•

CYI l:NT

21 January 2020

The BSE Limited PJ Towers, 25[th ] Floor, Dalal Street Mumbai 400001. Scrip Code: 532175

The National Stock Exchange of India Ltd Exchange Plaza, Bandra-Kurla Complex, Sandra (E) Mumbai-400 051. Scrip Code: CYIENT

Dear Sir,

Sub: Investor Presentation - Reg.

Please find enclosed investor presentation issued by the company on the financial results for the quarter and nine months ended 31 December 2020.

This is for your information and records.

Thanking you For Cyient Limited Ravi Kumar Nukala 0\2-� Dy. Company Secretary

Cyient Ltd.

4'" Floor, A Wing, 11 Software CIN;L72200TG1991PLC013134 Units Layout, Madhapur ww .cyient.com Hyderabad - 500 081 Company.Secretary®cyient.com India T +9140 6764 1000 F +9140 23110352

Fonneriy lnfotech Enlefl>rl•e• Limited

•

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Investor PRESENTATION Q3 FY21

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 manner whatsoever, might constitute a violation of laws or regulations in vogue in geographies in which the company operates, besides breaching confidentiality. The users shall meet any liability emanating from such violation and shall indemnify company for any loss, damage, expense, penalty, fine, fee, charges incurred by company on account of any such violation.

Leadership team

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BVR MOHAN REDDY KRISHNA BODANAPU AJAY AGGARWAL KARTHIK NATARAJAN
Executive Chairman MD & CEO President & CFO President & COO
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Highlights

Financial Highlights
Business Highlights
Performance linked ESOP scheme

Financial Business Update Update

BU performance update
Revenue
New GTM organization Structure
Income statement update
Margin bridge
Cash generation

Annexures

Financial Business Highlights Update Update • Financial Highlights • Revenue • BU performance update • • • Business Highlights Income statement update New GTM organization • Performance linked ESOP • Margin bridge Structure scheme • Cash generation Annexures

Highlights for the Quarter (1/3)

Revenue

4.1% QoQ (₹ terms) 4.7% QoQ ($ terms)

Quarterly revenue at $ 141.4 Mn/₹ 10,443 Mn

Consolidated EBIT Margin @ 11.2%

Services EBIT margin at 11.3%

DLM EBIT margin at 10.6%

PAT Margin @ 9.1%

PAT for the quarter at ₹954 Mn

Financial Highlights for Quarter

Consolidated revenue at $141.4 Mn; growth of 4.7% QoQ (4.1% in CC) and de-growth of 8.9% YoY
Services revenue at $115.3 Mn; growth of 1.0% QoQ (0.3% in CC). IGP contributed 1.2% to services revenue growth
DLM revenue at $26.0 Mn; growth of 24.8% QoQ, and growth of 72.4% YoY
Free cash flow to EBITDA conversion for the quarter at 85.8%. YTD FCF is highest ever at ₹5,714 Mn up by 119% YoY
Consolidated EBIT margin at 11.2% up by 14 bps QoQ
EBIT margin for services at 11.3%, down 88 bps QoQ
Highest ever EBIT margin for DLM at 10.6%, up 594 bps QoQ
Profit After Tax at ₹954 Mn for the quarter; growth of 13.8% QoQ

Highlights for the Quarter (2/3)

Leadership position in Engineering and R&D Services in Zinnov ratings

Cyient has been placed in the top quadrant in the overall ER&D services category for the seventh consecutiveyear in the Zinnov Zones annual ratings
Within ER&D services, Cyient maintained its “leadership” position in the aerospace, industrial, medical devices, telecom, and the software-defined network-NFV verticals. The report also recognizes Cyient’s mature Digital Engineering Services capabilities

Thales - 2020 Supplier Performance Award

Demonstrates Cyient’s dedication and consistent commitment to delivering value to its business partners and customers. Thales issues this award annually to recognize suppliers for achieving excellence in execution
Recognizedfor “on-conformity delivery performance”
Achieved “Class A” rating for “on-time delivery performance”

SPRINT partners with Cyient to facilitate collaboration in Space Data and Technologies

The partnership will enable Cyient to identify new business opportunities, to lower its product development costs and to offer cutting edge geospatial solutions with higher precision.
The partnership will also assist Cyient in accessing industry experts from UK Academic Institutions and small businesses for collaborative space data and technology projects across UK

Highlights for the Quarter (3/3)

Signed an MoU with SaaS Provider Decipher to support the Global Rollout of Key Cloud Mining Platform

The platform will help streamline tailings and rehabilitation monitoring in the industry
Collaboration will enable global mining players to meet regulatory compliance and monitoring guidelines

Collaboration with SR University to help advance the field of Additive Manufacturing

Cyient will help SR University in developing an industry-oriented curriculum focused on advanced manufacturing systems. This will help reduce the skill gap between the need and availability of resources trained in areas such as design for additive manufacturing
Cyient will look to SR University to lead innovation through industry-aligned research and development in the field of advanced materials, design, and process controls.

