Sterlite Technologies Limited · NSE:STLTECH

Sterlite Technologies — Q1 FY2020 Earnings Presentation

29 slides from Sterlite Technologies's earnings presentation, Jul 18, 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 4: 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 44
Slide 5: 1.2 Billion 5G Connections by 2025
Industry is Witnessing Major Tech & Capex Shifts Massive Virtualized Connected Data 1.2 Billion 5G Software Everything Centers Enterprise 5G Connections by 2025 isbuild here by Early 5G commercial launches cloud companies across major markets S Korea • China • USA++ Source: GSMA, Canalys, Company &
Slide 6: $66 Billion Cumulative Annual Capex
Industry is Witnessing Major Tech & Capex Shifts Massive Virtualized Connected $66 Billion Data Software of cumulative annual capex Everything Centers for just the 3 players Enterprise by cloud companies 102% YoY ~2X in 2 years 64% YoY Source: GSMA, Canalys, Company & Industry Estimates © 2019-2020
Slide 7: 25 billion IoT Connections in 2022
Industry is Witnessing Major Tech & Capex Shifts 25 billion +235% Connected 25 Everything Virtualized Software IoT connection in 2022 Enterprises embrace 8 IoT 2017 2022 Source: GSMA, Canalys, Company & Industry Estimates © 2019-2020 Sterlite Technologies Limited 77
Slide 8: 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 9: 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 9
Slide 10: Increasing Addressable Market to $75bn
Creating Unique Opportunities for STL Increasing addressable Market to $75bn 10
Slide 11: STL: Data Networks Innovator
STL: System Based Integrated Solutions for Our Customers 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 enter
Slide 12: With Clear Focus on Customer Engagement
With Clear Focus on A B C D E Global Customer Technology Execution Delivery & Talent Engagement Supply Chain © 2019-2020 Sterlite Technologies Limited 12
Slide 13: Applications Based Solutions for Evolving Needs of Customers
Applications Based Solutions for Evolving Needs of Customers Customer Global Large Telco Disruptive Telco Hyperscale Cloud Company Application High Speed FTTx Seamless Wifi offload High capacity with extremely low latency Solution STL Algorithmic STL PODS STL TruRibbon FTTx Solution – Solution – Sol
Slide 14: Applications Based Solutions for Evolving Needs of Customers
Applications Based Solutions for Evolving Needs of Customers Customer Pan European Telco Global Cloud Co. India Top 3 telco Application Increase High speed data Increase customer transmission capacity transfer with power retention in existing infra Solution STL Bullet Series STL PoE Solution STL Int
Slide 15: Modernizing Indian Navy Communication
Modernizing Indian Navy Communication • 44 locations • World-class Naval Communication Network • 42 partners • End to End Secure network, data centers • Indian Navy • SDN segment routing • DoT • Big Data, Content Delivery Network • Satellite Connectivity • Virtualized Private Cloud © 2019-2020 Sterl
Slide 16: MahaNet: Bringing the Villages up to Speed
MahaNet: Bringing the Villages up to Speed Mahanet STL way of execution • Future ready A transformative digital • IP MPLS architecture inclusion project • Robotics • Automated project management • Power & Solar infrastructure 7.5 Million 4,045 18,000 kms People Gram Panchayat’s Optical fibre 16
Slide 17: Kakinada Smart City: Modernizing India
Kakinada Smart City: Modernizing India Positively impact 3.25 lakh lives with smart IoT driven infrastructure Futuristic ecosystem DC, CCC, NOC © © 2019-2020 2019-2020 Sterlite Sterlite Technologies Technologies Limited Limited 1717 17
Slide 18: World Class Facility Onboarded!
World Class Facility Onboarded! Silicon to Fiber Energy Efficient State of the art integrated manufacturing plant in Aurangabad Total gas management and pollution abatement systems Industry 4.0 Clean Room Fully automated machines with Robotic Operations World class infrastructure with integrated HVA
Slide 19: European Hub – STL Italy
European Hub – STL Italy • Integrated Business Planning with Global Supply Chain • Doubling Capacity within an year of acquisition • Addition of Marquee Customers in Europe © 2019-2020 Sterlite Technologies Limited 1919
Slide 20: We are Attracting Best in Class Global Talent!
We are Attracting Best in Class Global Talent! Fulvia Bortolotto Rakesh Sambaraju Sushil Agarwal Application engineer Head – Business Tier 1 Operators Development, COO- Hyperscale, USA Network Services Shantanu Kulkarni Radheshyam Rohit Aggarwal Soni Head- Head- Contract Next Gen OSS/BSS Head Global
Slide 22: Q1FY'20 – Sustainable Delivery of Performance
Q1FY’20 – Sustainable Delivery of Performance ₹ 1,432Cr ₹ 332 Cr ₹ 141 Cr 28% Revenue EBITDA PAT 63% Y-o-Y increase 32% Y-o-Y increase 17% Y-o-Y increase ROCE 36% ₹ 9,853 Cr 273 21% % Exports Strong Healthy Patents New Product to Order Book 45% Y-o-Y increase Revenue © 2019-2020 Sterlite Technologie
Slide 23: Delivering Sustainable Growth
Delivering Sustainable Growth +32% +63% 1,791 328 332 304 1,432 279 1,335 252 1,084 877 Q1 FY19 Q2 FY19 Q3 FY19 Q4 FY19 Q1 FY20 Q1 FY19 Q2 FY19 Q3 FY19 Q4 FY19 Q1 FY20 Revenue (INR Cr.) EBITDA (INR Cr.) +17% 165 146 141 121 131  Revenue 1432 Cr. (63% y-o-y growth)  Highest ever EBITDA of Rs. 332 C
Slide 24: STL – Global Growth
STL- Global Growth FY19 Revenue Q1FY20 Revenue 8% 7% 24% 26% 65% 64% 4% 4% INR 1432 Cr INR 5087 Cr India China Europe ROW © 2019-2020 Sterlite Technologies Limited 24
Slide 25: STL – Expanding Customer Base
STL – Expanding Customer Base FY19 Revenue Q1FY20 Revenue 12% 18% 25% 56% 25% 63% 1% INR 1432 Cr INR 5087 Cr Telcos Cloud Players Enterprises Citizen Networks © 2019-2020 Sterlite Technologies Limited 25
Slide 26: Strong Healthy Order Book Providing Long Term Visibility
Strong Healthy Order Book Providing Long Term Visibility 2.1x Order-book mix 1.7x 10,516 9,853 1% 17% 1.6x 5,642 5,223 5,087 1.2x 55% 1x 3,205 28% 3,018 2,275 2,253 2,594 FY16 FY17 FY18 FY19 TTM Telcos Revenues (INR Cr.) Order Book (INR Cr.) Enterprise Citizen Networks Cloud Players © 2019-2020 Ster
Slide 27: 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 28: Financial Performance
Financial Performance P&L (INR Cr.) FY19 Q1FY20 Revenue 5,087 1,432 EBIDTA 1,164 332 EBITDA % 23% 23% Depreciation 195 68 EBIT 969 264 Interest 105 46 PBT 864 217 Tax 278 73 Net Income 563 141 ROCE % 34% 28% © 2019-2020 Sterlite Technologies Limited 28

