Slide 1: Cover letter to stock exchanges
CYll!NT • 13 October 2022 The BSE Limited The National Stock Exchange of India Ltd PJ Towers Exchange Plaza, Dalal Street Bandra-Kurla Complex, Sandra (El Mumbai 400001 Mumbai-400 051 Scrip Code: 532175 Scrip Code: CYIENT Dear Sir, Sub: Investor Presentation Please find enclosed investor Presentatio
Slide 2: Q2 FY23 Investor Presentation
© CYIENT 2022 | Confidential Q2 FY23 INVESTOR PRESENTATION
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 KRISHNA BODANAPU AJAY AGGARWAL KARTHIK NATARAJAN Managing Director & CEO Executive Director & CFO Executive Director & COO © CYIENT 2022 | Confidential 3
Slide 5: Agenda
Highlights Financial Update Business Update • Revenue • BU performance update • Operational Summary • Financial Highlights • Income statement update • Business Highlights • Margin bridge • Cash generation © CYIENT 2022 | Confidential Annexures 4
Slide 6: Agenda
Highlights Financial Update Business Update • Revenue • BU performance update • Financial Highlights • Business Highlights • Income statement update • Margin bridge • Cash generation © CYIENT 2022 | Confidential Annexures 5
Slide 7: Key Highlights
Key Highlights • All 4 M&As concluded in Q2 and integration is progressing well. All M&As are accretive at EBITDA level. The acquisitions are expected to add ~ $ 150 Mn on an annualized basis • The global electronic manufacturing services (EMS) market is projected to grow significantly. To take adva
Slide 8: Highlights for the Quarter
Highlights for the Quarter Financial Highlights for Quarter • Group revenue at $174.8 Mn; growth of 20.4% cc YoY 25.6% YoY / 11.7% QoQ (INR terms) (16.4% in USD) and 10.0% cc QoQ (8.2% in USD) 20.4% YoY / 10.0% QoQ (CC terms) Revenue 16.4% YoY / 8.2% QoQ (USD terms) • Group revenue at ₹13,962 Mn; gr
Slide 9: Highlights for the Quarter
Highlights for the Quarter Cyient Partners with Honeywell to Manufacture Cyient recognized as “Rising star” for Managed Services Honeywell Anthem, the First Cloud-Connected in U.S. region in ISG Internet of Things report Cockpit System • Cyient has inked a multi-year deal with Honeywell • Cyient com
Slide 10: Agenda
Highlights Financial Update Business Update • Revenue • BU performance update • Financial Highlights • Business Highlights • Income statement update • Margin bridge • Cash generation © CYIENT 2022 | Confidential Annexures 9
Slide 11: Revenue for Q2 FY23
Revenue for Q2 FY23 Revenue Q2 FY23 QoQ YoY Q1 FY23 Q4 FY22 Q3 FY22 Q2 FY22 Revenue Group • Services growth at 25.8% cc YoY and 12.3% cc QoQ. $ Mn 174.8 8.2% 16.4% 161.6 156.7 157.9 150.1 Services revenue growth CC growth 10.0% 20.4% without acquisitions is 11.5% ₹ Mn 13,962 11.7% 25.6% 12,501 11,81
Slide 12: Hedge Book
Hedge Book Booked Rate (in ₹) for next 12 Months Value in Respective Outstanding ForwardContracts Currency Mn. 152 149 Wgt.Avg 30-Sep-22 30-Jun-22 30-Sep-21 150 * 11.2 Variance of 7.7 1.7 (1.2) 102.1 88.4 80.7 90.9 0.8 82 79 80.2 81.4 1.9 74 62.4 61.6 57.0 55.0 29 30 29 27 28 28 18 18 17 7 7 7 USD E
Slide 13: Income statement for Q2 FY23
Income statement for Q2 FY23 All Figures in ₹ Mn Q2 FY23 Q1 FY23 Q2 FY22 QoQ EBITDA and EBIT Movement Revenue 13,962 12,501 11,116 • Normalised consolidated EBITDA margin at 16.4%; up by EBITDA (Reported) 1,864 1,946 2,075 84 bps QoQ and down by 226 bps YoY EBITDA (Normalised)^ 2,291 1,946 2,075 • N
Slide 14: PAT and EBIT Walk – Reported to Normalized