Proposal: Performance linked ESOP Scheme

Objective

Opportunity for employees to participate in the long term value creation of the company
Alignment of employees and shareholder interests

Scheme Details

Cyient Associate Stock Option Scheme 2021 Trust to acquire 2 million shares via secondary acquisition
The options on these shares shall be granted to the employees at face value
Allocation based on management recommendation and approved by LNR committee based on
performance and role

Criteria

Vesting will begin upon achieving revenue, operating profit & sustainable share price milestones
Vesting will occur in 3 tranches based on the associated targets
Operational targets benchmarked to best in class performance
The scheme will cover about 80 to 100 senior associates who can significantly influence the Company’s performance

Voting for the resolution from 23[rd] Jan to 21[st] Feb

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Financial Business
Highlights Update Update
• Financial Highlights • Revenue • BU performance update
• • •
Business Highlights Income statement update New GTM organization
• Performance linked ESOP • Margin bridge Structure
scheme •
Cash generation
Annexures
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Revenue for Q3 FY21

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Revenue Q3 FY21 Q2 FY21 Q1 FY21 Q4 FY20 Q3 FY20 QoQ YoY
Group
$ Mn 141.4 135.0 130.6 149.2 155.2 4.7% -8.9%
₹ Mn 10,443 10,033 9,917 10,736 11,060 4.1% -5.6%
Services
$ Mn 115.3 114.1 112.2 132.3 140.1 1.0% -17.7%
₹ Mn 8,521 8,487 8,521 9,513 9,984 0.4% -14.6%
DLM
$ Mn 26.0 20.9 18.4 17.0 15.1 24.8% 72.4%
₹ Mn 1,921 1,546 1,396 1,222 1,076 24.3% 78.6%
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Revenue USD Mn Q3 FY21 QoQ YoY
•
Geography
NAM 69.4 3.0% -20.6%
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EMEA 35.8 -8.3% -13.4%
APAC incl India 36.2 26.8% 37.0%
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Services growth of 1.0% QoQ. IGP contributed 1.2% to services revenue growth Overall DLM is higher by 24.8% QoQ (+$5.2 Mn) primarily due to increase in Standalone DLM revenue of $4.8 Mn QoQ

Income statement for Q3 FY21

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All Figures in ₹ Mn Q3 FY21 Q2 FY21 Q3 FY20
Revenue 10,443 10,033 11,060
EBIT (Reported) 1,165 1,105 1,063
PAT (Reported) 954 839 1,083
EPS (₹ Reported) 8.7 7.6 9.8
All Figures in % Q3 FY21 Q2 FY21 Q3 FY20
Gross Margin 34.6% 35.7% 36.0%
EBIT Margin (Reported) 11.2% 11.0% 9.6%
ETR 23.5% 23.1% 23.3%
PAT Margin (Reported) 9.1% 8.4% 9.8%
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QoQ EBIT Movement

Consolidated EBIT margin stood at 11.2%; up by 14 bps QoQ
In Q3, we rolled out wage hikes for individual contributors (roughly 2/3[rd] of the associates), the impact of which was ~1% on EBIT
Services EBIT at 11.3% was lower by 88 bps QoQ after taking into account the wage hike and furlough impact.
There were improvements in operational metrics, favourable volume impact and lower spend on SG&A and depreciation which offset the headwinds mentioned above (Please refer slide 14).
DLM margins at 10.6%, up 594 bps QoQ driven by better revenue mix

Profit After Tax Movement

PAT increased by 13.8% QoQ primarily from higher other income (₹126 Mn) partially offset by higher tax from higher profits & increase in finance charges
ETR is 23.5%. Higher by 40 bps from Q2 ETR of 23.1%

EBIT margin bridge for Q3 FY21

Particulars
EBIT Q2 FY21 (Group)	11.0%
Less DLM impact	116 bps
EBIT Q2 FY21 (Services)	12.2%
Tailwinds in Q3 FY21
Improvements in operational metrics	78 bps
Lower restructuring cost	45 bps
Volume impact and lower spend on SGA & depreciation	30 bps
Headwinds in Q3 FY21
Impact on merit increase	-95 bps
Furlough impact	-90 bps
Increase in other direct costs	-55 bps
EBIT Q3 FY21 (Services)	11.3%
Add DLM impact	10 bps
EBIT Q3 FY21 (Group)	11.2%

We expect sequential improvement in margins in Q4 FY21 driven by the increase in volume and improvement in operational efficiencies

Cash Generation for Q3 FY21

All Figures in ₹ Mn	Q3 FY21	Q2 FY21	Q3 FY20
Services
Profit before tax	1,109	1,103	1,403
(+/-) Non-cash & non-operating items	339	388	438
Operating profit before WC changes	1,448	1,492	1,841
(+/-) DSO Movement (Receivables)	586	1,223	581
(+/-) Other WC changes	184	-257	46
Operating CF after WC changes	2,218	2,458	2,468
Less: Taxes	-382	-369	-260
Less: Capex	-105	-39	-236
FCF Services	1,731	2,050	1,972
DLM
Free Cash Flow generated (DLM) - ii	-213	-18	-15
Group FCF (i+ii)	1,518	2,032	1,957
FCF to EBITDA Conversion	85.8%	131.4%	102.4%

Cash Generation

Cash and cash equivalents at healthy level of ₹ 14,313 Mn
In Q3, the cash flow conversion stood at 85.8% for group and 113.4% for Services. DLM has consumed cash of ₹213 Mn in Q3 FY21

Note: Free Cash Flow (FCF), which was being earlierprepared asper management reporting, has been aligned to statutory reporting with effect from Q1 FY21. Consequently, the comparative periods have also been recast to reflect the change. The format for presentation has also been suitably amended

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Financial Business
Highlights Update Update
• Financial Highlights • Revenue • BU performance update
• • •
Business Highlights Income statement update New GTM organization
• Performance linked ESOP • Margin bridge structure
scheme •
Cash generation
Annexures
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BU performance Q3 FY21

