Cyient Limited · NSE:CYIENT
Cyient — Investor Day (December 2023)
50 slides from Cyient's investor day presentation, Dec 9, 2023
Slide 1: Exchange filing letter: Investor Day
9 December 2023 BSE Limited 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 Day The company conducted its 10th Investor day wi
Slide 2: Building the Future: Engineering an Intelligent Tomorrow
BUILDING THE FUTURE: Engineering an Intelligent Tomorrow Krishna Bodanapu Executive Vice Chairman & Managing Director 8th December 2023, Hyderabad
Slide 3: Agenda
AGENDA Intelligent Engineering: Our Position and Purpose Intelligent Engineering: Our Culture, Strategy and People Intelligent Engineering: Our right to win 2
Slide 4: Intelligent Engineering Evolution: Car Fuel Indicator
INTELLIGENT ENGINEERING EVOLUTION: CAR FUEL INDICATOR 3
Slide 5: Intelligent Engineering Evolution: Car Fuel Indicator
INTELLIGENT ENGINEERING EVOLUTION: CAR FUEL INDICATOR MECHANICAL ELECTRICAL ELECTRONIC DIGITAL INTELLIGENT 4
Slide 6: Positioned to Deliver Intelligent Engineering & Technology Solutions
POSITIONED TO DELIVER INTELLIGENT ENGINEERING & TECHNOLOGY SOLUTIONS 5
Slide 7: Delivering Intelligent Engineering & Technology Solutions
products, process, plant, network DELIVERING INTELLIGENT ENGINEERING & TECHNOLOGY core to CYIENT SOLUTIONS including, services, products, platforms For Digital Autonomous Sustainable FUTURE 6
Slide 8: Intelligent Engineering for Digital Future
INTELLIGENT ENGINEERING FOR DIGITAL FUTURE Implemented GenAI solution for Honeywell to reduce technical queries by 40% and to provide real-time insights in the near term. 7
Slide 9: Intelligent Engineering for Autonomous Future
INTELLIGENT ENGINEERING FOR AUTONOMOUS FUTURE Engineered perception system for CNHI’s existing off-highway vehicle for safe and reliable Autonomous operations 8
Slide 10: Intelligent Engineering for Sustainable Future
INTELLIGENT ENGINEERING FOR SUSTAINABLE FUTURE Cyient partnered with Fortum Oslo Varme (FOV) to evaluate and integrate carbon capture technology suppliers with their existing plant, as part of Oslo’s Net Zero 2030 mission. 9
Slide 11: Balanced Portfolio Based Strategy Built on Megatrends
BALANCED PORTFOLIO BASED STRATEGY BUILT ON MEGATRENDS 10
Slide 12: The Megatrends Aligned to Our Strategy
THE MEGATRENDS ALIGNED TO OUR STRATEGY Space Industry 4.0 & Systems Smart Operations Sustainability Intelligent & Meta Mobility Digital Healthcare 11
Slide 13: Balanced Portfolio
BALANCED PORTFOLIO Sustainability Connectivity (Mining, Utilities (Fiber and and Energy) Wireless) Transportation (Aero and Rail) New Growth Areas (Automotive Semicon, Health Care) Balanced BALANCED Portfolio PORTFOLIO 12
Slide 14: S&P Index Performance Across Our Operating Industries
S&P 500 INDEX PERFORMANCE ACROSS OUR OPERATING INDUSTRIES – PAST 20+ YEARS 1800 COVID Pandemic 1600 Crimea, Brexit 2008 uncertainty.. 1400 recession 1200 1000 800 600 400 200 0 01-2000 01-2004 01-2008 01-2012 01-2016 01-2020 Mining Energy Auto Health A&D Comms 13
Slide 15: Our Differentiation
OUR DIFFERENTIATION GROWING A STRATEGIC FOCUS BALANCED ON SUSTAINABILITY LEVERAGING OUR PORTFOLIO OF AS AN INDUSTRY/ WORLD-CLASS INDUSTRIES BUILT OFFERING/ WAY OF MANUFACTURING ON MEGATRENDS DOING BUSINESS CAPABILITIES MAXIMIZING SHAREHOLDER STRONG PLAY AT VALUE CREATION THE CONVERGENCE THROUGH NON-
Slide 16: The Divestment of Cyient DLM
THE DIVESTMENT OF CYIENT DLM 15
Slide 17: The Divestment of Cyient DLM Provides Exciting Opportunity for Growth
THE DIVESTMENT OF CYIENT DLM PROVIDES EXCITING OPPORTUNITY FOR GROWTH Over 22 Years of Experience in Developing High Mix, Low-to-Medium Volume Highly Complex Systems Integrated Solutions across the Strong Financial Product Value Chain along with Performance and 6 1 Strong B2S Capabilities Backed Met
Slide 18: Multiple Trends Are Shaping the Global EMS Market Outlook
