Sterlite Technologies Limited · NSE:STLTECH
Sterlite Technologies — Investor Presentation (March 2024)
37 slides from Sterlite Technologies's investor presentation, Mar 2, 2024
Slide 1: Intimation of Schedule of Analyst/Institutional Investor Meetings
www.stl.tech March 2, 2024 National Stock Exchange of India Limited BSE Limited Exchange Plaza, 5th Floor, Phirozee Jeejeebhoy Towers, Plot No. C-1, G Block, Dalal Street, Bandra Kurla Complex, Bandra (East) Mumbai - 400 001. Mumbai - 400 051. Sub: Intimation of Schedule of Analyst/ Institutional In
Slide 2: Investor Presentation March 2024
stl.tech Investor Presentation March 2024 1st March 2024
Slide 3: Safe Harbor
Safe Harbor This presentation is issued by Sterlite Technologies Limited ("Company") for general information purposes only, without regard to specific objectives, suitability, financial situations and needs of any particular person. This presentation does not constitute or form part of any offer or
Slide 4: Company Overview
Company Overview Strategic 1 Company Overview 2 Business Overview 3 Robust Financials 4 Priorities © 2023-2024 Sterlite Technologies Limited 3
Slide 5: An Optical and Digital Solutions Company
Core An Optical and Digital Solutions Company Business (One of the Global Leaders in Optical Cable Market*) Customer Cloud Citizen Large Enterprises/ Segments Telcos Companies Networks Defence Business Optical Digital & Global Units Networking Technology Services Business Solutions Business • Glass
Slide 6: STL overview
STL overview INR 4,338 Cr. 9M FY24 Revenue1 SOFTWARE Americas (24%), DEVELOPMENT CENTRES EMEA (40%), India (35%), RoW(1%) MANUFACTURING FACILITIES SALES Customers in PRESENCE2 2 >75 Countries GLOBAL FOOTPRINT 10 Global Manufacturing facilities 681 3 Zero CMMI Level 5 3 PATENTS WASTE TO LANDFILL4 Cer
Slide 7: STL journey so far!
STL journey so far! 1995 2010 2013 2018 2018 2021 2023 Optical Fibre Cable Network Integration Optical Fibre Cable Copper Cable Optical Fibre Optical Fibre Optical Fibre Cable Italy Glass Plant Aurangabad Services UK USA Aurangabad Aurangabad China Brazil Optical Fibre Data Cables Fibre Draw Plant C
Slide 8: What differentiates us?
What differentiates us? 1 2 3 Experience & expertise Fully backward integrated Technology 25+ years of experience in Optical manufacturer Continued Focus on technology Networking Business, specialized Integrated Optical Networking development and adoption in large-scale digital network Products Faci
Slide 9: Optical Networking Business Overview
Optical Networking Business Overview Strategic 1 Company Overview 2 Business Overview 3 Robust Financials 4 Priorities © 2023-2024 Sterlite Technologies Limited 8
Slide 10: Vertically integrated manufacturing setup
Vertically integrated manufacturing setup Optical Fibre (OF) Optical Fibre Cable (OFC) + Specialty Cable (SCB) Optical Connectivity 2 Shendra, Waluj, Jiangsu Sterlite, Rakholi, Silvassa Metallurgica Sterlite Conduspar South Carolina, Dadra & Nagar Optotec, Aurangabad, India Aurangabad, India China I
Slide 11: Industry poised for rapid growth
Industry poised for rapid growth 01 02 03 04 Growing Transformative Global Growing Optical Connectivity and Tech Trends Investment in Products Demand Data Needs Digital Infra Rising global internet Growing digitalization, Public and Private Growing demand for users and rapid growth in 5G, investment
Slide 12: Three investments cycles coinciding
Three investments cycles coinciding Multi-year network build cycle (Long investment cycle) Additionally supported by; 5G Strong demand of fibre Capex by Hyperscalers Government policy support: Increased demand of fibre due to Increase in FTTx penetration & Increased demand of optical fibre • USA Gov
Slide 13: Global OFC demand trend (M fkm)
