Slide 1: Exchange filing cover letter: Investors Presentation
25th January, 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 Dec 2019
Sonata Software Investor presentation Dec 2019 1 © Sonata Software Ltd, 2019. Confidential.
Slide 3: Sonata Vision
Sonata Vision For the Customers A world class firm IT Partner of choice for that is a benchmark for transformation Catalyzing Business thru deeper industry, technology & Transformation for our Clients, customer focus Fulfilling Employee Aspirations & Caring for our wider For the Employee Community A
Slide 4: Sonata - Evolution
Sonata - Evolution ’86-’92 : Indian Software Product Pioneer ’92 – ’12 : 360 IT Service Provider Produced and distributed its ’13 – ’16 Digital Extends core own portfolio of ’17+Platformation capability to software products Industry focused services in global digital Software Platform and IP solutio
Slide 5: Sonata - A Snapshot
Sonata - A Snapshot 30+ YEARS $427+ M 4000+ TEAM SEI CMMI L5, The Company as a IT Solutions REVENUE across US, EU, ITIL & ISO Provider 15% 3 Yr. CAGR Asia & ANZ certified CPG & MFG RETAIL SOFTWARE Industry Consumer Goods, TRAVEL Apparel, Hard VENDORS Industrial TO, OTA, Airline, Focus Goods, Grocery
Slide 6: Sonata Story
Sonata Story • Platformation™ • Long term relationships with clients • Alliance with Microsoft • IP led • Engineering excellence and advanced technologies • Track record of running mission critical operations on cloud with own IP • Over all growth story last 8 years and recognition • Talent stabilit
Slide 7: Differentiated Strategy
Differentiated Strategy • IP-led Service Offerings • Platformation™ • Alliances • Acquisitions and Competency around MS Tech • Domestic Business 6 © Sonata Software Ltd, 2019. Confidential.
Slide 8: Vertical Focus
Vertical Focus • Retail, travel, distribution & CPG, ISV, Commodity Trading, and services industry – field services • IP – Brick and Click, Modern Distribution, CTRM, Rezopia • Platform led Digital Transformation • Digital Business Process Library • Client Digital Agenda Templates • Track record 7 ©
Slide 9: 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 asses
Slide 10: 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™ 9 © Sonata Software Ltd, 2019. Confidential.
Slide 11: 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 12: Best-in-class Microsoft Partner
SONATA, A BEST‐IN‐CLASS MICROSOFT PARTNER (Top 1%) 25 Years 13 Gold 3600 MICROSOFT PARTNER CERTIFIED COMPETENCIES PARTNER GISV, lSP, CSP, ISV Dev Centre, SI. Dynamics 365, MS 4 areas – Business Applications, Apps & Infra, Country Partner India 2014, 15, 17. Power BI, Cortana Data & AI and, Modern Wo
Slide 13: Microsoft's Global strategy
Microsoft’s Global strategy Solution Areas Partner Practices KEY EXECUTION PLAN / PLAYS Collaboration 1. Adoption Drive for Teams, Yammer, OneDrive Modern Modern Desktop 2. PowerApps Practice 3. Upsell motion to M365 E3/E5 Workplace Security and compliance 4. Bots for Teams Cloud Voice 5. Security C
Slide 14: Sonata Retail Offerings
Sonata Retail Offerings Digital Journey Phase-> Digitize Infrastructure and Digital Customer Digital Smart Operations Digital Innovation Sonata offerings ↓ applications Experience • Differentiate backend office operations through Mobile/IoT devices • Implement Omni- • Reimagine products, business •
Slide 15: Sonata Case Study
Sonata Case Study Business Challenges Sonata’s Solution Benefits • Outdated rail passenger reservation • Rezopia Rail Platform is a next generation rail • Increased business capability with web based system reservation system capable of addressing all our application and efficient process for ancill
Slide 16: 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 17: 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 18: Our CSR Programs
Our CSR Programs Traditional Arts, Textile Preservation of our Education Education and Handicrafts Cultural Heritage IIIT-B (Bangalore), IISc WomenWeave Agastya Museum of Art & (Bangalore) (Maheshwar), The (Kuppam),Telangana Photography (Bangalore) Kishkinda Trust (Koppal) Yuvathi Mandali “We encour
Slide 19: Financials
CTO SONATA SOFTWARE
Slide 20: 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 utilisation and revenue per person • High-end service mix • Digital execution and growth • Strong growth in Indi
Slide 21: 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 20 © Sonata Software Ltd, 2019. Confidential.
