stl -presentation oct 13, 2014.v1

8/10/2019 STL -Presentation Oct 13, 2014.V1

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www.sterlitetechnologies.com 1

Sterlite Technologies Limited


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Certain words and statements in this communication concerning Sterlite Technologies Limited (the Company) and its prospects, and other statements

relating to the Companys expected financial position, business strategy, the future development of theCompanys operations and the general economy

in India & global markets, are forward looking statements.

Such statements involve known and unknown risks, uncertainties and other factors, which may cause actual results, performance or achievements of the

Company, or industry results, to differ materially from those expressed or implied by such forward-looking statements.

Such forward-looking statements are based on numerous assumptions regarding the Companys present and future business strategies and the

environment in which the Company will operatein the future.

The important factors that could cause actual results, performance or achievements to differ materially from such forward-looking statements include,

among others, changes in government policies or regulations of India and, in particular, changes relating to the administration of the Companys

industry, and changes in general economic, business and credit conditions in India.The information contained in this presentation is only current as of its date and has not been independently verified. No express or implied

representation or warranty is made as to, and no reliance should be placed on, the accuracy, fairness or completeness of the information presented or

contained in this presentation. None of the Company or any of its affiliates, advisers or representatives accepts any liability whatsoever for any loss

howsoever arising from any information presented or contained in this presentation. Please note that the past performance of the Company is not, and

should not be considered as, indicative of future results. Furthermore, no person is authorized to give any information or make any representation which

is not contained in, or is inconsistent with, this presentation. Any such extraneous or inconsistent information or representation, if given or made,

should not be relied upon as having been authorizedby or on behalf of the Company.

The Company may alter, modify or otherwise change in any manner the contents of this presentation, without obligation to notify any person of suchrevision or changes.

These materials are confidential, are being given solely for your information and for your use, and may not be copied, reproduced or redistributed to any

other person in any manner. The distribution of this presentation in certain jurisdictions may be restricted by law. Accordingly, any persons in possession

of this presentation should inform themselves about and observe any suchrestrictions

Disclaimer


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Telecom & Power : Products + Engineering Solutions + Infrastructure Development

6 of the global top 10 telecosUtilise Sterlites innovative solutions

1300+ full time employeesled by an experienced management team

35% of Sterlites consolidated revenuesare from international markets

Center of Excellence47 patents in USA, EU, India, China

Key facts

Shares the same lineage as the US$ 16 bn* Vedanta Group

Have three business segments Telecom, Power and Power Transmission

Manufacturing operations in India, China and Brazil

Operations on a global scale with presence in India and overseas markets

Net Revenue of Rs. 25,639 mn and EBITDA of Rs. 2,754 mn **

Overview

Sterlite Technologies: One of the leading global providersof solutions in telecom and power transmission

*FY14 revenues** in FY14 (consolidated)


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Key Markets

Majorcompetitors

Key FY14Financials(Rs. mn)*

Offering

Optical fibers & preform Fiber optic cables

Data Cables System integration andFTTH solutions

Power conductors HV/EHV cables

OPGW Rods & accessories

6 projects across 11 stateswon through competitive

bidding on BOOM basis 5000 km circuittransmission lines and 3substations

India, China and Europe India, Europe, Africa and

Middle East India

Corning (US) and Prysmian

(Italy)

Apar Industries (India) and

Midal (Middle East)

Power Grid (India) and L&T

(India)

Revenue: 11,049 EBITDA: 1,812

Revenue: 15,869 EBITDA: 819

Revenue: 541 EBITDA: 363

Our business verticals

Telecom Power Power Transmission

* Consolidated financials before inter-segment eliminations


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Optical Fiber (Capacity: 20 mn fkm)Aurangabad and Haimen, Jiangsu Province(China)

Optical Fiber Cable (Capacity: 8 mn fkm)Silvassa and Curitiba (Brazil)