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Services DLM Group
Business Units
$ Mn QoQ YoY $ Mn QoQ YoY $ Mn QoQ YoY
A&D 29.2 -5.7% -35.3% 16.9 44.0% 88.1% 46.1 8.0% -14.8%
Communications 34.1 5.2% -0.2% 0.1 -3.8% -66.8% 34.1 5.2% -0.6%
E&U 14.9 13.9% -26.6% 1.9 43.7% -13.0% 16.9 16.7% -25.3%
Transportation 15.9 -2.5% 2.1% 0.4 395.2% 16791% 16.3 -0.5% 4.7%
Portfolio 11.9 -0.4% -19.1% NA NA NA 11.9 -0.4% -19.1%
SIA 6.1 0.2% -12.0% NA NA NA 6.1 0.2% -12.0%
MT&H 3.3 -4.1% -0.9% 6.7 -12.5% 80.7% 10.0 -9.9% 41.6%
Total 115.3 1.0% -17.7% 26.0 24.8% 72.3% 141.4 4.7% -8.9%
CC Growth 0.3% -19.7% 4.1% -10.4%
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Group growth stood at 4.7% QoQ and 4.1% in cc
Servicesgrowth stood at 1.0% QoQ and 0.3% in cc
DLM growth stood at 24.8% QoQ
Order intake in Q3 FY21 is at $194.5 Mn, increased by 52.8% QoQ.
Won 5 multi year deals with total contract potential of $106 million:
Won 3 large deals worth $50 million with top 5 telecom companies
Won a deal in DLM worth $36 million
Won a deal from a Med Tech company worth $20 million

The need for a new structure

The new organization structure will help Cyient improve performance across three key dimensions:

Accelerate growth through a well-structured and efficient Go-to-Market (GTM) organization

Improve operational agility and execution excellence through a Delivery 4.0 organization Enhance our value proposition through Design-Led Manufacturing and Digital capabilities

New Go-To-Market (GTM) Organization Structure

Our Go-to-Market (GTM) structure is realigned into:

Two Vertical Business Units
Two Horizontal Business Units
Portfolio of five sectors

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Medical
Communications Automotive Energy, Mining
Technology
Transportation and and Off- Semiconductor and Natural Geospatial
and
Utilities Highway Resources
Healthcare
Digital Services and Solutions Design Led Manufacturing
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21-01-2021

BU performance per new structure Q3FY21

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Services DLM Group
Business Units
$ Mn QoQ YoY $ Mn QoQ YoY $ Mn QoQ YoY
Transportation 45.1 -4.6% -25.7% 17.3 46.4% 92.6% 62.4 5.6% -10.4%
Aerospace 29.2 -5.7% -35.3% 16.9 44.0% 88.1% 46.1 8.0% -14.8%
Rail transportation 15.9 -2.5% 2.1% 0.4 395.2% 16791% 16.3 -0.5% 4.7%
C&U 41.2 5.5% -11.9% 0.1 -95.9% -97.6% 41.3 1.9% -16.1%
Communications 34.1 5.2% -0.2% 0.1 -3.8% -66.8% 34.1 5.2% -0.6%
Utilities 7.2 6.7% -43.3% 0.0 -100.0% -100.0% 7.2 -11.4% -52.0%
Portfolio 29.0 4.2% -11.1% 8.6 13.5% 136.4% 37.6 6.2% 3.7%
Total 115.3 1.0% -17.7% 26.0 24.8% 72.3% 141.4 4.7% -8.9%
CC Growth 0.3% -19.7% 4.1% -10.4%
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• We will continue to report the BU wise numbers in the old and new formats till Q4 FY21 during the transition and will shift to the new format from Q1 FY22 onwards

Business Performance & Outlook (1/3)

Aerospace & Defense

Aerospace & Defense BU grew by 8.0% QoQ and declined by 14.8% YoY. While the services business de-grew by 5.7% QoQ, our design led manufacturing business grew by 44% due to the increased spend by India/Israel. We expect a return to stability from Q4 onwards. The industry is expected to see signs of recovery from the mid-year onwards. While the business may take time to pick up, we are confident of our client relationships and growth potential in the long term.

Communications

Communications business grew by 5.2% QoQ and declined by 0.6% YoY. Growth in the business was driven by growth in key accounts and few large deal wins. We won 4 key deals in the areas of fiber, wireless, system integration and 5G rollout from existing and new clients. These long term deals strengthen our position in the Communications segment and provide a platform for further expansion. We continue to benefit from accelerated deployment of 5G networks which form ~10% of our revenue portfolio for this segment. Our outlook for Q4 and full year remains positive, supported by investments in technology led network transformation and accelerated deployment of broadband and wireless infrastructure.

Transportation

Transportation business declined by 0.5% QoQ and grew by 4.7% YoY. The QoQ drop was primarily due to right shifting of projects from some of our clients. We are optimistic about the recovery in Q4, driven by traction in key client accounts. In general, increased spends in rail transportation and consolidation in rail industry provide a strong outlook.

Business Performance & Outlook (2/3)

E&U

Our E&U business grew by 16.7% QoQ and declined by 25.3% YoY driven by growth in key accounts. We expect the positive momentum to continue in Q4, driven by our focus on expanding the presence in the EPC sector, specifically around power generation facilities, facility system integrations, and energy storage projects. For Utilities, our focus will be on digital solutions in design automation and predictive maintenance applications for asset management.

