Sterlite Technologies Limited. — Investor Presentation 2021

Dec 13, 2021

www.stl.tech

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December 13, 2021

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 – Unraveling the Future Series – Virtual Meet

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

Dear Sir/ Madam,

Further to our intimation dated December 6, 2021 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 STLescope Virtual Meet held on December 13, 2021.

The presentation of the STLescope Virtual Meet 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

Corporate General Counsel & Company Secretary (ACS 17551)

Sterlite Technologies Limited Registered office: 4th Floor, Godrej Millennium, Koregaon Road 9, STS 12/1, Pune, Maharashtra- 411 001, India. CIN - L31300PN2000PLC202408

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Investors Meet

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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 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 Company’s present and future business strategies and the environment in which the Company will operate in 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 Company’s 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 authorized by 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 such revision or changes.

Persons should consult their own financial or tax adviser if in doubt about the treatment of the transaction for themselves

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 such restrictions

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© 2021-2022 Sterlite Technologies Limited

Today’s Speakers

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Paul Atkinson

CEO – Optical Connectivity Solutions

Paul Atkinson is an industry expert with more than 30 years of experience across multiple industries. Prior to STL, he was the Managing Director and Group CEO at IXOM. He has deep expertise in the optical space and was associated with the Prysmian Group for over 20 years as the CEO of affiliates and regions across the world. During this stint, he has led multiple successful business integrations and was pivotal in delivering non-linear growth across business lines and geographies. Paul holds a degree from Melbourne Business School and Monash University.

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Mihir Modi

Chief Finance Officer

A prolific professional, Mihir has more than 20 years of experience in Finance, M&A, Strategy, and General Management. As the Chief Financial Officer of STL, Mihir is actively working towards delivering consistent shareholder value through strong financial performance, deep industry alliances and high internal efficiencies.

Prior to joining STL, Mihir co-founded a contemporary digital media content company based in Mumbai. He has also worked as Chief Strategy Officer & CFO at Zee Entertainment, and also held key leadership positions at Godrej Consumer Products, Novartis Pharma and Ernst & Young.

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© 2021-2022 Sterlite Technologies Limited

Continuing from STLescope 2021

1 A decade long network creation cycle has started

Driven by

5G, FTTx and Rural Connectivity

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2 We are well poised to leverage this cycle

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With an increased TAM - Total Addressable Market of $40 bn.

3 A Focused strategy for growth With three growth levers

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Sources: Public News, Industry reports

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3 focused levers for growth

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2
Globalise
SYSTEM INTEGRATION
Take System Integration business
10 yrs of large scale ecosystem integration global and scale in India
Services
1 Grow 3 Build
Software pFTTxOptical Strong wireless ORAN
business Solutions
business
OPTICAL WIRELESS
Hardware
25 yrs 5 yrs
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Today we will discuss the OPTICAL BUSINESS growth lever

1. Growing Optical Demand

Grow

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Global demand in OFC & OI is growing across regions

2. Optical Networking Growth Strategy

Optical connectivity business

A. Establish US & EU as home markets

B. Scale Optical Interconnect business

3. End-to-End Optical Solution A customer case study of STL E2E optical solution

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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
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Global optical fibre cable demand is growing

Communication service providers are aggressively investing in fibre for their networks

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ATT CEO : More fiber is the company’s top priority

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Airtel’s CAPEX to increase to US $ 5bn in FY 22

Telefonica – Alliance JV begins FTTH rollout in rural areas

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Deutsche Telekom to invest EUR 500mn in fiber, FTTH networks in Munich Orange hails stronger Q2 amidst fiber splurge Verizon President Business Markets : All the 5G nodes need fiber

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This is driving the growth in OFC demand globally

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1.2X
610
Optical Fibre Cable
Global demand 589
In million fibre kilometres
499
480
470
2019 2020 2021E 2024E 2025E
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Evidenced by the recent updates from the China market

• Highest Tender Volume in China Mobile history (~143mfkm)

• Cable Price has significantly increased (~58%) in this tender

Source: Industry

Source: CRU Telecom cables market outlook: estimates in Aug’21

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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 penetration

Increasing need for high density fibre cables

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37%
32%
The fundamental needs for
fibre in datacenters and
5G networks are sharp
bending and flexibility
Bend Insensitive fibre in its
2021 2025
portfolio - STELLAR
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• High bandwidth data transfer applications particularly in datacentres and in outside plant applications are driving the demand for high density cables such as intermittent bonded ribbon cable

• Lower installation time is the also driving the usage of high density fibre cables

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• STL has a leading Intermittent bonded cable called Celesta

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As the fibre networks get closer and complex optical interconnect system becomes key

