Cyan TechnologySmart Energy Solutions for

Metering and Lighting

5 July 2012

Proactive Investors

Presentation

John Cronin

Appointed Executive Chairman

17 May 2012

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Cyan Holdings plc (AIM: CYAN.L)

Shareholders (29/06/2012)Share Data (29/06/2012)

Price 0.45p

Shares Issued 1,657.33m

Market Cap £7.46m

52 Weeks Range 0.36p - 1.04p

P Lobbenberg

10.6%Legal &

General 8.8%

Brewin Dolphin 5.6%

Current & Former

Directors 5.5%

MD Barnard 5.3%

Investec 3.1%

Individual & Other

Investors 61.1%

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Cyan‟s Markets4

Smart Metering

● Complete scalable

solution for smart metering

● Wireless mesh and point to point

meter reading in license free

bands

● Best in class range and system

robustness

● Electricity metering plus battery

powered gas and water metering

Smart Lighting

● Smart lighting solution for

energy efficient lighting control

and measurement

● Street lights, tunnels, car parks

and public locations

● Can control all types of lamps

including sodium, LED and Xenon

(HID)

● Lamp dimming, bulb failure etc.

Electricity Distribution Environment in India 5

● Test recreates how meters are

tampered to disable

● Meters must withstand 35kV

„cattle prod‟ test

● Please do not try this at home!

Acid Test - © Morris Company

Six

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Questions

Acid Test - © Morris Company

Six questions every investor should ask:

1. Are you solving a big problem, preferably one that is worth a lot of money and is

recognisable today?

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Acid Test - © Morris Company

Six questions every investor should ask:

2. Is your solution differentiated, compelling and

sustainable?

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Acid Test - © Morris Company

Six questions every investor should ask:

3. Does your venture have an understandable and relevant business

model given your solution and the problem it addresses?

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Acid Test - © Morris Company

Six questions every investor should ask:

4. Have you assembled a team and partners with distinctly relevant

experience to make the business happen?

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Acid Test - © Morris Company

Six questions every investor should ask:

5. Do you have a reasonable and believable strategy for getting to market

and building a potentially sizable and market-leading business reasonably

quickly?

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Acid Test - © Morris Company

Six questions every investor should ask:

6. What kind of momentum has already been established in the business and in the

marketplace (especially with customers)

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Smart Metering - Global Market Opportunity

Highlights

● 2.8 billion meters worldwide

● Currently ~ 10% automated

● Business, regulatory and environmental drivers for automation

● Europe moving to smart meters over next decade

Asia Pacific MarketGlobal Market

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Key Developments for 2011-2012

● First volume order received for Cyan in India, > US$1 million for

electricity metering, deliverable in 2H2012

● TNEB first tender issued for 1.5 million meters out of requirement for

18 million meters

● Cyan fully integrated into five leading meter manufacturers, with two

more in process

● Cyan and Larsen & Toubro entered into strategic partnership

● Cyan and Wipro entered into an alliance

● Appointments of John Cronin and Geoff Sarney (ex-head of Smart

Metering at Telefonica, China experience/mandarin speaker)

● Cyan entered into a strategic partnership agreement with the

Shanghai Yaming Lighting Co.

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India Market Opportunity – Smart Metering & Grids

● Peak power deficit ~ 18%

● Losses in Transmission and Distribution ~ 28%

- Low metering efficiency

- Tampering and theft ~ $11bn p.a. (The Economist)

● India spending ~ $8bn to encourage state utilities to

reduce losses

● 100 million+ smart meters expected to be installed in

next 5-7 years.

● India „Smart Grid Task Force‟ to fund pilot projects

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Partnerships, India – System Integrators

● Wipro (www.wipro.com)

■ Strategic alliance – Wipro will provide IT services

● Company M (Under NDA) (India System Integrator)

■ Integrating their Oracle based interface for Smart Grid show in

July.

