Investor Presentation Feb'21 - stl.tech - STL Tech

Page created by Ricky Hayes
 
CONTINUE READING
Investor Presentation Feb'21 - stl.tech - STL Tech
stl.tech

Investor
Presentation
Feb’21
Investor Presentation Feb'21 - stl.tech - STL Tech
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 general economy in India & global markets, are
       forward looking statements.
       Such statements involve known and unknown risks, uncertainties and other factors, which may cause actual results, performance or achievements of the Company, or
       industry results, to differ materially from those expressed or implied by such forward-looking statements.
       Such forward-looking statements are based on numerous assumptions regarding the Company’s present and future business strategies and the environment in which
       the Company will operate in the future.
       The important factors that could cause actual results, performance or achievements to differ materially from such forward-looking statements include, among others,
       changes in government policies or regulations of India and, in particular, changes relating to the administration of the Company’s industry, and changes in general
       economic, business and credit conditions in India.
       The information contained in this presentation is only current as of its date and has not been independently verified. No express or implied representation or
       warranty is made as to, and no reliance should be placed on, the accuracy, fairness or completeness of the information presented or contained in this presentation.
       None of the Company or any of its affiliates, advisers or representatives accepts any liability whatsoever for any loss howsoever arising from any information
       presented or contained in this presentation. Please note that the past performance of the Company is not, and should not be considered as, indicative of future
       results. Furthermore, no person is authorized to give any information or make any representation which is not contained in, or is inconsistent with, this presentation.
       Any such extraneous or inconsistent information or representation, if given or made, should not be relied upon as having been authorized by or on behalf of the
       Company.
       The Company may alter, modify or otherwise change in any manner the contents of this presentation, without obligation to notify any person of such revision or
       changes.
       Persons should consult their own financial or tax adviser if in doubt about the treatment of the transaction for themselves
       These materials are confidential, are being given solely for your information and for your use, and may not be copied, reproduced or redistributed to any other person
       in any manner. The distribution of this presentation in certain jurisdictions may be restricted by law. Accordingly, any persons in possession of this presentation should
       inform themselves about and observe any such restrictions

© 2020-2021 Sterlite Technologies Limited
Investor Presentation Feb'21 - stl.tech - STL Tech
Company
      Overview

                                            1                  2                   3         4
        Company                         The Digital Networks   STL Unique          Q3 FY21   STL          Annexure
        Overview                        Growth Story           Value Proposition   Updates   Financials

© 2020-2021 Sterlite Technologies Limited
Investor Presentation Feb'21 - stl.tech - STL Tech
Core
                                    We build digital networks
     Business
                                    for our customers
     Customer                                                                           Cloud                                 Large                               Citizen
     Segments                                   Telcos
                                                                                        Co.                                   Enterprises                         Networks

    End-to-End
     Solutions
                                              Optical                              Fibre                                FTTx Access                              Network
                                            Connectivity                         Deployment                              Network                               Modernization

     Portfolio                                  Optical                                  Virtualised                            Network                            System
     Offerings                                  Interconnect                             Access                                 Software                           Integration
                                                Products                                 Products                               Products                           Services
     Unique
                                             Glass Preform             Fibre & Cables              Virtual Network Software          Telecom Software            Network Design
   Capabilities
                                                    Optical Interconnect            Radio Access            pFTTx                           Fibre Deployment       O&M
© 2020-2021 Sterlite Technologies Limited                                                                                                                                         4
Investor Presentation Feb'21 - stl.tech - STL Tech
Starting from optical fibres
        We now build digital networks globally

                                                                                                                    2019
                                                                                       2017                         Semiconductor Grade
                                                                     2014                                           Industry 4.0        European Data Centre        5G Virtualization and
                                                         2012        Optical Fibre       Centre for                 Glass Plant         Services IDS Acquisition    5G Radio Partnership
                              1995                                   Centre of           Smarter Networks
           1988                                      Manufacturing
                                                     set up          Excellence
          Established in       Optical Fibre Plant
          Aurangabad           In Aurangabad         in China

                     Optical Fibre Cable    Data Cable
                     Plant in Silvassa                      Manufacturing
                                            in Dadra
                                                            set up
                      1993                  2004            in Brazil
                                                                             Telecom Software
                                                                             Acquisition               Acquisition of
                                                             2013                                      Metallurgica
                                                                                                                                          vRAN Investment          Acquisition of Optotec,
                                                                             2015                      Bresciana s.p.a., Italy
                                                                                                                                          in ASOCS, Israel         A leading Optical
                                                                                                        2018                                                       Interconnect company