PAT and EBIT Walk – Reported to Normalized EBIT walk - Reported to Normalised (₹Mn) ₹ Mn Note Q2 FY23 Q1 FY23 Q2 FY22 Note Particulars ₹ Mn Description Reported EBIT (Group) 1,234 1,435 1,558 Legal consultancy charges paid in relation to the civil class Margin (%) 8.8% 11.5% 15.5% Exceptional 216 1
Slide 15: EBIT Margin Bridge for Q2 FY23
EBIT Margin Bridge for Q2 FY23 Particulars Q1 FY23 Q2 FY23 Group EBIT (Reported) 11.5% 8.8% DLM impact -1.3% -0.1% Services EBIT (Reported) 12.8% 8.9% Exceptional items and One off M&A expenses - 3.5% Services EBIT (Normalised) 12.8% 12.5% Acquisition impact 0.7% -0.7% Services EBIT w/o acquisitions
Slide 16: Cash Generation for Q2 FY23
Cash Generation for Q2 FY23 All Figures in ₹ Mn Q2 FY23 Q1 FY23 Q2 FY22 Cash Generation Services Profit before tax 949 1,496 1,505 • Cash and cash equivalents, including long-term treasury investments, at ₹13,944 Mn at the end of (+/-) Non-cash & non-operating items 796 553 400 Q2FY23 compared to ₹1
Slide 17: Agenda
Highlights Financial Update Business Update • Revenue • BU performance update • Financial Highlights • Business Highlights • Income statement update • Margin bridge • Cash generation © CYIENT 2022 | Confidential Annexures 16
Slide 18: BU Performance Q2 FY23
BU Performance Q2 FY23 Revenue $ Mn Q2 FY23 QoQ (cc) QoQ ($) YoY (cc) YoY ($) • Services growth stood at 12.3% cc QoQ and ARC 86.0 0.9% -0.8% 8.4% 4.9% 10.2% in USD terms Aerospace 34.2 3.3% 2.7% 7.8% 6.5% o ARC witnessed growth of 0.9% cc QoQ Rail transportation 11.0 -8.2% -11.3% -23.7% -29.8% o ME
Slide 19: Business Performance & Outlook
BUSINESS PERFORMANCE & OUTLOOK © CYIENT 2021 | Confidential 18
Slide 20: Business Performance & Outlook (1/3)
Business Performance & Outlook (1/3) The market dynamics are changing quickly and the economic situation is uncertain with Ukraine/Russia conflict, higher energy prices, higher inflation etc. The Zero COVID China strategy is causing supply chain disruptions and this is impacting output and productiv
Slide 21: Business Performance & Outlook (2/3)
Business Performance & Outlook (2/3) Communications: Network rollout momentum will continue (Fiber / 5G) as demand is high. Fiber roll out planned to reach critical mass and is considered as infra investment. High energy consumption of 5G coupled with energy crisis will drive 3G + 4G + 5G parallel o
Slide 22: Business Performance & Outlook (3/3)
Business Performance & Outlook (3/3) New Growth Areas Automotive & Mobility: Investments in SW virtualization / Service-Oriented Architecture (SOA) / SW Defined Vehicle (SDV) / Advanced Driver Assistance Systems (ADAS) and Electrification continue to drive growth. Developments in Electrification, Hy
Slide 23: Innovative Technology Solutions and Programs
Innovative Technology Solutions and Programs Trends Technology Solutions / Programs SBC (Single Board Computing Platform): A flexible, scalable and re-usable pre-validated SW/HW platform/framework based on Cyient’s Middleware SW and off the shelf HW. Leveraged as “accelerator” to support low risk an
Slide 24: Outlook
Outlook Revenue Margin Others • We will grow in the range of • We expect the full year • In FY23, ETR is expected to 13-15% in FY23 in constant normalized EBIT margins be around 27% currency for the Group in for the organic business to • FCF is expected to be in line organic terms be in the range of
Slide 25: About Cyient
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
Slide 26: 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 27: Connect With Us
#DesigningTomorrowTogether Connect cyient.com With Us Follow us on © CYIENT 2021 | Confidential