Sterlite Technologies Limited · NSE:STLTECH
Sterlite Technologies — Q3 FY2019 Earnings Presentation
26 slides from Sterlite Technologies's earnings presentation, Jan 24, 2019
Slide 1: Earnings Call – Q3 FY19
24 January 2019 Earnings Call– Q3’ FY19 Copyright © 2018 Sterlite Tech
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 3: Anand Agarwal, CEO
PP Anand Agarwal = CEO Paw Z a4
Slide 4: The Industry is Ripe for a Disruptive Change
The Industry is Ripe for a Disruptive Change Data Creation (ZB) Capex Spend ($ Bn) 175 $200 +25% 175 ZB EXPANDING $125 $67 33 Global Data Creation by 2025 Capex Spend 18 $6 CY15 CY18 CY25 CY07 CY17 Telcos Cloud No. of Devices (Bn) ARPU ($) 75 $40 FLATTISH $35 +37% 75Bn $22 23 Connected Devices by 20
Slide 5: Sterlite Tech is Shifting Orbits to Ride on this Change
Sterlite Tech is Shifting Orbits to Ride on this Change Increased end point Change in Network STL uniquely placed consumption of data Architecture to leverage these opportunities Building network Riding on the Data is the new infrastructures to match the opportunity to create Commodity humungous dat
Slide 6: Driven by Increased End Point Data Consumption
Driven by Increased End Point Data Consumption Unconstraint Whosoever Wherever Whenever Whatever consumption of data Man Home, Work Driving across Peak hour Machine traffic growing Highway Consumer All at a CAGR of Industry 37% industries Bullet Train: Enterprise 325 km/h Copyright © 2018 Sterlite T
Slide 7: Coupled with Change in Network Architecture
Coupled with Change in Network Architecture Decentralised & Deep Centralised Fiberisation Hardware Defined Software Defined Closed Ecosystem Open Framework Organised and Structured Unorganised Network Rollout Network Rollout Scattered Analytics and Intelligence Copyright © 2018 Sterlite Tech. 7
Slide 8: Strong Growth in Fiber Consumption
And an Underlying layer of Strong Growth in Fiber Consumption Optical Fiber Cable deployment World’s cumulative deployment of 1Bn fkm cable has outpaced the growth of has shrunk drastically from 38 years to 2 years world economy by ~5x 13.9 38 years 5 years 3 years 2 years 1 Bn Fkm 2 Bn Fkm 3 Bn Fkm
Slide 9: Creating Tremendous Growth Opportunity For Us
Creating Tremendous Growth Opportunity For Us 2010-2014 2014-2019 2019-2024 Telecom Products Design-Build-Manage Networks Data Data Global Network Solutions Network Solutions ₹ 1,148 Cr ₹ 3,205 Cr Opportunity 2014 Revenue* 2018 Revenue** * Telecom Revenue for year ending March 31, 2014 Copyright © 2
Slide 10: Sterlite Tech's Play in the Digital Ecosystem
Sterlite Tech’s Play in the Digital Ecosystem Participate in data Leverage Strong position in Core network creation Capex Optical Products business Software Capitalize on disruption Through new age Server network software products Offer Application Integrated Centric Solutions Network Design Fiber a
Slide 11: Sterlite Tech: A Data Network Solutions Company
Sterlite Tech: A Data Network Solutions Company CUSTOMER SEGMENTS COMMUNICATION INTERNET CONTENT CITIZEN NETWORKS DEFENCE SERVICE PROVIDERS PROVIDERS ENABLERS NETWORK LAYERS OFFERINGS Unified Data Network Solutions Software & Solutions TELECOM SOFTWARE Layer Technology at Global Supply the Core chai
Slide 12: End-to-End Data Network Solution Provider
Bringing together the Offerings to be an unparalleled choice of end-to-end Data Network Solution Provider An integrated Best in class Network ... Next Gen OSS/BSS OPTIMIZED FUNCTIONS Bringing it all Open Source- Virtualized Access together as… Design & Build- End to End Network BEST NETWORK DESIGN E
Slide 13: Built on the Foundation of 4 Pillars
Built on the Foundation of 4 Pillars 1 Deep Internet Communication Customer Citizen Service Content Defence Networks Engagement Providers Providers 2 Strong Technology Platforms Across Products | Network Services | Software 3 Best in Class Talent 4 Global Delivery & 8 Manufacturing Facilities Global