MTH

Medical Technology and Healthcare business declined 9.9% QoQ and grew by 41.6% YoY. The QoQ degrowth was due the supply chain issues which impacted one of our top DLM clients. We continue to see a strong YoY growth in our DLM business primarily due to demand for medical devices and equipment to diagnose and treat COVID-19 patients. Our services business is well placed for growth with two contracts signed with key clients over the quarter. Our outlook for Q4 remains positive backed by strong client engagements and new contract wins.

Portfolio

Our Portfolio business witnessed a decline of 0.4% QoQ and a decline of 19.1% YoY. While the industrial segment continues to witness challenges due to reduced spend, the geospatial business witnessed growth across all key clients. We witnessed accelerated growth in one of our new clients and expect it to be among our top 5 geospatial clients. Our outlook for Q4 remains positive for the geospatial segment while Industrial segment will continue to face some challenges.

Business Performance & Outlook (3/3)

SIA

Semiconductor was flat QoQ and witnessed a decline of 12% YoY. This was mainly due to Turnkey ASIC development where the customers (typically OEM companies) are still reluctant to make new investments. We expect the softness in this vertical to continue in Q4 post which there should be pick up in growth.

DLM

The focus on mining of existing accounts coupled with opportunities in Indian Defense has led to a growth of 24.8% QoQ and 72.4% YoY. We have taken a lot of effort in localization of parts, inventory management, material cost reductions and automation which has led to a significant improvement in margins. Our decision to move out of low margin accounts is also showing up in the improved margin profile. Strong order pipeline coupled with order backlog gives us momentum to sustain the growth and margins.

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 of the curve. The company leverages digital technologies, advanced analytics capabilities, domain knowledge, and technical expertise to solve complex business problems.

Cyient partners with customers to operate as part of their extended team in ways that best suit their organization’s culture and requirements. Cyient’s industry focus includes aerospace and defense, healthcare, telecommunications, rail transportation, semiconductor, geospatial, industrial, and energy.

For more information, please visit www.cyient.com.Follow news about the company at @Cyient

Contact Details:

Investor Relations

Media Relations

Mayur Maniyar

Direct: +91 40 67641537

Board: +91 40 67641000 (Extn-1537) Mobile: +91 9224126705 Email: [email protected]

Reet Sibia Gwari Direct: +91 40 6748 9917 Board: +91 40 6748 9100 (Extn-3917) Mobile: + 91 97047 91326 Email: [email protected]

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; Cyient Israel India Limited; Cyient Insights Private Limited, Cyient DLM Private Limited, Cyient Canada Inc.; Cyient Defense Services Inc; Cyient Benelux BV; Cyient Schweiz GmbH; Cyient SRO; AnSem NV; AnSem B.V.; and Cyient AB.

Partly owned subsidiary: Cyient Solutions and Systems Private Limited.

Joint venture: Infotech HAL Ltd

The income statement and cash flow provided is in the internal MIS format. MIS format is different from the income statement and cash flow published as part of the financial results, which is as per the statutory requirement.

Thank you

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Investor PRESENTATION Annexure Q3 FY21

Message from the Management

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Commenting on the results, Mr. Krishna Bodanapu, Managing Director and Chief Executive Officer, said “Q3 FY21 results are in line with our expectations, we recorded a revenue of $141.4 Mn which was higher by 4.1% QoQ and lower by 10.4% YoY in constant currency. Services business recorded a revenue of $115.3 Mn. The revenue for the Design Led Manufacturing (DLM) business stood at $26 Mn and grew by 24.8% QoQ and 72.4 % YoY. The EBIT margin at 11.2% is higher by 14 bps QoQ and 154 bps YoY, mainly driven by operational efficiency, better DLM margins and lower SG&A spending.

We continue to focus on improving operational efficiency and executing actions to bring growth back in the business. We won a number of large deals which sets us up for a stronger performance in the coming quarters. Our Order Intake (OI) for the quarter has increased by 7% YoY backed by strong growth in key clients and digital opportunities. The new organization structure implemented in the last quarter is settling in well and we see increased growth traction with opportunities in key industries. We continue to strengthen our relationship with our existing clients. This quarter we were awarded with the Supplier Performance Award for delivery excellence by Thales and Annual Productivity and Cost Saving Award by Pratt and Whitney which speaks of our commitment to our client’s success.

We expect the recovery in the business through Q4 FY21 with services business growing sequentially driven by growth across all segments except Aerospace & Defense which is expected to remain flat. Our outlook for FY21 remains unchanged wherein we expect a double-digit de-growth in revenue.”

Message from the Management

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Commenting on the results, Mr. Ajay Aggarwal, President & CFO, said, “It is satisfying to see all-round growth in revenue, operating & net profit and cash generation this quarter. The revenue for Q3FY21 stood at $141.4 Mn; growth of 4.7% QoQ (4.1% in CC). Improvement in operating profit as a focus area has percolated to all levels in the organisation. Consolidated EBIT margin stood at 11.2%; up by 14 bps QoQ despite furloughs and hikes. DLM margins were the highest ever at 10.6%, up 594 bps QoQ. Profit after Tax at ₹954 Mn for the quarter; growth of 13.8% QoQ..

I am pleased to report that Cyient generated a robust cash flow of INR 1518 Mn in Q3FY21, translating to 85.8% of EBITDA conversion for the quarter (YTD FCF highest ever at INR 5714 Mn at 117% EBITDA conversion). DSO is at 88 days (lower by 2 days QoQ and 6 days YoY). This is a reflection of our continuous improvement on various drivers of cash generation viz. DSO collection, Capex rationalization and other initiatives. Our cash balance stands at INR 14,313 Mn. With strong cash flow generation contributing to the cash balance quarter on quarter, we will continue to focus on strategic investments.

