Slide 1: Exchange filing cover letter: Investors' Presentation
4th February, 2021 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 Q3 2021
Sonata Software Investor Presentation Q3 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 International Services Domestic Business • Growth from existing clients • Strong Customer Retention • Acquiring new clients • Established Customer Base • Strong growth in new clients • Multi year annuity sales ensure • Alliance led growth revenue continuity & growth • IP led growth
Slide 15: Financial Management
Financial Management • Focus on ROCE and RONW • Focus on margins • Focus on Reduction of DSO days • Focus on strong cash management • Sound capital allocation 14 © Sonata Software Ltd, 2020. Confidential.
Slide 16: Revenue – last 12 Quarters
Revenue – last 12 Quarters International Services Domestic Business 350 330 325 1,200 1,099 304 304 313 276 288 301 300 275 284 1,000 912 241 242 257 250 revenue in Rs cr 800 607 revenue in Rs cr 681 200 530 563 537 574 600 523 437 399 150 389 400 326 100 200 50 - - Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1
Slide 17: International Business Revenue Growth
International Business Revenue Growth International Revenue $Mn Revenue Growth Trend 50 47 $200 44 45 44 44 $180 45 41 41 38 39 39 $160 $34 40 37 36 $24 $140 $15 35 revenue in usd mn $120 $4 30 $100 25 $80 $138 $147 20 $60 $117 $129 15 $40 $20 10 $- 5 FY 17 FY 18 FY 19 FY 20 - Q4 18 Q1 19 Q2 19 Q3 1
Slide 18: Consistent Growth Over Last 8 yrs
Consistent Growth Over Last 8yrs Consolidated Revenue and EBITDA 4,000 3,743 3,500 2,961 3,000 2,454 Amount in Rs Cr. 2,500 2,371 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 10 10 9 ANZ, 27 75% Europe, 36 8 85% 73% 71% 8 80% 71% 69% Asia, 12 75% 6 6 70% Middle East, 2 6 65% 66% 64% 61% 62% 59% 60% India, 23 4 55% 50% 57% 57% 53% 55% 54% US, 54 45% 2 40% Q3 2
Slide 20: Revenue - High end Service Mix and Vertical Mix
Revenue - High end Service Mix and Vertical Mix Revenue by Verticals Revenue by Competency 1.8% 2.0% 2.3% 2.4% 2.0% 100% 6.0% 6.0% 6.0% 5.9% 7.0% 2.3% 1.7% 2.2% 100% 3.6% 4.0% 3.1% 3.0% 3.0% 3.0% 1.3% 7.2% 9.6% 10.6% 3.0% 4.0% 6.0% 7.4% 8.0% 14.3% 13.2% 90% 90% 9.1% 11.7% 19.0% 18.0% 12.3% 80% 20.0%
Slide 21: Platformation and IP Led Revenue
PlatformationTM and IP Led Revenue IP Led Revenue % Platformation Revenue % 35% 33% 33% 33% 33 33 19% 30 30% 26 27 25% 25% 18% 25% 17% 20% 16% 15% 18% 18% 15% 17% 10% 16% 14% 15% 5% 0% 13% Q3 20 Q4 20 Q1 21 Q2 21 Q3 21 Q3 20 Q4 20 Q1 21 Q2 21 Q3 21 % of Contribution on Total Revenue Platformation Re
Slide 22: Digital Revenue
Digital Revenue Digital Revenue % 70% 64% 65% 60% 60% 54% 55% 50% 45% 38% 38% 40% 35% 30% 25% 20% 15% 10% 5% 0% Q3 20 Q4 20 Q1 21 Q2 21 Q3 21 21 © Sonata Software Ltd, 2020. Confidential.