Structured data cables Silvassa

Sales Manufacturing Market presence

Global presence ensures proximity to our clients

Manufacturing locations - Telecom

Manufacturing locations Power

JV Details

Conductors (Capacity: 160,000 MT) Silvassa, Haridwar and Jharsuguda

Power cables Haridwar

China - 75%:25% with Tongguang fordrawing optic fiber

Brazil - 50:50 JV with Conduspar for fibercabling

Sales Offices

China, India, Netherlands, Russia, South

Africa, Turkey, UAE, UK


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Company structure and shareholding pattern

VolcanInvestments

STL

Telecomdivision

Brazil JV

China JV

Power Productsdivision

Grid Projectssubsidiary

SGL 1

ENICL

BDTCL

JTCL

SGL 2

RAPP

PKTCL

NRSS

Publicshareholders

Note:

1.There are other legal entities which are not shown here, do not contribute materially to the group

100% 100%

Minority Investment

45%53.2%

Shareholding Pattern(as on June 30, 2014)

Promoter54.7%

FII1.2%

DII8.4%

Others

35.7%

Division

SCPESTL Consolidated net revenues of

Rs. 25,639 mn in FY14

SCPE: Standard Chartered Private Equity

ENICL : East-North Interconnection company LimitedBDTCL: Bhopal-Dhule Transmission Company LimitedJTCL: Jabalpur Transmission Company Limited,RAPP: Rajasthan Atomic Power Project "RAPP-Unit 7, 8"PKTCL: Purulia & Kharagpur Transmission Company Limited (ERSS)NRSS: Northern Region Strengthening Scheme project (NRSS 29)


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STL offers a unique proposition

Attractive IndustryDynamics

One of the few global players with a 20m fkm fully integrated plant at a single location thatmanufactures preform used for optic fibre cables, similarly global capacities of 160,000MT formanufacturing power conductors

Global entrenchment with reputed clients 6 of the top 10 telcos of the world are clients for the telecom business Significant contributor to Indias National Grid

Growth in exports reflective of global competitiveness 35% of the FY14 consolidated revenues were from international markets

Strong Global Play

Telecom Global fiber market to continue to grow, driven by an exponential increase in data

consumption India at inflection point and fiber market poised for significant growth led by mobile 4G

telco rollouts, increase in data consumption and govt. initiatives such as NOFN projectsand smart cities

Power Transmission sector would require huge investments commensurate with spend in

generation sector creation of additional evacuation capacity, strengthening of existingregional networks and development of a National Grid

Increased focus on export business to sustain growth received large order from LatinAmerican client in FY14

Shift towards higher voltage level and newer technologies for new transmission lines


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STL offers a unique proposition

Power Transmission

Largest company in private transmission sector* with 6 transmission projects awarded onBOOM basis

High Execution Visibility: Cash flows from business commenced in FY14; 2 projects to startoperations by end of FY15 while 3 more expected to be operational in FY16

GoI to continue focus on PPP for adding transmission capacity and around 10 futureprojects coming up for bidding - STL is well positioned to leverage on its strengths for theopportunity

Attractive IndustryDynamics (Contd.)

Full control over the value chain allowing for cost advantage Global scale of capacity with no significant capex requirement in the product business in the

near future

Strategic manufacturing presence in India, China and Brazil

Fully integratedoperation

Strategic JVs with established international players in various segments

Standard Chartered Private Equity is an investor in the transmission business First foreign investment in Indias power transmission sector

Management team with strong business and domain knowledge from a global pool

Reputed Partners andStrong Management

Presence across three business verticals

Revenue diversified across customers and geographies

Mix of higher growth (telecom and power) and stable annuity (power transmission) businesses

Diversified Business

Model

* In terms of number of projects


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Telecom business


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Our telecom business

Full control over the entire value chain

Raw materials

Silica Power Certain natural gases

Preform

Core rod + cladding India facility exports 4m

fkm equivalent preformto Chinese JV

Optic fiber

16m fkm drawing out ofIndia

4m fkm drawing in China

Optic fiber cable

Nearly 8m of fkm in Indiabeing increased to 10m fkm

Initial 0.5m fkm capacity inBrazil

Increasing margins as vertical integration and technology becomes the differentiator

Products

Optical fibers & preform

Fiber optic cables

Structured data cables

Solutions

System and network

integration

FTTH solutions

Key metrics (FY 14)

