Slide 1: Investor Presentation Sep.'21
stl.tech Investor Presentation Sep.’21
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: Company Overview
Company Overview 1 2 3 4 Company Digital network STL’s Future STL overview Annexure growth Story unique proposition growth levers financials © 2021-2022 Sterlite Technologies Limited 3
Slide 4: We Integrate Digital Networks
Core Business We Integrate Digital Networks for Our Customers Customer Cloud Citizen Large Segments Telcos Companies Networks Enterprises Network End-to-End Solutions System Optical Wireless Integration Networking Solutions • Glass Preform • Programmable FTTx • Digital BSS Platforms • Network Design
Slide 5: Our company in numbers
Our company in numbers $ 661 Mn. FY21 Revenue India (56%), EMEA (37%), America (4%), China (1%), RoW (2%) 30+ Nationalities 8 ~3,100 Employees Global production facilities 50M fkm optical fibre capacity MANUFACTURING UNITS 2 SALES Software Development Centre GLOBAL FOOTPRINT OFFICES 4 Innovation cen
Slide 6: Environmentally Sustainable Governed
Driven by our purpose to transform millions of lives ENVIRONMENTALLY SUSTAINABLE GOVERNED RESPONSIBLE OPERATIONS WITH CARE World’s 1st ZWL Certified Committed towards UN** Goals Strong internal governance 135,000+ MT 100% Zero Waste to Landfill 57% Global Advisory Council Waste diverted from landfil
Slide 7: Digital Network Growth Story
Digital Network Growth Story 1 2 3 4 5 Company Digital network STL’s Future Q1 FY’22 STL overview Annexure growth story unique proposition growth levers updates financials © 2021-2022 Sterlite Technologies Limited 7
Slide 8: Acceleration of digital connectivity
Acceleration of digital connectivity Internet users Global IP Traffic In billions of people in Zettabytes • 2.2 mn new users everyday came online since 2020 o 3X the adoption rate vs. before o In 2015-18, 0.7 mn users came online everyday 6.4 bn people • Global IP traffic will grow 3X in the next 3-
Slide 9: Increase in Capex, including from new investor groups
Increase in Capex, including from new investor groups Telcos and Cloud companies are New capital is coming from PE funds, increasing their CapEx Governments and Enterprises Telcos Private Equity Much higher capex in 2021 and beyond Enterprises Audi Ford Private 5g Cloud announce global Data centres
Slide 10: And new technologies becoming mainstream
And new technologies becoming mainstream 5G takes FTTx connects O-RAN becomes center-stage many endpoints mainstream Fastest technology to Fibre to the x: Major operators start reach 400 mn users, - Home trials or 173 5G commercial - Enterprise deployments, networks, 630 kinds of - Tower including V
Slide 11: 5G, FTTx and rural connectivity are driving up the fibre demand
5G, FTTx and rural connectivity are driving up the fibre demand Optical Fibre Global demand In mn fibre kilometres 610 5G 588 564 534 A decade-long digital network FTTx 499 creation cycle 477 470 is here! Rural connectivity 2019 2020 2021E 2022E 2023E 2024E 2025E © 2021-2022 Sterlite Technologies Li
Slide 12: We are well poised to lead this decade of network creation
We are well poised to lead this decade of network creation Total Addressable Market $ BN $40 bn 5 Virtualized Access 5x 3 Network Software 14 System Integration $ 16 bn 3 $8 bn 5 Optical Solutions 18 7.5 7.5 2015 2018 2021 5x increase in TAM over the last 5 years Now focused on increasing market sha
Slide 13: STL's Unique Proposition
STL’s Unique Proposition 1 2 3 4 Company Digital network STL’s Future STL overview Annexure growth story unique proposition growth levers financials © 2021-2022 Sterlite Technologies Limited 13
Slide 14: Unique manufacturing capabilities with complete vertical integration
25 years of experience in optical connectivity Optical Fibre Optical Fibre Cable Optical Interconnect pFTTx Jiangsu Sterlite Tongguang Metallurgica Sterlite Optotec Waluj Shendra Rakholi Fibre Co. Bresciana Conduspar SpA India, US Aurangabad Aurangabad Silvassa Limited Dello Parana Italy India India
Slide 15: Large Scale System Integration expertise
Large Scale System Integration expertise LONG HAUL FIBRE NETWORK Nationwide IN CITY FTTX DEPLOYMENT for India’s largest telco NETWORK MODERNISATION for India’s telco & UK Gigabit for Indian Navy network RURAL CONNECTIVITY for states under BharatNet DATA CENTER INTERCONNECT for top hyperscalers URBAN
Slide 16: Ecosystem of Virtualised access technologies & open programmable solutions
Ecosystem of Virtualised access technologies & Portfolio of open standards and programmable Solutions Wi-Fi6 Access 5G Multi-Band Garuda pFTTx RIC Solution Radio Comprehensive Open An SDN, cloud-native An outdoor Wi-Fi 6 radio RAN Intelligent Controller RAN (Radio Access O-RAN compliant, highly solu
Slide 17: E2E capability to integrate future digital networks
Put together, an E2E capability to integrate future digital networks 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 al
Slide 18: Future Growth Levers
Future Growth Levers 1 2 3 4 Company Digital network STL’s Future STL overview Annexure growth story right to win growth levers financials © 2021-2022 Sterlite Technologies Limited 18
Slide 19: Three focused levers for growth
