Slide 1: Investors' Presentation filing letter to NSE and BSE
29th April, 2022 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 Q4'22
Sonata Software Investor Presentation Q4’22 1 © Sonata Software Ltd, 2022. Confidential.
Slide 3: Sonata - A Snapshot
Sonata - A Snapshot 5100+ TEAM 36 YEARS across US, Canada, $740+ M REVENUE SEI CMMI L5, ITIL The Company as a IT Solutions 23% 3 Yr. CAGR EU, Asia, ANZ, & ISO certified Provider Japan, Malaysia, and China CPG & MFG SERVICES AGRI & RETAIL TRAVEL SOFTWARE Industry Consumer Goods, Industrial Apparel, H
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, 2022. 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, 2022. 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
IN COICO SONATA SOFTWARE
Slide 15: Strong Execution
Strong Execution International Services Domestic Business • Platformation™, IP & Alliance led growth • Very large deals, Consistent absolute gross margin growth • Stronger & Deeper revenue mining from • Strong Customer Retention existing customers • Consistent growth in Marker share • Strong Pipelin
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, 2022. Confidential.
Slide 17: Consistent Growth Over Last 10 years
Consistent Growth Over Last 10 years Consolidated Revenue & *EBITDA *Consolidated EBITDA for FY22 is adjusted for one off item of INR 22.9 cr which pertains to gain associated with write-off of Earn out provision. 16 © Sonata Software Ltd, 2022. Confidential.
Slide 18: International Services Revenue & EBITDA trend for last 12 Quarters
International Services Revenue & EBITDA trend for last 12 Quarters Revenue (in crs) EBITDA (in crs) EBITDA for Q4’ 22 is adjusted for one off item of INR 22.9 cr which pertains to gain associated with write-off of Earn out provision. 17 © Sonata Software Ltd, 2022. Confidential.
Slide 19: Financial Performance of International Services – Q4 FY22
Financial Performance of International Services – Q4 FY22 Revenue in INR. Cr *EBITDA *EBITDA for Q4’ 22 is adjusted for one off item of INR 22.9 cr which pertains to gain associated with write-off of Earn out provision. Revenue in $ Mn PAT 18 © Sonata Software Ltd, 2022. Confidential.
Slide 20: International Business Revenue Growth
International Business Revenue Growth Revenue in $Million New Customer added 14 13 12 12 11 10 8 8 6 4 2 0 Q1 22 Q2 22 Q3 22 Q4 22 Client Concentration No. of $Million Customers 80% 71% 71% 72% 61% 63% 62% 53% 56% 54% 60% 40% 20% 0% Q4 21 Q3 22 Q4 22 Top 5 Customer Top 10 Customer Top 20 Customer 19
Slide 21: Operational Performance – Q4 FY22
Operational Performance – Q4 FY22 Revenue by Geography No. of Customers by Geo 120% 100% 39 46 24% 22% 21% 80% 25% 23% 22% 60% 17 40% 2 51% 55% 57% 20% 28 0% Q4 21 Q3 22 Q4 22 105 USA Europe Rest of World Europe US India Middle East Asia ANZ No. of Customers by industry Customer Category 5 17 34 10
Slide 22: Revenue by Vertical Mix
Revenue by Vertical Mix 110.0% 100.0% 2.4% 2.6% 7.0% 2.9% 3.6% 1.5% 6.3% 4.8% 90.0% 8.5% 3.2% 4.2% 80.0% 9.0% 10.0% 21.4% 70.0% 20.0% 20.7% 60.0% 18.7% 50.0% 15.4% 12.3% 40.0% 10.2% 9.4% 9.4% 30.0% 20.0% 32.7% 31.4% 32.4% 10.0% 0.0% Q4 21 Q3 22 Q4 22 ISV Travel Others Distribution & Manufacturing Re
Slide 23: Revenue by high end Service Mix
Revenue by high end Service Mix QoQ Trend Service Mix 100.0% 0.3% 0.1% Q4'21 Q1'22 Q2'22 Q3'22 Q4'22 1.5% 1.0% 0.3% 10.6% 11.0% Data & Analytics 7.1% 10.9% 12.0% 12.0% 6.7% 90.0% 11.1% 9.0% 7.6% Managed Cloud Services 12.3% 3.4% 22.9% 16.1% 6.0% 80.0% 10.7% IMS 1.8% -2.8% 11.1% 4.5% 5.5% 70.0% Micro
Slide 24: International Business
International Business IP Led Revenue % PlatformationTM Revenue % Digital Revenue % 75% 72% 73% 70% 70% 68% 67% 65% 60% Q4 21 Q1 22 Q2 22 Q3 22 Q4 22 23 © Sonata Software Ltd, 2022. Confidential.