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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
• • •
Distribution cabinets Closures (drop, Indoor distribution boxes
• •
Panels for enterprise longhaul, aerial) Building terminals
connections • Terminals • MDU Connectivity
•
Drop cable connectivity
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© 2020-2021 Sterlite Technologies Limited

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Let us see how cable and interconnect can come together to connect the world

Optical Interconnect Video

© 2020-2021 Sterlite Technologies Limited

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Optical Interconnect market is growing especially in North America and Europe

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Global Optical Interconnect market ($ Bn ) Region wise Split (excl. China, $ Bn)
9.8 9.8
6%
7.5
7.5
29%
56% 5%
4%
30%
61%
21%
5%
19%
30%
25%
40%
41%
10%
11%
3% 4%
2021 2025
2021 2025
FTTx Datacentres Fixed Broadband (Non FTTx) 5G Americas APAC CALA Europe MEA
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*We develop different model for each application – FTTx/Fixed BB (based on Homes Pass/Homes Connected/FTTB users), DC (based on power usage/port count), 5G based on incremental fiber/cable needed basis new end points (macro/rooftops)

Sources: FTTH Council, Ovum, BSRIA, STL Analysis

*Caribbean and Latin American region

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© 2020-2021 Sterlite Technologies Limited

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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

Optical Networking Growth Strategy

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2
1
Establish US and EU Scale Optical
as home markets Interconnect
Business
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• Establish strong presence in the US

• Set up state of the art lab to design optical interconnect

• Expand existing capabilities to gain leadership in the region

• Develop customised optical passive solutions (cable & interconnect combinations)

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Vision

BE A TRULY GLOBAL NETWORKING BRAND

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© 2021-2022 Sterlite Technologies Limited

We have made an entry in the growing US market

Establish US as home market

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US government investing in network infrastructure growth

• Investment of $ 20 bn in rural connectivity from RDOF.

• Biden Govt. approved an investment of $ 65 bn f or broadband infrastructure across all the states of US

OFC demand to grow at 36% in the next four years

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Mn Fkm +36%
95
70
2021 2025
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We have got very good traction in the US market. Our revenue share has grown to 12% in H1 FY22 from 4% last year

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We are strengthening our presence with a manufacturing unit

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Establish US as home market

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Establishing our manufacturing unit in South Carolina, US

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We are investing in the OFC capacity in South Carolina which is likely to commence operations by Q1 FY23.

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Develop customised optical interconnect products

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Scale OI business

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• Work closely

• with customers DESIGN MANUFACTURE SALES to define product • Establish state of • Agile operations for • Increase penetration

• requirements the art design lab lower turnaround in all key accounts

• • Increase optical time • Thought leadership in interconnect patent • Increased datacentre segment portfolio investments in specially with tooling & logistics hardened connectivity Solutions

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Customized optical interconnect for multiple applications

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Increase optical interconnect attach rate

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Scale OI
business
Large runway
ahead
Strategic
100%
investments
made by STL to
kick-start this
growth journey
8%
1%
STL Q2 FY21 STL Q2 FY22 Industry
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STL has a large runway to increase the attach rate from c. 8% to 100%

STL attach rate = STL OI revenue / STL OFC revenue Industry attach rate = OI Industry size / OFC Industry Size Sources: STL Estimates

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1. Strong tailwinds 2. Optical Networking enabling growth Growth Strategy

Global demand in OFC & OI is growing across regions

A. Establish US & EU as home markets

End-to-End 4. Q&A Optical Solution

A customer case study of STL E2E optical solution

B. Increase Optical Interconnect attach rate

STL’s Tech Capabilities

Customer Case Study : End-to-End Optical Solution

• A leading Telco wanted

to deploy high speed

STL Expertise

• End-to-end optical connectivity expertise

• • Large scale deployment

Outcome

• STL’s optical network solution will fulfil 30% connectivity needs for top Telcos in UK

connectivity to 25 Mn

homes in UK

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• The most preferred partner for Top 3 Telcos in UK

Upcoming Potential Areas

Super fast connectivity with interconnected setup

• New solutions discussion with other Telcos in UK and Italy

• IBR and high density splicing

• Plug and play cabling

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Summary

4 Key Points

• Optical Networking market is growing

Cable and interconnect demand is increasing

• New home markets

EU & US

• Improving OI attach rate

Customized Applications

3 Expertise

• Agile and flexible

Customized products and faster time to market

• Providing end-to-end solutions

• Customized optical passive solutions

• Leadership in high value markets Geographic expansion

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One Core Objective

BE A TRULY GLOBAL NETWORKING BRAND

• End-to-End optical solutions Increasing customer adoption

2121

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Q&A
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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

Global demand in OFC & OI is growing across regions

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beyond tomorrow

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© 2021-2022 Sterlite Technologies Limited