We expect the momentum to continue in the coming quarters as well. Maximizing shareholder wealth is paramount to us and we will continue to focus on all the drivers to make this happen i.e. revenue & profit growth and cash generation. We are working towards achieving even better results in the coming years.”

Consolidated Financial Metrics

Key Financial Metrics

				Growth	%
₹ Mn	Q3 FY21	Q2 FY21	Q3 FY20
				QoQ	YoY
Revenue	10,443	10,033	11,060	4.1%	-5.6%
Reported EBIT	1,165	1,105	1,063	5.5%	9.6%
EBIT margin	11.2%	11.0%	9.6%	14 bps	154 bps
Reported PAT	954	839	1,083	13.8%	-11.9%
Reported EPS (₹)	8.7	7.6	9.8	13.7%	-11.9%

Key Financial Metrics

				Growth	%
$ Mn	Q3 FY21	Q2 FY21	Q3 FY20
				QoQ	YoY
Revenue	141.4	135.0	155.2	4.7%	-8.9%
EBIT	15.8	14.9	14.9	6.1%	5.7%
EBIT margin	11.2%	11.0%	9.6%	14 bps	154 bps
Reported PAT	12.9	11.3	15.2	14.5%	-15.0%

Reported PAT	12.9	11.3	15.2
Foreign Exchange Rate
$/₹	Q3 FY21	Q2 FY21	Q3 FY20
Quarter Average	73.87	74.32	71.27
Quarter Closing	73.27	73.78	71.39

Consolidated Revenue Segmentation

By Geography (%)

	Q3 FY21	Q2 FY21	Q3 FY20
Americas	49.1%	49.9%	56.3%
Europe, Middle East, Africa	25.3%	28.9%	26.6%
Asia Pacific (includes India)	25.6%	21.2%	17.1%

By Business Unit (%)^

	Q3 FY21	Q2 FY21	Q3 FY20
Aerospace and Defense	32.6%	31.6%	34.8%
Transportation	11.5%	12.1%	10.1%
Energy and Utilities	11.9%	10.7%	14.5%
Semiconductor, IoT and Analytics	4.3%	4.5%	4.4%
Medical, Technology and Healthcare	7.1%	8.2%	4.5%
Communications	24.1%	24.0%	22.2%
Portfolio	8.4%	8.8%	9.4%

^Including DLM split across BUs

Consolidated Operations Metrics

Account Receivables (in Days)

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Q3 FY21 Q2 FY21 Q3 FY20
DSO Total 88 90 94
- Billed 68 64 59
- Unbilled 20 26 35
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Order Intake ($ Mn)^

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Q3 FY21 Q2 FY21 Q3 FY20
Cyient Services 178 112 173
DLM 17 15 8
Group OI Total 195 127 181
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^The Order Intake reported is the total value of all orders received during the period. Some of these orders are multi year and can be executed over more than 12 months

Consolidated Client Metrics

Top Clients: Revenue Contribution (%)

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Q3 FY21 Q2 FY21 Q3 FY20
Top 5 28.8% 29.5% 33.0%
Top 10 38.4% 38.4% 44.5%
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No. of Million $ Clients

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Q3 FY21 Q2 FY21 Q3 FY20
20 Mn+ 3 3 4
10 Mn+ 7 7 11
5 Mn+ 32 32 28
1 Mn+ 94 96 93
New Clients Added 13 16 13
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Consolidated Employee Metrics

Employee

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Q3 FY21 Q2 FY21 Q3 FY20
Total Headcount 12,187 12,267 14,472
Technical & Pool 11,248 11,335 13,405
Non-Technical 334 310 378
Support 605 622 689
Voluntary Attrition 13.2% 9.2% 19.7%
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Consolidated Other Financial Metrics

Capex (₹ Mn)^

	Q3 FY21	Q2 FY21	Q3 FY20
Capital Expenditure	189	120	652

^Capex includes investment and business capex

Cash Position (₹ Mn)

	Q3 FY21	Q2 FY21	Q3 FY20
Cash & Cash Equivalent	14,313	13,509	10,239
Cash & Bank balances	5,150	4,680	4,172
Investments in FDs	9,163	8,829	5,070
Investment in MFs	0	0	997
Outstanding Forward Contracts (Mn of respective currencies) ^
	Q3 FY21	Q2 FY21	Q3 FY20

	Q3 FY21	Q2 FY21	Q3 FY20
USD / INR	70.6	69.1	68.7
EURO / INR	29.1	28.8	25.9
GBP / INR	6.8	6.5	6.5
AUD / INR	28.8	27.7	24.7
^Forward contracts are taken only for services business

Consolidated Income Statement

₹ Mn	Q3 FY21	Q2 FY21	Q3 FY20
Operating Revenue	10,443	10,033	11,060
Cost of Revenue	6,826	6,449	7,082
Direct Salary and related costs	4,219	4,075	4,873
Direct Travel	81	97	190
Delivery Management	209	249	201
Material cost	1,319	1,074	661
Other costs incl Subcontract costs	998	954	1,158
Gross profit	3,617	3,584	3,978
Sales and Marketing	423	365	555
General and Administration	1,544	1,630	1,889
Depreciation and Amortization	485	484	470
EBIT	1,165	1,105	1,063
Financial expenses	136	107	129
Other income	219	93	498
Profit before tax (PBT)	1,248	1,091	1,433
Tax	294	252	333
Associate & Minority Profit	0.1	0.1	-16.5
Profit After Tax (Reported)	954	839	1,083
Basic EPS (₹) (Reported)	8.7	7.6	9.8