Slide 23: International Business - Revenue Enablers
International Business - Revenue Enablers Onsite/Offshore Revenue Utilization & Billability 95% 89% 89% 100% 90% 87% 85% 85% 83% 80% 58% 59% 62% 63% 65% 79% 79% 80% 77% 60% 75% 75% 40% 70% 70% 42% 41% 38% 37% 35% 20% 65% 0% 60% Q3 20 Q4 20 Q1 21 Q2 21 Q3 21 Q3 20 Q4 20 Q1 21 Q2 21 Q3 21 Onsite Offsh
Slide 24: Human Capital
Human Capital Overall Head Count 4,400 4,211 4,177 4,200 4,111 235 3,997 4,000 235 3,885 267 196 185 256 3,800 183 262 3,600 177 173 3,400 3,746 3,791 3,661 3,564 3,200 3,450 3,000 Headcount by Business Type Q3 20 Q4 20 Q1 21 Q2 21 Q3 21 4,400 Delivery S&M G&A Total 4,177 4,211 4,200 4,111 149 145 3
Slide 25: Domestic Business - Gross Contribution
Domestic Business - Gross Contribution 40.0 38.0 36.0 35.0 32.0 33.0 29.0 30.0 30.0 30.1 30.0 25.0 8.0% 20.0 15.0 5.5% 5.4% 5.8% 5.2% 10.0 4.4% 3.9% 3.4% 5.0 0.0 Q4 19 Q1 20 Q2 20 Q3 20 Q4 20 Q1 21 Q2 21 Q3 21 Gross Contribution in INR Cr. Gross Contribution % 24 © Sonata Software Ltd, 2020. Confide
Slide 26: Domestic Business - Revenue
Domestic Business - Revenue Domestic Revenue (Annuity/Others) Domestic Revenue (Cloud/Non - Cloud) 120% 120% 100% 100% 80% 38% 36% 36% 34% 32% 80% 39% 37% 44% 43% 41% 60% 60% 40% 40% 62% 64% 64% 66% 68% 61% 63% 56% 57% 59% 20% 20% 0% 0% Q3'20 Q4'20 Q1'21 Q2'21 Q3'21 Q3'20 Q4'20 Q1'21 Q2'21 Q3'21 % o
Slide 27: Domestic Business - Gross margin Analysis by customers
Domestic Business - Gross margin Analysis by customers Domestic Customer Count Domestic Customer by GC% 100 120% 90 80 100% 7% 12% 11% 11% 70 36 44 5% 11% 40 34 80% 11% 11% 11% 9% 60 14% 10% 24 12% 14% 50 12% 60% 40 26 22 24 24 30 25 40% 77% 20 64% 65% 66% 60% 10 25 27 24 24 20% 19 0 Q3'20 Q4'20 Q1'
Slide 28: 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 84.4 87.1 77.6 80.0 74.5 90.0 80.0 70.4 72.9 71.6 72.6 60.0 56.1 57.8 80.0 73.5 76.0 75.8 72.3 70.4 70.0 56.6 63.5 60.4 45.1 47.
Slide 29: Strategic Investment
Strategic Investment M&A Investment 57.8 60.0 50.0 39.5 40.0 30.0 20.0 13.4 10.0 4.3 0.6 - FY 17 FY 18 FY 19 FY 20 FY 21* M&A Investment in INR Cr IP & R&D Investment S&M Investment 32.3 62.9 35.0 70.0 26.9 53.3 30.0 25.2 60.0 49.2 22.2 42.2 25.0 20.4 50.0 36.7 20.0 40.0 15.0 30.0 10.0 20.0 5.0 10.0
Slide 30: International and Domestic ROCE & RONW
International and Domestic ROCE & RONW ROCE RONW 50% 45% 40% 42% 39% 40% 35% 40% 35% 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% Q3 20 Q4 20 Q1 21 Q2 21 Q3 21* Q3 20 Q4 20 Q1 21 Q2 21 Q3 21* Int Serv Domestic Serv Int Serv Domestic Serv Vi
Slide 31: Capital Allocation Cash Deployment
Capital Allocation Cash Deployment Capital Allocation Judicious usage 30,000 28,018 3% 24,927 25,000 21,515 20,000 19,253 21,295 47% 40% 15,859 15,634 15,000 13,369 13,408 10,000 11,042 9,464 9,464 7,361 5,000 11% 4,206 - 15 16 17 18 19 20 NM-FY21 Cosnol Pat Share H Payout Capex Share holder Pay out
Slide 32: Days Sales Outstanding
Days Sales Outstanding Consolidated DSO 70 58 60 55 50 45 47 50 44 44 37 40 30 20 10 0 Q4 19 Q1 20 Q2 20 Q3 20 Q4 20 Q1 21 Q2 21 Q3 21 International Services DSO Domestic Services DSO 57 70 60 63 59 57 47 47 60 50 44 52 41 41 42 47 47 36 50 43 40 40 33 30 30 20 20 10 10 0 0 Q4 19 Q1 20 Q2 20 Q3 20 Q
Slide 33: Cash conversion & Credit Management – Domestic Business
Cash conversion & Credit Management – Domestic Business Cash conversion positive trends Avg Borrowing & Int Cost 80 100 140 14,000 70 120 12,000 80 60 100 10,000 50 60 80 8,000 40 40 60 6,000 30 20 40 4,000 20 10 20 2,000 - - - - Negative days Positive days Interest Cost Average Borrowing Interest C
Slide 34: Thank you
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