Sonata Software Limited · NSE:SONATSOFTW
Sonata Software — Q2 FY2018 Earnings Presentation
36 slides from Sonata Software's earnings presentation, November 2017
Slide 1: Sonata Software
SON SONATA SOFTWARE ee © Sonata Software 2017
Slide 2: Experience the power of Platformation - Investor Presentation Q2 FY 17-18
Experience the power of PLATFORMATION Investor Presentation Q2 FY 17-18 Platform-based Digital Business Transformation © Sonata Software 2017
Slide 3: Disclaimer
Disclaimer This presentation may include statements which may constitute forward-looking statements. All statements that address expectations or projections about the future, including, but not limited to, statements about the strategy for growth, business development, market position, expenditures,
Slide 4: Sonata Vision
Sonata Vision For the Customers IT Partner of choice for A world class firm transformation that is a benchmark for thru deeper industry, technology & Catalyzing Business customer focus Transformation for our Clients, Fulfilling Employee Aspirations For the Employee & A fun & fearless environment whe
Slide 5: Sonata Software – Corporate Structure
Sonata Software – Corporate Structure Sonata Software Limited Reporting Segment Legal Entities Geography Nature of Business Sonata Software Ltd India • Digital IT solutions & services • IT Consulting & Outsourcing • Product Engineering Services • Managed IT Services Sonata Europe Ltd UK • Software S
Slide 6: Operating Business Lines
Operating Business Lines • International Services • Technology Infrastructure • Product Engineering & Enterprise • IT Infrastructure Consulting, Licensing IT solutions & Deployment • International footprint • Primary India footprint • 53% of Co Revenues • 47% of Co Revenues • 82% of Co PAT • 18% of
Slide 7: International IT Services
International IT Services © Sonata Software 2017
Slide 8: Industry Footprint: Travel, Retail & Distribution, ISV
Industry Footprint Travel Retail & Distribution ISV Most Innovative Most Innovative Partner Partner 2012 2012 TO | OTA | Corporate | Air | Rail Hyper | Grocer | Apparel | CPG | ERP | SCM | Travel | Retail Industrial Strategic Customers Strategic Customers Strategic Customers • World leading Tour Ope
Slide 9: Business Solutions Footprint
Business Solutions Footprint DIGITAL ENTERPRISE IT COST ENGAGEMENT EFFICIENCY MANAGEMENT • Omni-channel Commerce • ERP • Managed Services & • Analytics & Personalization • SCM, HR & Finance Infrastructure • CRM, Loyalty • BI & Analytics • Cloud & Virtualization • Mobile & Social Business • Mobile &
Slide 10: Engineering Solutions Footprint
Engineering Solutions Footprint PRODUCT PRODUCT PROFESSIONAL INNOVATION ENGINEERING SERVICES • Cloud engineering • Consult, Architect • Professional Services • Mobile engineering • Develop, QA • Integration, Customization • Analytics integration • Performance Engineering • Sustenance Engineering • G
Slide 11: Transformational Partner to Customers
Transformational Partner to Customers Enabling a World Leader in Travel Retail stay ahead of the digital business shift Evolution from brick and click to Omni-Channel business • 20%+ YoY digital sales growth, 50%+ digital revenue Front Office to Back Office IT systems services 10 Year Partnership •
Slide 12: Partnering launch of a new ERP by a Global Software leader
Transformational Partner to Customers Partnering launch of a new ERP by a Global Software leader Engineering Excellence • Beta One thru to global roll-out stages with ERP & engineering skills • Vertical solutions partner – industry specific offering of core ERP 10 Year Partnership Value Added Servic
Slide 13: Way Forward: Platforms + Services for digital business
Way Forward : Platforms + Services for digital business Consumer Customer IT Connected world - Seamless, Personalized, Transform business to remain competitive with Social Commerce new technologies Solutions that keep your business ready for a digital future Travel : the future of Travel Experience
Slide 14: The Future – Industry specific Platform solutions
The Future – Industry specific Platform solutions Next Gen Travel Experience Omni Channel Retailer Digital Distribution Rezopia Travel Experience Platform Brick & Click Retailing Platform Modern Distribution Platform • Search & Book across Web, Mobile, • Seamless Personalized Shopping • Advanced Sup
Slide 15: Strategic acquisitions & builds to enable 'the Future'