Slide 22: Revenue – last 12 Quarters
Revenue – last 12 Quarters 21 © Sonata Software Ltd, 2019. Confidential.
Slide 23: International IT services – Revenue by Customers
International IT services – Revenue by Customers 22 © Sonata Software Ltd, 2019. Confidential.
Slide 24: IP Led Revenues
IP Led Revenues 23 © Sonata Software Ltd, 2019. Confidential.
Slide 25: Revenue by Competency
Revenue by Competency 24 © Sonata Software Ltd, 2019. Confidential.
Slide 26: Digital Revenues as % of Revenues
Digital Revenues as % of Revenues 25 © Sonata Software Ltd, 2019. Confidential.
Slide 27: International & Domestic Business - Revenue Enablers
International & Domestic Business - Revenue Enablers 26 © Sonata Software Ltd, 2019. Confidential.
Slide 28: International Business Revenue Growth
International Business Revenue Growth * Figures for FY20 are YTD. CAGR is on annualized basis. 27 © Sonata Software Ltd, 2019. Confidential.
Slide 29: Domestic Business - Gross Contribution
Domestic Business - Gross Contribution 40 12% 11% 35 36 10% 32 30 29 30 8% 27 8% 25 24 25 25 8% 24 20 21 21 6% 20 6% 6% 6% 15 5% 5% 5% 5% 4% 4% 4% 10 2% 5 - 0% Q4 17 Q1 18 Q2 18 Q3 18 Q4 18 Q1 19 Q2 19 Q3 19 Q4 19 Q1 20 Q2 20 Q3 20 GC GC% 28 © Sonata Software Ltd, 2019. Confidential.
Slide 30: Going Deeper, casting wider
Going Deeper, casting wider 29 © Sonata Software Ltd, 2019. Confidential.
Slide 31: EBITDA – last 12 Quarters
EBITDA – last 12 Quarters 30 © Sonata Software Ltd, 2019. Confidential.
Slide 32: PAT – last 12 Quarters
PAT – last 12 Quarters 31 © Sonata Software Ltd, 2019. Confidential.
Slide 33: Consistent Growth over last 8yrs
Consistent Growth over last 8yrs 32 © Sonata Software Ltd, 2019. Confidential.
Slide 34: Other Strategic Investments
Other Strategic Investments 80.00 70.14 70.00 60.00 50.00 45.63 39.52 Revenue CAGR 40.00 34.05 of 17% 30.00 20.00 13.36 10.00 0.64 - 2014 2015 2016 2017 2018 2019 M&A 33 © Sonata Software Ltd, 2019. Confidential.
Slide 35: Consolidated – ROCE & RONW
Consolidated – ROCE & RONW 34 © Sonata Software Ltd, 2019. Confidential.
Slide 36: Capital Allocation Cash Deployment
Capital Allocation Cash Deployment 3% 30% Capex Share holder Pay out 53% Acquisition Invested 14% 2015 to 2019 35 © Sonata Software Ltd, 2019. Confidential.
Slide 37: Cash conversion & interest cost– Domestic Business
Cash conversion & interest cost– Domestic Business Cash conversion positive Trends Declining trend in Avg Borrowing 80.00 100 & Int Cost 90 140.00 14,000 70.00 80 120.00 12,000 60.00 70 100.00 10,000 50.00 60 80.00 8,000 40.00 50 40 60.00 6,000 30.00 30 20.00 40.00 4,000 20 10.00 20.00 2,000 10 - 0
Slide 38: Cash & Credit management – Domestic Business
Cash & Credit management – Domestic Business Bad Debts as a % of sales 0.50% 0.40% 0.30% 0.20% 0.11% 0.10% 0.07% 0.06% 0.06% 0.02% 0.01% 0.00% 0.00% 0.00% FY 12-13 FY 13-14 FY 14-15 FY 15-16 FY 16-17 FY 17-18 FY 18-19 FY 19-20 YTD Bad debts as % of sales 37 © Sonata Software Ltd, 2019. Confidential.
Slide 39: Thank you
CTO SONATA SOFTWARE