Slide 1: Cover letter to stock exchanges
7th November, 2020 National Stock Exchange of India Limited BSE Limited Exchange Plaza, Bandra Kurla Complex, P.J. Towers, Dalal Street Mumbai Mumbai Kind Attn: Manager, Listing Department Kind Attn: Manager, Listing Department Email Id: neaps@nse.co.in Email Id: listing.centre@bseindia.com Stock Co
Slide 2: Sonata Software Investor Presentation Q2 2021
Sonata Software Investor Presentation Q2 2021 1 © Sonata Software Ltd, 2020. Confidential.
Slide 3: Sonata Vision
Sonata Vision For the Customers IT Partner of choice for A world class firm transformation thru deeper industry, that is a benchmark for technology & customer focus Catalyzing Business Transformation for our Clients, Fulfilling Employee Aspirations & For the Employee Caring for our wider A fun & fea
Slide 4: Sonata – Corporate Entity
Sonata – Corporate Entity 30+ YEARS 4000+ TEAM $427+ M REVENUE SEI CMMI L5, ITIL The Company as a IT Solutions 15% 3 Yr. CAGR across US, EU, Asia & ISO certified Provider & ANZ CPG , distbn,& MFG RETAIL TRAVEL SOFTWARE VENDORS Industry Focus Consumer Goods, Industrial Apparel, Hard Goods, TO, OTA, A
Slide 5: Sonata Story – differentiated strategy
Sonata Story – differentiated strategy • Platformation™ • Long term relationships with clients • Alliance with Microsoft • IP led – investment in IP in key industries • Engineering excellence and investment in advanced technologies • Track record of running mission critical operations on cloud with
Slide 6: Vertical Focus
Vertical Focus • Retail, travel, distribution & CPG, ISV, Commodity Trading, and services industry – field services • IP – Brick and Click, Modern Distribution, Agri Business, Rezopia, service industry, GBW • Platform led Digital Transformation • Track record 5 © Sonata Software Ltd, 2020. Confident
Slide 7: What is different about Platformation as a tool for Digital Transformation
What is different about Platformation™ as a tool for Digital Transformation • Sonata’s structured process for Platformation comprises the following : • Digital Business Process Library & Identification • CDAT based approach • Platform Maturity Assessment ( Separate Business & Technology maturity ass
Slide 8: Platformation
Platformation™ Platforms - the secret behind the digital economy’s most successful companies OPEN SCALABLE CONNECTED INTELLIGENT Sonata’s approach to Digitizing business using platforms PLATFORMATION™ 7 © Sonata Software Ltd, 2020. Confidential.
Slide 9: Approaches to achieve Platformation
Approaches to achieve Platformation™ Sonata Sonata Sonata READY ACCELERATE CUSTOM • End-to-end, industry- • Deploy popular • Engineer custom specific digital horizontal platforms platforms that deliver business platforms adding required unique digital functionality capability and scalability Omni ch
Slide 10: Global Full Stack Microsoft Partner aligned to the Digital Transformation vision
Global Full Stack Microsoft Partner aligned to the Digital Transformation vision 25 Years 360 Partner Partnership MICROSOFT PARTNER 15 Gold certified Product Engineering, competencies. Skills in GISV, lSP, CSP, ISV Dev Centre, SI. Professional support, Delivery, Dynamics 365, Power BI, Country Partn
Slide 11: Delivering value through our innovative engagement models
Delivering value through our innovative engagement models Customer-Specific Center of Excellence • Governance • Value Co-creation • Leadership role • SLAs and outcomes • Strategic metrics • Co-investment in IP TECHNOLOGY | SKILLS | ASSETS | PROCESSES Domain Knowledge | Technical Knowledge | Knowledg
Slide 12: With a team nurtured to make a difference
With a team nurtured to make a difference Regular exposure to newer technologies, evolving business Deeper roles scenarios, and building cross-functional expertise Customer Continuous exposure to clients to assess business impact of impact solutions delivered Freedom Our flexible working style encou
Slide 13: Financials
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Slide 14: Strong Execution
Strong Execution • Growth from existing clients • Acquiring new clients • Strong growth in new clients • Alliance led growth • IP led growth • Platformation™ led growth • Margin levers on utilization and revenue per person • High-end service mix • Digital execution and growth • Strong growth in Indi
Slide 15: Financial Management
Financial Management • Focus on ROCE and RONW • Focus on margins • Focus on strong cash management • Sound capital allocation • Very strong credit and risk management in India business 14 © Sonata Software Ltd, 2020. Confidential.
