Slide 1: Investors' Presentation filing letter to NSE and BSE
4th August, 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 Code
Slide 2: Sonata Software Investor Presentation Q1 2022
Sonata Software Investor Presentation Q1 2022 1 © Sonata Software Ltd, 2020. Confidential.
Slide 3: Sonata - A Snapshot
Sonata - A Snapshot 4200+ TEAM 34 YEARS $550+ M REVENUE across US, EU, Asia, SEI CMMI L5, ITIL The Company as a IT Solutions 14% 3 Yr. CAGR ANZ, Japan, & ISO certified Provider Malaysia, and China CPG & MFG SERVICES AGRI & RETAIL TRAVEL SOFTWARE Industry Consumer Goods, Industrial Apparel, Hard TO,
Slide 4: Sonata Vision
Sonata Vision For the Customers IT Partner of choice for transformation A world class firm thru deeper industry, technology & that is a benchmark for customer focus Catalyzing Business Transformation for our Clients, Fulfilling Employee Aspirations & For the Employee Caring for our wider A fun & fea
Slide 5: Sonata – In 4 'P's
Sonata – In 4 ‘P’s •Employees as consultants •Common goals •Employees as family •Lasting relationships •Employees as enablers •Shared values •Employees as citizens •Growing together People Partners Platforms Performance •PlatformationTM Advantage •Value creation •Platform engineering •For customers
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 • Customer Digital Agenda led based approach • Platform Maturity Assessment ( Separate Business &
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: Engineering Excellence
Engineering Excellence Focused approach • Industry Specialization • Retail, travel, distribution & CPG, ISV, Commodity Trading, and Services Industry – Field Services • Expertise through IP’s • Brick and Click, Modern Distribution, Agri Business, Rezopia, Service Industry, GBW • Proprietary & proven
Slide 11: Global Full Stack Microsoft Partner aligned to the Digital Transformation vision
Global Full Stack Microsoft Partner aligned to the Digital Transformation vision 30 Years 3600 Partnership 18 Gold certified & 8 MICROSOFT PARTNER Advanced specializations Product Engineering, GISV, lSP, CSP, ISV Dev Centre, SI. Skills in Dynamics 365, Azure, Professional support, Delivery, Country
Slide 12: 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 13: 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 14: Financials
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Slide 15: Strong Execution
Strong Execution International Services Domestic Business • Platformation™ led growth • Strong Customer Retention • IP led growth • Established Customer Base • Alliance led growth • Strategic shift towards cloud • Deeper revenue mining from existing clients leading to faster growth • Addition of new
Slide 16: Financial Management
Financial Management • Focus on high revenue rate realization and high margins business • Focus on Reduction of DSO days • Very strong positive cash generation and cash position • Industry leading ROCE and ROE • Sound capital allocation 15 © Sonata Software Ltd, 2020. Confidential.
Slide 17: Consistent Growth Over Last Years
