1

Sterlite Technologies Limited Investor Presentation - December 2016

2

Disclaimer

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

3

Contents

Overview of Sterlite Tech

Product Business

System & Network Integration Business

Telecom Software Business

Financials

Strategic Directions

Appendix

4

9

15

19

22

27

35

4

Sterlite Tech Overview

5

Sterlite Tech: Leading Provider Of Telecom Products & Solutions

3 manufacturing locations – India , China and Brazil with 2500+ full time employees

55 patents in the telecom business across USA, EU, India and China and 70 more under global approval

Rs 2,161 Cr FY16 consolidated net revenues and Rs 465 Cr of consolidated EBITDA

6 of the global top 10 telecom operators use Sterlite’s innovative solutions

25% of FY16 consolidated net revenues comes from international markets

6

Sterlite Tech: Focused on Data Networks

pro

du

cts •Fully Integrated Product

Offerings: OF/OFC/CC

SI &

NI

•End to End: Network and System Integration Offerings

Tele

com

So

ftw

are •Operations and Billing

Support Systems (OSS/BSS)

Attractive Opportunities

Focused Strategy

End to End offerings

Sterlite Tech : Design, Build & Manage Smart Data Networks

•4 G Backhaul • Infra to Applications

•End to end rollout

• Integrated Solutions for Network upgrade

•Exponential growth in Data

International markets

Defense/ Other Utilities

Rural Broadband Telco’s Smart Cities

7

What Sterlite Tech offers

SYSTEM INTEGRATION

SOFTWARE & SERVICES

Full control over the entire value chain

driven by capacities and capabilities

Raw materials Preform Optic fiber OF cable

Specialty Fibre Products Intrusion Proof Cables

Bend Insensitive Optical Fibre Customized Cables For Varied Applications

• Design, Build & Manage Data Networks

• Specialized team with FTTH experience

• Network engineering, Roll out and O&M

• OSS / BSS software solutions

• Managed Services

End

to

En

d In

tegr

ate

d s

olu

tio

ns

8

Our Market Strategy

Glass Fiber Cable

Sustained Cash flows

Products

Network Integration

System Integration

Solutions & Services

OSS BSS

Telecom Software

End to End Integrated Telecom Play

Profitable Growth

Global Telco Focus

Grow Capabilities

India Telco’s/ Govt. Focus

Build/Acquire Capabilities

Execution Excellence

E2E Software & Services

Global Telco Focus

9

Product Business

10

Global Opportunity Landscape

Global Demand for Optical fiber remains strong and continues to show annual growth

India remains highly under fiberized compared to other geographies

Global Data Traffic (In Extabytes)

0

800

600

400

200

1,200

1,000

+205%

2013 2015 2020e

1 Extabyte is equal to 1,000 Gigabytes Includes both fixed and mobile traffic

Optical Fiber Cable (OFC Consumption- Mn fkm)

35 63 69 72 7633 42

80 87 99

3029

32

40

4043

3232

28

33

3840

5853454038324799733

2317

2024

2015

12

2426

24

242318

241

2015

382

16

216

2014

314

15

156

2013

263

9

132

2012

246

6

121

2011

218

2010

188

25

2009

173

2008

139

2007

119

2006

96

2016*

418

18

2005

75

24

Others India China Europe United States

Note: * CY2016 numbers are annualized based on actual H1 CY2016

11

India Broadband Space

• Total Cumulative Fiber Deployed to Population Ratio in US is 1.4x, China is 0.9x while India is just 0.1x

India highly under-invested in Digital Infrastructure Unique Opportunity to capitalize on Digital India & Telco’s Investment

Population (Mn) vs Cumulative Fiber Deployed (Mn Fkm)

• India just has 13% broadband density, compared to China which has 81% broadband density

325

113

449

China

1,256

1,385

India

1,333

US

278101

225

613

167

1,116

17

India China

48

Wireline:- DSL+FTTx+Others

Wireless:- 4G

Wireless:- 3G Population

Cumulative Fibre Deployed

Broadband Users (Mn)

