Sterlite Technologies Limited · NSE:STLTECH

Sterlite Technologies — Q4 FY21 Earnings Presentation

34 slides from Sterlite Technologies's earnings presentation, Apr 29, 2021

  1. Slide 1: Enabling a decade of digital network creation

    Enabling a decade of digital network creation Earnings Call Q4 FY’21 29th April 2021 stl.tech © 2021-2022 Sterlite Technologies Limited 1

  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: Dr. Anand Agarwal, Group CEO

    Dr. Anand Agarwal Group CEO and Whole Time Director © 2021-2022 Sterlite Technologies Limited 3

  4. Slide 4: Digital Networks continue to attract large investments

    Digital Networks continue to attract large investments 1 2 3 4 5 Digital Networks STL enhanced Three levers will Creating Q&A see continued capabilities to drive future sustainable value investments deliver growth for shareholders © 2021-2022 Sterlite Technologies Limited 4

  5. Slide 5: Last quarter witnessed continued investments in digital networks

    Last quarter witnessed continued investments in digital networks TELECOM OPERATORS PE INVESTMENTS Mar 2021 Mar 2021 Mar 2021 Jan 2021 Mar 2021 Airtel to Invest in 30,000+ China Telecom earmarks $13 US telcos plan higher Cell Sites, fiber and FTTH bn. for 2021 CAPEX; $6 bn. for capex in 2021 than rol

  6. Slide 6: Key technology drivers for new age digital networks

    Key technology drivers for new age digital networks 5G FTTH O-RAN the fastest technology Deployments pick up pace Major operators start trials to reach 400 million subscribers across India, Europe & US. or deployments • Over 163 5G commercial • EU Telcos plan 2+ mm FTTH • Verizon to start deploying

  7. Slide 7: OFC demand is showing sustained long-term growth

    OFC demand is showing sustained long-term growth Global Optical fiber cable demand showing sustained growth INDIA N. AMERICA 565 19% 8% 534 500 Growth driven by Growth driven by 470 FTTH deployments Tier 2/3 carriers and Bharatnet deployments EUROPE CHINA 7% 4% Growth driven by Growth driven by 2020

  8. Slide 8: STL used this momentum as a springboard

    STL used this momentum as a springboard 1 2 3 4 5 Digital Networks STL enhanced Three levers will Creating Q&A see continued capabilities to drive future sustainable value investments deliver growth for shareholders © 2021-2022 Sterlite Technologies Limited 8

  9. Slide 9: Enhanced our Addressable Market to $40 bn.

    Enhanced our Addressable Market to $40 bn. Addressable Optical Virtualised Access System Integration Market Interconnect Products & Services Network Software ~ $18-20 B ~ $15 B ~ $7B ~$40B Telco (India) ~ $2 B Open & Virtualised RAN Optical Fibre Cable ~ $7 - 8 B Small cells ~ $5 -6 B Citizen Networ

  10. Slide 10: Customers: Elevated engagement and won marquee deals

    Customers: Elevated engagement and won marquee deals Customer Engagement Multi-year Five year, strategic Multi-year Digital multi million Multi-year LOI partnership to contract for transformation contract for dual for fiber roll out help build new Opticonn for a leading band and tri across 10 circle

  11. Slide 11: Portfolio: Advanced optical interconnect portfolio through Optotec

    Portfolio: Advanced optical interconnect portfolio through Optotec Central Office Outside Plant Distribution & Access Customer Premises Technology Portfolio © 2021-2022 Sterlite Technologies Limited 11

  12. Slide 12: Technology: Developed value added products & tech led solutions

    Technology: Developed value added products & tech led solutions STL Portfolio of Offerings Optical Interconnect Virtualised Access Products System Integration Products & Services Network Software Products Technology Portfolio New Launches & Portfolio additions in FY21 © 2021-2022 Sterlite Technologi