Strategic acquisitions & builds to enable ‘the Future’ Unified Enterprise Mobility Platform TRAVEL SAAS Reservation, Distribution, Contracts & Core features of MADP, MAM, MBaaS & Operations on one single Cloud Platform APIs on a single, unified mobile platform Advanced Supply chain Software for Big
Slide 16: Increasing impact on customer's digital solution needs
Increasing impact on customer’s digital solution needs Top SMB ERP Company Cloud & Mobile engineering ERP for SaaS enablement World Leading Retailer Engineering Omni Channel retail systems on a new technology stack Top ANZ Rail Company Enabling next-gen Rail reservation & ancillary services © Sonata
Slide 17: Digital Travel Platform in Action
Digital Travel Platform in Action Drives customer service and ancillary revenue of a leading ANZ Rail Operator Business Need: Upgrade reservations systems across core Rail and ancillary package sales Solution: Rezopia Travel SAAS customized to next gen reservation systems •Manage Services, Schedules
Slide 18: Global Service & Delivery Footprint
Global Service & Delivery Footprint UK Denmark Netherlands US Germany Development Centers – Redmond & Atlanta Singapore North America Australia Qatar, UAE India Bangalore, Hyderabad © Sonata Software 2017
Slide 19: Technology Infrastructure
Technology Infrastructure © Sonata Software 2017
Slide 20: TIS: Strategic fit to overall Sonata business
TIS : Strategic fit to overall Sonata business • Strategic partnerships with leading technology providers – Microsoft, SAP, Oracle, Appcelerator • Relationships act an advantage in accessing emerging technology solutions • 360 degree footprint across Engineering, Implementation, Go to Market in IT v
Slide 21: Wide portfolio of technology solutions
Wide portfolio of technology solutions with leading and emerging partners PORTFOLIO OF WORLD-CLASS ALLIANCES 360 DEGREE CORPORATE IN-HOUSE SOLUTION NEW TECHNOLOGY FOOTPRINT CENTRE OF EXCELLENCE ADOPTION PE | PDS Implement | GTM Expert Deployment Team | SMAC| Platforms| Appliances Customer POC | Best
Slide 22: Keeping business prepared to compete
Keeping business prepared to compete… with up to date technology infrastructure CORE IT EMPLOYEE BUSINESS INFRASTRUCTURE PRODUCTIVITY APPLICATIONS • OS, Servers, Cloud & • Communication & • E. Comm, Digital Virtualization Collaboration Marketing, CRM, BI, • Security, Identity & Access • Work Tools &
Slide 23: Financials
Financials © Sonata Software 2017
Slide 24: Result Snapshot – Q2 FY18
Result Snapshot – Q2 FY 18 INR Crores Description For the Quarter ended For the half year ended 30-Sep-17 30-Jun-17 30-Sep-16 QoQ YoY 30-Sep-17 30-Sep-16 YoY Revenues International IT Services 234.6 211.3 209.1 11% 12% 445.8 404.9 10% Domestic- Products & Services 199.7 428.1 295.5 -53% -32% 627.8 7
Slide 25: Consolidated - Financials
Consolidated - Financials INR Crores Revenue - by Quarter EBIDTA - by Quarter 800.0 75.0 60.0 600.0 45.0 59.8 64.9 57.2 64.5 66.1 400.0 593.2 687.7 634.5 30.0 500.5 426.9 200.0 15.0 - - Q2-17 Q3-17 Q4-17 Q1-18 Q2-18 Q2-17 Q3-17 Q4-17 Q1-18 Q2-18 PAT - by Quarter 50.0 40.0 30.0 41.4 43.0 45.4 20.0 38
Slide 26: Consolidated – Human Capital
Consolidated – Human Capital 3,303 3,314 3,366 3,575 3,628 Attrition % 156 153 153 157 164 25% 3,000 23% 20% 19% 2,000 18% 3,147 3,161 3,213 3,418 3,464 15% 15% 14% 1,000 10% 5% - Q2-17 Q3-17 Q4-17 Q1-18 Q2-18 0% Q2 17 Q3 17 Q4 17 Q1 18 Q2 18 International Service Domestic Products & Service Diversi
Slide 27: Consolidated – ROCE & RONW
Consolidated – ROCE & RONW ROCE 40% 30% 30% 29% 30% 27% 28% 24% 25% 22% 27% 20% 23% 25% 21% 25% 20% 19% 10% 0% Q2 17 Q3 17 Q4 17 Q1 18 Q2 18 Consolidated Intl Serv Domestic RONW 40% 33% 31% 32% 29% 28% 28% 28% 30% 29% 28% 25% 30% 29% 27% 26% 23% 20% 10% 0% Q2 17 Q3 17 Q4 17 Q1 18 Q2 18 Consolidated
Slide 28: Daily Sales Outstanding
Daily Sales Outstanding Consolidated 100 88 86 90 79 80 69 70 70 66 60 50 40 30 Q1-17 Q2-17 Q3-17 Q4-17 Q1-18 Q2-18 International Services Domestic 70 160 58 58 135 60 140 50 47 47 120 110 50 41 95 100 40 76 81 80 69 30 60 20 40 10 20 - - Q1-17 Q2-17 Q3-17 Q4-17 Q1-18 Q2-18 Q1-17 Q2-17 Q3-17 Q4-17 Q
Slide 29: International IT services - Financials
International IT services - Financials INR Crores Revenue - by Quarter EBIDTA - by Quarter 250.0 50.0 40.0 200.0 30.0 46.4 50.8 49.8 52.7 44.0 234.6 20.0 209.1 206.5 204.0 211.3 150.0 10.0 - 100.0 Q2-17 Q3-17 Q4-17 Q1-18 Q2-18 Q2-17 Q3-17 Q4-17 Q1-18 Q2-18 Revenue $ Mn PAT - by Quarter 38.0 45.0 36.