Slide 14: Backed by Strong Technology Platforms
Backed by Strong Technology Platforms Academia 3 2 234 Software Innovation Patents Delivery Centres Globally Centres Centre of Excellence, Centre for Smarter Speciality Products Forums Aurangabad Networks, Gurgaon Experience Labs Core research on optical fibre for Technology and applied research on E
Slide 15: Power of One
Power of One Telecom Software System Integration Services Optical Products 15
Slide 16: Expanding Addressable Market
Leading to Increasing Addressable Market and Customer Relevance OFFERINGS Global Data Network Solutions Design, Build & Manage Networks $75 Bn Expanding $20 Bn Addressable $5Bn Telecom Products Market 2012 2017 2023 Graph not to scale TIMEFRAME Copyright © 2018 Sterlite Tech. Source : Industry Estim
Slide 17: Engines of the Growing Addressable Market
Engines of the Growing Addressable Market 1 2 Passive Layer Network Layer • New product development • FTTx • Geographic Expansion • Citizen Centric • Bouquet of adjacent products • Small Cell Solutions • Data Centers 3 4 Software Layer Global Reach • Next Gen OSS/BSS • Open Source - Virtualised Acce
Slide 18: Q3 FY19 Highlights
Q3’FY19 Highlights ₹ 1,335Cr Customer Engagement • New wins with Tier-1 customers in Europe further penetrating our presence Revenue with ~ 50% Y-o-Y growth in European Sales 60% Y-o-Y increase • Industry first Fiber to the Point solution FTTx Mantra for delivering highly agile & scalable fibre to h
Slide 19: New State of the Art Manufacturing Centre in Aurangabad
New State of the Art Manufacturing Centre In Aurangabad Integrated Manufacturing • Fully integrated from silicon to fiber Infrastructure • World class clean room infrastructure • Manufacturing systems aligned to Industry 4.0 Efficiency • Total Gas Management • Energy efficient Pollution Abatement Sy
Slide 20: Strategic Aspiration of $100Mn PAT by FY20 on Track
Strategic Aspiration of $100Mn PAT by FY 20 on Track Customer Engagement Technology • Unified solution approach • New Product Revenue > 20% • New Tier -1 customer relationships • 234 patents • Long term engagement cycle • 3 Innovation Centers Talent Delivery and Supply Chain • Strong CTO Organisatio
Slide 21: Anupam Jindal, CFO
Anupam Jindal CFO 21
Slide 22: Financial Priorities under Strong Governance
Financial Priorities under Strong Governance Growth Earnings Capital Allocation • Profitable Organic • Drive sustainable EPS • Deploy Free Cash flow Growth growth strategically • EPS accretive strategic • Attain earning objectives • Sound Leverage and acquisitions across economic cycles Working Capi
Slide 23: Demonstrated Growth on Q-o-Q basis
Demonstrated Growth on Q-o-Q basis +60% +46% 1335 304 279 1084 238 252 835 847 877 208 Q3 FY Q4 FY Q1 FY Q2 FY Q3 FY Q3 FY Q4 FY Q1 FY Q2 FY Q3 FY 2018 2018 2019 2019 2019 2018 2018 2019 2019 2019 Revenue (INR Cr.) EBITDA (INR Cr.) +62% 146 131 112 121 Highest ever Revenue of 1,335 Cr (60% y-o-y g
Slide 24: Financial Performance
Financial Performance P&L (INR Cr.) FY18 9M FY18 9M FY19 Q3 FY19 Revenue 3,205 2,359 3,296 1,335 EBIDTA 789 551 836 304 EBITDA % 25% 23% 25% 23% • 9M FY 19 performance Depreciation 182 130 145 51 surpassed the full year EBIT 606 421 691 253 FY18 performance EBIT % 19% 18% 21% 19% • 9M PAT growth of
Slide 25: With Strong Future Outlook
With Strong Future Outlook 2.5x 10,231 1.6x 5,223 4,143* 1.2x 1x 3,205 3,018 2,594 2,275 2,253 FY16 FY17 FY18 Dec 2018 Revenues(INR Cr.) Order Book (INR Cr.) Order Book at an all time high of Rs. 10,231 Crore Copyright © 2018 Sterlite Tech. * Revenue representative of last 4 financial quarters 25
Slide 26: Thank You
€ Sterlite Tech Thank You
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