Cyient Limited · NSE:CYIENT
Cyient — Merger or Acquisition (April 2022)
11 slides from Cyient's merger presentation, Apr 25, 2022
Slide 1: Exchange filing cover letter: Investor presentation - CITEC Acquisition Conference Call
25 April 2022 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/ Madam, Sub: Investor presentation - CITEC Acquisition Conference
Slide 2: Citec Acquisition update
Citec Acquisition update © CYIENT 2022 | Confidential 25-Apr-22 CYIENT © 2022 CONFIDENTIAL
Slide 3: Cyient Positioning
CYIENT POSITIONING Our positioning allows us to build differentiated capabilities aligned to our clients needs CONSULTING INDUSTRY LED CENTRIC TECHNOLOGY SOLUTIONS 25-Apr-22 CYIENT © 2022 CONFIDENTIAL
Slide 4: Context For This Acquisition
Context For This Acquisition • Cyient will buy 100% of Citec; an engineering services organization providing plant What engineering, engineering consulting, product engineering and technical documentation services to primarily European Energy and Mining OEMs 1. Delivers Cyient a leadership position
Slide 5: Introduction to Citec
INTRODUCTION TO CITEC Founded in 1984 Incorporation Headquartered in Vaasa, Finland Locations Finland | Norway | Sweden | France | Germany | India Business Units Plant engineering, Product engineering, Consulting and Digital Industry Focus Energy, Mining, Marine, Oil & gas, Pharma, Machine & equipme
Slide 6: Plant Engineering Market Capabilities
PLANT ENGINEERING MARKET CAPABILITIES Total Spend (All Outsourced Spend TAM for Citec TAM for Citec (Gas industries) (Current Capabilities) Power plants) $ 50-85bn 2% - 3% ~$ 30bn 4% - 5% $ 4.0bn 5% - 7% $ 2.5bn 6% Plant Market size Growth Market size Growth Market size Growth Market size Growth Eng
Slide 7: Global Installed Capacity
Global Installed Capacity The growth in the market is expected to be driven by surge in renewables, while natural gas- based power plants will grow modestly Despite current high gas prices, gas-based power generation will grow at 2% annually between 2022-25. While growth will be led by APAC, Europe
Slide 8: Europe Installed Power Generation Capacity
EUROPE INSTALLED POWER GENERATION CAPACITY Total market growing at a modest 2%+ CAGR; renewables compensate for degrowth in fossils, Natural gas-based power plants expected to grow Source: IEA for installed capacities 25-Apr-22 CYIENT © 2022 CONFIDENTIAL
Slide 9: Immediate-Term Opportunities
OPPORTUNITIES Plant engineering space has tremendous opportunities not just in energy segment but other associated process industries too Energy (Gas-Based) industry customers Marine and Mining industry customers Plant Engg addressable market (EUR M) Plant Engg addressable market (EUR M) 703 Europe
Slide 10: Citec acquisition - Financial Impact on Cyient group
Citec acquisition - Financial Impact on Cyient group FY 23 FY24 Impact on Cyient financials (11 months consolidation) (Full Year) Incremental Revenue* USD 83-87 Mn USD 98-102 Mn EBIT margins Neutral** Accretive/Neutral EPS accretion ~4-5% (2.5 – 3 INR) ~8-10% (5-6 INR) FCF In line ETR 20%, 50bps imp
Slide 11: 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