Global OFC demand trend (M fkm) +5% CAGR 700 684 +3% CAGR 658 629 577 597 5G 600 565 OFC Demand (Mn Fkm) 536 544 500 494 The decade long 400 digital network FTTx 300 creation cycle 200 is here! 100 Data Centre 0 2020* 2021 2022 2023 2024 2025 2026 2027 2028 North America Europe India APAC (ex China,
Slide 14: Diverse optical products portfolio
Diverse optical products portfolio Optical Fibre Optical Fibre Cable Optical Connectivity Multiverse Intermittently Multi Loose Tube Central Office Outside Plant Bonded Ribbon OFC Armored OFC 160 micron Fiber Multitube Flat Ribbon Customer Premises Optical Components Stellar Celesta IBR Armored OFC
Slide 15: Innovation led portfolio speeding up value capture for customers
Innovation led portfolio speeding up value capture for customers CHALLENGE Attenuation Bend Sensitivity Compatibility Complex Duct Space TCO Reduction Signal Decay Signal Leakage Legacy and Future Technology Connectivity Optimize Limited Space OUR SOLUTION Multiverse 160 micron Fiber Stellar High De
Slide 16: Diversified customer base with deep engagements
Diversified customer base with deep engagements Optical Networking Business revenue split by region Key customers Rest of the World 9M FY24 8+ 2-6 Key Wins 3% India Years of relationship Years of relationship (In Year FY23 & FY24) 15% EMEA 50% 2 Large Telecom US-based Fiber 32% US-based Fiber Intern
Slide 17: Global market share; improving optical attach rate
Global market share; improving optical attach rate STL amongst biggest globally in 2023 Optical connectivity attach rate 12% 11% 5.2% 9th 10% of total global cable In cable production produced volume 8th 9th 2nd FY22 FY23 9MFY24 In installed preform In draw largest capacity capacity plant in Europe
Slide 18: Optical Networking Business financial highlights
Optical Networking Business financial highlights Revenue (INR Cr.) 5,439 1,112 1,084 3,713 857 3,053 9M FY24 revenue at INR 3,053 Cr. • Lower OFC volume on QoQ basis FY22 FY23 9MFY24 Q1FY24 Q2FY24 Q3FY24 EBITDA (INR Cr.) EBITDA % 9M FY24 EBITDA margin at 18.4% • Reduced EBITDA on account of lower OF
Slide 19: Well positioned to grow the optical business
Well positioned to grow the optical business 1 Local Capacities: Completed capacity expansions, well placed to win in the market and closer to Focused Markets 2 Cost Structure: Optimized cost structures both in terms of variable & fixed costs 3 Product Development & Innovation: 681 patents1 with con
Slide 20: Digital Business Overview
Digital Business Overview Strategic 1 Company Overview 2 Business Overview 3 Robust Financials 4 Priorities © 2023-2024 Sterlite Technologies Limited 19
Slide 21: Tailwinds in IT industry
Tailwinds in IT industry Global IT industry growth fueled by emerging Trends powering growth in the IT industry technologies US $ Billions Global IT Professional Service Increasing focus on digital services across 1,200 1,050 - 1,110 sectors 1,100 1,000 900 870 Accelerated IT adoption in emerging ec
Slide 22: Ensuing digital transformation in India to propel growth in Indian IT services
Ensuing digital transformation in India to propel growth in Indian IT services Indian export IT services industry Driven by Companies focusing on front-to-back digitization coupled with US $ Billions use of Data analytics, AI, and ML 150-155 111 117-120 100 Growth to be led by digital export service
Slide 23: STL Digital | Snapshot
STL Digital | Snapshot Identity Service Offerings Industry Vertical Cloud & Cyber Security • Technology • Data Analytics & AI • Life Sciences & Healthcare • Enterprise SaaS • Energy, Resources & Utilities Delivery Centre in Bangalore & Ahmedabad; Services • Manufacturing Offices in India, US & UK
Slide 24: STL Digital | What differentiates us?
