Sterlite Technologies Limited. — Investor Presentation 2020

Dec 11, 2020

www.stl.tech

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December 11, 2020

National Stock Exchange of India Limited

Exchange Plaza, 5th Floor, Plot No. C-1, G Block, Bandra Kurla Complex, Bandra (East) Mumbai - 400 051.

BSE Limited

Phirozee Jeejeebhoy Towers, Dalal Street, Mumbai - 400 001.

Sub: Intimation of Key Discussions in STLescope Tech Talk – Virtual Meet

Ref.: Scrip ID - STLTECH/ Scrip Code – 532374

Dear Sir/ Madam,

Further to our intimation dated December 4, 2020 and pursuant to Regulation 30(6) of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, we wish to inform you the key points discussed in the Virtual Tech Talk on December 11, 2020.

The presentation of the STLescope Tech Talk is attached herewith.

Kindly take the above on your record & acknowledge the receipt.

Thanking you,

Yours faithfully,

For Sterlite Technologies Limited

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Amit Deshpande

Company Secretary & Corporate General Counsel

Sterlite Technologies Limited Godrej Millennium, 9 Koregoan Road, Pune 411001, Maharashtra, India Registered office: E1, MIDC Industrial Area, Aurangabad - 431 136, Maharashtra, India . CIN - L31300MH2000PLC69261

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stl.
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© 2020-2021 Sterlite Technologies Limited

Confidential

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Go to www.menti.com

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© 2020-2021 Sterlite Technologies Limited

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Jitendra Balakrishnan CTO- Connectivity Solutions, STL

Dr. Jitendra Balakrishnan is a technology executive with nearly two decades of experience in research & development, manufacturing, business development, and leadership of technology organizations.

Currently, Jitendra is the Chief Technology Officer - Connectivity Solutions at STL. Technology innovation is at the heart of STL's mission to design, build and manage smarter networks. Jitendra is driving an expansion of STL's R&D in telecom products, is developing a long-term vision and roadmap for the technology unit, and is integrating it with other functions within the company. Previously, Jitendra was Research Director - Innovation & Technology - Emerging Markets at Corning Incorporated. In this position, he founded and established Corning's R&D operations in India, which became Corning Research Center India.

© 2020-2021 Sterlite Technologies Limited

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Sam Leeman PLM Head - Optical Interconnect, STL

Sam Leeman, a thought leader, an innovator, and an expert in the field of fibre network builds. He joined STL in 2019 the global PLM leader for the Optical Interconnect portfolio driving the product roadmap and aligning it with customer requirements

Sam brings with him over two decades of leadership experience in Product Development, Product Management and Business Development in the telecom industry. He has been actively involved in both emerging as well as established markets and has worked with multiple telecom operators around the world, leading from the front to develop renowned TCO solutions.

© 2020-2021 Sterlite Technologies Limited

What is a Digital Network?

National CORE

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NCR
Mumbai
Kolkata
Chennai
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© 2020-2021 Sterlite Technologies Limited

What is a Digital Network?

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National Metro
CORE CORE
Noida
NCR
5G Core
Rohini
Delhi
Mumbai
Dwarka Faridabad
Gurugram
Kolkata
Chennai
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What is a Digital Network?

National CORE

Aggregate Network

Metro CORE

Access Network

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“ The Edge”

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Sector 64 Distributed
NCR Noida Cetralized Unit DU
5G Core
Unit CU
Rohini
Sec Sec
Sec
108 85 77 S S
65 66
Delhi Radio
DU DU
Unit RU RU
S
Mumbai Sec Sec 63 S
Dwarka Faridabad 16 Sec 52 DU 62 RU
28
Fixed DU
Network
Gurugram
Kolkata
Chenna RU
i
RU
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© 2020-2021 Sterlite Technologies Limited
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OPTICAL FIBRE What is it !! How does it work !!

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© 2020-2021 Sterlite Technologies Limited

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© 2019-2020 Sterlite Technologies Limited

Fiberization

What is it ?

Hotspots in Enterprises and Homes

Outdoor Wireless Antennas

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Fiberization means connecting telecom network termination points with optical fibre cables.

Indoor WiFi Hotspots

© 2020-2021 Sterlite Technologies Limited

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Fiberization

Why is Optical Fibre Better ?

Primary Method of long distance Communication in 70s

Coaxial Cable

Now it is a preferred medium for Long Distance Communication

Optical Fibre Links

Microwave

Satellite

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© 2020-2021 Sterlite Technologies Limited

Fiberization

Why should we care about it ?

By 2025, the number of network end points will surge due to increasing penetration of ….

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Current FTTH Penetration 5G IoT
8
2
% 84%
6 97%6 97% 96% 99%
5 20%
0 5 21.5 Bn
%
% 2
% Global Connections IoT connected devices
16%
2 will be 5G
3% 3% 4% 1%
4
%
USA Germany UK Brazil India
FTTH Non-FTTH
Penetration Penetration
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All this will require high speed and low latency network creation which can be possible with Deep Fiberization and High Densification

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© 2020-2021 Sterlite Technologies Limited

Fiberization

What does Optical Fibre means to 5G

Small cell requirements for full 5G commitment

3 Operators per site in shared microsites 30% - 60% YoY Growth rate of urban small cells

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10 Km 10 Km 10 Km
1 Site 1 Site 1 Site
Every 10 KM Every 2 KM Every 0.5 KM
25x 10x
CELL DENSITY (Cell/ 100 Sq.Km.) CELL DENSITY (Cell/ 100 Sq.Km.) CELL DENSITY (Cell/ 100 Sq.Km.)
1 Cell 5x5= 25 CELLS ~250 CELLS
10 Km 10 Km 10 Km
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10X Demand of Optical Fibre to roll out 5G