Consistent Growth Over Last 10 years Consolidated Revenue & EBITDA 4,500 4,228 4,000 3,743 3,500 2,961 3,000 Amount in Rs Cr. 2,371 2,454 2,500 1,941 2,000 1,566 1,682 1,500 1,311 1,069 1,000 366 431 407 500 191 239 246 278 35 59 117 - FY 12 FY 13 FY 14 FY 15 FY 16 FY 17 FY 18 FY 19 FY 20 FY 21 Reve
Slide 18: Revenue trend for last 12 Quarters
Revenue trend for last 12 Quarters International Services Domestic Business 400 1,200 1,099 350 330 325 319 324 301 304 304 313 276 288 1,000 946 912 300 275 284 257 Revenue in Rs cr 250 800 761 Revenue in Rs cr 607 681 200 563 537 574 600 523 150 437 399 400 326 100 50 200 - - Q1 19 Q2 19 Q3 19 Q4
Slide 19: Financial Performance of International Services – Q1 FY22
Financial Performance of International Services – Q1 FY22 Revenue in INR. Cr EBITDA 200.0 45.0% 180.0 40.0% 160.0 30.0% 323.9 28.4% 35.0% 319.0 140.0 30.0% INR in Crore 23.5% INR in Crore 1.5% QoQ 120.0 25.0% 7.3 % QoQ 100.0 20.0% 80.0 97.1 60.0 90.5 15.0% 50.1 % YoY 17.5% YoY 275.8 40.0 64.7 10.0%
Slide 20: International Business Revenue Growth
International Business Revenue Growth Revenue in $Million New Customer added 14 13 12 $50.0 $43.8 $44.5 10 10 $40.0 $36.5 10 8 $30.0 1.5 % QoQ 8 $20.0 6 21.9 % YoY 4 $10.0 $0.0 2 Q1 21 Q4 21 Q1 22 0 Q2 21 Q3 21 Q4 21 Q1 22 Client Concentration No. of $Million Customers 80% 73% 35 69% 71% 30 31 65% 3
Slide 21: Operational Performance – Q1 FY22
Operational Performance – Q4 FY21 Revenue by Geography No. of Customers by Geo 120% 100% 20% 24% 24% 80% ANZ, 35 QoQ Growth Europe, 40 16% 60% 25% 25% USA – 1.7% Europe – 0.5% Asia, 13 40% 64% ROW – 2.1% 51% 51% Middle East, 2 20% India, 27 0% US, 60 Q1 21 Q4 21 Q1 22 USA Europe Rest of World No. of
Slide 22: Revenue by Vertical Mix
Revenue by Vertical Mix 100.0% 6.0% 7.0% 7.0% 90.0% 3.0% 1.5% 2.0% 6.0% 8.5% 9.1% QoQ Trend 80.0% Vertical 20.0% 21.4% 21.0% Q2'21 Q3'21 Q4'21 Q1'22 70.0% Commodity business & Service Industry -13.5% 24.3% 7.1% 1.1% 60.0% 18.7% 17.8% Distribution & Manufacturing -2.3% 7.6% 11.8% -0.5% 50.0% 29.0% IS
Slide 23: Revenue by high end Service Mix
Revenue by high end Service Mix 1.5% 0.7% 100.0% 2.3% 1.0% 0.8% 3.1% QoQ Trend 7.2% 11.1% 11.6% Service Mix 90.0% Q2'21 Q3'21 Q4'21 Q1'22 9.1% 10.7% 9.8% 80.0% Data & Analytics 18.6% 1.7% 7.1% 10.9% 70.0% Managed Cloud Services 8.4% 13.1% 12.3% 3.4% 60.0% 34.0% 29.2% 29.3% IMS 8.2% -7.3% 1.8% -2.8%
Slide 24: Platformation, IP Led and Digital Revenue %
IP Led Revenue % PlatformationTM Revenue % 34% 35% 35% 33% 33% 33% 20% 17% 18% 18% 18% 30% 25% 20% 15% 10% Q1 21 Q2 21 Q3 21 Q421 Q122 Q1 21 Q2 21 Q3 21 Q421 Q122 Platformation Revenue % % of Contribution on Total Revenue Digital Revenue % 75% 64% 67% 68% 70% 60% 65% 54% 60% 55% 50% 45% 40% 35% 30%
Slide 25: International Business - Revenue Enablers
International Business - Revenue Enablers Revenue by Onsite / Offshore Mix Utilization & Billability 95% 100% 89% 89% 88% 90% 90% 87% 80% 85% 83% 70% 62% 63% 65% 68% 68% 79% 79% 78% 60% Offshore 80% 77% Billability 50% Onsite 75% 40% 70% Utilisation 30% 70% 20% 38% 37% 35% 32% 32% 65% 10% 60% 0% Q1
Slide 26: Human Capital
Human Capital Overall Headcount Headcount by Business Type 4,400 4,250 4,400 4,200 4,111 4,102 4,250 240 3,997 4,200 4,111 4,102 149 4,000 267 3,885 257 3,997 182 4,000 145 146 256 3,885 3,800 G&A 146 183 262 178 3,800 141 S&M 177 Domestic 3,600 Delivery 173 3,600 International 4,101 3,400 3,828 3,9