                                                                                                                                    2020
© 2020-2021 Sterlite Technologies Limited                                                                                                                                                    5
Investor Presentation Feb'21 - stl.tech - STL Tech
Our company in numbers

           $736 Mn.
           FY20 REVENUE
           India (66%), Europe (22%),
           China (3%), Rest of world (9%)

                                                                                                           MANUFACTURING
           7                                                                                               UNITS

           GLOBAL PRODUCTION FACILITIES                                                                    SALES
           50m fkm optical fibre capacity   GLOBAL FOOTPRINT                                               OFFICES

           4                                462                        Zero                      30+
           INNOVATION CENTRES               PATENTS                    WASTE TO LANDFILL         NATIONALITIES
           Research & Development           Across the network layer   Shendra, Rakholi, Dadra   ~3,100 Employees

© 2020-2021 Sterlite Technologies Limited                                                                                  6
Investor Presentation Feb'21 - stl.tech - STL Tech
We have a comprehensive Portfolio of offerings

             Optical Interconnect               Virtualised Access               Network Software                 System Integration
                  Products                           Products                        Products                          Services

         •     Glass Preform                •   Programmable FTTx            •   Telecom Billing Operations   •    Network Design Services
         •     Optical Fibre                •   Virtualised Radio Access         Software                     •    Fibre Rollout Services
         •     Optical and Speciality           Network                      •   Monetization and             •    Network Operations &
               Cables                       •   RAN Intelligent Controller       Engagement Software               Mgmt. Services
         •     Optical Interconnect         •   RAN Orchestration                                             •    Data Centre Network
                                                                                                              •    Private Enterprise Network

© 2020-2021 Sterlite Technologies Limited                                                                                                       7
Investor Presentation Feb'21 - stl.tech - STL Tech
We have four customer segments

           Telcos                           Cloud Co.                      Citizen Networks       Large Enterprises
           to connect                       to enable                      to empower             to create

           each customer with the           future applications and        every citizen with     secure networks for the
           latest data applications         immersive content by           high-quality primary   specialized enterprise use
           while ensuring better            bringing compute and storage   connectivity           cases
           experience                       capabilities to the edge

© 2020-2021 Sterlite Technologies Limited                                                                                      8
Investor Presentation Feb'21 - stl.tech - STL Tech
We are passionate about new technology development

                                                                       4 Innovations Centres
                                                                           with world class R&D capabilities

                             Optic Fibre                        Optic Fibre                            Centre for           STL
                         Centre of Excellence,               Cable Design Lab,                      Smarter Networks,    Cloud Lab,
                             Aurangabad                          Silvassa                              Gurugram         Ahmedabad

                     462 Patents in Optical Connectivity, Network Software & Services and Access solutions
                                                                                        Innovating with Startups, Future Disrupters

© 2020-2021 Sterlite Technologies Limited                                                                                             9
Investor Presentation Feb'21 - stl.tech - STL Tech
With our technology focus & deep engagement, we have delivered
        results for our customers
     30% faster fibre to the                2x faster rollout for world’s                            40% cost efficient      3x deployment speed for
     home provisioning                      1st Exabyte network                                     SDN ready network                 digital inclusion

     Using YogaliteTM Cable with            Using LEAD360TM and FTTx                    Using FTTx MantraTM, iCORETM to      Using LEAD 360 TM approach to
     Micro-Module for a leading             MantraTM for leading                        provide high-speed broadband in    connect 7.5 mn people and 4,045
     French Carrier                         South Asian Telco                                  4.5 mn homes in Telangana            villages in Maharashtra

                                                                                       Citizen
                                                                           Telco      Networks

    50% reduction in cabling                35% reduction in                                                Network            7x deployment speed in
    requirements                            installation cost             Cloud Co.     Large
                                                                                      Enterprises
                                                                                                        modernisation           10k+ Kms OFC network

    Using POWER-TxTM Solution for a         Using TruRibbonTM to serve                $500 mn multiyear project across     $350 mn project for creating the
    Global Cloud Co. to serve high          high capacity data transfer                   1600 sites to design, execute,    world’s largest intrusion-proof
    Speed data with power                   with extremely low latency                  O&M the Indian Naval Network        network in J&K for Indian Army

© 2020-2021 Sterlite Technologies Limited                                                                                                                     10
Alongside, we have also delivered sustainable value for our
        shareholders
                                                +23%            5,087   5,154                       +23%             1,164              1,104

                                                3,205                                               789
                                    2,594                                               542
                  2,275                                                          475

                 FY 16              FY17         FY18           FY19     FY20   FY 16   FY17        FY18              FY19                FY20
                                            Revenue (INR Cr.)                             EBITDA (INR Cr.)