Amount of cell towers to accommodate full 5G services

© 2020-2021 Sterlite Technologies Limited

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Fiberization

What does Optical Fibre means to FTTx

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~1.5%
70M
Current
Urban Households
FTTH FTTH Penetration
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~25%
Target FTTH
Penetration by 2024
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World’s largest rural broadband project
0.25M 0.15M 0.1M
Bharatnet Gram Connected with To be
Panchayats Fibre Fiberized
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P2P
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© 2019-2020 Sterlite Technologies Limited
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High Bandwidth Infrastructure Across
50M
MSMEs
Corporations Education
Metro Cities Hospitals Transportation
and Enterprises Institutes 14 14
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Fiberization

The Challenges – A, B, C and D

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A B C
Attenuation Bend Compatibility
Signal Decay Sensitivity Legacy and Future
Technology
Signal Leakage
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D Duct Space Optimize Limited Space

Source: GSMA, Canalys, Company & Industry Estimates

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B- Bend Sensitivity

C- Compatibility

D- Duct Space

A- Attenuation

Fiberization Attenuation

Increasing geographical spread

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Attenuation refers to signal loss along the length of the fibre. Attenuation happens due to absorption and scattering of light signal inside the core

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© 2020-2021 Sterlite Technologies Limited

A- Attenuation

B- Bend Sensitivity

C- Compatibility

D- Duct Space

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Fiberization

Bend Insensitive Optical Fibre

Bend Insensitive Fibre provide more than 10x reduced Macro Bend Loss

Microbends are axial distortions on core cladding interface caused majorly by the local mechanical stress placed on the cable during manufacturing, packaging or installation

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Macrobends, which results in light leakage due to cable bends beyond the specified bend radius during installation

Bend Insensitive Fibre

Source: Sterlite Tech calculations

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© 2020-2021 Sterlite Technologies Limited

A- Attenuation

B- Bend Sensitivity

Fiberization

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C- Compatibility
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D- Duct Space
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Compatibility with Legacy Network and Future Technology

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G.652.D
MFD of Typical G.657. A2: 8.5 micron MFD of Legacy G.652. D: 9.1 micron
MFD Mismatch
Actual Splice Loss
0.056dB
A2 to D Apparent Loss 0.12dB
D to A2 Apparent Loss: 0.24dB
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A- Attenuation

B- Bend Sensitivity

C- Compatibility

D- Duct Space

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Fiberization

Bottleneck in achieving Higher Bandwidth: Limited Duct Space

Cost share of civil work in a Cable Deployment Project 80%

Rest 20% constitutes Cables, Ducts and supplementary products

To meet this exponential growth Need 10X Fibre In the same available duct space

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~80%
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Minimize the size of Cable as per requirement and provision for future requirement

Maximize Fibre Count on the basis of forecasted future demand

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© 2020-2021 Sterlite Technologies Limited

Opticonn Increased technical and commercial integration

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Generating value by solving an end to end problem for customer, improving overall network experience

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© 2020-2021 Sterlite Technologies Limited

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Global innovations for Indian deployment scenarios Enabling Future Readiness at Lowest Total Cost of Ownership

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+
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+

High Density Ribbon Cable Intelligently Bonded Ribbon (72F - 6912F)

Underground and Aerial Optical Interconnect Kits

Backward Compatible Bend Insensitive Fibre

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Higher density network - 100% existing duct capacity augmentation

25% faster deployment of future proof bend resilient network

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Optical Connectivity Global leader in E2E optical physical layer solutions

© 2020-2021 Sterlite Technologies Limited

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Traditional flat Intelligently Bonded
ribbon Ribbon Cable
Traditional Loose Tube
Cable
Micro Cable
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Micro Cable
•
Slimmer Jacket & 200um fibre
reduces cable diameter
•
Splicing is still time consuming
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© 2020-2021 Sterlite Technologies Limited

Next Gen Fibre Distribution and Termination Technology

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Trunk Distribution Drop
SFU Aerial
Aerial Drop Terminal
4
SFU Ducted
MDU
Splice
Closure
Splice
Closure
Splitter Cabinet HH Terminal
CO
3
1 432F, 276F, 144F Trunk
2 5 1F Drop
Aggregation
Splice
Closure Splitter Node
Drop Terminal
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CONSULTATIVE CUSTOMISED COMPREHENSIVE Design Solutions Value

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ENGAGE Customers ASSESS Challenges

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PROPOSE Solution

BUILD Products

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VALIDATE Performance PARTNER For Growth

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© 2020-2021 Sterlite Technologies Limited

CRS System: Opticonn @ Work

Assembling inner CRS Connecting to Disconnect from 1 to outer CRS shell 2 main housing 3 main housing

Push all the way through the outer shell

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© 2020-2021 Sterlite Technologies Limited

In Summary 25 Years of Leadership in Optical Fibre Innovation

Optical Fibre is the right choice for digital networks Fastest Communication Speed High Bandwidth Low Interference

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7 Production Facilities
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Optical network roll-out is a complex task ABCD of Fiberization E2E Solutions View Innovation across the value chain

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4 Innovation Labs
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425 + Patents

900+ Engineers Photonics | Chemical, Materials, Process

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Q&A

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