Source: TRAI & CRU

12

Products Business Overview

Raw materials

• Silica & Power

• Certain natural gases

Preform

• Integrated Core rod + cladding

Optic fiber

• 25m fkm Capacity

• Expanding capacity to 30m fkm

OF cable

• 15m fkm Capacity

• Portfolio catering to diverse end use

System & Network Lab

Glass and reliability Lab

Optical characteristics Lab

Center of Excellence - Dedicated to Nation

• High end technology, fully integrated, global scale operations for manufacturing optical fibers

• Strong patent portfolio 55 granted patents across the globe and break through products

13

Strong Global Footprint

• Optical Fiber– Aurangabad(India) and Haimen, Jiangsu Province (China)

• Optical Fiber Cable– Silvassa (India) and Curitiba (Brazil)

• Structured data cables – Silvassa (India)

Manufacturing Locations

• China - 75:25 with Tongguang for drawing optic fiber

• Brazil – 50:50 JV with Conduspar for fiber cabling

Joint Ventures

• Brazil, China, France, Germany, India, Italy, Ivory Coast, Mexico, Malaysia, South Korea, Turkey, UAE,UK, Vietnam, South Africa

Sales Offices

14

5 Year Journey - Volume Analysis

Volume of OF continues to growth @ of 15% CAGR levels

Cabling volume also continues to growth @ of 15% CAGR levels

OFC Volume decline on YoY basis due to shift in the product mix and solutions positioning

20.1

17.7

13.812.511.7

+15%

FY 16 FY 15 FY 14 FY 13 FY 12

OF Volume (Mn Fkm)

6.5

7.7

5.24.6

3.7

+15%

FY 16 FY 15 FY 14 FY 13 FY 12

OFC Volume (Mn Fkm)

Values in Mn fkm

15

System & Network Integration Business

16

System Integration Market Opportunities

Source: Company estimates

5,625

32,000

9,500

22,520

Telco -NI Bharat Net Smart Cities Defence + PSU’s

Cummulative Market Opportunities (INR Cr) -FY17 to FY19e

Around $11bn addressable opportunities are envisaged for the creation of Broadband, Smart cities & defense networks

17

Network & System Integration Business Overview

Design Build Manage Integrate

Network Layer

Services

ICT Application

Active network

System integration

Network integration

Digital India

Fiber Infra

network

Smart Cities

Access Solution

Opportunities

Passive network 1

2

3

• Sterlite offers end to end integrated services in addition to its product portfolio across the various network layers which presents a multi billion multi year opportunity as India’s broad band infrastructure is built

18

System Integration Opportunities

Pipeline Bid-Participated-Result Awaited

Under Execution

SI Projects

Total

Values in INR Cr.

India market envisaged to provide continued large SI opportunities of similar size in next 3-4 years

>10,000

>16,000 >5,000

>1,000

19

Telecom Software Business

20

Telecom Software : Global Opportunity Landscape

Way to Play

Laye

r P

rese

nce

Own product business Partnering for solutions Integration

Network & Control

OSS & Middle-

ware

BSS & Business

Appz

System Integrators (SIs)

Telecom Equipment Manufacturers (TEMs)

1

2

3

4

Middleware (MW)

Pure play BSS/OSS players Typically build on their

strong integration skills

Specialized

BSS/OSS players

Leverage their network and

control core capabilities to

offer solutions with own

and partner products

Selectively partner for

solutions and don't offer

integration services

Landscape in Telecom OSS/BSS Space Sterlite Tech addressable :

Current Global OSS-BSS Market

Increased network complexity, due to heterogeneity of technology and vendors

Increased competition, demanding agility of BSS/OSS systems to deploy new offers and monitor success in real-time

$8.2 Bn

FY15 (Current Market)

$12.3 Bn

FY’18 (New Geo’s)

Source: Company estimates

21

Telecom Software Business : Acquired from Carlyle in 2015

Fastest growing IRCM companies

in Gartner MQ IRCM 2014

Global Top 16 BSS vendors

Fastest growing IRCM companies

in Gartner MQ IRCM 2014

Monetization of Next Generation Networks

Real Time Analytics

Real Time Customer Experience management

Core competencies

Elitecore Wins 2015 Deloitte Fast 50 Award

• Sterlite to be able to offer complete suite of products and solutions for telecom service providers and become a partner of choice - fiber and cable portfolio, network creation and OSS / BSS products

22

Financials

Notes: • On May 24th, 2016, Sterlite Tech had

announced a demerger effective from the appointed date of 1st April, 2015. Post demerger, FY 16 performance is representative of only Telecom business.

