Slide 1: Exchange filing cover letter for investors' presentation
7th May, 2024 National Stock Exchange of India Limited BSE Limited Exchange Plaza, Bandra Kurla Complex, Mumbai P.J. Towers, Dalal Street, Mumbai Kind Attn: Manager, Listing Department Kind Attn: Manager, Listing Department Stock Code – SONATSOFTW Stock Code - 532221 Dear Sirs/Madam, SUB: INVESTORS’
Slide 2: Q4 FY'24 Investor Presentation
A Modernization Engineering Company Q4 FY’24 Investor Presentation www.sonata-software.com
Slide 3: Sonata at a Glance
38 $1B+ 15.10% Years IT solutions provider Revenue CAGR across 10 years SONATA Public Listed 6400+ 18 AT A (SONATSOFTW) Market Cap Engineers across US, EU, Different GLANCE $2.4B+ Asia & ANZ nationalities Delivering Outcome-based Modernization Services We are a Modernization and a Digital Engineerin
Slide 4: Serving our Global clients with right talent mix
India Development Centers: Canada Europe Bangalore (3) Offices: Netherlands Middle East Hyderabad (2) Serving our Mexico Denmark Chennai Toronto Qatar Richmond Germany APAC Offices: Global clients North America China Korea Africa Bangalore Development Center: UK (London) & Chennai Japan Philippines
Slide 5: Key Verticals, Partners, IPs
KEY VERTICALS, PARTNERS, IPS Industries Innovation: IPs TMT LISA Chatbot Technology, Media and (Conversational AI) Telecom Partnership Workbox.io Tech Domain (Archival) RMD Ecosystem Retail, Manuf., Travel and Distribution Lightning Build + BFSI Banking, Financial Services and Insurance Sustainabili
Slide 6: A Modernization Engineering Company
A MODERNIZATION ENGINEERING COMPANY © Sonata Software Ltd, 2024. Confidential 5
Slide 7: Our Objective and Goal
Our Objective and Goal Objective: Be the fastest-growing Modernization Engineering company Goal: Revenue of $ 1.5B by FY 26 end. Intl EBITDA @ low-20’s A MODERNIZATION ENGINEERING COMPANY © Sonata Software Ltd, 2024. Confidential 6
Slide 8: Our Performance Vision
Revenue Growth (In $M) SCALE – Key Drivers Our Performance ~$1.5B Vision: Making progress and Harvest Invest Microsoft sell-to; Dynamics Sales, Large deals, adapting to changing +$500M Sustain SITL momentum BFSI, Healthcare Life times… Retail, Manufacturing, Sciences and technical Travel and TMT cap
Slide 9: In FY24 we crossed $1B in Revenue Run-rate & $2B In Market Cap
In FY24 we crossed $1B in Revenue Run-rate & $2B In Market Cap Intl. Services Rev. $M SITL GC INR Cr 90 80.9 83.7 81.7 80 71.3 77.3 80 70 61.8 62.4 64.8 70 65.8 56.8 58.3 60.6 60 53.6 55.7 56.8 57.8 50.8 60 53.4 45.4 47.5 50 50 40 40 30 30 20 20 10 10 0 0 Q3'22 Q4'22 Q1'23 Q2'23 Q3'23 Q4'23 Q1'24 Q2
Slide 10: Stock Return of ~90%+ For Our Shareholders over the past one year
Stock Return of ~90%+ For Our Shareholders over the past one year 800% 700% 600% Total Return to Shareholders 500% 1 Yr 5 Yrs 400% Stock Price Return %** 89% 475% Div Yield 1% 6% 300% * Till Mar 28, 2024 200% Market Data NSE Symbol SONATSOFTW 100% Market Cap** $ 2.4B * 1 USD = INR 83.40 # Annualized
Slide 11: What's working well for us
What’s working Large Deals well for us… 14 Large deals won during FY’24 Quant M&A Integrated with Sonata systems Modernization Cloud & Data pipeline is 40% Verticals/Partnerships Retail/Manufacturing, BFSI, HLS, TMT and MS, AWS SITL Steady GC growth A MODERNIZATION ENGINEERING COMPANY © Sonata Softw
Slide 12: Large Deals
Large Deals: Key Deal Win 67 Client: large deals under pursuit Top Financial $3.9 M over 1 Year E2E data Platform Services Bank modernization to cloud 52% of Large deals pipeline are with Large Deals in the pipeline Fortune 500 clients RMD TMT HLS BFSI Emerging 31 13 13 4 6 A MODERNIZATION ENGINEERI
Slide 13: Quality Of Growth – Top Client's Movement
Quality Of Growth – Top Client's Movement Top 10 Accounts Q3 FY 23 Q4 FY 24 New Logos FY 24 4 2 2 Fortune 50 clients clients clients 5 3 7 Fortune 500 clients clients clients 30% of Top 10 Accounts are Fortune 500 Companies vis-à-vis 30% in previous year Outside of Top 10, We have added 7 New Fortun
Slide 14: Large Deal Win: Building Customer 360
