Slide 1: Cover letter to stock exchanges
CYll:NT • 16 July 2020 The BSE Limited The National Stock Exchange of India Ltd PJ Towers, 25th Floor, Exchange Plaza, Dalal Street Bandra-Kurla Complex, Bandra (E) Mumbai 400001. Mumbai-400 051. Scrip Code: 532175 Scrip Code: CYIENT Dear Sir, Sub: Investor Presentation - Reg. Please find enclosed i
Slide 2: Investor Presentation Q1 FY21
Investor PRESENTATION Q1 FY21 CYIENT © 2020 CONFIDENTIAL CYIENT © 2020 CONFIDENTIAL
Slide 3: Confidentiality Statement
Confidentiality Statement The information shared herein is strictly confidential, proprietary and unique to the company. It is only made and shared for the purpose and extent it is intended for and no other. Usage or sharing of the said information in any form, directly or indirectly and in any mann
Slide 4: Leadership team
Leadership team BVR MOHAN REDDY KRISHNA BODANAPU AJAY AGGARWAL KARTHIK NATARAJAN Executive Chairman MD & CEO President & CFO President & COO CYIENT © 2020 CONFIDENTIAL 3
Slide 5: Highlights, Financial Update, Business Update
Financial Business Highlights Update Update • Financial Highlights • Revenue • BU performance update • Business Highlights • Income statement update • Margin bridge • Cash generation Annexures CYIENT © 2020 CONFIDENTIAL 4
Slide 6: Highlights, Financial Update, Business Update
Financial Business Highlights Update Update • Financial Highlights • Revenue • BU performance update • Business Highlights • Income statement update • Margin bridge • Cash generation Annexures CYIENT © 2020 CONFIDENTIAL 5
Slide 7: Highlights for the Quarter (1/4)
Highlights for the Quarter (1/4) Revenue Financial Highlights for Quarter • Consolidated revenue at $130.6 Mn; de- -7.6% QoQ (₹ terms) growth of 12.5% QoQ and de-growth of 16.6% -12.5% QoQ ($ terms) YoY Quarterly revenue at • Services revenue at $112.2 Mn; de-growth of $130.6Mn/₹9,917Mn 15.2% QoQ (-
Slide 8: Highlights for the Quarter (2/4)
Highlights for the Quarter (2/4) Update on deal wins - Hitachi Rail: • Signed an agreement with Hitachi Rail to deliver project engineering services and accelerate the evolution of its signalling technology • Cyient will develop and operate a Central Delivery Centre for Hitachi Rail in India, and a
Slide 9: Highlights for the Quarter (3/4) Overview of Hyderabad plant
Highlights for the Quarter (3/4) Overview of Hyderabad plant Location: Hyderabad Airport Special Economic Zone Size of facility: 150,000 Sq. Ft facility in 10 Acres of Land Status: Qualification of units are in progress and serial production will start from August 2020 Employees: 100+ by end of July
Slide 10: Highlights for the Quarter (4/4)
Highlights for the Quarter (4/4) Key appointments - Strengthening the Senior management team Felice Gray-Kemp - Senior Vice President and Global General Counsel • Leads the compliance function for Cyient and will be responsible for ensuring that our legal, enterprise risk management, corporate gover
Slide 11: Highlights, Financial Update, Business Update