Gross Margin	34.6%	35.7%	36.0%
EBIT Margin	11.2%	11.0%	9.6%
Effective Tax Rate	23.5%	23.1%	23.3%
PAT Margin (Reported)	9.1%	8.4%	9.8%

Consolidated Balance Sheet

₹ Mn

Q3 FY21 Q2 FY21 Q3 FY20

EQUITY AND LIABILITIES
Shareholders’ funds
- Share capital	550	550	550
- Reserves and surplus	27,781	26,841	25,539
Total - Shareholders' funds	28,331	27,391	26,089
Non-current liabilities
- Long-term borrowings and liabilities	3,262	2,891	3,591
- Long-term provisions	1,299	1,222	1,155
- Deferred tax liabilities (net)	306	269	378
Total - Non-current liabilities	4,867	4,382	5,124
Current liabilities
- Short-term borrowings	3,350	3,407	3,100
- Trade payables	3,859	3,722	3,911
- Other current liabilities	3,815	3,620	3,842
- Short-term provisions	712	751	558
Total - Current liabilities	11,736	11,500	11,411
TOTAL - EQUITY AND LIABILITIES	44,934	43,273	42,624

ASSETS
Non-current assets
- Property, plant and equipment	8,910	8,795	8,930
- Goodwill	6,123	5,384	5,331
- Non-current investments	450	426	332
- Deferred tax assets (net)	428	337	505
- Other non-current assets	1,664	1,740	1,783
Total - Non-current assets	17,575	16,682	16,881
Current assets
- Inventories	1,634	1,657	2,259
- Current investments	3	0	997
- Trade receivables	7,670	6,938	7,297
- Cash and cash equivalents	14,313	13,509	9,242
- Other current assets	3,739	4,487	5,948
Total - Current assets	27,359	26,591	25,743
TOTAL ASSETS	44,934	43,273	42,624

Consolidated Cash Flow Movement

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₹ Mn Q3 FY21 Q2 FY21 Q3 FY20
Free cash flow from operations 1,518 2,032 1,957
Investment in non current investments -640 -15 0
Interest received 175 132 138
Finance costs paid -51 -47 -73
Proceeds/(Repayment) of borrowings, net -118 612 785
Repayment of lease liabilities -122 -265 -172
Dividend paid -2 1 -796
Others 44 -39 -232
Net change in cash 804 2,411 1,598
Opening cash position 13,509 11,098 13,509
Closing cash position 14,313 13,509 10,239
FCF to EBITDA^ Conversion 85.8% 131.4% 102.4%
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^EBITDA used for FCF conversion includes other income part of cash flow from operations

Note: Free Cash Flow (FCF), which was being earlier prepared as per management reporting, has been aligned to statutory reporting with effect from Q1 FY21. Consequently, the comparative periods have also been recast to reflect the change. The format for presentation has also been suitably amended

Other Income for Q3 FY21

All Figures in ₹ Mn Q3 FY21 Q2 FY21 Q3 FY20

Income from Treasury

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Interest on Invesmtents/Deposits 128 115 88
Dividend on Mutual Funds 0 0 8
Subtotal (A) 128 115 96
Realised gains/(losses) on Fwd Contracts (B) (43) (66) 151
Unrealised Fx gains/losses) (C) 74 (26) 184
Others
Interest on IT Refunds 0 0 0
Reversal of Old provisions 0 7 23
Rents received 2 5 7
Tax incentives on export of merchandise 0 0 18
Others 58 59 19
Others (D) 60 71 67
Grand total (A+B+C+D) 219 93 498
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For the quarter

Other income is higher by ₹126 Mn (+136% QoQ)
Treasury income has improved by ₹13 Mn from higher invested cash, despite lower average yield

Forward contract loss is ₹43 Mn, movement of ₹23 Mn QoQ (mainly from favourable movement in USD contracts vs Q2)

Unrealised Fx gain is mainly from restatement of balance sheet items in India & UK offset by losses in NAM and Germany entities

Others include export incentives and fair value gains

Currency Movement	Q3 FY21	Q3 FY21	Q2 FY21	Q2 FY21	Q3 FY20	Q3 FY20
	Forward	Spot	Forward	Spot	Forward	Spot
USD	74.2	74.0	73.3	74.1	74.5	71.3
EUR	84.3	88.3	83.1	87.2	87.4	79.1
GBP	97.1	98.3	91.3	96.6	96.7	91.7
AUD	51.4	54.2	51.0	53.3	53.4	48.7
CAD	56.1	56.7	55.9	56.0	56.0	54.0

Forward and spot rates represent average of monthly rates

Hedge Book for Q3 FY21

**Outstanding ForwardContracts[*]**

Value in Respective Currency Mn.