• The FY 15 reported numbers would not be comparable to FY 16 reported financial numbers.

• The following information is prepared for the like to like comparison of telecom consolidated financials.

23

5 year journey - Telecom Business : Consolidated P&L

Continued growth in Revenue, last 4 Year CAGR growth at 28%

Stronger growth in EBITDA, last 4 Year CAGR growth at 36%

Expanding ROCE with expanding margin for the business

2,161

1,619

1,096799

1,148

+28%

FY 16 FY 15 FY 14 FY 13 FY 12

465

345

181151137

+36%

FY 16 FY 15 FY 14 FY 13 FY 12

334

249

949088

+40%

FY 16 FY 15 FY 14 FY 13 FY 12

EBITDA

EBIT

Revenue

FY 16

18%

FY 15

18%

FY 14

8%

FY 13

7%

FY 12

8%

ROCE

IGAAP numbers & Values in INR Cr.

24

Annual Financial Performance: Consolidated Telecom Business

P&L FY 15

(Adj. proforma)

FY16

( Audited)

Revenue 1,619 2,161

EBIDTA 345 465

EBITDA % 21% 22%

Depreciation 96 131

EBIT 249 334

EBIT % 15% 15%

Interest 75 113

PBT 173 221

Tax 55 64

PAT (After minority

Interest) 119 151

EPS (Diluted) in Rs. 2.99 3.75

Balance sheet FY 15

( Adj. proforma)

FY16

(Audited)

Net Worth 577 699

Minority Interest 23 31

Net Debt 674 1,008

Total 1,274 1,738

Fixed Assets 984 1,318

Net Working

Capital 290 420

Total 1,274 1,738

Return on Equity

(Post Tax) Na 22%

Values in INR Cr.

25

International Revenue Profile

FY16 Revenues from International Market : ~ 537 Cr (24%) of Total Revenues -2,274 Cr

H1 FY17 Revenues from International Market : ~412 Cr (36%) of Total Revenues -1,154 Cr

Asia 3% 8%

China

7%

Europe

2% Middle East

1%

America 1%

Africa

Asia

3%

19% China

10% Europe

3% Middle East

1%

America

1%

Africa

Revenues are Gross Revenues (including taxes) and may not match accounting standards reported number

26

Order Book Profile

3%

67%

30%

Software Services Product

Order book growth increased by 11% on QoQ basis, driven by strong products & services business demand

Numbers are in Ind-As Values in INR Cr.

15631589

700445

2324

61

+11%

Q2FY17 Q1FY17

2099

65

Software Services Product

Q2FY17

27

Strategic Direction

28

Strategic Direction

D) Defined principles for Inorganic Growth:

Capability addition

A) Market focused approach to drive sustained profitable growth: End to end solutions

& services

B) Focus on Research & Development: Increasing patent portfolio

C) Expanding ROCE for the business~20%

E) Consistent Returns to the Shareholders:

30% of PAT as dividend

Strategic Direction

29

A) Market Focused Approach

New Fiber & Cables Products

Smart Networks

Unique Offerings

Fiber network as a Core to CSP

Offer pre-connected intelligent products and

services to Telco’s

Building Fiber networks as brain and heart of

CSP

Increase capacities through minimal Capex &

Debottlenecking initiatives

Enabling Government to rollout citizen centric

services by offering end to end System

Integration service

30

B) Focus On Research & Technology

Center of Excellence, Aurangabad

Strong Patent Portfolio

Customer Experience Center, Gurgaon

Sterlite Academy

Strong focus on the Glass Research

Strong Patent portfolio of 125 patents :55 granted and 70 under evaluation

Building advance technologies : 5G, Pre-connected Solutions , IBS/DAS :Customer Experience Center at Gurgaon

Sterlite Academy : Sterlite Certified Fiber Installers : Skilled FTTH workforce required for sophisticated Fiber to the Home Technology rollout

31

C) Targeted Expansion Of RoCE

Increase proportion of Higher value products from 10% currently to 20% in 2018 on growing revenue base

