DEAR STAKEHOLDERS,

WE BELIEVE THAT ELECTRICITY ACCESS TRANSFORMS SOCIETIES AND DELIVERS LONG-LASTING SOCIAL IMPACT. THIS BELIEF HAS SHAPED OUR JOURNEY RIGHT FROM INCEPTION AND TODAY WE ARE A LEADING GLOBAL DEVELOPER OF POWER TRANSMISSION INFRASTRUCTURE, WITH GROWING OPERATIONS IN INDIA AND BRAZIL.

Let me share with you some mega trends that are shaping the industry we are operating in. We are in the midst of an electricity revolution, driven by disruption at both ends of the value chain – Electricity Generation as well as Consumption. Today humanity is concerned about impact of climate change and making a conscious shift from fossil fuel to clean energy. The size and scale of this shift is unprecedented and the opportunity it creates for energy logistics is equally large. The renewable revolution, electrification of transport, and a global demand for long-term yield assets, are three phenomena that are together creating an unprecedented opportunity globally for the transmission sector.

We are excited to be leading this space by addressing the toughest challenges of energy delivery. On this note, it gives me immense pleasure to share with you yet another year of strong growth and achievements.

ANOTHER EXCEPTIONAL YEAR WITH MANY FIRSTS

Over the course of last year, Sterlite Power has made significant progress towards its strategic priorities. Today our Global Infrastructure business boasts of a portfolio of 22 assets with cumulative capex of ~US$ 5.18 Bn in India and Brazil. One of our highlights this year was ahead -of-schedule delivery of the NRSS 29 transmission project in Kashmir. This project has the potential to provide 24X7 electricity to 12.5 Mn residents of the Kashmir valley, and brings tremendous prosperity to this important region.

In light of this, the project was dedicated to the nation by the Honorable Prime Minister of India, Shri Narendra Modi. In Brazil, we commissioned our first project, Arcoverde – 28 months ahead of schedule, creating a new record in that market. This project enables the delivery of clean energy from the wind-rich north east belt of Brazil, into the national grid. With this, we are proud to have kept our promises on project delivery, not only in our home markets, but also in international markets.

In the Solutions Business, we continue to partner with utilities in augmenting existing power infrastructure and decongest the most important parts of their network. With increasing urbanization, we are seeing great demand for our Master System Integration (MSI) business to upgrade and uprate aging infrastructure across various states. We have successfully completed one of the largest upgrade project in Kerala, and delivered India’s first live line reconductoring project in Bengaluru, Karnataka.

Our Convergence business continues to grow stronger by evolving its operating model. In a short span of time, we have attracted all top telecom operators as well as made our first foray into the Smart Cities Mission of the Government of India.

Our asset management business, under SIML continues to grow rapidly through its maiden InvIT – IndiGrid. It successfully signed a multi-asset deal to buy 5 assets from Sterlite Power worth `11,500 Cr (US$ 1.64 Bn) and also raised capital from two marquee institutions – KKR and GIC.

LEADING WITH INNOVATION & SUSTAINABILITY

We are leading the way with cutting edge technologies such as use of helicrane, drone stringing and monopoles. We are investing in digital and AI technologies to be at the leading edge of innovation. Our talent processes are increasingly going digital, enhancing the employee experience for recruitment, talent development and performance management. With our automated and integrated project management system, our partners are experiencing a new, seamless and transparent way of working, which is again a first in our sector.

We have successfully pioneered an innovative business model with our capital rotation strategy. Our ability to monetise our operational projects allows us to generate growth capital and keeps our parent balance sheet light. We have successfully sold 7 assets to IndiGrid and have a framework agreement for three more assets. We firmly believe this is the most efficient and prudent way for infrastructure developers to finance growth, especially in high growth markets such as India and Brazil. We look forward to pursuing a similar strategy for our Brazil business.

As a responsible corporate citizen, environmental conservation and compassion for communities is in our DNA. From translocation of trees in Madhya Pradesh to preserving local flora and fauna in Brazil, sustainability is integral to our project planning and execution.

With establishment of robust global operations, we have closed FY 19 with 20% revenue growth, EBITDA of `450 Cr (US$ 64 Mn) and expansion of our global portfolio. The NRSS-29 transaction which was expected to be completed in FY 19, consummated a few months later, thus resulting in realization of profits in Q1 of FY 20. As we look into the future, we are excited about bid wins in a growing transmission market, timely completion of our projects and unlocking of capital through asset flip strategy in India and Brazil. We also look forward to many of our technologies maturing into commercially viable solutions, thereby giving us more tools to solve the challenges of time, space and capital that we described earlier in this report.

I take this opportunity to thank you for your trust, confidence and continued support. Together, we shall continue to move forward in this journey of “Empowering humanity by addressing the toughest challenges of energy delivery”.

Warm regards,

PRATIK AGARWAL

Managing Director & CEO