Financial Business Highlights Update Update • Financial Highlights • Revenue • BU performance update • Business Highlights • Income statement update • Margin bridge • Cash generation Annexures CYIENT © 2020 CONFIDENTIAL 10
Slide 12: Revenue for Q1 FY21
Revenue for Q1 FY21 Revenue Q1 FY20 Q2 FY20 Q3 FY20 Q4 FY20 Q1 FY21 QoQ YoY Group $ Mn 156.6 164.2 155.2 149.2 130.6 -12.5% -16.6% ₹ Mn 10,890 11,589 11,060 10,736 9,917 -7.6% -8.9% Services $ Mn 137.9 140.4 140.1 132.3 112.2 -15.2% -18.6% ₹ Mn 9,593 9,902 9,984 9,513 8,521 -10.4% -11.2% DLM $ Mn 18
Slide 13: Income statement for Q1 FY21
Income statement for Q1 FY21 All Figures in ₹ Mn Q1 FY21 Q4 FY20 Q1 FY20 QoQ EBIT Movement • Consolidated EBIT margin stood at 5.2%; Revenue 9,917 10,736 10,890 down 328 bps QoQ EBIT (Reported) 511 464 1,005 • Services margin at 6.8%; lower by 283 bps EBIT (Normalised) 511 905 1,005 QoQ primarily dr
Slide 14: EBIT margin bridge for Q1 FY21
EBIT margin bridge for Q1 FY21 Particulars EBIT Q4 FY20 (Group)^ 8.4% Add: DLM impact 115 bps EBIT Q4 FY20 (Services)^ 9.6% Headwinds in Q1 FY21 One time restructuring costs -259 bps Volume impact on SGA & Depreciation -289 bps One off adverse revenue mix -134 bps Tailwinds in Q1 FY21 Reduction in S
Slide 15: Cash Generation for Q1 FY21
Cash Generation for Q1 FY21 Q1 Q4 Q1 Cash Generation All Figures in ₹ Mn FY21 FY20 FY20 Services • Cash and cash equivalents at a healthy levels of ₹ 11,098 Mn Profit before tax 1,141 904 1,157 (+/-) Non-cash & non-operating items 380 817 401 • In Q1, the cash flow conversion stood at Operating prof
Slide 16: Highlights, Financial Update, Business Update
Financial Business Highlights Update Update • Financial Highlights • Revenue • BU performance update • Business Highlights • Income statement update • Margin bridge • Cash generation Annexures CYIENT © 2020 CONFIDENTIAL 15
Slide 17: BU performance Q1 FY21
BU performance Q1 FY21 Services DLM Group Business Units $ Mn QoQ YoY $ Mn QoQ YoY $ Mn QoQ YoY A&D 35.0 -22.9% -27.8% 12.7 14.3% 3.4% 47.6 -15.6% -21.5% Communications 30.0 -10.8% 0.7% 0.0 -26.4% -62.5% 30.1 -10.8% 0.6% E&U 13.2 -13.7% -22.0% 1.3 -52.5% -66.3% 14.5 -19.4% -30.0% Transportation 13.4
Slide 18: Business Performance & Outlook (1/3)
Business Performance & Outlook (1/3) Aerospace & Defense Aerospace & Defence business unit witnessed a decline of 15.6% QoQ and 21.5% YoY. The services business from commercial aviation clients witnessed significant challenges across geographies. The defence business remained resilient and we expect
Slide 19: Business Performance & Outlook (2/3)
Business Performance & Outlook (2/3) Transportation Transportation business unit witnessed a decline of 10.9% QoQ and 23.9% YoY, primarily driven by change in revenue complexion and lower momentum in one of our key clients. Our outlook for Q2 continues to remain positive driven by growth in key clie
Slide 20: Business Performance & Outlook (3/3)