                                                +32%                                                                                   Consistently
                                                                563                                                   34%         delivered RoCE >20%
                                                                        472                         30%
                                                                                                                                     for last 5 years

                                                 334                             20%    21%                                              22%

                                     201
                   154

                 FY 16              FY 17       FY 18           FY 19    FY20   FY 16   FY17        FY18              FY19                FY20
                                             PAT (INR Cr. )                                     ROCE

© 2020-2021 Sterlite Technologies Limited                                                              FY 20 PAT adjusted for exceptional item net of tax   11
Above all, we are driven by our purpose to transform everyday
        lives across communities
                                                             Environment | Social | Governance

            SURE                             CSR                               World’s 1st                         STL                             STL
            Packaging                        Initiatives                       ZWL Certified                       Garv                            Academy
          Caring for the environment        Enabling millions                  Driving Sustainability             Innovating for good              Skilling for a better future

           8k                               1.32M                              64k                                Transform                        72K
           trees saved                      lives impacted                     tons diverted from landfill        rural India (Pilot across 3      Trained Professionals
                                                                               spaces                             states) for digital readiness
                                            Our Initiatives
           5.3k                                                                94%                                Results                          10K
           MT CO2 reduced                   Education : Smart Nandghars,       of our industrial waste does not   27% increase in internet usage   Certified Professionals
                                            Digital Empowerment                go into landfill
                                                                                                                  76.2% women using
           5R                               Health : Mobile Medical Unit                                          supplementary education          Academy
           Approach – Recycle, Resuse,                                         Reduced                                                             training for deployment of
           Reduce, Refuse, Remove           Environment : Jaldoot, Greenbelt   CO2 emissions significantly        50% more usage of Govt. Apps     future ready networks

                                            Empowerment : Jeevan Jyoti                                            8.7 average user rating

© 2020-2021 Sterlite Technologies Limited                                                                                                                                         12
The Digital
      Networks Growth Story

                                            1                  2                  3         4
         Company                        The Digital Networks   STL Unique Value   Q3 FY21   STL          Annexure
         Overview                       Growth Story           Proposition        Updates   Financials

© 2020-2021 Sterlite Technologies Limited                                                                           13
We have seen an evolution from Telecom to Digital

                                                                           Agriculture   Banking
          Geospatial
                             AR/VR

                                                              Healthcare                              Entertainment

  Video                                Voice

                                                  Digital

                                               Connectivity
          Content Platform                                          CONSUMER                          ENTERPRISE
                                                 Storage
                                                Processing
   Apps                         Data
                                               Analytics/AI    Security
                                                                                                            Defense

                  Content
                                                                            Gaming       Automotive

                                                                                                                      14
2020 was a year of inflection for digital networks

                         User growth accelerated significantly                   Network creators decided to invest
                a        ~2Mn users added daily in 2020                 b        disproportionately
                                                                                 Multi bn. $ commitments, urgency

                                                                                                                         Enterprise spectrum saw huge demand in
                                                                                                                                     US, UK, Germany,

                                                                                                                         Many companies applied to set up local
                                                                    Jio Platforms, India raised $20.2 bn. capital                  5G networks.