Booked Rate (in ₹ ) for next 12 Months

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151 144 (0.1) Wgt. Avg
31-Dec-20 30-Sep-20 31-Dec-19 134 (0.8) Variance of 1.1
99.8 99.9
(3.8)
89.3 90.1
77.1 73.3 (2.8) 0.1
71 69 69 53.6 56.4 57.5 57.5
29 29 26 29 28 25
17 17 14
7 7 6
USD EUR AUD GBP CAD Total (USD) INR/USD INR/EUR INR/AUD INR/GBP INR/CAD
FW Cover Rate Spot Rate
----- End of picture text -----

Due to volatility in major currencies (USD, GBP, EUR, CAD and AUD), the company follows the policy to hedge up to 80% of net inflows for the rolling 12 months.
On the current forward contracts, the company has following position for the next 12 months at current spot rates:
Outstanding Forward Contract as on 31[st] Dec’20 in ~ $ 151 Mn
If the spot rate remains at same level (as at 31[st] Dec’20), forex gain on current forward contracts could be ~$ 2.3 Mn

* Outstanding forward contracts excludes Cyient DLM

Cyient Metrics (Excluding Design Led Manufacturing)

Cyient Metrics (Excluding Design Led Manufacturing) (1/3)

By Geography (%)

	Q3 FY21	Q2 FY21	Q3 FY20
Americas	53.2%	53.4%	57.5%
Europe, Middle East, Africa	28.2%	28.6%	25.5%
Asia Pacific (including India)	18.6%	18.0%	16.9%

By Business Unit (%)

	Q3 FY21	Q2 FY21	Q3 FY20
Aerospace and Defense	25.3%	27.1%	32.2%
Transportation	13.8%	14.3%	11.1%
Energy and Utilities	12.9%	11.5%	14.5%
Semiconductor, IoT and Analytics	5.3%	5.3%	4.9%
Medical, Technology and Healthcare	2.9%	3.1%	2.4%
Communications	29.5%	28.4%	24.4%
Portfolio	10.3%	10.4%	10.5%

Onsite/offshore Split (%)

	Q3 FY21	Q2 FY21	Q3 FY20
Onsite	53.1%	53.2%	54.8%
Offshore	46.9%	46.8%	45.2%

^There was an error in the Q2 FY21 onshore/offshore mix in the Q2 FY21 presentation which has been corrected now

Cyient Metrics (Excluding Design Led Manufacturing) (2/3)

Currency Mix (%)

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Q3 FY21 Q2 FY21 Q3 FY20
USD 52.3% 53.3% 55.0%
EURO 14.4% 10.0% 14.0%
GBP 9.7% 9.8% 10.0%
AUD 12.0% 12.6% 9.0%
Others 11.6% 14.4% 12.0%
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Account Receivables (in Days)

	Q3 FY21	Q2 FY21	Q3 FY20
DSO Total	93	96	94
- Billed	68	65	55
- Unbilled	25	31	39

Utilization (%)

	Q3 FY21	Q2 FY21	Q3 FY20
Utilization	80.9%	78.8%	79.3%

Cyient Metrics (Excluding Design Led Manufacturing) (3/3)

Top Clients: Revenue Contribution (%)

		Q3 FY21	Q2 FY21	Q3 FY20
Top	5	35.3%	34.8%	36.6%
Top	10	47.0%	45.4%	49.3%

No. of Million $ Clients

	Q3 FY21	Q2 FY21	Q3 FY20
20 Mn+	3	3	4
10 Mn+	7	7	11
5 Mn+	25	27	23
1 Mn+	82	85	77
New Clients Added	13	16	13

Employee

	Q3 FY21	Q2 FY21	Q3 FY20
Total Headcount	11,559	11,639	13,854
Technical & Pool	10,669	10,760	12,847
Non-Technical	327	298	364
Support	563	581	643

Cyient Metrics (Design Led Manufacturing)

Cyient Metrics (Design Led Manufacturing) (1/3)

^ Income Statement - Abridged (In ₹ Mn)

	Q3 FY21	Q2 FY21	Q3 FY20
Net Revenue	1,921	1,546	1,076
Direct Salaries & other costs	270	262	233
Material Cost	1,319	1,076	661
Gross Profit	333	209	182
SG&A	64	76	147
Depreciation & amortisation	65	60	34
EBIT	204	72	2
Others	-33	-76	-24
Profit Before Tax	170	-4	-23

^Includes B&F Design and NewTech

By Geography (%)

	Q3 FY21 Q2 FY21 Q3 FY20
Americas	30.8% 31.2% 49.9%
Europe, Middle East, Africa	12.5% 30.1% 20.9%
Asia Pacific (including India)	56.7% 38.7% 29.2%

Cyient Metrics (Design Led Manufacturing) (2/3)

By Business Unit (%)

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Q3 FY21 Q2 FY21 Q3 FY20
Aerospace and Defense 65.1% 56.4% 59.6%
Transportation 1.6% 0.4% 0.0%
Energy & Utilities 7.5% 6.5% 14.8%
Medical 25.6% 36.5% 24.4%
Communications 0.2% 0.3% 1.2%
Portfolio 0.0% 0.0% 0.0%
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Currency Mix (%)^

	Q3 FY21	Q2 FY21	Q3 FY20
USD	73.0%	68.0%	79.0%
EURO	23.5%	4.6%	4.0%
AUD	1.8%	0.0%	0.0%
Others	1.4%	27.4%	16.9%
^Includes B&F Design and NewTech

Cyient Metrics (Design Led Manufacturing) (3/3)

No. of Million $ Clients^

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Q3 FY21 Q2 FY21 Q3 FY20
5 Mn+ 7 5 5
2 Mn+ 12 11 10
1 Mn+ 12 11 16
New Clients Added 0 0 0
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^Includes B&F Design and NewTech