Business Performance & Outlook (3/3) SIA Semiconductor, IoT and Analytics business unit witnessed a growth of 15.6% QoQ and decline of 18.7% YoY. The growth was driven by growth in key clients in semiconductor as well as embedded automotive services. We also completed ASIC IC shipments for a high pr
Slide 21: About Cyient
Cyient (Estd: 1991, NSE: CYIENT) is a global engineering and technology solutions company. As a Design, Build, and Maintain partner for leading organizations worldwide, Cyient takes solution ownership across the value chain to help customers focus on their core, innovate, and stay ahead of the curve
Slide 22: Disclaimer
Disclaimer All the references to Cyient’s financial results in this update pertain to the company’s consolidated operations comprising: Wholly-owned and step down subsidiaries: Cyient Europe Limited; Cyient Inc.; Cyient GmbH; Cyient Australia Pty Ltd; Cyient Singapore Private Limited; Cyient KK; Cyi
Slide 23: Thank you
Thank you 22 CYIENT © 2020 CONFIDENTIAL
Slide 24: Annexure Q1 FY21
Investor PRESENTATION Annexure Q1 FY21 CYIENT © 2020 CONFIDENTIAL
Slide 25: Message from the Management
Message from the Management Commenting on the results, Mr. Krishna Bodanapu, Managing Director and Chief Executive Officer, said “Q1 FY21 results were better than our expectations, where we recorded a revenue of $130.6 Mn which was lower by 11.6% QoQ and 15.1% YoY in constant currency. Services busi
Slide 26: Message from the Management
Message from the Management Commenting on the results, Mr. Ajay Aggarwal, President & CFO, said, “The revenue for Q1FY21 stood at $130.6 Mn (INR 9,917 Mn) with EBIT of INR 511 Mn and PAT of INR 814 Mn. Our rigor on cash collections, close engagement with customers and initiatives on cash conservatio
Slide 27: Consolidated Financial Metrics
Consolidated Financial Metrics Key Financial Metrics Growth % ₹ Mn Q1 FY21 Q4 FY20 Q1 FY20 QoQ YoY Revenue 9,917 10,736 10,890 -7.6% -8.9% Normalised EBIT 511 905 1,005 -43.5% -49.1% Normalised EBIT margin 5.2% 8.4% 9.2% -328 bps -407 bps Reported PAT 814 452 905 80.1% -10.0% Normalised PAT 814 754
Slide 28: Consolidated Revenue Segmentation
Consolidated Revenue Segmentation By Geography (%) Q1 FY21 Q4 FY20 Q1 FY20 Americas 52.3% 55.7% 55.4% Europe, Middle East, Africa 24.0% 25.7% 28.1% Asia Pacific (includes India) 23.7% 18.6% 16.4% By Business Unit (%)^ Q1 FY21 Q4 FY20 Q1 FY20 Aerospace and Defense 36.5% 37.8% 38.8% Transportation 10.
Slide 29: Consolidated Operations Metrics
Consolidated Operations Metrics Account Receivables (in Days) Q1 FY21 Q4 FY20 Q1 FY20 DSO Total 100 95 104 - Billed 67 61 74 - Unbilled 33 34 30 Order Intake ($ Mn)^ Q1 FY21 Q4 FY20 Q1 FY20 Cyient Services 99 196 134 DLM 18 60 21 Group OI Total 117 255 155 ^The Order Intake reported is the total val
Slide 30: Consolidated Client Metrics
Consolidated Client Metrics Top Clients: Revenue Contribution (%) Q1 FY21 Q4 FY20 Q1 FY20 Top 5 30.2% 31.4% 32.3% Top 10 40.1% 43.6% 44.1% No. of Million $ Clients Q1 FY21 Q4 FY20 Q1 FY20 20 Mn+ 3 5 4 10 Mn+ 9 10 12 5 Mn+ 30 28 28 1 Mn+ 92 86 85 New Clients Added 25 22 21 CYIENT © 2020 CONFIDENTIAL
Slide 31: Consolidated Employee Metrics