● Company T (Under NDA) (India SI)

■ Partnership for utility project in Q3/04

● Company S (Under NDA) (Worldwide SI)

■ Collaboration on a smart meter project

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Partnerships, India – meter manufacturers

● Cyan technology now fully integrated with Capital Power Systems

and 4 other leading meter manufacturers (under NDA)

■ Capital is a leading supplier of TNEB

■ Submitted Cyan enabled meters for 1.5 million units tender, March 2012

■ Cyan pilot running in Noida, Delhi – showcasing to top 10 customers

● Strategic partnership agreement with Larsen & Toubro (L&T) to

provide Indian utility customers with smart meter solutions

■ Identified a number of projects in India where there is a need for Cyan‟s

solutions

● Integration is underway with two other top 10 manufacturers (which

will result in total Cyan 7 out of 10)

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Tamil Nadu Electricity Board (TNEB) – Key Account

● TNEB is located in Tamil Nadu (Chennai - Madras), south east India.

● 26 million consumers connected to 50 year old electricity network.

● Government of India is providing funding to upgrade their whole infrastructure

over next 5-8 years, including the replacement of 18 million single phase

consumer meters.

● TNEB first tender for 1.5 million wireless meters and second in Q3 is reported

to be for 4 million+.

● Cyan has developed strong relationships at TNEB board level, with chairman

and executive directors as well as their existing meter suppliers, system

integrators and central government agencies in the ecosystem.

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Source: Athena Infomatics

Business update, India - TNEB

● Nov 2011: TNEB published tender for 1.5mln meters in the first

phase - anticipated to be a total upgrade programme of 18mln

● Feb 2012: 16 companies submitted proposals, 5 based on Cyan‟s

technology, including 2 suppliers of TNEB

■ Vast majority of the other companies not able to meet the tender

specification requirements

● June 2012: 4 Cyan partners now authorised by TNEB to proceed

with pilots of 500 units which will be installed and monitored for 60

days

● Sept 2012: TNEB first tender decision expected

Announcement transformational for Cyan

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Chinese market opportunity – smart lighting

● New „Energy Management Contracts‟ (EMC) to tap 2

billion Yuan (US$300 million)

● EMC companies set up to cut national energy usage by

upgrading existing street lighting

● EMC companies encouraged to maximise energy

savings

● EMCs in developed cities: Shanghai, Guangzhou and

Beijing – now being promoted in smaller Chinese cities

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Partnerships, China – lighting companies

● Shanghai Yaming Lighting Co.

■ Strategic partnership to supply smart lighting control

systems

■ Integration of Cyan lighting module into Yaming‟s

products Q2 2012

■ Yaming manufactured 16 million lights in 2011

● Philips Lighting Division agreed to manufacture

a standard ballast that will connect to Cyan

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Incremental Opportunity - Machine-2-Machine

● M2M next major opportunity for the

wireless terminal (module) and chip

industry

● Existing applications show 23% CAGR

for ~200 million devices

● Completely new applications are

emerging

● This represents a 10x expansion in the

number of links than conventional

phones (Est. 5 billion in 2010)

Explosion in M2M applications

“50 billion devices

connected by 2020”John Cunliffe CTO Ericsson, NW Europe 2010

Talking about M2M Communications

Source: ABI Research, Nielson Research, Telecom.com

$10bn

$8bn

$5bn

$3bn

$0bn

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Contact information

Please contact Cyan at information@cyantechnology.com

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Additional Materials

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Summary

● Cyan Holdings plc (“Cyan”) - AIM listed company providing smart energy solutions for metering

and lighting

● Cyan’s CyNet™ core technology - platform for the rapid and cost effective deployment of smart

grid metering and energy efficient smart lighting. This includes wireless mesh networking, scalable

and secure communication with remote units and enterprise software for full end to end system

integration

● Cyan‟s focus markets are emerging markets, where power management is driven by energy

shortage, and high density areas, where deployment of low data throughput wireless mesh

networks solves key energy issues

● Cyan is committed to becoming the dominant smart grid AMI wireless communication solutions

supplier in India and a leading smart lighting suppler in China , where power management is

driven by energy shortage

● Smart Metering: Cyan has fully integrated products and has formed key partnerships and

consortia for bids with leading Meter Vendors, System Integrators and utilities companies

● Smart Lighting: Cyan has signed a strategic agreement with China‟s largest street lighting

manufacturer, has won significant orders and is currently integrating its products with other

manufacturers

● Cyan has developed innovative pricing with competitively priced hardware and a recurring license

and royalty revenue model

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Strategy

● Be recognised as the leading provider of smart energy solutions for the utility and

lighting sectors in emerging markets.