                                                                       allocated $9.2 bn. In reverse auction for rural    Announced investment of $10 Bn in US
                                                                                  digital opportunity fund                    data centres & offices in 2020

                                            Figures from Statista

                  2021 has kickstarted the decade long network creation cycle
© 2020-2021 Sterlite Technologies Limited                                                                                                                         15
The decade of network creation
        New technologies are solving for scale, reach and quality

                                                                                  5G                       FTTH                           O-RAN

                                       4-5X Internet Mobile traffic
                    SCALE
                                       more digital lanes             • 113 operators launched    • Europe 1 mn+ home             • Airtel announced vRAN
                                                                        5G in 48 countries          passes/ year by BT,             software across its 4G
                                                                                                    CityFibre, TIM, Open Fibre,     network
                                                                      • 229 mn. 5G connections      DGF and more
                                       Millions of new users            4X faster adoption rate                                   • Telefonica started ORAN
                    REACH                                                                         • Aggressive 5Y plans:            deployment
                                       more digital kilometres
                                                                      • As per GSA, 303 5G          Germany, Italy and UK
                                                                        commercially available                                    • ORAN trials: DT,
                                                                        as of Nov. 2020           • India: RJIO & Airtel plan       Vodafone Idea, MTN &
                                       4-5X Mobile Data speeds                                      for 75 mn. & 40 mn. home        STC.
                   QUALITY                                            • China: planning 1.7 mn.     passes
                                       superior speeds, response        base stations by 2021
                                       (copper + wireless → fibre)

© 2020-2021 Sterlite Technologies Limited                                                                                                                     16
The decade of network creation
        5G & FTTH deployments are revving up the optical demand
               Optical fiber demand buoyed by
               investments in digital infrastructure
               Units: Mn. fkm.

                                                                                              N. America                       CHINA
                                                                                          Continued growth in         Market started to grow on
                                                                                       deployments specially from     back of 5G base stations
                                                                                            tier 2 / 3 carriers             deployment

                                                                                                EUROPE                         INDIA
                                                                                      Buoyant FTTH demand, slightly    Expected revival in 2021 on
                                                                                       slowed down by the second      back of FTTH deployments &
                                  H2 2020 estimated growth at 5% YoY,                         COVID wave                demand from Bharatnet
                                   2021 growth estimated at 7% YoY

© 2020-2021 Sterlite Technologies Limited                               Source: CRU                                                                  17
The decade of network creation
Next gen networks are being built on 4 technology confluences

  Close to the Edge                                                By 2025, 75% of enterprise-generated data will be created and
  EDGE                                    At the Edge              processed at the edge – as against 10   % in 2018

  Seamless Wired & Wireless
                                                                   FTTH network can be very easily made ready for 5G
  CONVERGED
                                Optical       &          Radio     with minimal additional investment

                                                                   Micro data center market will leap from $3   bn. in 2018 to
  Enhanced Experience
  COMPUTE
                              Connectivity    &         Compute    nearly $15   bn. by 2025

  Agile, Scalable, Agnostic                                        Dish plans to cover 70% of the US population by
  DISAGGREGATED
                               Hardware       &         Software   June 2023 with its standalone Open RAN-based 5G network

                                                                                                                                   18
STL Unique
      Value Proposition

                                            1                      2                   3         4
        Company                             The Digital Networks   STL Unique          Q3 FY21   STL          Annexure
        Overview                            Growth Story           Value Proposition   Updates   Financials

© 2020-2021 Sterlite Technologies Limited                                                                                19
STL predicted and prepared itself for these technology confluences

                                                        LARGE SCALE NETWORKS
                                                        SYSTEM INTEGRATION
                                                        10 Years Network Design & Integration Solutions

                                                 OPTICAL                               VIRTUALIZED
                                            INTERCONNECT                                WIRELESS
                                                                                       (SOFTWARE, CLOUD)
                                                                                                                 Digital Network
                                                25 years                                   5 years                  Integrator
                                            Extraordinary track record                 Strategic alliances and
                                                Globally respected                     product development

               Close to the Edge
               EDGE                                                      At the Edge
                                                                                                                 STL can integrate
               Seamless Wired & Wireless
                                                    Optical                                   Radio
               CONVERGED                                                    &                                        all these
               Enhanced Experience
               COMPUTE                          Connectivity                &              Compute                 technologies
               Agile, Scalable, Agnostic
               DISAGGREGATED                      Hardware                  &              Software

© 2020-2021 Sterlite Technologies Limited                                                                                            20
We have 25 years of experience in optical connectivity
                                       Optical Fibre                                                        Optical Fibre Cable                                Speciality Cable

