1

Sterlite Technologies Limited Investor Presentation July 2016

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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

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Contents

Overview of Sterlite Tech

Opportunity Landscape

Financials

Strategic Direction

Key Takeaways

Appendix

4

13

20

24

31

32

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

50 patents in the telecom business across USA, EU, India and China and 73 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

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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

7

Sterlite Tech: Business Verticals P

rod

uct

s

• Optical fibers & preforms

• Fiber optic cables

• Structured data cables

• Pre-integrated Fiber to the Home/ Antenna (FTTx)Solutions Kits

• Passive connectivity solutions

Net

wo

rk &

Sys

tem

Inte

grat

ion

• End-to-end project management

• Specialized team with FTTH experience

• Network engineering, Roll out, Integration and O&M

Tele

com

So

ftw

are

• Telecom Operations Support System Products (OSS)

• Telecom Billing Support System Products (BSS)

• Telecom Software: Managed Services

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Products Business

Raw materials

• Silica & Power

• Certain natural gases

Preform

• Integrated Core rod + cladding

Optic fiber

• 22m fkm Capacity

OF cable

• 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 50 granted patents across the globe and break through products

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Network & System Integration Business

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

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Telecom Software Business

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

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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

Sales

Manufacturing

Market presence

• China, India, Netherlands, Russia, South Africa, Turkey, UAE, UK

Sales Offices

Services and Solutions • NFS Project execution in J&K • Smart City Project in Jaipur &

Gandhi Nagar

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Sterlite Tech: Revenue Profile – Q1FY17

Europe 30%

Latin America 6%

China 35%

Middle East 9%

CIS 0%

Asia 15%

Africa 4%

Others 1%

Export by Region

India 73%

Export 27%

Revenue Profile

Revenues from International Market :27% China & Europe are our key International markets

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Opportunity Landscape

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Our Product Business: 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

48 53 57 61 6323

3342

80 87 9924

2530

2932

39

38

2526

30

2729

38

3734

40

44

413735322922733

13220

20

1512

20

+17%

203

16

2006

95

2005

75

17

2014

311

15

156

2013

263

9

2012

246

6

121

2011

218

4

2010

189

2015 2009

173

9

2008

7 9

2007

118

364

140

Others Europe China India North America

Optical Fiber Cable (OFC Consumption- Mn fkm)

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India Broadband Space

• Total Cumulative Fiber Deployed to Population Ratio in US is 1.3x, China is 0.8x while India is just 0.1x

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

% users above >4 Mbps Population (Mn) vs Cumulative Fiber Deployed (Mn Fkm)

1,3811,320

323

1,060

99

417

China India US

Cummulative Fiber Deployed Population

China

41%

India

17%

US

83%

• India just has 17% of users which enjoys 4 mbps and above speed

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Our e2e System Integration: India Opportunity Landscape

Unprecedented capital investments planned over the next 5 years by Telcos and Government

STL will continue to be integral partner for initiatives such as “Digital India”, “Make in India” and “Smart Cities”

Private Telco’s Opportunity

Government Opportunity

Residential Enterprise

Mobile access (2G/3G/4G)

Small-cells and WiFi

Mobile Core

Fixed access & backhaul

and network build

$19 Bn $3.5 Bn

$3 Bn

$18.5 Bn

BharatNet Smart cities

$12 Bn $4 Bn

Next 5 years Opportunities

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System Integration Opportunities FY’17

Pipeline:FY17 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

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Our Telecom Software Business: 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

(In USD Mn)

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

8,177

FY15 (Current Market)

12,296

FY’18 (New Geo’s)

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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

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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.

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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.

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5 Year Journey - Telecom Business : 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

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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.

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Strategic Direction

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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

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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

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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 123 patents :50 granted and 73 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

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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%

18%

FY13 FY16

ROCE

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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)

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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

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KEY TAKEAWAYS Sterlite Tech is well placed to strengthen its leadership

positon for connectivity enhancing products and solutions

High ROCE & ROE business profile

Focused on Customers & Stakeholders value creation

Demerged company allows simplicity in business and focused Telecom play

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

New organization effective from April 1, 2015 and the record date for the Demerger tentatively expected to be in Mid-June, subject to regulatory approval

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Appendix

32

33

Quarterly Financial Performance – Consolidated Telecom Business

565608572

518463

+22%

Q1 FY17* Q4 FY16 Q3 FY16 Q2 FY16 Q1 FY16*

Revenue

124134

115114102

+21%

Q1 FY17* Q4 FY16 Q3 FY16 Q2 FY16 Q1 FY16*

40

52

333731

+30%

Q1 FY17* Q4 FY16 Q3 FY16 Q2 FY16 Q1 FY16*

EBITDA

PAT

Revenue profile reflect 22% growth on YoY basis

EBITDA grew by 21% on YoY basis

Net profit of 40Cr (post minority interest) for Q1FY 17 (30%

YoY growth) Notes:* numbers are in Ind AS & Values are in INR Cr.