MULTIPLE TRENDS ARE SHAPING THE GLOBAL EMS MARKET OUTLOOK Emerging China Plus 1 Indian governmental Global chip shortage is Disruption in technologies like Strategy and push on leading to demand for the semicon IoT, 5G, Industry increasing focus manufacturing redesigning products value chain and 4.0
Slide 19: Enabling the Next Generation: Our Culture, Our Community, Our World
ENABLING THE NEXT GENERATION: OUR CULTURE, OUR COMMUNITY, OUR WORLD. 18
Slide 20: Agile Framework to Define Strategy & Operating Levers for Growth
AGILE FRAMEWORK REMAINS TO DEFINE THE STRATEGY & OPERATING LEVERS TO ACHIEVE OUR GROWTH OBJECTIVES Ambition Investment Leadership Execution Growth Transforming Achieve industry the Business leading growth across industries 19
Slide 21: Our Agile Culture Enables Us to Apply Imagination to Problems That Matter
OUR AGILE CULTURE ENABLES WE ARE A US TO APPLY IMAGINATION TO GREAT PLACE TO WORK PROBLEMS THAT MATTER #ProudToBeACyientist AMBITION GROWTH INCLUSIVE LEADERSHIP EMPOWERMENT MINDSET 20
Slide 22: Building Our Next Gen Workforce
BUILDING OUR NEXT GEN WORKFORCE • Completed 1.5Mn+ hours in learning and development in past 12 months. • Dedicated programs focused on reskilling our associates in next generation tech and emerging capabilities. • Building future ready leadership through world class training and mentoring programs.
Slide 23: Sustainability Is No Longer a Choice but a Necessity
IN TODAY'S RAPIDLY CHANGING GLOBAL LANDSCAPE, SUSTAINABILITY IS NO LONGER A CHOICE BUT A NECESSITY • Our sustainability framework ensures that we are accountable, equitable and responsible. • We have increased the share of renewable energy across our India- based facilities – incl. EV charging stati
Slide 24: We Remain Committed to Our Corporate Social Responsibility
WE REMAIN COMMITTED TO OUR CORPORATE SOCIAL RESPONSIBILITY • Provided quality education to 20,000+ underprivileged children through our 30 adopted schools in India. • Trained 4,000+ unemployed women through our urban & rural micro skills centers • Launched the School of Innovation and Entrepreneursh
Slide 25: Designing Tomorrow Together: Customer Stories
DESIGNING TOMORROW TOGETHER: CUSTOMER STORIES 24
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Slide 27: Our Journey with Pratt & Whitney
OUR JOURNEY WITH PRATT & WHITNEY $94+ Million 30+ Million 10/12 Innovation & 1,100 ESWs 2019 -2023 Productivity Hours Productivity awards Created/revised savings delivered Delivered Performance + 2009 - 2018 • eQN full value 62 91% Stream Ownership Premier Award Co-Patents CSAT and command (India) c
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Slide 29: Cyient Intelligent Engineering: Our Right to Win
CYIENT INTELLIGENT ENGINEERING: OUR RIGHT TO WIN. 28
Slide 30: Our Confidence to Execute Is What Drives Us
OUR CONFIDENCE TO EXECUTE IS WHAT DRIVES US Investments on Relentless focus Setting a Building Intelligent and on customer performance Innovative Solutions centricity roadmap oriented and AGILE Culture 1 2 3 4 5 A Robust Investment Investing in Talent and Decision-Making with Structured Framework Te
Slide 31: Designing Tomorrow Together
DESIGNING TOMORROW TOGETHER 30
Slide 32: DET Outlook and Approach
DET OUTLOOK AND APPROACH Karthikeyan Natarajan Executive Director & Chief Executive Officer 8th December 2023, Hyderabad
Slide 33: Top Quartile in CSAT Score; Great Place to Work
Certified as Great Top Quartile in CSAT Score Place to Work in India (For last 3 Years) 2
Slide 34: DET Performance - Delivering Top Quartile Performance
DET PERFORMANCE- DELIVERING TOP QUARTILE PERFORMANCE Revenue Performance $ Mn EBIT Performance 100 700 632.4 90 86.6 600 80 76.9 503.6 500 70 461.4 60 400 50.7 50 300 40 30 200 20 100 10 0 0 FY 21 FY 22 FY 23 FY 21 FY 22 FY 23 EBIT in $ Mn • 17.1% CAGR growth for last 3 Years for DET • EBIT grew 30.
