Sterlite Technologies Limited · NSE:STLTECH
Sterlite Technologies — Investor Presentation (December 2021)
24 slides from Sterlite Technologies's investor presentation, Dec 13, 2021
Slide 1: Intimation of Key Discussions in STLescope Virtual Meet
www.stl.tech December 13, 2021 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 Key Discussions in STLescope – Un
Slide 2: Unraveling the Future Series – Investors Meet
stl.tech Unraveling the Future Series Part – 2 of 3 Investors Meet 13th Dec 2021 1
Slide 3: 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 4: Today's Speakers
Today’s Speakers Paul Atkinson Mihir Modi CEO – Optical Connectivity Solutions Chief Finance Officer Paul Atkinson is an industry expert with more than 30 years of experience A prolific professional, Mihir has more than 20 years of experience in across multiple industries. Prior to STL, he was the M
Slide 5: Continuing from STLescope 2021
Continuing from STLescope 2021 1 A decade long network 2 We are well poised to leverage this cycle creation cycle has started With an increased TAM - Total Driven by Addressable Market of $40 bn. 5G, FTTx and Rural Connectivity 3 A Focused strategy for growth With three growth levers © 2021-2022 Ste
Slide 6: 3 focused levers for growth
3 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 wireless business Solutions business OPTICAL WIRELESS Hardware 25 yrs 5 yrs 5 ©
Slide 7: Today we will discuss the Optical Business growth lever
Today we will discuss the OPTICAL BUSINESS growth lever 1. Growing Optical Demand Grow Global demand in OFC & OI is growing across regions Optical connectivity 2. Optical Networking Growth Strategy business A. Establish US & EU as home markets B. Scale Optical Interconnect business 3. End-to-End Opt
Slide 8: Strong tailwinds enabling growth
Strong tailwinds 2. Optical Networking 3. End-to-End 4. Q&A enabling Growth Growth Strategy Optical Solution Global demand in OFC & OI is A. Establish US & EU as home markets A customer case study of STL E2E growing across regions optical solution B. Scale Optical Interconnect Business
Slide 9: Global optical fibre cable demand is growing
Global optical fibre cable demand is growing Communication service providers Evidenced by the recent This is driving the growth in are aggressively investing in fibre OFC demand globally updates from the China for their networks market ATT CEO : More fiber is the company’s top priority 1.2X • Highes
Slide 10: Demand for bend insensitive fibre and high density cables is increasing
As the fibre networks are becoming denser, the demand for bend insensitive fibre & high density fibre cables is increasing Fibre demand has new characteristics - Access FTTH drives need for bend insensitive fibres - Data centers need very high fiber count in cables Increasing Bend insensitive fibre
Slide 11: STL's Optical Interconnect Portfolio
As the fibre networks get closer and complex optical interconnect system becomes key STL’S OPTICAL INTERCONNECT PORTFOLIO Optical Outside Plant Distribution Optical Distribution Frame Fibre Interconnect Boxes Interconnect is a customized and engineered solution for fibre management and termination •
Slide 12: How cable and interconnect come together to connect the world
Let us see how cable and interconnect can come together to connect the world Optical Interconnect Video © 2020-2021 Sterlite Technologies Limited 11
Slide 13: Optical Interconnect market is growing especially in North America and Europe
Optical Interconnect market is growing especially in North America and Europe Global Optical Interconnect market ($ Bn ) Region wise Split (excl. China, $ Bn) 9.8 9.8 6% 7.5 7.5 29% 56% 5% 30% 4% 61% 21% 5% 19% 30% 25% 40% 41% 11% 10% 3% 4% 2021 2025 2021 2025 FTTx Datacentres Fixed Broadband (Non F
Slide 14: Optical Networking Growth Strategy
1. Strong tailwinds Optical Networking 3. End-to-End 4. Q&A enabling growth Growth Strategy Optical Solution Global demand in OFC & OI is A. Establish US & EU as home markets A customer case study of STL E2E growing across regions optical solution B. Increase Optical Interconnect attach rate
Slide 15: Optical Networking Growth Strategy: Be a truly global networking brand
Optical Networking Growth Strategy 1 2 Establish US and EU Scale Optical as home markets Interconnect Business Vision • Establish strong presence in the US • Set up state of the art lab to design optical interconnect BE A TRULY GLOBAL • Expand existing capabilities to gain leadership in the • Develo
Slide 16: We have made an entry in the growing US market
We have made an entry in the growing US market Establish US as home market US government investing in network OFC demand to grow at 36% in the next infrastructure growth four years Mn Fkm +36% Investment of $ 20 bn in rural connectivity 95 from RDOF. 70 Biden Govt. approved an investment of $ 65
Slide 17: We are strengthening our presence with a manufacturing unit
We are strengthening our presence with a manufacturing unit Establish US as home market Establishing our manufacturing unit in South Carolina, US We are investing in the OFC capacity in South Carolina which is likely to commence operations by Q1 FY23. 16 © 2021-2022 Sterlite Technologies Limited
Slide 18: Develop customised optical interconnect products
Develop customised optical interconnect products Scale OI business Work closely Customized with customers DESIGN MANUFACTURE SALES optical to define interconnect for product multiple • Establish state of • Agile operations for • Increase penetration requirements the art design lab lower turnaround i
Slide 19: Increase optical interconnect attach rate
Increase optical interconnect attach rate Scale OI business Large runway ahead Strategic investments 100% made by STL to kick-start this growth journey 8% 1% STL Q2 FY21 STL Q2 FY22 Industry STL has a large runway to increase the attach rate from c. 8% to 100% STL attach rate = STL OI revenue / STL
Slide 20: End-to-End Optical Solution
1. Strong tailwinds 2. Optical Networking End-to-End 4. Q&A enabling growth Growth Strategy Optical Solution Global demand in OFC & OI is A. Establish US & EU as home markets A customer case study of STL E2E growing across regions optical solution B. Increase Optical Interconnect attach rate
Slide 21: Customer Case Study: End-to-End Optical Solution
STL’s Tech Capabilities Customer Case Study : End-to-End Optical Solution Customer Need STL Expertise Outcome • End-to-end optical • STL’s optical network • A leading Telco wanted solution will fulfil 30% connectivity expertise to deploy high speed • Large scale deployment connectivity needs for top
Slide 22: Summary: Key Points
Summary 4 Key Points 3 Expertise One Core Objective • Optical Networking market • Agile and flexible is growing Customized products and faster Cable and interconnect time to market BE A TRULY demand is increasing • New home markets • Providing end-to-end solutions GLOBAL EU & US Customized optical p
Slide 23: Q&A
Q&A 1. Strong tailwinds 2. Optical Networking 3. End-to-End Q&A enabling growth Growth Strategy Optical Solution Global demand in OFC & OI is A. Establish US & EU as home markets A customer case study of STL E2E growing across regions optical solution B. Increase Optical Interconnect attach rate
Slide 24: beyond tomorrow
beyond tomorrow © 2021-2022 Sterlite Technologies Limited 23
Sterlite Technologies — Investor Presentation (December 2021) on 6ix