Consolidated Employee Metrics Q1 FY21 Q4 FY20 Q1 FY20 Total Headcount 12,820 13,859 15,043 Technical & Pool 11,846 12,825 13,912 Non-Technical 320 349 373 Support 654 685 758 Voluntary Attrition 13.6% 18.9% 17.4% CYIENT © 2020 CONFIDENTIAL 8
Slide 32: Consolidated Other Financial Metrics (1/2)
Consolidated Other Financial Metrics (1/2) Other Income (₹ Mn) Q1 FY21 Q4 FY20 Q1 FY20 Income from Investments 91 102 121 Fx Gain/(Loss) - Realised -52 81 108 Fx Gain/(Loss) - Unrealised 70 -48 24 Others 576 71 30 Total 684 206 283 Capex (₹ Mn)^ Q1 FY21 Q4 FY20 Q1 FY20 Capital Expenditure 563 683 39
Slide 33: Consolidated Other Financial Metrics (2/2)
Consolidated Other Financial Metrics (2/2) Outstanding Forward Contracts (Mn of respective currencies)^ Q1 FY21 Q4 FY20 Q1 FY20 USD / INR 69.1 70.8 66.1 EURO / INR 28.8 29.5 28.1 GBP / INR 6.5 6.7 7.9 AUD / INR 27.7 28.3 22.8 ^Forward contracts are taken only for services business CYIENT © 2020 CONF
Slide 34: Consolidated Income Statement
Consolidated Income Statement ₹ Mn Q1 FY21 Q4 FY20 Q1 FY20 Operating Revenue 9,917 10,736 10,890 Cost of Revenue 6,891 7,139 7,140 Direct Salary and related costs 4,441 4,837 4,928 Direct Travel 69 196 191 Delivery Management 255 202 239 Material cost 1,090 813 920 Other costs incl Subcontract costs
Slide 35: Consolidated Balance Sheet
Consolidated Balance Sheet ₹ Mn Q1 FY21 Q4 FY20 Q1 FY20 EQUITY AND LIABILITIES Shareholders’ funds - Share capital 550 550 550 - Reserves and surplus 25,889 25,027 24,314 Total - Shareholders' funds 26,439 25,577 24,864 Non-current liabilities - Long-term borrowings and liabilities 2,949 3,556 4,015
Slide 36: Consolidated Cash Flow Movement
Consolidated Cash Flow Movement ₹ Mn Q1 FY21 Q4 FY20 Q1 FY20 Free cash flow from operations 2,163 1,074 139 Investment in non current investments 0 -60 -70 Settlement of deferred consideration -99 0 -204 pertaining to prior year acquisitions Interest received 21 73 88 Finance costs paid -58 -78 -91
Slide 37: Other Income for Q1 FY21
Other Income for Q1 FY21 All Figures in ₹ Mn Q1 Q4 Q1 For the quarter FY21 FY20 FY20 Income from Treasury • Other income is higher by ₹479 Mn (232.6%) Interest on Invesmtents/Deposits 91 94 113 QoQ primarily on account of export incentives Dividend on Mutual Funds 0 8 8 received Subtotal (A) 91 102
Slide 38: Hedge Book for Q1 FY21
Hedge Book for Q1 FY21 Value in Respective Outstanding ForwardContracts* Currency Mn. Booked Rate (in ₹ ) for next 12 Months 141 141 3.3 Wgt. Avg 30-Jun-20 31-Mar-20 30-Jun-19 134 0.6 Variance of 0.62 96.4 93.1 (0.1) 85.6 85.0 75.5 75.6 0.9 (1.0) 69 71 66 56.2 55.3 50.9 52.0 29 29 28 28 28 23 17 18
Slide 39: Cyient Metrics (Excluding Design Led Manufacturing)
Cyient Metrics (Excluding Design Led Manufacturing) CYIENT © 2020 CONFIDENTIAL 16
Slide 40: Cyient Metrics (Excluding DLM) (1/3)
Cyient Metrics (Excluding Design Led Manufacturing) (1/3) By Geography (%) Q1 FY21 Q4 FY20 Q1 FY20 Americas 56.8% 57.0% 58.8% Europe, Middle East, Africa 26.0% 27.4% 26.9% Asia Pacific (including India) 17.1% 15.6% 14.3% By Business Unit (%) Q1 FY21 Q4 FY20 Q1 FY20 Aerospace and Defense 31.2% 34.3%