Sterlite Technologies — Q1 FY2020 Earnings Presentation on 6ix

Sterlite Technologies — Q1 FY2020 Earnings Presentation

Slide 1: Earnings Call – Q1 FY20

Slide 2: Safe Harbour

Slide 3: Anand Agarwal, CEO

Slide 4: Industry is Witnessing Major Tech & Capex Shifts

Slide 5: 1.2 Billion 5G Connections by 2025

Slide 6: $66 Billion Cumulative Annual Capex

Slide 7: 25 billion IoT Connections in 2022

Slide 8: Dense Fiberization Essential for New Age Networks

Slide 9: India at the Start of Network Creation Cycle

Slide 10: Increasing Addressable Market to $75bn

Slide 11: STL: Data Networks Innovator

Slide 12: With Clear Focus on Customer Engagement

Slide 13: Applications Based Solutions for Evolving Needs of Customers

Slide 14: Applications Based Solutions for Evolving Needs of Customers

Slide 15: Modernizing Indian Navy Communication

Slide 16: MahaNet: Bringing the Villages up to Speed

Slide 17: Kakinada Smart City: Modernizing India

Slide 18: World Class Facility Onboarded!

Slide 19: European Hub – STL Italy

Slide 20: We are Attracting Best in Class Global Talent!

Slide 21: Anupam Jindal, CFO

Slide 22: Q1FY'20 – Sustainable Delivery of Performance

Slide 23: Delivering Sustainable Growth

Slide 24: STL – Global Growth

Slide 25: STL – Expanding Customer Base

Slide 26: Strong Healthy Order Book Providing Long Term Visibility

Slide 27: Financial Priorities under Strong Governance

Slide 28: Financial Performance

Slide 29: beyond tomorrow