Three focused levers for growth 2 Globalise SYSTEM INTEGRATION Take System Integration business 10 yrs and global of large scale scale in India ecosystem integration Services 1 Grow 3 Build Software pFTTx Optical ORAN Strong Access business Solutions business OPTICAL WIRELESS Hardware 25 yrs 5 yrs 1
Slide 20: Grow optical business: Expanding optical capacity to 42 mn fkm
1 Grow optical business: Expanding optical capacity to 42 mn. fkm. Solution Centres at global locations Demand driven expansion with an investment of Rs. 2 bn. (Mn. fKm.) Upcoming US UK Upcoming 9 mn New OFC facility New OFC facility, 42 5G R&D lab Gives us the 33 opportunity to Strengthens our incr
Slide 21: Grow optical business: Focus on full system solution sale
1 Grow optical business: Focus on full system solution sale Opticonn Comprehensive portfolio of optical interconnect E2E integrated solution 01 Central Office 03 Customer Premises 02 Outside plant 04 Other offerings 21 © 2021-2022 Sterlite Technologies Limited
Slide 22: Globalise System Integration Business: First order in the UK
2 Globalise System Integration Business : First order in the UK The UK Market is growing We are capitalising on it £5Bn Project gigabit announced Our first win Planned home passes in UK (Mn) 44 ▪ Partnership with a leading provider of telecom solutions in 36 the UK 28 21 ▪ FTTx mantra to connect hom
Slide 23: Acquisition of Clearcomm, a network specialist in UK
2 Globalise System Integration Business Acquisition of Clearcomm, a network specialist in UK Clearcomm - an overview Rationale for acquisition STL Clearcomm ● Optical Connectivity ● End-to-end • Provider of end-to-end optical network and Network Design Network integration integration services to tel
Slide 24: Build Strong Access Solution Business
3 Build Strong Access Solution Business • Deliver best- in-class Wireless solutions for the 5G ecosystem • Disrupt the FTTX market with SDN programmable XGSPON • Bagged a five year, multi million dollar next-gen virtualised contract for supply, solution warranty & • Become the market maintenance of
Slide 25: STL Financials
STL Financials 1 2 3 4 Company Digital network STL’s Future STL overview Annexure growth story unique proposition growth levers financials 25 © 2021-2022 Sterlite Technologies Limited
Slide 26: Delivering sustainable value for our shareholders
Delivering sustainable value for our shareholders 697 706 159 151 661 108 117 439 355 74 312 65 FY16 FY17 FY18 FY19 FY20 FY21* FY16 FY17 FY18 FY19 FY20 FY21* Revenue (USD Mn.) EBITDA (USD Mn.) 77 34% 30% 65 46 20% 21% 22% 38 28 13% 21 FY16 FY 17 FY 18 FY 19 FY20 FY21 * FY16 FY17 FY18 FY19 FY20 FY21
Slide 27: Growing order book over the years
Growing order book over the years Open Order Book (USD Mn.) 1,441 1,473 1,375 715 413 FY17 FY18 FY19 FY20 FY21 Open Order Book Customer Segment wise Open Order Book Split Enterprises 15% O&M 23% Citizen 29% 56% Telcos networks 77% 1% Capex Cloud © 2021-2022 Sterlite Technologies Limited 1 USD = 73 I
Slide 28: Transition from capacity focused investments to global capability & R&D
In the next 3 years, we shall transition from capacity focused investments to global capability & R&D investments Organic Investment Create global capability R&D investment in disruptive technology Total Funds Inorganic Investment Cash flow from operations available Technology / Capability access St
Slide 29: Focused investments to reach USD 1370 mn exit annual run rate by FY23
Our focused investments shall propel us to reach USD 1370 mn. exit annual run rate by FY23 Revenue Bridge USD 1370 Mn. New Portfolio Mutli band Radio, Services Foray Small cell, Wi-fi6 & pFTTx USD 808 Mn. in Europe & Increase in OFC Volume Increase in Below normal & O&M Revenue Project execution Inc
Slide 30: Committed to deliver our financial targets by Q4 FY'23
Committed to deliver our financial targets Revenue run rate : USD 1,370 mn. per annum Growth by Q4 FY’23 Capital Net debt/equity < 0.5 by Q4 FY23 Structure Returns RoCE >20% © 2021-2022 Sterlite Technologies Limited 1 USD = 73 INR 30
Slide 31: Summary
Summary We are in a decade long network creation cycle driven by 5G, FTTx and rural connectivity programs. In the last 5 years, our TAM has increased 5x to $40 bn. Now our focus is to increase our market share in the $40 bn. TAM Our 3 growth levers of grow optical business, globalise system integrat
Slide 32: Annexure
Annexure 1 2 3 4 Company Digital network STL’s Future STL overview Annexure growth story unique proposition growth levers financials © 2021-2022 Sterlite Technologies Limited 32
Slide 33: Corporate structure and shareholding pattern
Corporate structure and shareholding pattern Corporate structure As on June 30th, 2021 Shareholding pattern Only Subsidiaries that are material are disclosed Source: Company information; Karvy Shareholding Services; Data as of June 30th, 2021 29.8% Non Institutional z Holding 54.4% Promoters and Pro
Slide 34: With a strong board in place
With a strong board in place Independent Directors 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 Automation Systems at Intel Corporati
Slide 35: beyond tomorrow
beyond tomorrow © 2021-2022 Sterlite Technologies Limited