                                                                Jiangsu Sterlite
                                             Shendra          Tongguang Fibre Co.                             Metallurgica
             Waluj                                                                       Rakholi                                     Sterlite Conduspar                 Dadra &
                                            Aurangabad              Limited                                    Bresciana
           Aurangabad                                                                    Silvassa                                           Parana                    Nagar Haveli
                                               India              Haimen-City                                    Dello
              India                                                                        India                                             Brazil                      India
                                                                     China                                       Italy

               Pure                          Glass                 Optical                                     Optical                                              Optical
              Silicon                       Preform                 Fibre                                    Fibre Cable                                         Interconnect
                                   (Restricted Players
We have expertise to integrate large-scale complex digital networks

                   Network                              Transformative                        Futuristic SDN ready
                   Modernisation                        digital inclusion                     state wide network
                                                                    Bharatnet Projects                   Bharatnet Projects
                   Project Varun              87%       Mahanet (A)                 92%       T-Fibre (A)                18%
                                            Completed                            Completed                            Completed
                   (Indian Navy Project):
                                                        Mahanet (B)                 34%        T-Fibre (B)               13%
                                                                                 Completed                            Completed

                                             Largest exabyte                    Modern Optical
                                             Network                            Network
                                             FTTH                    2%         Fiber roll out          21%
                                             (Large Indian telco)   Complete    (Large Indian telco) Completed

© 2020-2021 Sterlite Technologies Limited                                                                                         22
We have developed an ecosystem in wireless access technologies

                                                                               5G & Access
                                                                                Solutions

                Hardware                                      Virtualization                 Radio                     Software

                  Zyxel       Alpha networks

                                            Academic Alliances                                   Open Networking Standards

                                            MIT | IIT-M RUTGERS

© 2020-2021 Sterlite Technologies Limited                                                                                         23
Our future roadmap is built on 5 strategic pillars

                         1                         2                  3                       4                      5

           Technology-led                   Key Accounts       Large – Scale            Ecosystem           Top Talent and
            E2E Solutions                   Management           Complex               Alliances and           Culture
                                                                Integration            Investments

           Increasing market                Target 20 KAMs     Developing better     Increase Addressable   Drive good returns
          share by integrated                   globally     integration practices      Capex through       to our stakeholders
               technology                                                                   strategic           /community
                                                                                          investments

© 2020-2021 Sterlite Technologies Limited                                                                                         24
Q3 FY21
        Updates

                                            1                      2                   3         4
        Company                             The Digital Networks   STL Unique          Q3 FY21   STL          Annexure
        Overview                            Growth Story           Value Proposition   Updates   Financials

© 2020-2021 Sterlite Technologies Limited                                                                                25
Our flagship optical connectivity portfolio is now complete

Tech-led solutions

                                                                      Wide Ranging OI Portfolio

                 E2E integrated optical solutions                     Addressable market $8-10 Bn.

                                                                      Spring board for combined offering

               •    STELLAR FIBRE - World’s leading bend
                    insensitive optical fibre

               •    CELESTA CABLE - Ultra high density
                    cable, rated better than the best

               •    Prepared Subsystems KITS-
                    Underground & aerial optical
                    interconnect kits

© 2020-2021 Sterlite Technologies Limited                                                                  26
We have made tech-enhancements to our integration and delivery
        solutions
Tech-led solutions                                             STL LEAD 360° 2.0
                                            Included drone                                                    AR VR based digital
                                             aerial survey                                                         training

                                                                  Everything                 Academy
                                                                  Survey                      Training

                                                             Lean Agile                          Design Led
                                                             Approvals                             Planning
                                      Robotic process
                                                                                                                 High-speed trenching
                                        automation
                                                                                                                      machinery
                                                                               360° Robust
                                                                               Operations

                                                                          Integrated remote
                                                                          field management
© 2020-2021 Sterlite Technologies Limited                                                                                               27
We have launched a range of commercially viable wireless solutions

Tech-led solutions

                                5G Multi-Band Radio                  Garuda                     Wi-Fi6 Access Solution
                          Comprehensive Open RAN (Radio                                         An integrated solution that
                         Access Network) solution spanning       An O-RAN compliant,          leverages Wi-Fi 6 technology to
                         across Radio Unit (RU), Centralized   indoor small cell solution   provide carrier-class connectivity in
                         Unit (CU) and Distributed Unit (DU)                                        dense environment

© 2020-2021 Sterlite Technologies Limited                                                                                           28
We are investing in OFC capacity expansion

s
                                                OFC capacity expansion to 33 mn.                              Optical fibre cable capacity
                                                                                                                                   33
    Ecosystem,
    Investments