  13. Slide 13: Innovation: Filed patents in FY21

    Innovation: Filed 191 patents in FY21 569 Patents First 5G Patent Technology Portfolio STL got its first 5G 191 patents filed in patent granted FY21 “System and method for configuring photonic components using photonic abstraction interface.” R&D spent at 3.1% of revenues in FY21 © 2021-2022 Sterlit

  14. Slide 14: Delivery: Executed despite pandemic

    Delivery: Executed despite pandemic Network Transformative Modernisation digital inclusion Bharatnet Projects Project Varun 92% Mahanet (A) 98% (Indian Navy Project): Completed Completed Mahanet (B) 61% Completed Impeccable Delivery Futuristic SDN ready Modern Optical Inside Datacentre state wide ne

  15. Slide 15: Delivery: On target to increase OFC plant capacity to 33 mn. fkm

    Delivery: On target to increase OFC plant capacity to 33 mn. fkm OFC capacity expansion to 33 mn Optical fibre cable capacity 33 18 Impeccable Delivery 8 Mn. Fkm OFC expansion project is on track for time & cost © 2021-2022 Sterlite Technologies Limited 15

  16. Slide 16: Talent: Industry leading talent drives ambitious vision

    Talent : Industry leading talent drives ambitious vision Virtualised Access US Market UK Services Governance Key Accounts Chris Stephan Keith Mihir Sandeep Rice Szymanski Rowley Modi Girotra Chief Executive Officer, Regional Chief Delivery Officer, Chief Financial Officer, Global Sales Head, Access

  17. Slide 17: Focussed on ESG

    Focussed on ESG Environment | Social | Governance Eco-friendly & Responsible CSR World’s 1st Sustainability ESG Operations Initiatives ZWL Certified Goals Goals Caring for our people & Enabling millions using Driving Sustainability 2030: Towards a Cleaner 2025: Facilitating a More the environment te

  18. Slide 18: STL responds to help communities

    STL responds to help communities Sustainability & Governance Continuing support to local communities © 2021-2022 Sterlite Technologies Limited 18

  19. Slide 19: Three fundamental levers will drive growth

    Three fundamental levers will drive growth 1 2 3 4 5 Digital Networks STL enhanced Three levers will Creating Q&A see continued capabilities to drive future sustainable value investments deliver growth for shareholders © 2021-2022 Sterlite Technologies Limited 19

  20. Slide 20: 1. Grow OFC Volume and Optical Interconnect business

    1. Grow OFC Volume and Optical Interconnect business 5.1% OFC Global 1.3% Market Share Q4 FY16 (A) Q4 FY21 ( Est.) • STL OFC market share grew 4 times in last 20 quarters • Expand optical interconnect business by leveraging • In FY21, our OFC volume grew by more than 35% existing customer relationsh

  21. Slide 21: 2. Take System Integration business global & Scale in India

    2. Take System Integration business global & Scale in India Design & deploy fibre network in metropolitan cities TAKE Long haul network Network modernisation GLOBAL roll out in India at Nationwide scale PROJECTS & SCALE in Datacentre Solutions Inside datacentre connectivity INDIA FY17-18 FY19-20 FY2

  22. Slide 22: 3. Build a strong Access Solutions business

    3. Build a strong Access Solutions business, based on disruptive open-source products Building a World class team Leverage a team of exceptional professionals and ecosystem partnerships to develop network solutions, with disaggregated hardware and software. Current team strength at 200 nos. Product

  23. Slide 23: These validated levers will drive growth for STL

    These 3 validated levers will drive growth for STL 1 2 3 Grow Optical fibre Take System Build a strong cable volume and Integration Access Solutions Optical business global business, based interconnect and scale in India on disruptive business open-source products © 2021-2022 Sterlite Technologies L

  24. Slide 24: Creating sustainable value for shareholders

    Creating sustainable value for shareholders 1 2 3 4 5 Digital Networks STL enhanced Three levers will Creating Q&A see continued capabilities to drive future sustainable value investments deliver growth for shareholders © 2021-2022 Sterlite Technologies Limited 24

