Cyient Limited · NSE:CYIENT

Cyient — Investor Day (May 2019)

18 slides from Cyient's investor day presentation, May 10, 2019

  1. Slide 1: Financial Performance Update

    THE POWER OF IDEAS FINANCIAL PERFORMANCE UPDATE AJAY AGGARWAL Chief Financial Officer 1 5/10/19 CYIENT © 2019 CONFIDENTIAL

  2. Slide 2: Topics Are

    TOPICS ARE 01. FY19 PERFORMANCE RECAP 02. VALUE CREATION FOR SHAREHOLDERS 03. FOCUS ON INVESTORS IN THE COMING YEARS 2 5/10/19 CYIENT © 2019 CONFIDENTIAL

  3. Slide 3: FY19 Performance Recap

    FY19 PERFORMANCE RECAP 3 5/10/19 CYIENT © 2019 CONFIDENTIAL

  4. Slide 4: Cyient's Performance in FY19 – A Recap

    CYIENT’S PERFORMANCE IN FY19 – A RECAP REVENUE OPTG PROFIT NET PROFIT* 10.1% 17.3% 14.0% (in CC) $607.4M $660.0M FY 18 FY 19 ₹5,492M ₹6,443M ₹4,296M ₹4,898M (₹ 39,175 M) (₹ 46,175 M) FY 18 FY 19 FY 18 FY 19 ($91.9M) ($69.8M) YoY growth (INR) is 17.9% FCF RoCE ETR Highest ever 28.0 bps 270 bps ₹3,770

  5. Slide 5: Initiatives Taken in FY19 to Increase Shareholders Returns

    INITIATIVES TAKEN IN FY19 TO INCREASE SHAREHOLDERS RETURNS $ % ₹ 400 Cr 82 % ₹15 Per Share Total return to Payout Ratio Highest Dividend Per the shareholders (post tax) to the Share – Highest ever in INR Cr in FY19 shareholders in FY19 (INR 13 in FY18) Increase Dividend / Shareholders return in FY19

  6. Slide 6: Value Creation for Shareholders

    VALUE CREATION FOR SHAREHOLDERS 6 5/10/19 CYIENT © 2019 CONFIDENTIAL

  7. Slide 7: Cyient Has a Long History of Value Creation for Its Shareholders

    CYIENT HAS A LONG HISTORY OF VALUE CREATION FOR ITS SHAREHOLDERS 50.0 78 43.4 80 > $1 Bn 45.0 38.2 72 70 MARKET CAP P/Ex P/E x 40.0 32.9 60 Last 5-10 years, 57 29.0 return of 15-20% TTM 53 > 6x 35.0 31.4 48 50 , TTM 23.8 Bn), EPS 30.0 40 (₹ (₹Bn) MARKET CAP EPSEPS 36 M/CapM/Cap From FY10 levels 25.0

  8. Slide 8: Consistent Performance and Growth Trajectory in Last 5 Years

    CONSISTENT PERFORMANCE AND GROWTH TRAJECTORY IN LAST 5 YEARS 5 year CAGR REVENUE 16% (₹) 13% ($) OPTG PROFIT ~10% PAT (Normalised) 13% 8 5/10/19 CYIENT © 2019 CONFIDENTIAL

  9. Slide 9: Long Term Approach Has Delivered Strong Shareholder Returns Over Last 5 Years

    LONG TERM APPROACH HAS DELIVERED STRONG SHAREHOLDER RETURNS OVER THE LAST 5 YEARS Dividend Payout Ratio 41% Return on Equity 41% 20% 20% 30% 29% 29% 19% 18% 17% FY15 FY16 FY17 FY18 FY19 FY15 FY16 FY17 FY18 FY19 Year FY15 FY16 FY17 FY18 FY19 ~37% Highest ~2x DPS (₹) 8.0 7.0 8.0 13.0 15.0 PAY OUT RoE

  10. Slide 10: Continuous FCF Improvement and Tax Rate Efficiency to Support Returns

    CONTINUOUS FCF IMPROVEMENT AND TAX RATE EFFICIENCY TO SUPPORT RETURNS Free Cash Flow and Conversion Effective Tax Rate 40% 66% 66% 57% 111 51% 45% 49% 35% 35% 30% 18% 31% 30% 29% 26% 25% 25% 24% 25% 23% 20% 505 1,126 2,182 2,968 3,378 3,766 3,116 3,659 -516 -54 -409 15% FY12 FY13 FY14 FY15 FY16 FY17

  11. Slide 11: Cyient Has Made 20 Acquisitions Since Its Inception

    CYIENT HAS MADE 20 ACQUISITIONS SINCE ITS INCEPTION 11 5/10/19 CYIENT © 2019 CONFIDENTIAL

  12. Slide 12: Recent Acquisitions Aligned with S3 Strategy and Prudent Framework

    RECENT ACQUISITIONS ALIGNED WITH S3 STRATEGY AND A PRUDENT FRAMEWORK IN PLACE FOR FUTURE INVESTMENTS Scale  New frontiers  • Learning from New Markets/ performance customers 6 16 of past 9 8 11 12 20 investments 3 analysed and 4 1 15 implemented 10 13 14 • Stringent criteria for Existing Markets/

  13. Slide 13: Focus on Investor Returns in the Coming Years

    FOCUS ON INVESTOR RETURNS IN THE COMING YEARS 13 5/10/19 CYIENT © 2019 CONFIDENTIAL

  14. Slide 14: Continue to Focus on Balanced Growth with Capital Efficiency and Risk Management

    CONTINUE TO FOCUS ON A BALANCED GROWTH IN TOP AND BOTTOM LINE WITH CAPITAL EFFICIENCY AND RISK MANAGEMENT Growth aligned with Investment in S3 strategy Solutions-centric INCREASE organisation GROWTH Automation of processes and Cost Optimisation program systems MANAGE INCREASE IMPROVE RISK SHAREHOLDE

  15. Slide 15: Savings Program Is On-Track – Cost Discipline and Operational Efficiency

    SAVINGS PROGRAM IS ON-TRACK – KEY INITIATIVES ON COST DISCIPLINE AND OPERATIONAL EFFICIENCY TO DELIVER RESULTS People Supply Chain and Operating Model Revenue assurance Sales and Marketing G&A 1 Billability improvement 1 Profitability 1 Non-HC marketing spend analysis 1 G&A HC optimization 2 Bench o

  16. Slide 16: Strong Governance to Support Value Creation

    STRONG GOVERNANCE TO SUPPORT VALUE CREATION ALIGNING WITH THE INTEREST OF KEY STAKEHOLDERS BU FUNCTION RISK INDEPENDENT MANAGEMENT BOARD OF HEAD COMMITTE DIRECTORS Leadership level Mitigation Plan Internal Risk Mgmt. Assurance Team Owners (MPO) Committee (IRMC) Operating Risk Owners Risk Mgmt SPOC l

  17. Slide 17: Clear Path to Achieve Targets – Well-Poised for Profitable & Sustainable Growth

    CLEAR PATH TO ACHIEVE TARGETS – CYIENT WELL-POISED FOR PROFITABLE & SUSTAINABLE GROWTH IN COMING YEARS • Continued focus on Investor returns and feedback 01 • Well rounded focus on revenue, operating profit and cash (composite contracts and Earnings & quality of revenue) Investors • Prudence in deci

  18. Slide 18: Thank You

    THE POWER OF IDEAS THANK YOU 18 10-05-2019 CYIENT © 2019 CONFIDENTIAL

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