Fiber capacity : 20m fKm

Cabling capacity : 8m fkm

Volume of fiber sold : 13.8m fKm

Volume of fiber cable sold : 5.2m fKm

Consolidated revenue of Rs. 11,049 mn and

EBITDA of Rs. 1,812 mn

Key Customers

Leading Telecom Service

Providers globally in India,

China and Europe

Internet Service Providers

MSO/CATV Operators

Govt. of India agencies


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Source : Industry Estimates

India at the

inflection pointwhere China was

in 2005

Data consumption continues to grow fiber demand

Mobile data togrow 44% CAGRvs 15% for fixed

internet

Various economies atdifferent stages of fiberdeployment should help

sustain global growth


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Leveraging the growth in India

Long term sustainable demand going forward

National Optic Fibre Netwrok (NOFN)

Secured largest share within thecountry for cable supply

Network for Spectrum (NFS)

Turnkey deployment of network inJ&K worth Rs. 16,500 mn and supply

of cable worth Rs. 3,000 mn to other

participants

Private Telco rollout

Ongoing supply of OFC to RelianceJio,Bharti Airtel and other Indian

operators

STL Project highlights

3G/4G telcorollout

Fiberisationof towers

BroadbandHighwaysand Smart

Cities

NOFN andNFS

DigitalIndia

Universalmobile

connectivity

Digitisationof cable tv

services


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Source : Company

Product mix and order book

Volumes Order Book

3,300 3,2002,000

3,450

21,876

0

5,000

10,000

15,000

20,000

25,000

Q1 FY14 Q2 FY14 Q3 FY14 Q4 FY14 Q1 FY15

RsMn

Telecom order book


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Power business


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Our offerings

Products Solutions

Key Metrics (2014) Key Customers

Full range conductors from ACSR to high performance conductors

Amongst the largest, fully integrated facilities globally

Voltage grade from 6.6 kV to 220 kV

Conductors: Aluminum and Copper; Sizes - Single Core (up to 2000sq-mm) Multi Core (up to 630 sq-mm).

Conductors

HV/EHV Cables

OPGW (Optical Ground Wire)

Leveraging core expertise in power conductors & fiber opticcables

Capacity : 160,000 MT

Volume of conductor sold : 94,587MT

Order book of Rs. 22,160 mn as at June 30, 2014 of whichexports constitute 55%

Consolidated revenue of Rs. 15,869 mn and EBITDA of Rs. 819 mn

Engineering T&D networks & re-conductoringsolutions

Tower designing, route optimization

Manufacture, inventory management

Installation & service

Supplier to PGCIL and major power companies acrossthe globe

Select state electricity boards and discoms

Helped clients to increase the efficiency of their existinginfrastructure


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28.0

40.6

70.4

40.5

-

20

40

60

80

FY11 FY12 FY13 FY14Conductor

5473 74

36

7062 63

58

124135 137

94

-

50

100

150

FY11 FY12 FY13 FY14

PGC IL Ex ports & Non PGC IL ST LT ota l Cond uctor Volume

Source : PGCIL filings, Company

India demand dominated by PGCIL

Q1FY15 had highest investment approval in the last two yearsTotal investments approved: Rs. 1,016 bn

PGCIL Capex PGCIL Approvals and Ordering trend

PGCIL- CWIP Conductor Volume in KMT

(Rs.bn)

(Rs.bn)

(KMT)


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A strong and diversified order book

Recent initiatives

Focus on export markets: Receivedlarge order from Latin Americanclient in FY14

Focused on orders from Indian

clients over the past few years

Develop high specificationproducts for EHV and HVtransmission projects

Ord

erbookforpowersegment(inRs.Bn)

5.63.8 3.4

2.9 2.6

4.96.8 7.5

6.5 7.0

4.4

11.1

13.1

12.4 12.515.0

21.8

24.0

21.8 22.2

-

5.0

10.0

15.0

20.0

25.0

Q1 FY14 Q2 FY14 Q3 FY14 Q4 FY14 Q1 FY15

PGCIL Others Exports


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Power transmission infrastructure