  25. Slide 25: Mihir Modi, Chief Financial Officer

    Mihir Modi Chief Financial Officer © 2021-2022 Sterlite Technologies Limited 25

  26. Slide 26: Continued growth in participation across geographies

    Continued growth in participation across geographies Key Opportunities Open Participation Funnel (Rs. Cr.) LARGE US LARGE EUROPEAN ~11,500 HYPERSCALER TELCO OPTICONN OPTICONN ~7,000 LARGE EUROPEAN LARGE INDIAN Q4 FY20 Q4 FY21 TELCO ENTERPRISE OPTICAL INTERCONNECT FIBER ROLLOUT © 2021-2022 Sterlite T

  27. Slide 27: Leading to a stable order book

    Leading to a stable order book Open Order Book (Rs. Cr.) Order Book Spread (Rs. Cr.) 10,754 ~ 5,470 ~ 5,284 10,037 Q4 FY20 Q4 FY21 FY22 FY23 and Beyond Open Order Book Customer Segment wise Open Order Book Split Enterprises 16% O&M 25% 54% Telcos 29% Citizen networks 75% 0.3% Capex Cloud © 2021-2022

  28. Slide 28: Revenue mix is well diversified

    Revenue mix is well diversified Key Order Wins Customer Segments Geographical Distribution Q4 FY21 Revenues (Rs. Cr.) Revenues (Rs. Cr.) 5,154 4,825 5,154 4,825 2% 2% 1% 3% 2% • Strategic partnership with Openreach to 4% 1% 2% help build its new UK full fibre network 25% 22% with STL Opticonn soluti

  29. Slide 29: Our revenues grew by 12% QoQ and 27% YoY

    Our revenues grew by 12% QoQ and 27% YoY 1,475 273 1,314 238 1,160 1,160 226 212 876 131 Q4 FY20 Q1 FY21 Q2 FY21 Q3 FY21 Q4 FY21 Q4 FY20 Q1 FY21 Q2 FY21 Q3 FY21 Q4 FY21 Revenue (INR Cr.) EBITDA (INR Cr.) 124 • Our OF & OFC capacity utilization continued to grow 87 80 QoQ in FY21 and it shall further

  30. Slide 30: We continue to invest in capabilities

    We continue to invest in capabilities 2,410 122 138 Free Cash Flow @ consolidated level – FY21 Rs. Cr. 1,970 266 Cash Profit after Tax 539 541 455 (Increase) / Decrease in working Capital 2 Operating Cash Flow 541 CAPEX (455) Free Cash Flow 86 Net Debt Operating Capex Inorganic Dividend Buyback Net

  31. Slide 31: Financials: Abridged Version

    Financials: Abridged Version P&L (INR Cr.) Q4 FY20 Q4 FY21 FY20 FY21 Balance Sheet (INR Cr.) FY20 FY21 Revenue 1,160 1,475 5,154 4,825 Net Worth 2,023 2,085 EBIDTA 226 273 1,104 854 Net Debt 1,970 2,410 EBITDA % 19% 19% 21% 18% Depreciation 77 61 290 285 Total 3,993 4,495 EBIT 150 212 813 568 Fixed

  32. Slide 32: STL poised to grow; using momentum in the digital networks

    STL poised to grow; using momentum in the digital networks • Network creators accelerated the pace of investments, accepting and implementing new technologies such as 5G, FTTH and O-RAN. These implementations have resulted in OFC demand soaring across the world. • STL used this momentum as a springb

  33. Slide 33: Q&A

    Q&A 1 2 3 4 5 Digital Networks STL enhanced Three levers will Creating Q&A see continued capabilities to drive future sustainable value investments deliver growth for shareholders © 2021-2022 Sterlite Technologies Limited 33

  34. Slide 34: beyond tomorrow

    beyond tomorrow © 2021-2022 Sterlite Technologies Limited 34

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