                                                                                                                           18

                                                                                                                  8

                                                                                                                                         Mn. fkm

                                                    OFC expansion project is on track vis-à-vis timeline & budgeted cost

    © 2020-2021 Sterlite Technologies Limited                                                                                                      29
Large scale projects with tier-1 telco & cloud players

s

    Large-scale
    integration
                                                           One of the largest
                                                             Cloud Player

    © 2020-2021 Sterlite Technologies Limited                                   30
We are driving deep customer engagement with a focus on
            21 key accounts in India, Europe & MEA
s

                                                   Built
                                                                                  Investing in
                                                Organization                                                        Deep Engagement
                                                                                 Processes and
                                                 with KAM                                                           with Key Accounts
                                                                                   Capability
                                                 Expertise
    Key accounts
    management
                                           Account Based                       Multi-disciplinary                   Revenue:
                                           Organization                        Teams                                Increased share of Capex
                                           Regional multi-disciplinary teams   Hackathons, Tech sparks, War rooms
                                                                                                                    Spread:
                                           Global Experts in                   Systems for KAM                      E2E Solutions Engagement
                                           Customer                            Salesforce adoption, Blue Sheets
                                                                               (Miller Heiman)
                                                                                                                    Adding Services, Cables, Networks design
                                                                                                                    and Virtualization to KAMs.
                                           Engagement
                                           From Nokia, Prysmian, Infinera
                                                                                                                    New Tech Development:
                                                                                                                    Driven by Customer POCs
                                                                                                                    Customer Involvement in 5G Multiband
                                                                                                                    Wifi6, High Fibre Count IBR

    © 2020-2021 Sterlite Technologies Limited                                                                                                                  31
We are getting top global talent to drive strategic outcomes

                                 Key Account             Technology                   Policy                  UK Services                      Software

                           Sandeep Girotra             Srinivasan                  Anjan Das               Keith Rowley                    Saikat Mitra
                                                      Jagadeesan
                               Global Sales          Head, Wireless              Chief Policy            Chief Delivery                 Chief Operating
Top talent
                                  Head                  Product                   Advocacy              Officer, Network                Officer, Network
                                   STL               Development                   Officer                  Services,                       Software
                                                                                                               UK
                            25 years of experience   30+ years of experience   More than 3 decades of   20+ years of experience in      24 years of experience in
                             building Key Accounts       in new product             experience in        communications Industry        telecom industry leading
                            and driving 10x growth   development & systems       strengthening India    driving strategic initiatives    companies with special
                                    at Nokia               engineering         innovation ecosystem.        and transformation             focus on technology
                                                                                Worked as Executive              programs                innovation & customer
                                                                                    Director at CII                                           engagement

© 2020-2021 Sterlite Technologies Limited                                                                                                                           32
STL Financials

                                            1                      2                  3         4
        Company                             The Digital Networks   STL Unique Value   Q3 FY21   STL          Annexure
        Overview                            Growth Story           proposition        Updates   Financials

© 2020-2021 Sterlite Technologies Limited                                                                               33
Our participation funnel is growing ….
                                                           Key Opportunities

                                                                                               Open Participation Funnel (Rs. Cr.)
                                LARGE EUROPEAN                            LARGE EUROPEAN
                                     TELCO                                     TELCO                                  ~13,800
                                                                                                  ~12,000
                                            FTTH ROLLOUT                          OPTICONN

                                   LARGE INDIAN                                 CITIZEN           Q2 FY21             Q3 FY21
                                             TELCO                             NETWORKS
                                       ACCESS SOLUTIONS                        FIBER ROLLOUT

© 2020-2021 Sterlite Technologies Limited                                                                                            34
Translating into healthy order book
                           Open Order Book (Rs. Cr.)                            Order Book Spread (Rs. Cr.)