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Policy changes transforming the Indian power sector

Transmission sector opened up for private participation

Fixed annuity driven model for a period of ~35 years with relatively high quality of receivables

New growth opportunity in the transmission sector

Leverage capabilities in engineering transmission networks and Project Management Skills

Asset Monetization after COD and equity rotation to generate returns for shareholders

Opportunity for additional revenue generation in future from alternate sources

Lower risk profile as compared to other segments within the power sector

Overview

Value proposition for Sterlite

New business vertical entered in 2010


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Build-Own-Operate-Maintain (BOOM) Model with

6 Projects in Portfolio

Revenue expected from 3 projects by FY16and all 6 projects by FY20

5000 Km circuit transmission lines & 3 substationsacross 11 states

Estimated capital expenditure of Rs 80,000 mn SCPE has entered into agreements for a Rs. 5 bn

equity investment (of which Rs. 4.5 bn alreadyinvested) - the first foreign investment into Indiaspower transmission sector

Indias first 765 kv D/C transmission line

Indias first Ultra Mega Transmission Project,Purnea-Bihar Sharif line commissioned in Sep 13

Recently commissioned 765KV sub-station forBDTCL

765 KV D/C

765 KV S/C

400 KV D/C

2x1500 mVA,765/400 kV Substation

Dhule

Vadodara

Aurangabad

Indore

Bina

Bhopal

Jabalpur

Bihar

Sharif

Purnia

Siliguri

Bongaigaon

Dharamjaygarh

Kota

Shujalpur

Purlia

Ranchi

KharagpurChaibasa

5

4

21

3

6

400/220 kV Substation

Jalandhar

Amargarh

Connecting key generating centers with load centers

Note: Map is representative of project locations and transmission lines not to scale


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Project name States covered Other detailsLine length

(kms)Expected

operation byApprox. Level

Tariff (Rs Mn)^

East NorthInterconnect Assam, Bihar & West Bengal 2 * 400 kV double circuit 450 Dec-14# 1,180

Jabalpur

transmission

Chhattisgarh, Madhya

Pradesh

1 * 765 kV single circuit

1 * 765 kV double circuit610 Jun-15 1,400

Bhopal DhuleMadhya Pradesh,

Maharashtra & Gujarat

4 * 765 kV single circuit

2 * 400 kV double circuit

2 sub stations

990 Mar-15 2,000

Rajasthan Atomic

Power Rajasthan & Madhya Pradesh 1 * 400 kV double circuit 200 Mar-16 400

Purulia &

KharagpurWest Bengal &Jharkhand 2 * 400 kV double circuit 270 Mar-16 600

NRSS 29 Punjab & Jammu & Kashmir3 * 400 kV double circuit

1 substation440 Jul-18 4,400

Infrastructure project details

6

5

4

3

2

1

# One line operational in FY14 and generating revenues^ Levelised tariff for 25 years for East North Interconnect project; 35 years for all other projects

Business Model

Pre-bid steps Execution Post COD

Detailed route planning leverage in house engineering

capabilities

Network planning and detailed

cost estimates

Strong project management Use global vendors and

international best practices

Monetization and asset rotation Financial engineering


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Financials


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Our consolidated financials

Net Revenue EBITDA & EBITDA Margin

Net Debt*

Decline in FY14 due to sluggish ordering in power segment

Increase in Net Debt due to funding of transmission projects

* Gross Debt - Cash

Cumulative contribution by STL in Transmission Projects


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The Way Forward


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Business Strategy

Maintain strong presence in the Indian market and across customer segments

Deeper penetration in export markets

Focus on increasing sales of high performance conductors and taking up selective

turnkey solutions

Power Business

Focus on execution of existing projects

Selectively monetize assets post CoD

Strategically continue to bid for transmission projects in India

Power Transmission

Continue to focus and leverage our preform manufacturing capabilities

Continue to increase share of cabling in overall telecom product mix (37% in FY14 and

46% in Q1FY15)

