CYI l!

NT •

10 May 2019

The BSE Ltd The National Stock Exchange of India Ltd

PJ Towers Exchange Plaza, Bandra-Kurla Complex
25th Floor, Dalal Street Bandra (E)
Mumbai - 400 001 Mumbai - 400 051
Scrip Code: 532175 Scrip Code: CYIENT

Dear Sir/ Madam,

Sub: 8th Investor day

The company today conducted its 8th annual investor day with wide participation from investors and analysts
at its Manikonda campus, Hyderabad. The senior Management presented insights into the business and
further outlook and plans. The related presentation is enclosed and also uploaded on the website
of the company (www.cyient.com).

Th;inking you
Cyient Limited

N. Ravi Kumar
Dy. Company Secretary

Cyientltd. 4• Floor. A Wing, 11 Software CIN: L72200TG1991PLC013134

Units Layout, Madhapur
Hyderabad - 500 081
India
formerly nfotech Entcrpt,\h Lamtted
www.cyient.com
Company.Secretary@cy1ent.com
T +91406764 1000
F •9140 23110352

• •
 THE POWER OF IDEAS

Cyient
Investors Day
FY 20
Krishna Bodanapu
10th May 2019

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 Cyient Leadership and FY 19
1 Highlights
Leadership Org Chart, What worked well, What didn’t
work well

Industry Landscape and

2 Competitor Overview
Contents Industry Overview , Competitor Mapping & A&D
Industry Overview

Strategy Execution
3 Ambition, Growth, Investment, Leadership and
Execution

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 Cyient Leadership
and FY 19 Updates

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Cyient Leadership Team
Executive Chairman

BVR Mohan Reddy

Corporate Affairs MD and CEO

B Ashok Reddy Krishna Bodanapu

Medical
Aerospace & Communi- Chief Financial
Transportation Technology & Corporate HR
Defense cations Officer
Healthcare
Units
Units

Enabling Units
Anand Parameswaran Prabhakar Atla Brian Wyatt Sanjay Krishnaa PNSV Narasimham Ajay Aggarwal
Business
Business

Strategy,
Portfolio Energy & Semicon IoT Design Led New Business
Marketing, &
Business Utilities & Analytics Manufacturing Accelerator
Communication

John Renard Katie Cook Suman Narayan Rajendra Velagapudi Joseph NJ Jan Radtke

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 What Worked Well

Top Clients Order Revenue Profit Per Headcount

Growth Backlog Per Client Associate

$471.7M $558.7M $1484K $6161* 15,085*

Higher by 8% Higher by Higher by Higher by 323
Higher by $199
YoY $57.2 M YoY $392.5 K YoY FTE YoY
YoY
*Excludes DLM *Includes AnSem

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 What Worked Well

ASAT CSAT

Utilization Offshoring Effective ASAT CSAT

Tax Rate

77.2% 42.3% 23% 63% Ex 62.8

Higher by 86 bps Higher by 18 bps Lower by 270 Improvement Improvement
YoY YoY bps YoY of 3% YoY of 4.7 YoY
^Excludes DLM

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 What Didn’t Work Well

Services Margin DSO Attrition Acquisition

Revenue Growth Performance
Growth
7.6% 14% 88 Days 22.7% 76%
Slowdown in CC Flat despite Increase of Higher by 465 bps Revenue
growth operational 7 days YoY YoY achievement
initiatives against budget
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 Industry
Landscape and
Competitor
Overview

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 Global Engineering Services
Outsourcing Market

KEY TREND FORECAST MARKET DRIVER COMMERCIAL MODEL DIFFERENTIATION

Innovation- ~ $93 Bn Industry Efficiency, Cost Fixed price / Ability to

centric / IP based projected to grow reduction and T&M to address end to
solutions Vs at a CAGR of ~6% Talent availability Risk/reward end value
Manpower based model pricing chain through
engineering trend better domain
services capability

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 4% growth driven by 2%-3% growth driven ~5% growth driven by 2.5% growth driven by
strong commercial by broadband rollout & RPA, IoMT, Robotics investments in rail
aircraft order backlog 5G deployment and AI control and
and defense spending infrastructure
Aerospace & Medical Technology
Communications Transportation
Defense & Healthcare

Industry Trends and Outlook

Semiconductor Energy & Utilities Industrial

3% drop due to downturn
in memory chip market.
Growth expected to
return in 2020
10
2.5% growth driven by Growth restrained due to
rising commodity economy, pricing fluctuations
prices, grid and material costs. Expected
modernization and to rebound in 2021
renewable focus
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Industry Outlook & Business Capability

Five Year Industry Outlook High

BU Now 3 Yrs. 5 Yrs. Medical
Aerospace

Semiconductor
Design Led
Manufacturing

Industry Outlook
Communications

Transportation

Energy & Utilities

Industrial

Low
Legend
Low Cyient Capability High
Very Attractive Moderately Attractive

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Aerospace & Defense Industry Focus

Market Drivers
Design Build Maintain
• Continued focus on
digital transformation
• Modernization of legacy
systems- SWaP-C
concept 60% 23% 17%
• Continued M&A activity

