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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
Pow er Transmission Grid 1,635 3,633
Unallocable 1 (161)
Total 7,128 8,678 27,124 29,788
Profit before Interest and Tax
Telecom Product and Solutions 5,034 4,641 11,320 9,374
Pow er Product and Solutions (573) (703) 5,516 5,253
Pow er Transmission Grid 1,055 2,014
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
Telecom Product and Solutions 109,712 122,554 108,790 121,714
Pow er Product and Solutions 43,536 41,789 37,546 33,140
Pow er Transmission Grid 395,605 373,190
Unallocable 119,527 10,813 108,190 20,250
Total 272,775 570,761 254,526 548,294
Quarter ended Year ended