Increase penetration in global accounts

Leverage the business opportunities in India

Telecom Business


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Appendix


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1988

IncorporatedCopper telecomcables Facility

1993

Fiberopticcablesfacilitysetup

1995

Optical fiber facility

set-up at Aurangabad

2000

Demerger fromSterlite Industries

2006

Acquisition of power

conductors business

Commencement ofGrid business

2010

JV with TG for fiber facility inChina

Set-up of EHV power cablesfacility at Haridwar

2012

JV with Conduspar inBrazil for fiber cable

Commissioned Indiasfirst UMTP (in record26 months)

2013

Evolution from products to an engineering company

Secured prestigious NFSproject to implement end

to end OF Network forDefense services

Added sixth UMTP project

JVA with Viscas Japan forextra-high voltage cables

2014

Erstwhile Sterlite Industries Sterlite Optical Technologies renamed to Sterlite Technologies


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Professional Management Team

Anupam Jindal, CFO(18 years experience)

Joined the Sterlite Group in 1998 and isChartered Accountant from the ICAI

His key focus areas have been Finance,Treasury, Accounts and MIS.

K. S. Rao, COO Telecom & Power

Conductors (21 years exp) Joined Sterlite in 1993 and holds a

Bachelors degree in MechanicalEngineering

His key focus areas have beenengineering, mfgr, product andbusiness development

Vijay Jain, COO Networks Business(20 years experience) Joined Sterlite in 2011 and has 8

patents to his credit.

M. Tech. degree from IIT-Kharagpur & aMontreal PG

Ajay Bhardwaj, COO Grid Business

(30 years experience) Joined Sterlite in 2011

Worked in senior capacities in variousorganisations ion projects in T&D,Energy Management Systems.

An electrical Engineer from IIT-Roorkee

Dr. AnandAgarwal, CEO(19 years experience)

Joined Sterlite in 1995 and B. Tech. inMetallurgical Engineering from IIT-Kanpur, Masters and Ph.D. from theRensselaer Polytechnic Institute, USA

Pravin Agarwal, Whole time Director(30+ years experience)

Closely involved with the SterliteGroups operations in India since itsinception

Has rich experience in generalmanagement and commercial matters

Rajendra Mishra, COO - Power Cables(24 years experience) Joined Sterlite in 2008 and holds a

Bachelors degree in Electrical andElectronics Engineering from REC,Suratkal

Pratik Agarwal Head-Infrastructure

Business (10+ years experience) He leads strategic business initiatives in

the infrastructure ownership space Completed his B.Eco from Wharton,

Pennsylvania and MBA from LondonBusiness School

Ankit Agarwal Global Head - TelecomProducts (7+ years experience) Also responsible for identifying and

executing strategic opportunitiesglobally for Sterlite

Holds a Bachelors degree from Univ. ofSouthern California and MBA fromLondon Business School.


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Our recent financial performance (Q1 2014/15)

Standalone Consolidated Standalone Consolidated

June 14 June 14 Mar 14 Mar 14

(Unaudited) (Unaudited / Unreview ed) (Audited) (Audited)

Segment Revenue

Telecom Product and Solutions 32,160 33,232 107,671 110,486

Pow er Product and Solutions 22,908 22,908 158,687 158,687

Pow er Transmission Grid 1,611 5,413

Inter-segment elimination (1,207) (24,488)

Total 55,068 56,544 266,358 250,098

Profit before interest,depreciation and tax

Telecom Product and Solutions 6,954 6,998 18,668 18,123Pow er Product and Solutions 174 44 8,456 8,193


Unallocable 1 (161)

Total 7,128 8,678 27,124 29,788

Profit before Interest and Tax


Pow er Product and Solutions (573) (703) 5,516 5,253


Unallocable (5) (184)

Total 4,461 4,988 16,836 16,457

Net Interest Cost 2,966 5,630 9,528 17,978

Profit / (loss) before tax 1,495 (642) 7,308 (1,521)

Capital Employed


Pow er Product and Solutions 43,536 41,789 37,546 33,140


Unallocable 119,527 10,813 108,190 20,250

Total 272,775 570,761 254,526 548,294

Quarter ended Year ended

stl -presentation oct 13, 2014.v1

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