Slide 30: International IT services – Revenue Mix
International IT services – Revenue Mix Geography Vertical 100% 100% 15% 15% 16% 14% 14% 17% 17% 18% 18% 18% 80% 80% 26% 24% 24% 26% 27% 23% 27% 26% 24% 26% 60% 60% 28% 26% 27% 28% 27% 40% 40% 59% 60% 60% 60% 59% 20% 20% 31% 30% 29% 30% 29% 0% 0% Q2 17 Q3 17 Q4 17 Q1 18 Q2 18 Q2 17 Q3 17 Q4 17 Q1 18
Slide 31: International IT services – Revenue by Competency
International IT services – Revenue by Competency Competency 100% 5% 5% 5% 5% 5% 90% 6% 6% 6% 5% 6% 9% 8% 8% 7% 9% 80% 18% 17% 70% 19% 20% 19% 60% 5% 5% 4% 5% 5% 50% 15% 17% 19% 15% 15% 40% 16% 17% 17% 19% 18% 30% 20% 25% 24% 25% 23% 23% 10% 0% Q2 17 Q3 17 Q4 17 Q1 18 Q2 18 ADM Test AX ERP IMS/Cloud
Slide 32: International IT services – Revenue by Customers
International IT services – Revenue by Customers Asia 10 No. of customers by Geo New Customers ANZ, 7 Europe 14 Middle East 10 1 9 India 8 17 7 US 6 55 5 10 4 3 6 6 Revenue from Top Customers 5 2 3 1 85% 0 80% Q2 17 Q3 17 Q4 17 Q1 18 Q2 18 75% 80% 81% 78% 79% 78% 70% 71% 70% 70% 65% 70% 69% 60% 60%
Slide 33: Forward Cover Realization Rates/ Utilization
Forward Cover Realization Rates/ Utilization Effective Realization Rates 110.00 105 105 100.00 100 99 90.00 92 78 80 79 80.00 78 79 70.00 70 69 70 71 70 60.00 50.00 Utilization 40.00 86.0% Q2 17 Q3 17 Q4 17 Q1 18 Q2 18 85.4% 85.3% 85.5% 85.2% 85.1% US Dollar Euro GBP 85.0% 84.8% 84.5% 84.0% 83.5% 83
Slide 34: Domestic Product & Services - Financials
Domestic Product & Services - Financials INR Crores Revenue - by Quarter EBIDTA - by Quarter 500.0 15.5 400.0 15.0 300.0 488.1 14.5 15.1 393.0 428.1 14.8 200.0 295.5 14.0 14.2 14.1 14.0 100.0 199.7 13.5 - Q2-17 Q3-17 Q4-17 Q1-18 Q2-18 Q2-17 Q3-17 Q4-17 Q1-18 Q2-18 PAT - by Quarter 8.6 8.5 8.4 8.3 8.
Slide 35: IP Lead Revenue
IP Lead Revenue Trend - IP Led Revenues 15% 15% 14% 14% 14% 13% 13% 12% Q3'17 Q4'17 Q1'18 Q2'18 % of International Services Revenue © Sonata Software 2017
Slide 36: Thank You
Take the first step to PLATFORMATION Thank You Thank You Corporate: info@sonata-software.com I www.sonata-software.com © Sonata Software 2017