                                  10,312           10,705      10,737                       ~ 5,470
                10,037

                                                                                                               ~ 3,766

                                                                        ~ 1,501

               Q4 FY20           Q1 FY21           Q2 FY21    Q3 FY21
                                                                         FY21                FY22       FY23 and Beyond

            Open Order Book Customer Segment wise                                 Open Order Book Split
                  Enterprises
                                                                                O&M
                               17.5%
                                                                                      25%

                                                     47.8% Telcos

                           34.3%
   Citizen networks                                                                                   75%
                                            0.4%                                                            Capex
                                             Cloud                                                                        35
© 2020-2021 Sterlite Technologies Limited
Revenue mix is balanced across customers and geographies

                        Key Order Wins                 Customer Segments                              Geographical Distribution
                           Q3 FY21                      Revenues (Rs. Cr.)                               Revenues (Rs. Cr.)
                                                      5,154           3,350                         5,154                 3,350
                                                       2%               3%                    3%                         6%
                                                                                                   3% 2%                 4% 1%
        •     A five year, multi million dollar       25%              22%
              contract for supply, warranty &                                                         27%
              maintenance of 5G RAN systems                            11%
                                                                                                                           33%
                                                      23%
        •     Opticonn solution for a leading
              telecom player in Europe

        •     IBR cable (6912 fibers) for a leading                    64%                            65%
              hyperscale company.                                                                                          56%
                                                      50%

                                                      FY20          9M FY21                          FY20                9M FY21

                                                      Telcos        Citizen Networks                        India            China
                                                      Enterprises   Cloud                                   EMEA             RoW
                                                                                                            Americas
© 2020-2021 Sterlite Technologies Limited                                              Focus markets are India, Europe & Middle East and America   36
We have grown our revenues in Q3 on QoQ by 13% and YoY by 9%
                                                                         1,314              247                                       238
                     1,203            1,160                    1,160                                  226
                                                                                                                            212
                                                  876
                                                                                                                 131

                    Q3 FY20         Q4 FY20    Q1 FY21        Q2 FY21   Q3 FY21           Q3 FY20   Q4 FY20    Q1 FY21     Q2 FY21   Q3 FY21
                                              Revenue (INR Cr.)                                         EBITDA (INR Cr.)

                        91                                                87
                                        80                                        • Capacity utilizations are at all time high and will see further
                                                                                    improvement going forward.
                                                                58
                                                                                  • Execution on the ground for services also continues to
                                                                                    improve on Q-o-Q basis.
                                                                                  • Inline with earlier expectation, we maintain that we shall
                                                   6
                                                                                    continue to grow in Q4 on Q-o-Q basis and H2FY21 shall be
                    Q3 FY20         Q4 FY20    Q1 FY21        Q2 FY21   Q3 FY21     better than H2 FY20
                                              PAT (INR Cr.)

© 2020-2021 Sterlite Technologies Limited                                                                                                             37
Financials: Abridged Version
                                                                           Growth
        P&L (INR Cr.)                       Q1 FY21   Q2 FY21   Q3 FY21
                                                                          Q-o-Q (%)

        Revenue                              876       1,160     1,314      13%

        EBIDTA                               131       212       238        12%

        EBITDA %                             15%       18%       18%

        Depreciation                          74        82        68

        EBIT                                  57       130       169        30%

        Interest                              50        50        50

        Exceptional Item                       -

        PBT                                   7         80       120

        Tax                                   4         24        33
        Net Income
                                              6         58        87        48%
        (After Minority Interest)
© 2020-2021 Sterlite Technologies Limited                                             38
We are on track to deliver our Vision 2023
        We shall double our revenue & reduce net debt/equity to half while maintaining RoCE >20%

                                               Revenue : Rs. 10,000 Cr.
             Growth                          Planning to grow on QoQ basis till 2023

                                                   Net debt/equity < 0.5
             Capital                        Net debt/equity shall start to trend downwards
            Structure                                from the second half of FY22

                                                           RoCE >20%
                                       To generate sustainable RoCE > 20%, we have taken
             Returns                    a conscious call to increase R&D investments while
                                           maintaining an ebitda margin of 18% to 20%.