Slide 25: International Business - Revenue Enablers
International Business - Revenue Enablers Revenue by Onsite / Offshore Mix Utilization & Billability 100% 90% 80% 70% 68% 68% 69% 69% 72% 60% Offshore 50% Onsite 40% 30% 20% 32% 32% 31% 31% 28% 10% 0% Q4 21 Q1 22 Q2 22 Q3 22 Q4 22 Revenue per Billable HC 1,86,480 1,86,511 1,87,515 1,90,024 1,89,199
Slide 26: Human Capital
Human Capital Overall Headcount Headcount by Business Type 25 © Sonata Software Ltd, 2022. Confidential.
Slide 27: Domestic Business – Gross Contribution
Domestic Business – Gross Contribution Domestic Business – Gross Contribution 50 47.4 45.1 45 39.9 40 38.0 38.1 38.0 35 33.0 30.0 30.1 30 6.6% 5.8% 25 5.4% 5.0% 4.4% 4.5% 20 4.0% 3.5% 15 3.1% 10 5 0 Q4 20 Q1 21 Q2 21 Q3 21 Q4 21 Q1 22 Q2 22 Q3 22 Q4 22 Gross Contribution in INR Cr. Gross Contributio
Slide 28: Domestic Business - Revenue
Domestic Business - Revenue Domestic Revenue (Annuity/Others) Domestic Revenue (Cloud/Non Cloud) 120% 120% 100% 100% 28% 26% 25% 25% 24% 25% 24% 23% 22% 22% 80% 80% 60% 60% 40% 75% 75% 76% 40% 72% 74% 75% 76% 77% 78% 78% 20% 20% 0% 0% Q4'21 Q1'22 Q2'22 Q3'22 Q4'22 Q4'21 Q1'22 Q2'22 Q3'22 Q4'22 % of
Slide 29: Domestic Business - Gross margin Analysis by customers
Domestic Business - Gross margin Analysis by customers Domestic Customer Count Domestic Customer by GC % 120 120% 100% 100 16% 14% 15% 15% 13.0% 80% 9% 9% 9% 7% 10.1% 80 18 9% 9% 9% 10% 9.0% 42 49 60% 60 35 37 40% 43 66% 68% 67% 68% 67.9% 40 23 22 20% 16 17 20 0% 27 27 28 29 30 Q4'21 Q1'22 Q2'22 Q3'
Slide 30: EBITDA, PBT and PAT – Last 12 Quarters
EBITDA, PBT and PAT – Last 12 Quarters Domestic Business Domestic Business EBITDA Domestic Business PBT 45.0 45.0 40.0 40.0 35.0 35.0 39.5 38.5 36.9 30.0 35.4 30.0 33.7 32.4 31.9 31.8 31.0 25.0 30.3 25.0 27.3 27.0 20.0 20.0 25.1 24.8 23.2 22.5 22.4 22.0 21.0 21.0 15.0 15.0 19.6 18.2 16.9 15.8 10.0 1
Slide 31: Strategic Investment (In crs)
Strategic Investment (In crs) M&A Investment 58.1 60.0 46.3 50.0 39.5 40.0 30.0 20.0 13.4 10.0 4.3 - FY 18 FY 19 FY 20 FY 21 FY22 S&M Investment IP & R&D Investment 28.3 28.1 70.0 62.9 30.0 25.2 60.0 52.3 25.0 22.2 49.2 20.4 42.2 45.0 50.0 20.0 40.0 15.0 30.0 10.0 20.0 5.0 10.0 - - FY 18 FY 19 FY 20
Slide 32: International and Domestic ROCE & RONW
International and Domestic ROCE & RONW ROCE RONW 50% 50% 41% 41% 40% 39% 40% 38% 38% 40% 36% 37% 37% 40% 38% 39% 38% 39% 30% 35% 30% 35% 34% 33% 32% 33% 20% 20% 10% 10% 0% 0% Q4 21 Q1 22 Q2 22 Q3 22 Q4 22 Q4 21 Q1 22 Q2 22 Q3 22 Q4 22 International Business Domestic Business International Business D
Slide 33: Capital Allocation and Cash Deployment
To be verrified Capital Allocation (INR Lakhs) Cash Deployment 40,000 37,659 35,000 3% 30,000 27,693 24,927 24,396 25,000 38% 21,295 48% 19,253 20,000 15,859 15,634 14,722 15,000 13,369 13,408 11,042 9,464 9,464 11% 10,000 8,413 7,361 5,000 Capex Share holder Pay out Acuqisition Invested - FY15 FY16
Slide 34: Days Sales Outstanding
Days Sales Outstanding 33 © Sonata Software Ltd, 2022. Confidential.
Slide 35: Credit Management – Domestic Business
Credit Management – Domestic Business Average Borrowings & Interest Cost 140 8,000 120 7,000 6,000 100 5,000 80 4,000 60 3,000 40 2,000 Domestic Business 20 1,000 2,000 - - 1,464 1,500 amount in rs cr 1,099 1,051 946 1,000 761 Average Borrowing Interest Cost 607 681 606 523 500 156 153 170 175 203 2
Slide 36: Thank you
IN COICO SONATA SOFTWARE