Sterlite Technologies Limited · NSE:STLTECH
Sterlite Technologies — Q3 FY17 Earnings Presentation
24 slides from Sterlite Technologies's earnings presentation, Jan 18, 2017
Slide 1: Earnings Presentation: Q3 FY17
Earnings Presentation: Q3 FY17 Jan 18, 2017 1
Slide 2: Disclaimer
Disclaimer 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
Slide 3: Contents
Contents Company Overview 4 Industry Dynamics 7 Q3 FY17 Business Updates 11 Q3 FY17 Consolidated Financial Update 14 Strategic Direction 19 Appendix 21 3
Slide 4: Company Overview
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Slide 5: Focused on the Connectivity Opportunity
Focused on the Connectivity Opportunity Leading Global Player Comprehensive Offerings Diverse Opportunities Integrated operations for manufacture of International Markets Optical Fibre and Optical Fibre Cables 3 manufacturing locations – India, China and Brazil India Telco’s Sales network across 6 c
Slide 6: Uniquely Positioned to drive growth
Uniquely Positioned to drive growth Leadership Play in Fiber Technology Differentiation Value Creation through R&D for the led Innovation Stakeholders model Evolution as Growth & end to end Performance led culture Communication Tech Company Attractive Market Opportunity 6
Slide 7: Industry Dynamics
€ Sterlite Tech Industry Dynamics
Slide 8: Generation of Networks & Fiber Deployed
Generation of Networks & Fiber Deployed 1,000.0 Values in Mn fkm Peak Data Rate -Mbps 1,784 607 100.0 63.0 0.5 14.7 Mobile 2G- Mobile 3G - Mobile 3G 4G- LTE 5G Network 3G Generation Networks- 4G Generation & FTTH- GSM / GPRS CDMA2000 - WCDMA & FTTH Cumulative Fiber deployed: : Cumulative Fiber deplo
Slide 9: World Demand: Optical Fiber Cable
World Demand : Optical Fiber Cable 643 536 425 382 +14% 314 263 246 218 173 189 2009 2010 2011 2012 2013 2014 2015 2016 2020e: 2020e: Base Case* Growth Fiber Demand Mnfkm Case* Strong growth expected for the fiber consumption driven by densification of network, FTTx and 5G trials Source: CRU Data.
Slide 10: Market trends are favorable for sustained growth
Market trends are favorable for sustained growth High demand for fiber coming from large scale projects for 4G mobile network upgradation, ultra high speed broadband services in metro areas - FTTH CHINA deployments, increasing pan-China connectivity and 5G trials Also, increase in Chinese Govern
Slide 11: Q3 FY17 Business Updates
Q3 FY17 Business Updates 11
Slide 12: Q3FY17: Business Highlights
Q3FY17: Business Highlights Current Optical fibre capacity running at With inclusion of 4 countries recently, we have annualized run rate of nearly 27 million fkm - now crossed sales to 100 countries till date on track to achieve capacity expansion target of with our fiber 30 million fkm by mid of F
Slide 13: Q3FY17: Awards and Accolades
Q3FY17: Awards and Accolades Sterlite Tech recognized as Asia’s Best Telecom Vendor Sterlite Tech featured Won the ‘Broadband under the Category ‘BSS among ‘100 Best Companies Infrastructure Leader Innovation Award’ in to work for Women in India’ Award’ at the Telecom Telecom Asia’s Readers institut
Slide 14: Q3 FY17 Consolidated Financial Update
Q3 FY17 Consolidated Financial Update All financial Numbers reported are as per Indian Accounting Standard (Ind-AS) 14
Slide 15: Quarterly Financial Performance
Quarterly Financial Performance +23% +26% 732 139 145 596 604 603 116 122 551 109 Q3 FY16 Q4 FY16 Q1 FY17 Q2 FY17 Q3 FY17 Q3 FY16 Q4 FY16 Q1 FY17 Q2 FY17 Q3 FY17 Revenue (INR Cr.) EBITDA (INR Cr.) Company registered sales growth of 23% on YoY basis +63% 56 51 49 EBITDA grew by 26% on YoY basis,
Slide 16: Quarterly Volume Performance
Quarterly Volume Performance +26% +17% 6.8 1.5 1.6 6.1 1.5 5.4 5.5 5.5 1.3 1.2 Q3 FY16 Q4 FY16 Q1 FY17 Q2 FY17 Q3 FY17 Q3 FY16 Q4 FY16 Q1 FY17 Q2 FY17 Q3 FY17 OF Volume OFC OF volumes continuous to drive growth, driven by strong global demand Our capacities are running @ 27 Mnfkm on annualized b
Slide 17: International Revenue Profile
International Revenue Profile +23% 3% 9% 0% 39% of Total Revenues +28% 6% 42% of Total Revenues 30% of Total Revenues 53% 284 28% 231 181 Q1 FY17 Q2 FY17 Q3 FY17 China Middle East Latin America International Revenues (INR Cr.) Europe Asia Africa Revenue contribution from International markets incr
Slide 18: Order Book Profile
Order Book Profile +15% 2% +11% 2,674 2,324 2,099 42% 56% Q1 FY17 Q2 FY17 Q3 FY17 Product Services Software Order Book (INR Cr.) Strong order booking for product business over Rs 1,000 Crore driven by international and domestic markets Order book continues to trend north reflecting 15% growth on
Slide 19: Strategic Direction
€ Sterlite Tech Strategic Direction
Slide 20: Strategic Direction
Strategic Direction E) Reward Shareholders A) Market focused approach to drive sustained profitable growth Strategic Direction D) Defined principles B) Expanding ROCE for the for Inorganic Growth business C) Disciplined Financial control 20
Slide 21: Appendix
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Slide 22: 5 Year Journey: Consolidated P&L metrics
5 Year Journey : Consolidated P&L metrics 2,265 475 +28% +36% 1,619 345 1,096 1,148 799 151 181 137 FY 12 FY 13 FY 14 FY 15 FY 16 FY 12 FY 13 FY 14 FY 15 FY 16 Revenue EBITDA 18% 19% +40% 351 249 8% 7% 8% 88 90 94 FY 12 FY 13 FY 14 FY 15 FY 16 FY 12 FY 13 FY 14 FY 15 FY 16 EBIT ROCE Continued grow
Slide 23: 5 Year Journey: Telecom Business Volume Journey
5 Year Journey : Telecom Business Volume Journey 20.1 +15% 7.7 +15% 17.7 6.5 13.8 5.2 12.5 4.6 11.7 3.7 FY 12 FY 13 FY 14 FY 15 FY 16 FY 12 FY 13 FY 14 FY 15 FY 16 OF Volume (Mn Fkm) OFC Volume (Mn Fkm) Volume of OF continues to growth @ of 15% CAGR levels Cabling volume also continues to growth
Slide 24: Thank You
(€ Sterlite Tech « Thank You
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