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Quarterly Financial Performance : Products

5.55.55.44.74.5

Q1 FY17 Q4 FY16 Q3 FY16 Q2 FY16 Q1 FY16

+21%

OF Volume(MnFkm)

1.61.61.3

2.01.9

-14%

Q1 FY17 Q4 FY16 Q3 FY16 Q2 FY16 Q1 FY16

OFC (Mn Fkm)

Quarterly volumes for OF have consistently crossed the 5.5 million mark for the last 2 quarters- annualized rate of 22

Mn fkm

OF capacity ramp -up to 25 Mn FKM by mid of FY 17 through debottlenecking initiatives-accelerated expansion

Capacity of 30 Mn OF volumes by mid of the next financial year

OFC volume expected ramp up in H2 through increased demand in India and acquisition of new customers globally

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Consolidated Financials: Q1FY16 Vs Q1FY17

P&L (Rs. Cr.) Q1 FY16

Ind AS

Q1 FY17

Ind AS

Revenue 463 565

EBIDTA 102 124

EBITDA % 22% 22%

Depreciation 24 35

EBIT 78 89

EBIT % 17% 16%

Interest 28 32

PBT 50 57

Tax 19 13

PAT (After minority Interest) 31 40

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Demerger Concludes: Sterlite Tech Now A Pure Play Telecom Focused Company

New Company structure to accelerate

execution and enable demonstration of

superior performance

Leaner structure to allow for simplicity and

focus while enabling greater agility

Implementing Customer centric alignments

to transform go-to-market approach

New organization effective from April 1, 2015

Record date to be announced soon

Pre- Demerger

Sterlite Technologies Ltd.

Telecom Power

Post -Demerger

Sterlite Technologies Ltd. (Pure Play: Telecom

Company)

Sterlite Power Transmission Ltd.

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Sterlite Tech: Pre Vs Post Demerger-key Financial Metric

Sterlite Tech is pure play Telecom focused company post Demerger

PAT surges to Rs 151 Cr. Vs losses at Consolidated level last year

151

-3

Consol. FY15

Consol. FY16

465

512

Consol. FY15

-9%

Consol. FY16

2,161

3,097

Consol. FY15

-30%

Consol. FY16

Revenue EBITDA PAT

Values in INR Cr.

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Sterlite Tech: Pre Vs Post Demerger- Balance Sheet Metric

Significant deleveraging of the balance sheet, considerable reduction in Net Debt

Interest burden reduces by almost 1/3rd from Rs 327 Cr to 113 Cr

Leverage ratio improves substantially

1.4x

-69%

Consol. FY15

4.5x

Consol. FY16

113

327

-65%

Consol. FY16

Consol. FY15

1,008

4,882

Consol. FY15

Consol. FY16

-79%

Values in INR Cr.

Net Debt Interest Cost Net Debt to Equity

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Sterlite Tech: Pre Vs Post Demerger- Return Profile Metric

0%

22%

Consol. FY16

Consol. FY15

Consol. FY15

Consol. FY16

5%

18%

1,819

6,835

Consol. FY15

Consol. FY16

Capital Employed ROCE (Pre-Tax) ROE (Post-Tax)

Capital Employed post demerger pertains to Telecom business only

Significantly improved ROCE & ROE post restructuring

Values in INR Cr.

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Options For Shareholders As A Part Of The Demerger

5 share

Option A

5 share in Sterlite Technologies Limited

Sterlite Technologies Limited Telecom (Listed) SPTL (Unlisted equity)

5 Redeemable Preference shares to be redeemed at the end of 18

months (includes 8% dividend p.a -Rs 123.5)

SPTL Listed RPS Option B

SPTL Listed RPS Option C

5 Redeemable Preference shares to be redeemed within 30 days of the

allotment date

Scheme offers multiple options to cater to investor’s preference

• Option A : Continue to hold equity shares and partner in the value creation of the power sector

In case shareholder is unable to hold shares due to conflict with their investment mandate then will be issued Redeemable Preference Shares (RPS)

• Option B : Provides a liquidity event at the end of 18 months

• Option C : Provides an initial liquidity window for 30 days

Note : * Representative for resident shareholders options for other shareholders and Promoters may be different and is covered in the scheme document.

or

or

5 equity share

(Value fixed at Rs 112.3 per share)

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Post Restructuring Company Structure

Sponsors

Sterlite TechnologiesL

imited

Telecom division

Power Products division

Grid Projects subsidiary

Public shareholders

45.2% 54.8%

Standard Chartered PE

Demerger of power products division and transmission grid

business undertaking Sterlite Power

Transmission Ltd

100%

Pre-Demerger Post Demerger

Sponsors

Sterlite TechnologiesL

imited

Telecom Business

Public shareholders

45.2% 54.8%

Sponsors

Sterlite Power Transmission Ltd.

(SPTL)

Power Products Business

Grid Projects subsidiary

Public shareholders

Standard Chartered PE

27.1% fully diluted

27.1% fully diluted

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Thank You