© 2020-2021 Sterlite Technologies Limited                                                          39
Annexure

                                            1                      2                  3         4
        Company                             The Digital Networks   STL Unique Value   Q3 FY21   STL          Annexure
        Overview                            Growth Story           Proposition        Updates   Financials

© 2020-2021 Sterlite Technologies Limited                                                                               40
Strong corporate governance

     Independent Directors on the Board of STL

                                   Kumud Srinivasan                                                      Sandip Das
                                   (Non-Executive & Independent Director)                                (Non-Executive & Independent Director)

                                   • VP and Director of Non-Volatile Fab Manufacturing and               • One of Asia’s most respected telecommunications professionals
                                     Automation Systems at Intel Corporation                               and an acclaimed Chief Executive
                                   • Has spent 30 years at Intel in US, leading multiple global          • Ex-MD of Reliance Jio, Group-CEO, Maxis Communications and
                                     functions, prominent ones being R&D for technology                    Hutchison Essar Telecom (now Vodafone), India
                                     manufacturing, industrial automation and IoT for manufacturing      • One of the founding members of private telephony in India and
                                     facilities                                                            was part of the group of individuals that founded Hutchison Max
                                   • She served as the President of Intel India from 2012 to 2016          Telecom in 1994

                                     S. Madhavan                                                         B. J Arun
                                     (Non-Executive & Independent Director)
                                                                                                         (Non-Executive & Independent Director)
                                     • Fellow member of institute of chartered accountants of India
                                     • Holds directorial positions in top listed companies like HCL      • Founded and led multiple successful ventures in silicon valley
                                       technologies, ICICI Bank, UFO Moviez and Transport Corporation      including California Digital, a Linux-based HPC leader and Librato,
                                       of India                                                            a software company
                                     • Had set up a successful indirect tax practice, which got merged   • Ex CEO of July Systems - a location-based mobile management
                                       with PWC.                                                           platform
                                     • Held leadership positions for over 14 years at PWC and was        • Currently the vice president of Tie global and remains dedicated to
                                       instrumental a leading tax practice                                 fostering entrepreneurship in technology community

© 2020-2021 Sterlite Technologies Limited                                                                                                                                        41
Corporate structure & shareholding pattern

                                            Corporate structure                                                                        Shareholding pattern
                                        Only Material Subsidiaries are disclosed                               Source: Company information; Karvy Shareholding Services; Data as of Dec 31st, 2020

                Volcan                                                                             Public
             investments                                                                        shareholders
                                                                                                                                    22.7%
                                               54.6%              45.4%
             100%                                                                                                                  33.6%

                                                                                                                                                                       54.6%
              Vedanta
            Resources Plc.                                                                                                                                           54.0%
                                                                                                                              14.2%

                                                 Sterlite Technologies
                                                                                                                                        11.8%
                                                                                                                                       9.1%
                                                         Limited

                           58.0%                                                      75.0%

                     Brazil JV                   80%*             100%                    China JV
                                                                                                                                                Promoters & Promoter Group
                                                                                                                                                Institutional Holding
                                                                                                                                                Non Institutional Holding
                         Impact Data Solutions (IDS)                  Metallurgica Bresciana

© 2020-2021 Sterlite Technologies Limited      * Balance 20% to be acquired in next few years                                                                                                        42
Our Values

© 2020-2021 Sterlite Technologies Limited   43
STL Leadership

                                                             Dr. Anand Agarwal is the Group CEO of STL and is passionate about driving technological advancement to impact
                                                             everyday lives. Recognising the exponential growth in data consumption and shifts in the global technology
                                                             landscape, Anand has navigated STL from an optical connectivity company to a global leader in end-to-end data
                                                             network solutions.

                                                             Anand is driving STL as an industry leading integrator of data networks with core capabilities in optical connectivity,
                                                             radio engineering and networking software. Anand was honoured with the prestigious ‘Broadband Infrastructure
                                                             Leader Award’ in 2016 and “Pathbreaker of the Year” in 2019 for transforming India’s digital infrastructure at the
                                                             Telecom Leadership Forum.

                                                             A PhD in Materials Engineering from Rensselaer Polytechnic Institute and B.Tech from IIT Kanpur, Anand is a
                                                             hands-on technologist on advanced photonics and programmable networks. He is a firm believer in empowering and
                                                             transforming lives through innovations in technology.

               @anandagarwal2               @anand1agarwal

© 2020-2021 Sterlite Technologies Limited                                                                                                                                              44
Led by an executive team with extensive experiences

© 2020-2021 Sterlite Technologies Limited                     45
Certified as a
                                            Great Place to Work

                                                       30+
                                                    NATIONALITIES
                                                   ~ 3,100 Employees
                                                   – Each one is STLer
© 2020-2021 Sterlite Technologies Limited                                46
Thank You
                                                beyond tomorrow

© 2020-2021 Sterlite Technologies Limited                         47
You can also read