Large Deal Win: Client Overview Top 10 US Commercial Bank, offering wide range of financial services Building Customer Industry 360 BFSI Areas in Scope Building effective Single View of Customer – Customer 360 across all businesses Client Client HQ Overview USA Enhance Customer Experience Integrated
Slide 15: Key Deal Win: GenAI implementation
Customer is a US based tech organization; they generate the evidence and insights to help pharmaceutical, biotech, medical Key Deal Win: Client Overview device and diagnostics companies, and academic researchers accelerate value, minimize risk, and optimize outcomes. GenAI implementation Industry Ar
Slide 16: Key bets for the future
Key bets for the future …. Microsoft Fabric AI & Gen AI Pipeline created across 75+ customers; Joint GTM Harmony.AI launched; Pipeline created We believe Fabric as infra for all AI deals; MS GTM funding across 90+ customers; Mid sized deals Mid sized deals won AWS – Rescale Program won Continued foc
Slide 17: Sonata's Responsible-first AI offering
Geared towards building an AI first culture; We are helping Clients in 3 ways Sonata’s 1 2 3 Leveraging AI to drive Responsible-first Leveraging AI to drive efficiencies higher consumer Driving innovative business model experience/modern sales AI offering for Enterprise scale – 30 Programs Pursuing
Slide 18: Our GTMs are aligned with our Partners and investment focus
Our GTM’s Cloud Apps Data & Microsoft Service Experience Hyper Managed are aligned Modernization Analytics Business Apps Transformatio n Automation Services with our Partners and our investment focus… MSFT Market Place Partners A MODERNIZATION ENGINEERING COMPANY © Sonata Software Ltd, 2024. Confide
Slide 19: Microsoft-Sonata Partnership: 30+ Years of jointly driving Customer Success
Microsoft-Sonata Partnership: 30+ Years of jointly driving Customer Success Sonata named again in Inner Circle for Microsoft Business Application 2023-24 AI/Gen-AI 400+ Clients $650+ Million Partner for RPA Partner for Across The Globe Migration 100 Microsoft Fabric Industry Partnership Per Annum Re
Slide 20: Success Stories (1/2): Digital Solution for Business Process & Experience Transformation
Success Stories (1/2)… Client Industry Presence Leading mortgage Overview BFSI 16 locations worldwide provider in US Digital Solution for Business The Pressure Points Solutions Results Process & • Customer experience was not up to mark - • Performed Load Testing for 10 Million users for different ty
Slide 21: Success Stories (2/2): Dynamic Modernization for safer & secure world
Success Stories (2/2)… Client Industry Locations Global leader in Overview Retail & Manufacturing > 70 countries access solutions Dynamic Modernization The Pressure Points Solutions Results for safer & • Need for Standardization & Harmonization of Trading & • Implementation of D365 Across operating
Slide 22: Key Recognition
Key Recognition A MODERNIZATION ENGINEERING COMPANY © Sonata Software Ltd, 2024. Confidential 21
Slide 23: People – Strength of Sonata
People – Strength of Sonata A MODERNIZATION ENGINEERING COMPANY © Sonata Software Ltd, 2024. Confidential 22
Slide 24: Financial Management
Financial Management 1 2 3 4 High Revenue growth with Strong Cash Position Superlative returns for Sound Capital Industry Leading margins & Balance Sheet Shareholders Allocation Focus on high revenue Very strong positive Industry leading Sound capital rate realization and cash generation and ROCE an
Slide 25: Consistent Growth over last 10 years
Consistent Growth over last 10 years Consolidated Revenue & profitability ($Mn) Revenue EBITDA PAT 87 58 56 1040 76 51 926 66 39 745 37 53 51 50 33 570 30 528 37 23 23 436 21 381 27 29 29 354 270 288 FY 15 FY 16 FY 17 FY 18 FY 19 FY 20 FY 21 FY 22 FY 23 FY 24 FY 15 FY 16 FY 17 FY 18 FY 19 FY 20 FY 2
Slide 26: International Services – delivered Top Quartile Performance in FY 24
International Services – delivered Top Quartile Performance in FY 24 FY 24: YoY Revenue Growth 34% Industry Leading Returns Stable DSO performance < 50 350.0 30.0% 323.6 25.3% 300.0 24.4% 39.2% 23.0% 23.4% 25.0% 38.2% 241.0 21.0% 36.1% 45 45 250.0 34.30% without 20.0% 38.3% 34.4% Acq. Loan 203.0 37.