Focus Areas
Addressable A&D • Invest in digital transformation with focus on digital MRO, digital
Market Size tech Pub, AR/VR and connected machines, Connected Factory etc.
• Continue to invest in solutions and designs that utilize off the shelf
$ 419 B technology adapted to complex environments
• Utilize Cyient position in APAC to grow partnerships and outreach
to firms seeking regional growth

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 Strategy
Execution

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 New Business Significant investments in developing technology
Ambition Accelerator focused solutions
Expanding from
Services to Solutions Digital Focus

IoT I AR/VR I TRM I Spacebots I Additive

Technologies
Manufacturing I Machine Learning I Connected
invested in
equipment’s I Smart cities

Key Bluebird I Sankhya Labs I Elpis I Kii I LVPEI I

Partnerships Coromandel

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 Our Digital Journey

Ambition
Expanding from
Services to Solutions

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 Our Capabilities are Comprehensive

Electronic Design Mechanical Design

Chip Design and Manufacturing and Manufacturing

Ambition
Expanding from
Services to Solutions

Serviceability,
System Integration Maintenance & Operations

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 REVENUE PAT FCF
Growth $ 660 Mn ₹ 4,898 Mn ₹ 3,770 Mn
Industry leading 10.1% CC YoY 14% YoY 39.3% YoY
Earnings Growth

• Growth driven by Semiconductor, Communications,

Transportation, and Aerospace & Defense business
segments.

• Services business grew by 6.3% YoY (7.6% in cc) while DLM

business grew by 29.3% YoY

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 FY 20 Outlook

Revenue Growth
Growth • High single digit growth for Services in constant currency
Industry leading
Earnings Growth • DLM business expected to grow by ~ 15% in constant currency

EBIT
• Double digit growth in EBIT

Others
• ETR likely to be in the range of 22.5% - 23.5%
• Other income is expected to be marginally higher

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 Key Investment Focus Areas Identified
BU focus areas Investment themes

Investment
A&D SI&A
• Avionics
• Connected vehicles Embedded
• Mechanical mfg.
Prioritizing Investments • Analytics & IoT software
• Digital

Communications E&U
Connected
• Signalling Apps engg
• Wireless N/w engg assets
• Products: Asset ctrl
• NGN solution
• Networks: Planning, ops,
• Field services
optimisation
Mechanical
MT&H E&U manufacturing
• Asset connectivity &
• DLM
health
• Embedded s/w & h/w
• Industrial automation
• Product dev Design led
• Digital
• V&V
• Embedded
manufacturing

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 Leadership and Succession Planning
Global Leader Program
Participants # 35
11 06

Leadership 15

03
+90 Global Leaders
Building 2030’s Talent
Business leadership
Level13+ Talent review (TR)
development actions
Functional
DIEL (50, Accelerators)
leadership Global leader
Business program (35)
Lev 10 Lev 12 Talent review Intrapre
leader unership
for L2 and
program (12)
HiPo (296)
(30) DIEL
(50, Enablers)
Execution Level 6 Level 9 Emerging
leadership leader
program (30)

Level1 Level 5
Foundation skills New joiner induction

+ FY 20 AGILE Action Programs spanning across bands

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 Managing Early Career Program- Global focus
on hiring fresh talent

Leadership 400+ selections in 2019

through a pan-India
Building 2030’s Talent aptitude test
State
Funding

Early Career Initiatives with

community colleges in California,
Mississippi, Connecticut, Ohio
Partnership with TASK and Florida
NEEM and NATS
Dedicated process for IITs

Number of selections
Number of selections
Our work visa requirement is among the
Number of selections
lowest in the peer group
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 Technology Orientation through Blended
Learning Approach- 10 X focus in FY20
15,000+ Hours | 54 Programs | 10 Technologies
Leadership
Building 2030’s Talent Awareness Programs Beginners Track Advance Programs

7000 Hrs. of learning eLearning initiatives 8000 Hrs. of blended

delivered on emerging on AR/VR, RPA, IoT, learning on Cloud, Data
skills such as AI, RPA , Big Data Science, AI and cross-
Big Data platform technologies

Technical Career Path MOOCS Solutions Orientation

Competency-based 1. Future Skills ~3000 Hrs. of training

career progression 2. edX delivered to on
instituted in Transport 3. NPTEL Design Thinking,
and MT&H BU Intrapreneurship and
solution orientation

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 Focused on Building a Strong
Organization Culture

Execution Our core

values and
Building a AGILE Culture culture guide
our behavior
and actions
and build trust
with our
stakeholders.

Diversity and Inclusion

• Structured focus on D&I
• Key Focus: Awareness, Inclusion, Gender Diversity, Ethnicity
• Cyient placed 5th out of 134 participants at United Nations Global
Compact India (UNGCI) Gender Equality Summit for Best Innovative
Practices Award on ‘Women at Workplace’.
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 Stakeholder Satisfaction

Customer Satisfaction

Execution Ex 62.8 6%
Building a AGILE Culture CSAT Percent of breakaway
Improvement Improvement of
of 4.7 YoY 3% YoY

Associate Satisfaction

Ex 63% 15%
ASAT Disengaged Associates
Improvement Lower by 3% YoY
of 3% YoY

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 THE POWER OF IDEAS

Thank You

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