Slide 16: Revenue – last 12 Quarters
Revenue – last 12 Quarters International Services Domestic Business 350 330 325 1,000 304 304 313 912 288 900 300 275 284 276 257 800 235 241 242 681 250 700 607 revenue in rs cr revenue in rs cr 600 563 537 574 523 200 530 500 437 150 389 399 400 326 100 300 200 200 50 100 - - Q2 18Q3 18Q4 18Q1 19Q
Slide 17: International Business Revenue Growth
International Business Revenue Growth International Revenue $Mn Revenue Growth Trend 50.0 46.8 43.5 44.3 45.4 44.4 39.0 $200 45.0 39.2 40.8 $180 40.0 37.4 37.4 37.8 36.5 $160 $34 revenue in usd mn 35.0 $140 $24 $15 30.0 $120 $4 25.0 $100 20.0 $80 $147 $60 $129 $138 15.0 $117 10.0 $40 5.0 $20 $- - FY
Slide 18: Consistent Growth Over Last 8yrs
Consistent Growth Over Last 8yrs Consolidated Revenue and EBITDA 4,000 3,743 3,500 2,961 3,000 2,371 2,454 Amount in Rs Cr. 2,500 1,941 2,000 1,682 1,566 1,500 1,311 1,000 366 431 500 191 239 246 278 59 117 - FY 13 FY 14 FY 15 FY 16 FY 17 FY 18 FY 19 FY 20 Revenue EBITDA 17 © Sonata Software Ltd, 20
Slide 19: International IT services – Revenue by Customers
International IT services – Revenue by Customers New Customer Revenue from Top Customers No of Customer by Geo 12 ANZ, 25 Europe, 34 10 75% 73% 85% 73% 71% 8 80% 69% Asia, 10 75% 65% 66% Middle East, 2 6 70% 64% 65% 59% 61% 10 60% 9 55% 59% 4 57% 57% 7 50% 53% 55% 6 6 45% 2 40% India, 23 Q2 20 Q3 20
Slide 20: Revenue - High end Service Mix and Vertical Mix
Revenue - High end Service Mix and Vertical Mix Revenue by Verticals Revenue by Competency 2.0% 1.8% 1.8% 2.0% 2.3% 2.4% 100% 5.0% 4.0% 6.0% 6.0% 6.0% 5.9% 3.0% 3.0% 3.0% 3.0% 3.0% 3.0% 2.2% 100% 4.5% 4.0% 3.6% 4.0% 3.1% 2.3% 3.0% 3.0% 4.0% 6.0% 7.4% 7.2% 9.6% 90% 90% 15.4% 15.0% 14.3% 13.2% 18.0% 1
Slide 21: Platformation and IP Led Revenue
Platformation and IP Led Revenue IP Led Revenue % Platformation Revenue % 35% 33% 33% 33 18% 30 30% 27 24% 25% 25% 26 17% 25% 23 20% 16% 15% 18% 15% 17% 10% 16% 5% 16% 14% 15% 0% Q2 20 Q3 20 Q4 20 Q1 21 Q2 21 13% % of Contribution on Total Revenue Platformation Revenue % No. of Customers 20 © Sonata
Slide 22: Digital Revenue
Digital Revenue Digital Revenue % 65% 60% 60% 54% 55% 50% 45% 37% 38% 38% 40% 35% 30% 25% 20% 15% 10% 5% 0% Q2 20 Q3 20 Q4 20 Q1 21 Q2 21 21 © Sonata Software Ltd, 2020. Confidential.