Slide 27: Financial Performance of International Services – Q4 FY24
83.7 81.7 EBITDA & PAT in $ Mn 65.8 Financial Revenue in $ Mn *Adj. PAT 2.4% QoQ Performance of 1.2 24.1% YoY 18.9 *$10. 3 *PAT 17.7% QoQ International 4 13.6 14.1 1.24 1.22 Constant 10.3 9.2 Currency 8.5 7.9% YoY Services – 2.2% QoQ Q4 FY23 Q3 FY24 Q4 FY24 Q4 FY23 Q3 FY24 Q4 FY24 24.3% YoY Q4_FY24
Slide 28: Client Concentration
18 No. of $ Million Customers New Customers added 12 15 International 8 7 5 11 13 Business: 5 49 Revenue 43 43 Drivers Q4 23 1-3 Mn Q3 24 3-5 Mn 5+ Mn Q4 24 Q4 23 Q3 24 Q4 24 Revenue by Geography 15% 16% Client Concentration 28% 14% 14% 20% 71% 70% 52% Q4 23 Q3 24 Q4 24 USA Europe Rest of World Incl
Slide 29: International Business: Operational Performance
6,134 International 6,055 6,016 87.4% Business: 86.4% 352 323 85.8% 358 Operational 104 107 116 Performance 5,628 5,675 5,542 Q4 23 Q3 24 Q4 24 Q4 23 Q3 24 Q4 24 Delivery S&M G&A Total Utilization Headcount by Function Continued strong utilization A MODERNIZATION ENGINEERING COMPANY © Sonata Softwar
Slide 30: International Business: Revenue by Verticals Mix for Quarter
International Business: Revenue by Verticals Mix for Quarter Q3 FY24 Q4 FY24 Healthcare Healthcare 11% 12% BFSI BFSI 17% TMT 14% TMT 31% 36% Revenue Revenue Share Share Emerging Emerging 8% 4% Retail and Manufacturing Retail and Manufacturing 34% 35% A MODERNIZATION ENGINEERING COMPANY © Sonata Soft
Slide 31: International Business: Revenue by Verticals Mix for Year
International Business: Revenue by Verticals Mix for Year FY23 FY 24 Healthcare Healthcare 11% 12% BFSI 8% BFSI TMT TMT 17% 30% 33% Revenue Revenue Emerging Share Share 9% Emerging 6% Retail and Manufacturing Retail and Manufacturing 36% 39% A MODERNIZATION ENGINEERING COMPANY © Sonata Software Ltd,
Slide 32: International Business: Revenue by Top GTMs for Quarter
International Business: Revenue by Top GTMs for Quarter Q3 FY 24 Q4 FY 24 Others Others Emerging Emerging Tech 6% Tech 6% 10% 12% Cloud Cloud Revenue 36% Revenue 36% Share Share Dynamics Data Dynamics Data 23% 24% 24% 22% A MODERNIZATION ENGINEERING COMPANY © Sonata Software Ltd, 2024. Confidential
Slide 33: International Business: Revenue by Top GTMs for the Year
International Business: Revenue by Top GTMs for the Year FY 23 FY 24 Others Emerging Others Emerging 6% 2% Tech Tech 13% 10% Cloud 38% Cloud 36% Revenue Revenue Share Share Dynamics Dynamics 25% Data 36% Data 21% 13% A MODERNIZATION ENGINEERING COMPANY © Sonata Software Ltd, 2024. Confidential 32
Slide 34: Domestic Business: Delivering consistently strong growth with industry leading ROCE
Domestic Business: Delivering consistently strong growth with Industry leading ROCE Cloud ~79.7% 9.5% YoY Annuity ~77.1% EBITDA 4.0% YoY GC 11.0% YoY Net working Capital ÷ Revenue (INR crs) 1,800 Gross Contribution & 71 Gross Contribution 65 EBITDA (INR crs) 1,515 58 59 56 1,383 54 Q4 23 Q3 24 Q4 24
Slide 35: Thank You
The fastest growing firm in IT Services in the next 3-4 years Thank You