Slide 1: Investor Presentation Q2 FY'24
Investor Presentation Q2 FY’24
Slide 2: Sonata at a glance
Sonata at a glance We are a Modernization and a Digital Engineering company powered by our unique PLATFORMATION™ framework. The Company Delivering Outcome-based Modernization Services 38 YEARS Cloud AI & Data IT Solutions Provider $990M+ Revenue 15.4% CAGR Managed Services Dynamics across 10 years L
Slide 3: Serving our Global clients with right Talent mix
Serving our Global clients with right Talent mix (Global & Local Talent) APAC Canada China Offices: Japan North America Toronto Singapore Development Center: Europe Malaysia Richmond Netherlands Redmond Korea Denmark Philippines Germany Offices: Thailand Atlanta, GA Vietnam Fremont, CA Bridgewater,
Slide 4: Key Verticals, Partners, IPs
Key Verticals, Partners, IPs Industries Ecosystem: Partnerships Tech + Domain TMT: Technology, Media and Telecom Sustainability Target: RMD: Retail, Manuf., Innovative IPs Carbon Neutrality Travel and Distribution by 2030 LISA Chatbot BFSI: Banking, (Conversational AI) Single Use Plastic Free certif
Slide 5: © Sonata Software Ltd, 2023. Confidential.
5 © Sonata Software Ltd, 2023. Confidential.
Slide 6: Our Objective and Goal
Our Objective and Goal Objective: Goal: Be the fastest-growing Modernization Revenue of $ 1.5B by FY 26 end. Engineering company Intl EBITDA @ low-20’s 6 © Sonata Software Ltd, 2023. Confidential.
Slide 7: Our Performance Vision
Our Performance Vision: Making progress and adapting to changing times… Revenue Growth (In $M) SCALE – Key Drivers ~$1.5B Microsoft sell-to; Dynamics Harvest Sustain SITL momentum Retail, Manufacturing, Travel and TMT +$580M Sales, Large deals, BFSI, Healthcare Life Sciences Invest and technical cap
Slide 8: In Q2 we crossed $80M
In Q2 we crossed $80M right after crossing $75M in Q1 Intl. Services Rev. $M SITL GC INR Crs 90 80.9 70 61.8 62.4 77.3 58.1 80 56.7 60 53.6 65.8 50.8 70 60.5 47.4 55.7 56.8 57.8 50 45.1 60 53.4 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 Q2'24 Q3'22 Q4'22 Q1'23 Q2'23 Q3'
Slide 9: Stock Return of 100%+ For Our Shareholders over the past one year
Stock Return of 100%+ For Our Shareholders over the past one year 600% 500% 460% 400% 300% Total Return to Share Holders 1 Yr 5 Yrs 226% Stock Price Return %** 105% 382% 200% 184% Div Yield 2% 8% * Till Sep 29, 2023 100% Market Data NSE Symbol SONATSOFTW 0% Market Cap** $ 1.8B 29-Sep-18 29-Mar-19 29
Slide 10: What's working well for us…
What’s working well for us… Large Deals Quant M&A Modernization Verticals / Partnerships SITL 10 Large deals won YTD Integrated with Sonata Cloud & Data pipeline Retail/Mfg., BFSI, HLS, TMT) and Steady GC systems is 38% (MS, AWS) growth 10 © © Sonata Sonata Software Software Ltd, Ltd, 2023. 2023. Co
Slide 11: Large Deals under pursuit
Large Deals: 35 large deals under pursuit. 38% of Large deals pipeline are with Fortune500 clients 60% of Top 10 Accounts are Fortune 2000 Companies vis-à-vis 30% in previous year Key Large Deal Wins Large Deals in the pipeline Client - Premier 3rd party logistics $12.6M over 3 Years Logistics appli
Slide 12: Quality of growth – Top clients movement
Quality of growth – Top 10 clients movement Q1 FY 23 Q2 FY 24 Logos in Pipeline 2 4 5 Fortune 50 clients clients clients 3 5 10 Fortune 500 clients clients clients 12 © Sonata Software Ltd, 2023. Confidential.
Slide 13: Large Deal Win - Logistics application hosted on Azure
Large Deal Win - Logistics application hosted on Azure ($12.6 M) Client Overview Premier Third-Party Logistics company that provides creative supply chain solutions with an asset-lite transportation and distribution services Areas in Scope Industry IT Services to build and maintain Creative Logistic
Slide 14: Large Deal Win – Business Services: F&O, Implementation of D365
Large Deal Win – Business Services: F&O, Implementation of D 365 ($6.4 M) Client Overview Client provides high-bandwidth connectivity and global managed network services including managed ICT, cyber security, and UCaaS solutions, to a range of blue-chip customers inclusive of Hyperscalers, telecommu
Slide 15: Key bets for the future
Key bets for the future …. Microsoft Fabric AI & Gen AI Joint GTM Harmony.AI launched; Pipeline created Pipeline created across 70+ customers MS GTM funding- first tranche received; across 50+ customers AWS – Rescale Program Continued focus Verticalization Focused GTM Large Deals Mega accounts 15 ©
Slide 16: Sonata's Responsible-first AI offering – Harmoni.AI
Sonata’s Responsible-first AI offering for Enterprise scale – Harmoni.AI Geared towards building an AI first culture 30 Internal Harmoni.AI Platform Cases for Responsible AI 03 04 Active Offerings and Conversations 02 05 methodology at 50+ accounts Harmoni.AI published 01 06 All functions Core team
Slide 17: Our GTM's are aligned with our Partners and investment focus
Our GTM’s are aligned with our Partners and our investment focus… Cloud Apps Microsoft Service Experience Hyper Data & Analytics Managed Services Modernization Business Apps Transformation Automation MSFT Market Place Partners 17 © Sonata Software Ltd, 2023. Confidential.