Slide 23: International Business - Revenue Enablers
International Business - Revenue Enablers Onsite/Offshore Revenue Utilization & Billability 95% 88% 89% 100% 90% 87% 85% 85% 83% 80% 56% 58% 59% 62% 63% 80% 60% 75% 78% 79% 40% 77% 75% 70% 44% 42% 41% 38% 37% 20% 70% 65% 0% 60% Q2 20 Q3 20 Q4 20 Q1 21 Q2 21 Q2 20 Q3 20 Q4 20 Q1 21 Q2 21 Onsite Offsh
Slide 24: Human Capital
Human Capital Overall Head Count 4,400 4,177 4,181 4,211 4,111 3,885 4,200 236 235 235 4,000 267 199 196 185 3,800 183 262 3,600 173 3,400 3,746 3,746 3,791 3,661 3,200 3,450 3,000 Q2 20 Q3 20 Q4 20 Q1 21 Q2 21 Headcount by Business Type Delivery S&M G&A 4,400 4,181 4,177 4,211 4,200 4,111 145 149 1
Slide 25: Domestic Business – Revenue & Customer Mix
Domestic Business – Revenue & Customer Mix Domestic Revenue (Annuity/Others) Domestic Revenue by Cloud/Non Cloud 120% 120% 100% 100% 80% 40% 38% 36% 36% 34% 80% 44% 44% 43% 41% 39% 60% 60% 40% 40% 60% 62% 64% 64% 66% 56% 56% 57% 59% 61% 20% 20% 0% 0% Q2 20 Q3 20 Q4 20 Q1 21 Q2 21 Q2 20 Q3 20 Q4 20 Q
Slide 26: Domestic Business - Gross Contribution
Domestic Business - Gross Contribution 40 36 9.0% 32 33 35 8.0% 29 30 30 30 30 27 7.0% 8.0% 6.0% 25 4.8% 5.8% 5.0% 20 5.5% 5.2% 5.4% 4.0% 15 4.4% 3.9% 3.0% 10 2.0% 5 1.0% - 0.0% Q3 19 Q4 19 Q1 20 Q2 20 Q3 20 Q4 20 Q1 21 Q2 21 Gross Contribution in INR Cr. Gross Contribution % 25 © Sonata Software Lt
Slide 27: EBITDA, PBT and PAT – last 12 Quarters
EBITDA, PBT and PAT – last 12 Quarters International Services International Services EBITDA International Services PBT International Services PAT 100.0 89.5 91.6 90.0 70.0 90.0 84.4 72.3 77.6 80.0 80.0 70.4 72.9 71.6 72.6 60.4 60.0 56.1 57.8 80.0 73.5 76.0 75.8 70.4 70.0 63.5 57.7 51.2 52.1 52.5 53.
Slide 28: Strategic Investment
Strategic Investment M&A Investment 50.0 39.5 40.6 40.0 34.1 30.0 20.0 13.4 10.0 4.3 0.6 - FY 16 FY 17 FY 18 FY 19 FY 20 H1 21 M&A Investment in INR Cr IP & R&D Investment S&M Investment 31.8 32.3 62.9 35.0 70.0 30.0 25.2 60.0 49.2 22.2 42.2 25.0 20.4 50.0 36.7 20.0 40.0 13.4 25.3 24.3 15.0 30.0 10.
Slide 29: International and Domestic ROCE & RONW
International and Domestic ROCE & RONW ROCE RONW 50% 45% 40% 42% 37% 39% 40% 35% 40% 35% 35% 31% 32% 29% 29% 30% 30% 33% 25% 30% 29% 30% 30% 28% 20% 24% 20% 22% 23% 23% 15% 10% 10% 5% 0% 0% Q2 20 Q3 20 Q4 20 Q1 21 Q2 21 Q2 20 Q3 20 Q4 20 Q1 21 Q2 21 Int Serv Domestic Serv Int Serv Domestic Serv 28 ©
Slide 30: Capital Allocation Cash Deployment
Capital Allocation Cash Deployment Capital Allocation Judicious Usage Capex, 3% 30,000 28,018 24,927 25,000 21,295 19,253 20,000 15,859 15,634 13,369 13,408 Shareholders 15,000 11,042 Invested, 44% 10,710 9,464 9,464 Payout, 41% 10,000 7,361 5,000 - - FY 15 FY 16 FY 17 FY 18 FY 19 FY 20 HY 21 Acquis
Slide 31: Days Sales Outstanding
Days Sales Outstanding Consolidated DSO 70 58 60 55 50 50 44 44 45 41 37 40 30 20 10 - Q3 19 Q4 19 Q1 20 Q2 20 Q3 20 Q4 20 Q1 21 Q2 21 International Services DSO Domestic Services DSO 60 57 70 63 59 47 47 60 50 44 52 40 41 41 42 47 47 50 42 43 40 40 33 30 30 20 20 10 10 - - Q3 19 Q4 19 Q1 20 Q2 20 Q
Slide 32: Cash conversion & Credit Management – Domestic Business
Cash conversion & Credit Management – Domestic Business Cash conversion positive Trends Avg Borrowing & Int Cost 80 100 80 3,000 70 90 70 80 2,500 60 60 70 2,000 50 60 50 40 50 40 1,500 30 40 30 1,000 30 20 20 20 500 10 10 10 - - - - Q3 18 Q4 18 Q1 19 Q2 19 Q3 19 Q4 19 Q1 20 Q2 20 Q3 20 Q4 20 Q1 21
Slide 33: Thank you
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