies Limited 3

  4. Slide 4: The Half Year Gone By: H1 FY'20

    The Half Year Gone By: H1 FY’20 New Inroads into Solutions Investment New Acquired Launched & into 5G Customers Capabilities Capacity readiness & Geographies Expanded © 2019-2020 Sterlite Technologies Limited 44

  5. Slide 5: H1 FY'20: New Solutions Launched & Capacity Expanded

    H1 FY’20: New Solutions Launched & Capacity Expanded AI Driven Engagement Intellza Affordable & Edge New Virtualization Solutions Hyper Scale & Fast Deployment Launched & Capacity Algorithmic & End to End Design Expanded Hyper Scale Optical Connectivity On boarded State of the Art plant, set up in r

  6. Slide 6: H1 FY'20: Inroads into New Customers & Geographies

    H1 FY’20: Inroads into New Customers & Geographies Expanding horizon Serving News Customers Servicing Global Customers with 26 new organically; Inorganically – Network Integration & Design! 2 Key customers with several others Serving New Countries Extended offerings Inroads of connectivity products

  7. Slide 7: H1 FY'20: Acquired New Capabilities

    H1 FY’20: Acquired New Capabilities “Inside” data centre connectivity Services 2 of the top 4 global Cloud Providers Serves Europe and UK market With IDS, STL now has access to 3 of the top 4 global cloud providers © 2019-2020 Sterlite Technologies Limited 7

  8. Slide 8: Investment into 5G readiness

    283 Patents Globally Investment into 5G 3 Innovation readiness Centres Accelerated Investments in R&D towards 5G © 2019-2020 Sterlite Technologies Limited 8

  9. Slide 9: Increased Customer Traction, Best Talent, Industry Recognitions

    Evidenced by Increased Customer Attracting Global Industry Traction Best Talent Recognitions Silviu Moscovici Chief Customer Officer Day long tech sparks Stan Fiala Head Customer Business Unit- APAC Funnel Sales OB Peter Arnoff PLM Head – OF & OFC 9 © 2019-2020 Sterlite Technologies Limited

  10. Slide 10: Outlook for H2 FY'20 & Beyond

    Outlook for H2 FY’20 & Beyond © 2019-2020 Sterlite Technologies Limited 10

  11. Slide 11: 2019 - Year of Pause for Telco Industry Globally

    2019 - Year of Pause for Telco Industry Globally Macro Trends across the Industry Global Telco Capex A Co-building and Sharing of 5G Mobile Assess Network: -6% 77 72 76 74 72 70 B Divestment of Fiber assets Q1FY18 Q2FY18 Q3FY18 Q4FY18 Q1FY19 Q2FY19 Flattish Capex: Global Telcos decline by 2.5% in la

  12. Slide 12: Global Fiber Demand to see a Decline in 2019

    Global Fiber Demand to see a Decline in 2019 after 15 years of Y-O-Y Growth Fiber Demand across Geographies 3G Cycle 4G Cycle CY’19E vs CY’18 +170% N. America 493 511 484 8% Growth 429 382 314 +153% 246 263 CHINA 218 173 189 13% Degrowth 140 118 75 95 EUROPE 2005 2006 2007 2008 2009 2010 2011 2012 2

  13. Slide 13: Signs of Order Deferment and Slow Uptake From Customers

    We Are Currently Seeing Signs of Order Deferment and Slow Uptake From our Customers Globally • Resulting in flattish volumes for fiber and cable coupled with lower than expected network creation for Indian Telcos Impact • Low order booking during H1 FY’20, vs our initial estimates • Some pricing pre

  14. Slide 14: We remain excited on the future prospects of our Industry

    We remain excited on the future prospects of our Industry Massive Connected Virtualization 5G Data Centres Everything Software has by cloud Enterprises disrupting arrived companies embrace IoT networks Denser Networks Vendor neutral and Characteristics of disaggregated these New Age Networks Compute

  15. Slide 15: 5G is now a reality, with a strong 10 year capex cycle

    5G is now a reality, with a strong 10 year capex cycle Data rich Agile Automation Global 5G deployment timescale communications Industrial IoT requirements Ultra reliable low-latency communication (URLLC) Machine enhanced Private 5G Networks decision making 2019 Virtualisation Time Sensitive Network