Slide 27: Domestic Business – Gross Contribution
Domestic Business – Gross Contribution 45.0 40.0 38.0 38.1 38.0 36.0 35.0 32.0 33.0 30.0 30.0 30.1 30.0 8.0% 25.0 20.0 5.8% 5.2% 5.4% 15.0 5.0% 4.4% 3.9% 4.0% 10.0 3.5% 5.0 0.0 Q1 20 Q2 20 Q3 20 Q4 20 Q1 21 Q2 21 Q3 21 Q4 21 Q1 22 Gross Contribution in INR Cr. Gross Contribution % 26 © Sonata Softwa
Slide 28: Domestic Business - Revenue
Domestic Business - Revenue Domestic Revenue (Annuity/Others) Domestic Revenue (Cloud/Non Cloud) 120% 120% 100% 100% 34% 32% 28% 26% 25% 24% 80% 36% 80% 41% 39% 37% 60% 60% 40% 66% 68% 72% 74% 40% 75% 76% 64% 63% 59% 61% 20% 20% 0% 0% Q1'21 Q2'21 Q3'21 Q4'21 Q1'22 Q1'21 Q2'21 Q3'21 Q4'21 Q1'22 % of
Slide 29: 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% 11% 11% 16% 14% 70 36 44 11% 9% 11% 34 37 80% 9% 9% 60 35 14% 10% 14% 9% 9% 50 12% 40 60% 26 24 24 16 17 30 40% 20 65% 66% 66% 68% 27 24 24 27 27 60% 10 20% 0 Q1'21 Q2'21 Q3'2
Slide 30: EBITDA, PBT and PAT – last 12 Quarters
EBITDA, PBT and PAT – last 12 Quarters Domestic Business Domestic Business EBITDA Domestic Business PBT 35.0 31.8 32.4 35.0 30.3 31.0 30.0 27.0 27.3 30.0 24.8 25.1 23.2 25.0 21.2 22.4 22.5 25.0 20.6 21.0 21.0 22.0 19.5 19.6 18.1 18.2 20.0 16.7 17.7 16.9 20.0 15.9 16.4 15.8 15.0 15.0 10.0 10.0 5.0 5.
Slide 31: Strategic Investment
Strategic Investment M&A Investment 50.0 46.3 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 IP & R&D Investment S&M Investment 35.0 32.3 62.9 70.0 28.3 30.0 25.2 60.0 52.3 49.2 25.0 22.2 50.0 42.2 20.4 36.7 20.0 40.0 15.0 30.0 10.0 20.0 5.0 10.0 - - FY 17 FY 18 FY 19 FY 20 FY
Slide 32: International and Domestic ROCE & RONW
International and Domestic ROCE & RONW ROCE RONW 40% 40% 39% 39% 38% 36% 37% 35% 31% 32% 29% 29% 35% 30% 33% 30% 33% 32% 30% 28% 24% 20% 23% 23% 20% 22% 10% 10% 0% 0% Q1 21 Q2 21 Q3 21 Q4 21 Q1 22 Q1 21 Q2 21 Q3 21 Q4 21 Q1 22 International Business Domestic Business International Business Domestic
Slide 33: Capital Allocation
Capital Allocation Cash Deployment 30,000 27,693 24,927 24,396 25,000 21,295 20,000 19,253 3% 15,859 15,634 Amount in Rs. lakhs 15,000 13,369 13,408 Capex 39% Share holder Payout 11,042 48% 10,000 9,464 9,464 Acquisition 7,361 Invested 5,000 4,206 10% - FY15 FY16 FY17 FY18 FY19 FY20 FY21 Consolidate
Slide 34: Days Sales Outstanding
Days Sales Outstanding Consolidated DSO 70 58 60 55 50 50 44 45 47 43 38 37 40 30 20 10 0 Q1 20 Q2 20 Q3 20 Q4 20 Q1 21 Q2 21 Q3 21 Q4 21 Q1 22 International Services DSO Domestic Services DSO 60 57 70 63 59 57 47 47 60 50 44 42 52 41 47 49 36 36 37 50 43 40 39 40 33 30 30 20 20 10 10 0 0 Q1 20 Q2 2
Slide 35: Credit Management – Domestic Business
Credit Management – Domestic Business Average Borrowings & Interest Cost 140 14,000 120 12,000 100 10,000 80 8,000 60 6,000 40 4,000 20 2,000 - - Average Borrowing Interest Cost Domestic Business 1,200 1,099 1,000 912 946 761 amount in rs cr 800 681 574 607 600 523 399 400 186 209 175 203 219 129 15
Slide 36: Thank you
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