Key Operational Metrics^

	Q3 FY21	Q2 FY21	Q3 FY20
Headcount	628	628	618
DSO (in Days)	68	60	94
DPO (in Days)	83	84	110
Customer Advance (in Days)	38	64	103
Inventory (in Days)	95	102	155
Total Cash (₹ Million)	562	611	541
^Includes B&F Design and NewTech

Investment Pipeline & Focus Areas: Q3 FY21

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M&A Corporate Investments
Vertical focused Medical tech,
11
M&A strategy in key Communication
0 1 [^]
geographic markets; 0 0 Technology, IoT/M2M
Pre-LOI LOI Signed/Closed large acquisitions Evaluations Signed/Closed & Advanced avionics
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*Pre LOI and LOI reflect a balance position

^Acquired IG Partners post approval of Foreign Investment Review Board of Australia

**Active Investment Pursuits – Specific focus areas[*]**

A&D Comms Health care Digital/Industry 4.0
• Aviation solutions in • Planning and design • Hardware, software and • Build capabilities in Connected Intelligence, Surveillance & engineering services for system integration for product Manufacturing, Connected Reconnaissance (ISR) and Wireline & Wireless providers development for firms in Supply Chain and ERP-MESPower systems in Avionics • Network Analytics medical engineering services PLM integration
• Digital after market/MRO and • Managed SD-WAN services • DLM, Embedded HW & SW, • ETL; data extraction and Industry 4.0 solutions in with single/multi homing Product Dev, V&V manipulation capabilities to Defence setups for Enterprises. • Process automation, RPA drive digital transformation

Other capabilities

Embedded systems Power Electronics Automotive
• Embedded system engineering • Hardware and Software • Embedded HW-SW, IT, IoT, AR capabilities in Aerospace, engineering solutions in Power VR and Analytics capabilities Defence, Medical, Automotive, conversion, Inversion and • Infotainment , ADAS, ECU’s, Rail transportation and distributions systems Power electronics, Powertrain communications domain and Connected cars /platforms
Integrated plant engineering services in clean tech space; layout, piping, electrical and structural designing of plants
Location based services
Broad inorganic strategy focused on consolidation as an Engineering Player, Strengthen core and Gain scale while bringing focus on Software and Digital services/solutions including Industry 4.0 and high growth segments

For more information, please visit www.cyient.com. Follow news about the company at @Cyient.

Contact Details:

Investor Relations

Media Relations

Mayur Maniyar

Direct: +91 40 67641537

Board: +91 40 67641000 (Extn-1537) Mobile: +91 9224126705 Email: [email protected]

Reet Sibia Gwari Direct: +91 40 6748 9917 Board: +91 40 6748 9100 (Extn-3917) Mobile: + 91 97047 91326 Email: [email protected]

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:

Partly owned subsidiary: Cyient Solutions and Systems Private Limited.

AI assistant

Cyient Limited — Investor Presentation 2021

60361_rns_2021-01-21_e45782b5-cde0-45ff-8995-016468065c0b.pdf

CYI l:NT

Confidentiality Statement

Leadership team

Highlights

Highlights for the Quarter (1/3)

Revenue

Financial Highlights for Quarter

Highlights for the Quarter (2/3)

Leadership position in Engineering and R&D Services in Zinnov ratings

Thales - 2020 Supplier Performance Award

SPRINT partners with Cyient to facilitate collaboration in Space Data and Technologies

Highlights for the Quarter (3/3)

Signed an MoU with SaaS Provider Decipher to support the Global Rollout of Key Cloud Mining Platform

Collaboration with SR University to help advance the field of Additive Manufacturing

Proposal: Performance linked ESOP Scheme

Objective

Scheme Details

Criteria

Revenue for Q3 FY21

Income statement for Q3 FY21

QoQ EBIT Movement

Profit After Tax Movement

EBIT margin bridge for Q3 FY21

Cash Generation for Q3 FY21

Cash Generation

BU performance Q3 FY21

The need for a new structure

New Go-To-Market (GTM) Organization Structure

Our Go-to-Market (GTM) structure is realigned into:

BU performance per new structure Q3FY21

Business Performance & Outlook (1/3)

Aerospace & Defense

Communications

Transportation

Business Performance & Outlook (2/3)

E&U

MTH

Portfolio

Business Performance & Outlook (3/3)

SIA

DLM

Investor Relations

Media Relations

Disclaimer

Wholly-owned and step down subsidiaries:

Joint venture: Infotech HAL Ltd

Thank you

Message from the Management

Message from the Management

Consolidated Financial Metrics

Key Financial Metrics

Key Financial Metrics

Consolidated Revenue Segmentation

By Geography (%)

By Business Unit (%)^

Consolidated Operations Metrics

Account Receivables (in Days)

Order Intake ($ Mn)^

Consolidated Client Metrics

Top Clients: Revenue Contribution (%)

No. of Million $ Clients

Consolidated Employee Metrics

Employee

Consolidated Other Financial Metrics

Capex (₹ Mn)^

Cash Position (₹ Mn)

Consolidated Income Statement

Consolidated Balance Sheet

Consolidated Cash Flow Movement

Other Income for Q3 FY21

Income from Treasury

For the quarter

Hedge Book for Q3 FY21

Outstanding ForwardContracts[*]

Booked Rate (in ₹ ) for next 12 Months

Cyient Metrics (Excluding Design Led Manufacturing)

Cyient Metrics (Excluding Design Led Manufacturing) (1/3)

Cyient Limited Investor Presentation 2021

**Outstanding ForwardContracts[*]**

**Active Investment Pursuits – Specific focus areas[*]**