Cost leadership in manufacturing through increasing manufacturing yields through analytics

Strong in-house design and engineering capabilities for creating high performance, long life networks for customers, thereby reducing TCO:

o Working with leading international firms to bring world class practices and technologies for fiber network creation

Increased proportion of cabling mix in business ~ OFC Capacity ramped up to 15 Mn

Brownfield & Debottlenecking capex with a focus on increased asset sweating

7%

19%

FY13 FY16

ROCE

32

D) Inorganic Growth : Defined Principles

Enhancing core competency & market access ( Design, Engineering, R&D, Global Customer Access)

Buying decision driven by capability augmentation and not adding scale/capacity

Tuck in acquisitions to elevate competitiveness of offerings

Target Strategic Fit

EPS Accretive to STL

Business ROCE

Innovative product or technology

20%-30%

< 36 Months

Technology innovation: IoT, Education,

Healthcare, NFV, & SDN

OSS/BSS innovative portfolio

System Integration (targeted)

Product & Solutions (core)

Telco Software

(new)

33

E) Consistent Returns to Shareholders

Consistent Dividend payment history

Increasing ratio of profit sharing

Stated Dividend Policy going forward

o Board will endeavor to maintain a

Dividend pay-out of around ~ 30% of

profits after tax (PAT) on Consolidated

financials basis

FY’12

31% 31%

FY’14 FY’13 FY’16

28%

34%

29%

FY’15

Dividend Payout History

34

Sterlite Tech is well placed to strengthen its leadership positon for connectivity enhancing products and solutions

Pure play Telecom focused company

High ROCE & ROE business profile

Focused on Customers & Stakeholders value creation

Implementing Customer centric alignments to transform go-to-market approach

Key Takeaways

35

Appendix

36

551603614595571

Q4 FY16 Q3 FY16 Q2 FY16

-4%

Q2 FY17 Q1 FY17

109122

140

116115

Q2 FY16

-5%

Q2 FY17 Q1 FY17 Q4 FY16 Q3 FY16

Quarterly Financial Performance

5138

61

2837

+39%

Q2 FY17 Q1 FY17 Q4 FY16 Q3 FY16 Q2 FY16

Revenue (INR Cr.) EBITDA (INR Cr.)

Company registered sales of Rs 551 Cr

De-Growth in absolute EBITDA due to low cable uptake, delay in NFS execution and investments in system integration business

Outlook on H2 remains strong for all the businesses based on order book & strategic execution plan for services business

PAT increased due to onetime tax benefits on account of merger of passive infrastructure business of Speedon Network Limited (‘SNL-100% Subsidiary of Sterlite Tech’)

PAT (INR Cr.) Numbers are in Ind-As

37

6.15.55.55.4

4.7

Q2 FY17 Q1 FY17 Q4 FY16 Q3 FY16 Q2 FY16

+30%

OF Volume

1.21.51.51.3

2.0

-42%

Q2 FY17 Q1 FY17 Q4 FY16 Q3 FY16 Q2 FY16

OFC

Quarterly volumes for OF have crossed the 6 million mark for Q2 FY17 - annualized rate of 24 Mn fkm

OF sales volume growth up by 30% on YoY basis for the quarter

OF capacity upgraded to 25 Mn FKM and 30 Mn fkm capacity in accelerated expansion mode

OFC volume decline due to continued weakness in cable installations in the country , likely to pickup in coming quarters based on the order book trend

Quarterly Volume Performance

Values are in Mn fkm

38

Consolidated P&L and Balance Sheet

P&L (INR Cr.) Q2 FY17

Revenue 551

EBIDTA 109

EBITDA % 20%

Depreciation 38

EBIT 72

EBIT % 13%

Interest 37

PBT 35

Tax (21)

PAT (After minority Interest) 51

Balance sheet (INR Cr.) Q2/H1 FY17

Net Worth 832

Net Debt 1,024

Total 1,857

Fixed Assets 1,109

Net Working Capital 628

Goodwill 120

Total 1,857

Revenues are at gross level, based on regulatory guidelines. Margin profile has change due to gross revenues factor

Numbers are in Ind-As

39

Thank You