Slide 35: Balanced Portfolio
BALANCED PORTFOLIO FY20 Revenue Mix Current Revenue Mix 7.2% 18% 31% 24% Transportation Transportation Comms 46% Comms Sustainability Sustainability NGA NGA 28% 23% 23% Aero dominant Revenue Mix Balanced Portfolio 4
Slide 36: Consistent & Predictable Performance in Progress
Consistent & predictable performance in progress… Customer centric/obsessive management team 11 out of 13 30.2% YoY • Power list of CXO connects Quarters QoQ growth in OI Revenue Growth TTM in CC • Strategic partner in their technology transformation through DTAG Sales Rigor and focus $100Mn 15-18%
Slide 37: Delivering Intelligent Engineering & Technology
DELIVERING ‘INTELLIGENT ENGINEERING & TECHNOLOGY’ FOR DIGITAL, AUTONOMOUS & SUSTAINABLE FUTURE 6
Slide 38: Winning Configuration for Growth
WINNING CONFIGURATION FOR GROWTH CUSTOMER-FOCUS / INDUSTRY FOCUS New Growth Areas Transportation Sustainability Communications (Automotive, Semicon & (Aerospace & Rail) (Mining, Energy, Utilities) (Fiber & Wireless) HLS) SALES ENABLEMENT Driven by Technology and Accelerated by AI (DTAG*) MARKETING D
Slide 39: Technology Led Organization
TECHNOLOGY LED ORGANIZATION TECHNOLOGY WORKFORCE • CyientifIQ Community under CTO with about 2,000+ members CXO CYIENCE Thought Leadership series • Customer Experience Center - demonstrating our • An Exclusive Forum for driving CXO dialogues. 22 1 5 innovation to our clients • CyientifIQ Hackathon -
Slide 40: Balanced Engines of Growth
BALANCED ENGINES GROWTH DRIVERS LEADING OF GROWTH 10-20% CAGR IN NEXT 3-5 YEARS Sustainability Connectivity (Mining, Utilities (Fiber and and Energy) Wireless) Aerospace Energy Auto Led Connectivity Transportation (Aero and Rail) Semicon New Growth Areas (Automotive Semicon, Health Care) 2x Air trav
Slide 41: 3 Year Outlook
3 YEAR OUTLOOK High Moderate • Air travel doubling • 30% up in defence spend • Fiber Penetration • Strong relation with top players • Software defined Aerospace Networking, Autonomous Network Connectivity • EV, SDV & Connected cars • High Performance computing • Semicon led Auto growth Auto and Semi
Slide 42: Summary
SUMMARY Customer centric/obsession led journey transformation providing significant value to our customers Right to win & lead in these domains - Aero, Energy, Connectivity and auto (Semicon) driving digital/autonomous and sustainable future Technology led solutions/platforms/accelerators and DNA -
Slide 43: Designing Tomorrow Together
DESIGNING TOMORROW TOGETHER 12
Slide 44: Strategic Focus Areas
STRATEGIC FOCUS AREAS Ramya Mohan Vice President & Chief Strategy Officer
Slide 45: Strategic Focus Areas
STRATEGIC FOCUS AREAS Ramya Mohan Vice President and Chief Strategy Officer 8th December 2023, Hyderabad
Slide 46: Cyient's Growth Strategy Is Built Upon Three Key Vectors
CYIENT'S GROWTH STRATEGY IS BUILT UPON THREE KEY VECTORS Vector 1 Vector 2 Vector 3 Grow the Deliver Intelligent Drive Exponential Core Business Engineering and Expansion Technology Growing a balanced portfolio Playing at the convergence of Maximizing shareholder value of industries with the right e
Slide 47: Vector 1: Growing a Balanced Portfolio of Industries
VECTOR 1: GROWING A BALANCED PORTFOLIO OF INDUSTRIES CUSTOMER-FOCUS / INDUSTRY FOCUS 31% 28% 23% 18% Transportation Sustainability Connectivity New Growth Areas (Aerospace & Rail) (Mining, Energy, Utilities) (Fiber & Wireless) (Auto, Semicon, Hi-Tech & HLS) Technology Stack Strategic Foundations Key
Slide 48: Vector 2: Delivering Intelligent Engineering and Technology Solutions
VECTOR 2: DELIVERING INTELLIGENT ENGINEERING AND TECHNOLOGY SOLUTIONS ACCELERATING THE TRANSFORMATION TOWARDS MEGA TRENDS FOR OUR CUSTOMERS Industry 4.0 & Intelligent & Digital Sustainability Space Smart Operations Meta Mobility Healthcare Systems ACCELERATED BY AI, OUR FOCUS IS ON 14 20 Innovation
Slide 49: Vector 3: Driving Exponential Expansion
VECTOR 3: DRIVING EXPONENTIAL EXPANSION Strategic M&A Business Model Venture Potential New Investment Businesses 6
Slide 50: Designing Tomorrow Together
DESIGNING TOMORROW TOGETHER 7