● Sell our proven technology in India and China to capitalise on the rapid growth of the

markets with the view to building out the organisation with local specialist employees.

● Increase customer penetration through partnerships and build consortia for large-

scale tender submissions to electricity boards.

● Organisation building: roll out legal entity, staff and manufacturing operations in India

and increase marketing and sales capability to increase new sales.

● In smart metering Cyan is positioned for significant growth through the adoption of its

solutions by leading meter vendors, system integrators and utilities.

● In smart lighting Cyan has signed a strategic agreement with China‟s largest street

lighting manufacturer, Shanghai Yaming lighting Co. and agreed with Philips to

manufacture a standard easy to integrate ballast for Cyan‟s CyLux™.

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Implementing CyLec® Networks 27

Cyan key features and benefits

● Cyan provides innovative solutions that reduce energy consumption

for the utility and lighting markets:

■ Core technology is a platform for the rapid and cost effective

deployment of smart grid metering and energy efficient smart lighting

■ CyNet™, a wireless mesh networking protocol for scalable and secure

communications with remote units as well as Cyan‟s enterprise software

for full end-to-end system integration

■ First class support and managed services to assist in the planning and

integration of its solutions

■ Software as a Service (SaaS) model

■ Technology helps customers with revenue assurance

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Competitive advantages and competition

● Cyan provides a world class, smart grid ready AMI communication solution, field proven for Indian

conditions. Main features:

■ End-to-end from meter to utility back office

■ Interoperable across multiple meter designs

■ Well integrated with demand response, MDM systems

■ Robust, scalable mesh network capability

■ Extensible with inbuilt flexibility to adapt to changes

● Cyan has key partnerships in place that complement its communication solution for smart grids.

Its technology allows considerable power and cost savings in the markets that it currently

addresses. These are obtained through control, verification and management of the end

customers‟ products.

● The main wireless technologies competing with Cyan are based on the Zigbee protocol which was

designed for low power mesh-based control systems at 2.4GHz. Unlike Zigbee based

competitors, Cyan‟s products:

■ Transmit better and more effectively in communicating over longer distances and within buildings

■ Offer easy interoperability between meters manufactured by different suppliers

■ Are complete end-to-end system that interfaces to the MDMS (Meter Data Management System) large scale

deployments being planned

■ Have performed better than its competitors in a wide range of pilots and trials in China, Hong Kong, India

and Europe

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New innovative pricing model

● Competitive hardware and roadmap for licensing to third parties:

■ License model for meter hardware

■ Manufacturing model for data concentrator (security / revenue tracking)

● Recurring licence and royalty revenue model:

■ Connect to powerful market leaders MDMS (Oracle, SAP, IBM..….)

■ Per usage per meter continuous revenue

■ Tier model based on required services (same model as Oracle)

■ License to system integrators for bundling into services to utilities

■ Competitive with current manually captured data methods

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Evolution

● Cyan is evolving from a hardware manufacturer to a service provider

delivering global, wireless networks for Machine-to-Machine (M2M)

communications.

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India market ecosystem

Funders R-APDRP Smart GridPGCLPrivate Utilities

MDMS

PlayersMecomsOracle Phoenix SAPIBM

Utilities TNEB JuscoAP

Eastern

AP

CentralMSEDC

MP

CentralBSES

TTDPL

(NDPL)Haryana Bescom

SI‟s CMCTCSMahindra

SatyamWipro

KPIT

CummingsSiemens

UB

EngineeringSpanco

HCL

Tech

Solution

PlayersCyan MoxaKalkitechEchelonSensus

Silver

SpringTendril

Smart

SyncRTone

Data

CarriersIdeaAirtel

Tata

DocomoReliance Telefonica Vodafone

Component

PlayersCyan DigiMelangeEmberRadiocrafts Silabs Maxim

Meter

VendorsL&G

HPL

SocomecElsterL&TLinkwellCPS Secure Matrix ElymerGenus

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Cyan Board of Directors

John Cronin (Executive Chairman)