STL Digital | What differentiates us? Leadership Domain Agile and Nimble Ecosystem Alliances Strength & Technology Organization Years Core of Experience leadership teaminwith Experience of our team in Seasoned teams Strong Partner Ecosystem multi-industry 200+ domain person years experience multi-in
Slide 25: Digital business financial highlights
Digital business financial highlights Revenue (INR Cr.) 220 78 80 62 70 6 9M FY24 Revenue up at INR 220 Cr. FY22 FY23 9MFY24 Q1FY24 Q2FY24 Q3FY24 • Revenue growth continued EBITDA (INR Cr.) 9M FY24 EBITDA loss at INR 66 Cr. FY22 FY23 9MFY24 Q1FY24 Q2FY24 Q3FY24 -6 • EBITDA losses reducing on QoQ bas
Slide 26: Global Services Business Overview
Global Services Business Overview Strategic 1 Company Overview 2 Business Overview 3 Robust Financials 4 Priorities © 2023-2024 Sterlite Technologies Limited 25
Slide 27: Global Services Business: A large IT infra service provider
Global Services Business: A large IT infra service provider DEMAND DRIVERS OFFERINGS CUSTOMER BASE INNOVATION 45+ 5G deployments in full speed India - Public Patents1 • Telcom operators expected to deploy Fibre System CMMI Level 5 Integration NETWORK MODERNISATION approx. 300,000 cable kms and Deplo
Slide 28: Global Services Business financial highlights
Global Services Business financial highlights Revenue (INR Cr.) 1,844 1,511 1,133 375 405 353 9M FY24 revenue at INR 1,133 Cr. • Selective order intake & execution FY22 FY23 9MFY24 Q1FY24 Q2FY23 Q2Y24 9M FY24 EBITDA at INR 71 Cr. EBITDA (INR Cr.) • Favourable project mix and improved EBITDA % 156 ex
Slide 29: Robust Financials
Robust Financials Strategic 1 Company Overview 2 Business Overview 3 Robust Financials 4 Priorities © 2023-2024 Sterlite Technologies Limited 28
Slide 30: STL financial highlights
STL financial highlights +20%CAGR 6,925 +5% CAGR 931 5,437 844 4,825 723 4,338 559 17.5 13.3 13.4 12.9 FY21 FY22 FY23 9MFY24 FY21 FY22 FY23 9MFY24 Revenue* (INR Cr.) EBITDA % EBITDA* (INR Cr.) 279 Revenue grew at 20% CAGR between FY21-FY23 245 • 9M FY24 Revenue at INR 4,338 Cr 162 EBITDA grew at 5%
Slide 31: Well diversified revenue & order book mix
Well diversified revenue & order book mix Geographical distribution Order book Q3FY24 : INR 9,849 Cr Revenues* (INR Cr.) Open order book Digital & Technology BU wise 4,825 5,437 6,925 4,338 7% 2% 2% 1% 1% Global Services - Capex 21% 26% 47% Optical Networking 35% 44% 58% 25% 35% Global Services - O&
Slide 32: Consolidated financials: Abridged version
Consolidated financials: Abridged version P&L (INR Cr.) FY21 FY22 FY23 9M FY24 Balance Sheet (INR Cr.) FY21 FY22 FY 23 Revenue from operations* 4,825 5,437 6,925 4,338 Net Worth (incl. minority Interest) 2,085 2,047 2,095 EBITDA* 844 723 931 559 EBITDA % 17.5% 13.3% 13.4% 12.9% Net Debt 2,431 2,791
Slide 33: Global Services Business demerger status
Global Services Business demerger status Current Structure Proposed Structure Shareholding as on March 31st,2023 Public Public Promoter Public Promoter Promoter Group Shareholders Shareholders Group Shareholders Group 45.95% 54.05% 45.95% 54.05% 45.95% 54.05% Current Updates Filed application wi
Slide 34: ESG Commitments & Strategic Priorities
ESG Commitments & Strategic Priorities Strategic 1 Company Overview 2 Business Overview 3 Robust Financials 4 Priorities © 2023-2024 Sterlite Technologies Limited 33
Slide 35: Committed to Net-Zero emissions by 2030
Committed to Net-Zero emissions by 2030 ENVIRONMENTALLY SOCIALLY GOVERNED SUSTAINABLE RESPONSIBLE WITH CARE Strong measures Committed to the UN SDGs Strong internal governance 110,000+ MT 161 Two of the big four as statutory & internal Waste diverted from landfills (FY21 – FY23) Aligned with 16 of t
Slide 36: Strategic priorities
Strategic priorities 01 Grow 02 Build 03 Consolidate Optical Networking STL Digital Global Services • Increase OFC market • Consciously invest in • Build capability for value share and Optical building technology and added services Connectivity attach rate capability • Focus on select projects to •
Slide 37: Lets answer your questions… Thank You
Lets answer your questions… Thank You © 2023-2024 Sterlite Technologies Limited 36
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