Sterlite Technologies Limited · NSE:STLTECH

Sterlite Technologies — Q3 FY2021 Earnings Presentation

32 slides from Sterlite Technologies's earnings presentation, Jan 20, 2021

Slide 1: Enabling a decade of digital network creation
Enabling a decade of digital network creation Earnings Call Q3 FY’21 20th Jan. 2021 stl.tech © 2020-2021 Sterlite Technologies Limited 1
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: Dr. Anand Agarwal, Group CEO
Dr. Anand Agarwal Group CEO and Whole Time Director © 2020-2021 Sterlite Technologies Limited 3
Slide 4: 2020 - Digital networks inflection point
2020 - Digital networks inflection point 1 2 3 4 2020 – Digital networks Strategy for the next Financial results getting Q&A inflection point decade of network better creation © 2020-2021 Sterlite Technologies Limited 4
Slide 5: A decade long digital network creation cycle is here
2020 – 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 to invest $2.8 bn to develop data allocates $9.2 bn. In reverse auction centre infrastructu
Slide 6: 2020 – New technologies entered mainstream
2020 – New technologies entered mainstream Network architectures evolved rapidly c Global deployments 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
Slide 7: 2020 - Optical demand revived
2020 - Optical demand revived Optical fiber demand buoyed by investments in digital infrastructure Units: Mn. fkm N. America CHINA Continued growth in YoY increase in volumes & deployments specially from increase in 5G base station tier 2 /3 carriers deployments EUROPE INDIA Buoyant FTTH demand, sli
Slide 8: 2020 - 4 technology confluences got established
2020 - 4 technology confluences got established Close to the Edge By 2025, 75% of enterprise-generated data will be created EDGE At the Edge and processed at the edge – as against 10 % in 2018 The extra investment needed to make FTTH network ready Seamless Wired & Wireless for 5G (even for high dens
Slide 9: STL predicted and prepared for these tech confluences
2020 – STL predicted and prepared for these tech 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
Slide 10: Strategy for the next decade of network creation
Strategy for the next decade of network creation 1 2 3 4 2020 – Digital networks Strategy for the next Financial results getting Q&A inflection point decade of network better creation © 2020-2021 Sterlite Technologies Limited 10
Slide 11: Ready for next decade with five strategic pillars
STL is ready for the next decade of network creation with five strategic pillars Technology-led Ecosystem Large – Scale Key Accounts Top Talent and E2E Solutions Alliances and Complex Management Culture Investments Integration Increasing market Increase Addressable Developing better Target 21 KAMs D
Slide 12: Our flagship optical connectivity portfolio is now complete
Our flagship optical connectivity portfolio is now complete Tech-led solutions E2E integrated optical solutions Comes aboard • STELLAR FIBRE - World’s leading bend insensitive optical fibre • CELESTA CABLE - Ultra high density cable, rated better than the best • Prepared Subsystems KITS- Underground
Slide 13: STL LEAD 360° 2.0
We have made tech-enhancements to improve our integration and delivery solutions significantly 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 trenchi
Slide 14: Commercially viable wireless solutions launched
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 O-RAN compliant, An integrated solution that Access Network) solution spanning indoor small cell solution leverages Wi-Fi 6 technol
Slide 15: Optotec acquisition is complete
Optotec acquisition is complete – enhancing Opticonn Portfolio and Go-to-market Ecosystem, Investments 1 Compelling Value Proposition to Customers with Opticonn solution Founded in 1992 and headquartered in Italy, Optotec provides a complete range of Optical Interconnect products for telecommunicati
Slide 16: Investments in capacity expansion
Strong, end to end optical portfolio is backed by strong investments in capacity expansion 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
Slide 17: Building a global ecosystem for 5G access solutions
We are building a global ecosystem for 5G access solutions Cloud Large Companies Enterprises Telcom Citizen Operators Networks Ecosystem, Investments 5G & Access Solutions Hardware Virtualization Radio Software Zyxel Alpha networks Academic Alliances Open Networking Standards MIT | IIT-M RUTGERS © 2
Slide 18: Large scale system integration engine running on full throttle
Our large scale system integration engine is running on full throttle Network Transformative Futuristic SDN ready Modernisation digital inclusion state wide network Bharatnet Projects Bharatnet Projects Large-scale Project Varun 87% Mahanet (A) 92% T-Fibre (A) 18% integration (Indian Navy Project):
Slide 19: Deep customer engagement with focus on key accounts
We are driving deep customer engagement with a focus on 21 key accounts Built Investing in Organization Deep Engagement Processes and with KAM with Key Accounts Capability Expertise Key accounts management Account Based Multi-disciplinary Teams Revenue: Organization Hackathons, Tech sparks, War Incr
Slide 20: Getting top global talent to drive strategic outcomes
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 Head, Wireless Chief Policy Chief Delivery Chief Operating STL Product Advocacy Officer Officer,
Slide 21: New additions to our board of directors
New additions to our board of directors Independent Non-Executive Directors Whole-time Director Top talent BJ Arun S Madhavan Ankit Agarwal Vice Chairman, TiE, Silicon Valley Independent Director at HCL CEO – Connectivity Business, STL Serial Entrepreneur in the Technologies, ICICI Bank Ltd technolo
Slide 22: Five pillar strategy has setup a growth platform
Our five pillar strategy has setup a growth platform • 2020 brought in a decade of network creation Tech-led solutions • New networks will be Converged, Virtualized, Open Compute- Ecosystem, enabled at the Edge Investments Large-scale • STL has build disruptive technology solutions and delivery inte
Slide 23: Financial results getting better
Financial results getting better 1 2 3 4 2020 – Digital networks Strategy for the next Financial results getting Q&A inflection point decade of network better creation © 2020-2021 Sterlite Technologies Limited 23
Slide 24: Mihir Modi, Chief Financial Officer
Mihir Modi Chief Financial Officer © 2020-2021 Sterlite Technologies Limited 24
Slide 25: Our participation funnel is growing
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 25
Slide 26: Translating into healthy order book
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 3
Slide 27: Revenue mix is balanced across customers and geographies
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% 1% 4% • A five year, multi million dollar 25% 22% contract for supply, warranty & 27% maintenanc
Slide 28: Revenues grown QoQ by 13% and YoY by 9%
We have grown our revenues 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 80 87 • Capacity utilizations are at all time high and will see further improve
Slide 29: Financials: Abridged Version
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 I
Slide 30: Penetrating new frontiers while riding on industry tailwinds
STL is penetrating new frontiers while riding on Industry tailwinds • An unprecedented decade of digital network creation has started. STL has unique capabilities to be a leading digital network integrator • We have expanded our addressable market by adding capabilities in optical interconnect & acc
Slide 31: Q&A
Q&A 1 2 3 4 2020 – Digital networks Strategy for the next Financial results getting Q&A inflection point decade of network better creation © 2020-2021 Sterlite Technologies Limited 31