John Cronin was recently appointed a Non-Executive Director and will take over as Executive Chairman at close of the

Annual General Meeting on 17 May 2012. John Cronin has been instrumental in several key sector mergers and acquisitions

and in raising equity, debt facility and vendor financing. He has created significant value for shareholders with four company

exits at Azure Solutions, i2, Netsource Europe and Picochip totalling over US$600m. He holds or has held posts of

Chairman, CEO, NED, executive or adviser to GCI Com, Antenova, Aria Networks, Picochip, Arqiva, Azure

Solutions, Subex, i2, Cambridge Networks, Kast, Netsource, Next2Friends, Bailey Fisher, BT, Mercury (C&W) and been

adviser to several private equity and VC firms.

Dr John Read (NED)

Dr John Read is an experienced manager with a record of developing profitable high-tech semiconductor businesses. In the

late 1990s he was a director of GEC Plessey Semiconductors and joint president of GPS Inc. In California. Since then he has

been involved with a number of fabless startups: he was a director of Alphamosaic Limited (which was sold to Broadcom

Europe Limited), and served on the board of Anadigm Limited from 2000 to 2003. He is an active mentor for the Cambridge

Entrepreneurship Centre and for SETSquared in Surrey.

Other positions held include technical director of Texas Instruments in the UK, technical director at STC

Telecommunications, and director of engineering at Honeywell's Solid State Electronics in Minnesota. Dr Read is a director of

the semiconductor company Si-Light Technologies Limited and a director of Iceni Advisory Limited. He became a Director of

Cyan in November 2005 and was appointed Chairman in October 2007.

Simon Smith (NED)

Simon joined the board in March 2010. He is an experienced financial executive with over twenty years' experience in the

semiconductor and technology sectors. He is currently an independent adviser to both start-up and listed technology

companies providing a range of assistance including fund raising, business planning and contract negotiation.

Prior to establishing himself as an independent adviser in 2007, Simon held the position of Chief Financial Officer/Director of

Finance at multi-national businesses in both the UK and USA since 1997 and his experiences include multiple business

acquisitions/disposals, fund raising, business planning, cash management and customer contract negotiation. Simon qualified

with the Institute of Chartered Accountants in England & Wales in 1991.

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Cyan Senior Management Team

Bijan Mohandes (VP World Wide Sales & Marketing)

Bijan Joined Cyan in December 2009 having over 22 years experience in Sales & Marketing following a 15 year engineering

design background. He has spent most of his recent career organising sales & distribution networks worldwide and

developing business in key fast growing markets whilst employed by Analogictech, Nemerix, Micrel and Siliconix & Temic.

Stephen Page (VP Engineering)

Stephen joined Cyan in 2004 having over 20 years experience in embedded systems design and implementation. Spending

much of his career in freelance consultancy he has worked on a diverse range of systems for many global

companies, including development of next generation secure smart cards with the Secure Products Team of NatWest

Bank, consumer digital TV, video and graphics products for Pace plc and Imagination Technologies, pre payment electricity

meters for Schlumberger and many other projects including those with Shell, BP, BNFL, NPL and the RAF Institute of

Aviation medicine.

Geoff Sarney (VP Strategy)

Geoff joins Cyan from Telefonica/O2 on 2nd July 2012 where he was Head of Smart Metering/Smart Architecture. In this

role, he led Telefonica‟s Smart Metering Implementation Program as well as building partnerships through the Smart

Architecture Alliance Program. Geoff was a regular presenter at Smart Metering events on behalf of Telefonica and is widely

recognised as an industry expert in this domain. Prior to Telefonica, Geoff worked for a two year period in China on

strategy, clean energy and the smart grid (for China). During the 8 year period from 2001 to 2008, Geoff worked for

Siemens, including three years as Head of M&A, Strategy and Planning for Siemens Energy Services, where he led the

smart grid initiative on a global basis.

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Our brand

● A single strong recognised brand

● One integrated, productised portfolio

● Updated website to reflect new strategy

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