  16. Slide 16: Our Strategy: Increase Addressable Market

    Our Strategy: To increase our addressable market and be more relevant to our customers 1 OFFERINGS Investment Deep in Technology Global Data Network Solutions 2 Deep Customer $75 Bn Engagement Design, Build & 3 Manage Networks Building Strong Talent Pool $20 Bn 4 $5Bn World Class Telecom Products Ex

  17. Slide 17: Q2 FY'20 Performance

    Q2 FY’20 Performance © 2019-2020 Sterlite Technologies Limited 17

  18. Slide 18: Q2FY'20 – Sustainable Delivery of Performance

    Q2FY’20 – Sustainable Delivery of Performance ₹ 1,360 Cr ₹ 298 Cr ₹ 160 Cr 23% Revenue EBITDA PAT* 25% Y-o-Y increase 7% Y-o-Y increase 22% Y-o-Y increase ROCE 38% ₹ 8,132 Cr 283 ~20% % Exports Order Book Patents New Product to Revenue © 2019-2020 Sterlite Technologies Limited * PAT is inclusive of

  19. Slide 19: Delivering Sustainable Growth

    Delivering Sustainable Growth +25% +7% 1,791 328 332 304 298 1,432 279 1,335 1,360 1,084 Q2 FY19 Q3 FY19 Q4 FY19 Q1 FY20 Q2 FY20 Q2 FY19 Q3 FY19 Q4 FY19 Q1 FY20 Q2 FY20 Revenue (INR Cr.) EBITDA (INR Cr.) +22% 165 160 131 146 141  Revenue Rs. 1,360 Cr. (25% y-o-y growth)  EBITDA Rs. 298 Cr. (7% y-o

  20. Slide 20: Diversified Customer Segment

    Diversified Customer Segment FY’19 Revenue H1 FY’20 Revenue 12% 20% 25% 56% 63% 23% 2% INR 5,087 Cr INR 2,792 Cr Telcos Cloud Players Enterprises Citizen Networks © 2019-2020 Sterlite Technologies Limited 20

  21. Slide 21: Order Book is High on Priority for H2 FY'20

    Order Book is High on Priority for H2 FY’20 2.1x Order-book mix (H1 FY’20) 10,516 1.4x 1% 8,132 19% 1.6x 5,918 5,223 5,087 47% 1.2x 1x 3,205 3,018 2,275 2,253 2,594 33% FY16 FY17 FY18 FY19 TTM Telcos Revenues (INR Cr.) Order Book (INR Cr.) Enterprise Citizen Networks Cloud Players © 2019-2020 Sterli

  22. Slide 22: 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

  23. Slide 23: Financial Performance

    Financial Performance P&L (INR Cr.) FY’19 H1 FY’20 Q2 FY’20 Balance Sheet (INR Cr.) FY’19 Q2 FY’20 Revenue 5,087 2,792 1,360 Net Worth 1,815 1,890 EBIDTA 1,164 630 298 Net Debt 1,733 1,725 EBITDA % 23% 23% 22% Depreciation 195 143 75 Total 3,548 3,615 EBIT 969 486 223 Fixed Assets 2,356 2,524 Intere

  24. Slide 24: Debt Profile and Cash Flows

    Debt Profile and Cash Flows 1,733 1,725 82 170 591 331 Net Debt 31-Mar-19 Operating Cash Flow Capex Dividend Investment Net Debt 30-Sep-19  Net Debt to Equity consistent at less than 1x  Positive Free Cash Flow Generation of Rs. 260 Crore in H1 FY’20 © 2019-2020 Sterlite Technologies Limited 24

  25. Slide 25: ESG Updates | H1 FY'20

    ESG Updates | H1 FY’20 36 5,300 MT 99% Efficient 1st Tribal locations in Rakholi OFC Plant Zero Silvassa now receiving CO2 emissions Waste Landfill best Communication on reduced through SURE practices being replicated Progress published on the quality healthcare from UN Global Compact 24 in FY 18-19

  26. Slide 26: beyond tomorrow

    beyond tomorrow © 2019-2020 Sterlite Technologies Limited 26

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