Slide 18: Microsoft-Sonata Partnership: 30+ Years
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 $650+ Million Across The Globe Partner for RPA Partner for Industry Partnership Per Annum Revenue To Microsoft USA, Europe,
Slide 19: Success Stories (1/2) Unified Digital Solution for Business Process Transformation
Success Stories (1/2)…Unified Digital Solution for Business Process Transformation Industry Employees Client Overview Manufacturing > 6000 Leading Sustainable Belting Solution Company The Pressure Points Solutions Results • Standardization and optimization • Unified and efficient digital solution •
Slide 20: Success Stories (2/2) AI enabled FinOps Transformation
Success Stories (2/2)…AI enabled FinOps Transformation Industry Employees Client Overview Telecom > 1600 Leading secure global network services provider The Pressure Points Solutions Results • Manual FinOps processes - high • Devised strategic roadmap to • Automation and reducing cycle time costs an
Slide 21: Key Recognition
Key Recognition 21 © Sonata Software Ltd, 2023. Confidential.
Slide 22: People – Strength Of Sonata
People – Strength Of Sonata 22 © Sonata Software Ltd, 2023. Confidential.
Slide 23: Financial Management
Financial Management 1 2 3 4 High Revenue growth Strong Cash Position Superlative returns for Sound Capital with Industry Leading & Balance Sheet Shareholders Allocation margins Focus on high revenue Very strong positive Industry leading Sound capital rate realization and cash generation and ROCE an
Slide 24: Consistent Growth Over Last 10 years
Consistent Growth Over Last 10 years Consolidated Revenue & profitability ($Mn) Revenue EBITDA* PAT 926 75 56 66 51 745 53 51 39 50 37 570 33 528 30 436 37 381 23 23 354 27 29 29 21 270 288 254 17 13 FY 14 FY 15 FY 16 FY 17 FY 18 FY 19 FY 20 FY 21 FY 22 FY 23 FY 14 FY 15 FY 16 FY 17 FY 18 FY 19 FY 2
Slide 25: Financial Performance Of International Services – Q2 FY24
Financial Performance Of International Services – Q2 FY24 Industry leading QoQ growth in Revenue and EBIDTA; Process improvements result in Collection rigour $80.9 $20.0 $77.3 4.6% QoQ EBITDA & PAT in $ Mn Revenue in $ Mn $57.8 40.0% YoY $15.0 14.8% QoQ 28.8% YoY $10.0 Constant Currency $16.3 $18.7
Slide 26: Client Concentration
International Business: Revenue Drivers No. of $ Million Customers New Customers added 11 12 11 10 6 5 5 4 4 45 48 34 Q2 23 Q1 24 Q2 24 Q2 23 Q1 24 Q2 24 1-3 Mn 3-5 Mn 5+ Mn 72% Revenue by Geography 69% 70% 62% 61% Client Concentration 58% 17% 25% 20% 16% 15% 19% 64% 69% 56% Q2 23 Q1 24 Q2 24 Q2 23
Slide 27: International Business: Operational Performance
International Business: Operational Performance Utilization Headcount by Function 6,500 6,267 6,092 84.2% 6,000 361 109 371 111 5,500 5,240 82.7% 280 5,000 98 82.0% 4,500 5,797 5,610 4,000 4,862 3,500 3,000 Q2 23 Q1 24 Q2 24 Q2 23 Q1 24 Q2 24 Delivery S&M G&A Total Continued strong utilization 27 ©
Slide 28: International Business: Revenue by Verticals Mix
International Business: Revenue by Verticals Mix Verticals : BFSI & HLS in investment phase; 4.7% QoQ growth Q1 FY24 Q2 FY 24 Healthcare Healthcare 11% 14% TMT TMT BFSI 18% 26% BFSI 27% 21% Revenue Revenue Share Share Emerging Emerging 5% 5% Retail and Retail and Manufacturing Manufacturing 37% 36%
Slide 29: International Business: Revenue by Top GTMs
International Business: Revenue by Top GTMs Cloud and Data continuous to be more than 50% Q1 FY 24 Q2 FY 24 Emerging Tech Emerging Tech 10% 10% Others Others 6% 6% Cloud Cloud Revenue 38% Revenue 39% Share Share Dynamics 23% Data Dynamics 20% Data 26% 22% 29 © Sonata Software Ltd, 2023. Confidential
Slide 30: Domestic Business: Delivering Consistently Strong Growth
Domestic Business:– Delivering Consistently Strong Growth With Industry Leading ROCE Cloud ~78.9% EBITDA 19.7% YoY Annuity ~75.9% Gross Contribution & EBITDA (INR crs) Net working Capital ÷ Gross Contribution GC 16.7% YoY 19.5% YoY 62 63 1.04 1,392 0.99 1.1 0 56 56 54 1,244 1.0 0 47 Revenue (INR crs
Slide 31: Thank You
The fastest growing firm in IT Services in the next 3-4 years Thank You