Sterlite Technologies — Q3 FY2021 Earnings Presentation on 6ix

Sterlite Technologies — Q3 FY2021 Earnings Presentation

Slide 1: Enabling a decade of digital network creation

Slide 2: Safe Harbour

Slide 3: Dr. Anand Agarwal, Group CEO

Slide 4: 2020 - Digital networks inflection point

Slide 5: A decade long digital network creation cycle is here

Slide 6: 2020 – New technologies entered mainstream

Slide 7: 2020 - Optical demand revived

Slide 8: 2020 - 4 technology confluences got established

Slide 9: STL predicted and prepared for these tech confluences

Slide 10: Strategy for the next decade of network creation

Slide 11: Ready for next decade with five strategic pillars

Slide 12: Our flagship optical connectivity portfolio is now complete

Slide 13: STL LEAD 360° 2.0

Slide 14: Commercially viable wireless solutions launched

Slide 15: Optotec acquisition is complete

Slide 16: Investments in capacity expansion

Slide 17: Building a global ecosystem for 5G access solutions

Slide 18: Large scale system integration engine running on full throttle

Slide 19: Deep customer engagement with focus on key accounts

Slide 20: Getting top global talent to drive strategic outcomes

Slide 21: New additions to our board of directors

Slide 22: Five pillar strategy has setup a growth platform

Slide 23: Financial results getting better

Slide 24: Mihir Modi, Chief Financial Officer

Slide 25: Our participation funnel is growing

Slide 26: Translating into healthy order book

Slide 27: Revenue mix is balanced across customers and geographies

Slide 28: Revenues grown QoQ by 13% and YoY by 9%

Slide 29: Financials: Abridged Version

Slide 30: Penetrating new frontiers while riding on industry tailwinds

Slide 31: Q&A

Slide 32: beyond tomorrow