Slide 41: Cyient Metrics (Excluding DLM) (2/3)
Cyient Metrics (Excluding Design Led Manufacturing) (2/3) Currency Mix (%) Q1 FY21 Q4 FY20 Q1 FY20 USD 47.4% 56.6% 57.5% EURO 8.7% 13.2% 14.4% GBP 10.2% 10.8% 8.5% AUD 12.4% 8.5% 8.4% Others 21.4% 10.9% 11.1% Account Receivables (in Days) Q1 FY21 Q4 FY20 Q1 FY20 DSO Total 107 101 105 - Billed 69 63
Slide 42: Cyient Metrics (Excluding DLM) (3/3)
Cyient Metrics (Excluding Design Led Manufacturing) (3/3) Top Clients: Revenue Contribution (%) Q1 FY21 Q4 FY20 Q1 FY20 Top 5 35.2% 35.5% 36.5% Top 10 46.6% 49.2% 49.8% No. of Million $ Clients Q1 FY21 Q4 FY20 Q1 FY20 20 Mn+ 3 5 4 10 Mn+ 9 10 12 5 Mn+ 26 24 24 1 Mn+ 82 75 71 New Clients Added 25 20
Slide 43: Cyient Metrics (Design Led Manufacturing)
Cyient Metrics (Design Led Manufacturing) CYIENT © 2020 CONFIDENTIAL 20
Slide 44: Cyient Metrics (Design Led Manufacturing) (1/3)
Cyient Metrics (Design Led Manufacturing) (1/3) Income Statement - Abridged (In ₹ Mn)^ Q1 FY21 Q4 FY20 Q1 FY20 Net Revenue 1,396 1,222 1,297 Direct Salaries & other costs 221 247 270 Material Cost 1,089 813 920 Gross Profit 86 162 108 SG&A 99 131 86 Depreciation & amortisation 51 38 29 EBIT -64 -7 -
Slide 45: Cyient Metrics (Design Led Manufacturing) (2/3)
Cyient Metrics (Design Led Manufacturing) (2/3) By Business Unit (%) Q1 FY21 Q4 FY20 Q1 FY20 Aerospace and Defense 69.0% 65.4% 65.7% Transportation 0.5% 0.8% 0.3% Energy & Utilities 6.8% 15.5% 19.9% Medical 23.6% 17.5% 13.4% Communications 0.1% 0.2% 0.3% Portfolio 0.0% 0.0% 0.4% Others 0.0% 0.7% 0.0
Slide 46: Cyient Metrics (Design Led Manufacturing) (3/3)
Cyient Metrics (Design Led Manufacturing) (3/3) No. of Million $ Clients Q1 FY21 Q4 FY20 Q1 FY20 5 Mn+ 4 4 4 2 Mn+ 10 9 11 1 Mn+ 10 11 14 New Clients Added 0 2 1 Key Operational Metrics Q1 FY21 Q4 FY20 Q1 FY20 Headcount 638 608 645 DSO (in Days) 53 45 100 DPO (in Days) 91 73 133 Customer Advance (in
Slide 47: Investment Pipeline & Focus Areas: Q1 FY21
Investment Pipeline & Focus Areas: Q1 FY21 M&A Corporate Investments 5 Vertical focused Medical tech, M&A strategy in key 1 Communication 1 0 geographic markets; 0 Technology, IoT/M2M Pre-LOI LOI Signed/Closed large acquisitions Evaluations Signed/Closed & Advanced avionics *Pre LOI and LOI reflect
Slide 48: About Cyient
Cyient (Estd: 1991, NSE: CYIENT) is a global engineering and technology solutions company. As a Design, Build, and Maintain partner for leading organizations worldwide, Cyient takes solution ownership across the value chain to help customers focus on their core, innovate, and stay ahead of the curve
Slide 49: Disclaimer
Disclaimer All the references to Cyient’s financial results in this update pertain to the company’s consolidated operations comprising: Wholly-owned and step down subsidiaries: Cyient Europe Limited; Cyient Inc.; Cyient GmbH; Cyient Australia Pty Ltd; Cyient Singapore Private Limited; Cyient KK; Cyi
Slide 50: Thank you
Thank you CYIENT © 2020 CONFIDENTIAL 27