Slide 1: Investors' Presentation filing letter to exchanges
SONATA Pe fee| ob MANA SUC Caren @ UKAS vars ike SONATA SOFTWARE CMMIDEV/5 15 May, 2023 National Stock Exchange of India Limited BSE Limited Exchange Plaza, Bandra Kurla Complex, Mumbai P.J. Towers, Dalal Street, Mumbai Kind Attn: Manager, Listing Department Kind Attn: Manager, Listing Department St
Slide 2: Investor Presentation Q4 FY'23
Investor Presentation Q4 FY’23
Slide 3: 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 35 YEARS Cloud Data IT Solutions Provider $925+M Revenue 14.3% CAGR Managed Services Dynamics across 10 years Listed
Slide 4: Serving Our Global Clients With Right Talent Mix
Serving Our Global Clients With Right Talent Mix (Global & Local Talent) APAC China Japan North America Singapore Europe Malaysia Development Center: Netherlands Redmond Korea Denmark Philippines Germany Thailand Offices: Canada Vietnam Atlanta, GA Fremont, CA Eastern Bridgewater, NJ Europe East Bru
Slide 5: Key Verticals, Partners, IPs
Key Verticals, Partners, IPs Ecosystem: Industries Partnerships Tech + Domain TMT Sustainability Target: Innovative IPs Carbon Neutrality Retail, Travel & Mfg. by 2030 LISA Chatbot (Conversational AI) 10% Reduce Energy consumption BFSI in FY 22-23 Workbox.io (Archival) 10% Increase Renewable energy/
Slide 6: © Sonata Software Ltd, 2023. Confidential.
5 © Sonata Software Ltd, 2023. Confidential.
Slide 7: Creating Value For Our Shareholders
Creating Value For Our Shareholders 400 350 Total Return to Share Holders 300 318 1 Yr 5 Yrs Stock Price Return %** 36% 318% 250 Dividend Yield# % 2% 6% 200 220 * Till March 31, 2023 150 167 Market Data 100 NSE Symbol SONATSOFTW 50 Market Cap** $ 1.4B - * 1 USD = INR 82.2 # Annualized 31-Mar-18 31-M
Slide 8: Our Performance Vision For Sonata
Our Performance Vision For Sonata Revenue Growth (In $M) SCALE – Key Drivers ~$1.5B Microsoft sell-to; Dynamics Harvest Sustain SITL momentum Retail, Manufacturing, Travel and TMT +$580M Invest: Sales, Large deals, BFSI, Healthcare Life Invest Sciences and technical capabilities $0.92B Clients: Buil
Slide 9: Our Objective and Goal
Our Objective and Goal Objective: Goal: Be the fastest-growing Next-gen Digital International business Revenue of $ 0.5B Engineering firm delivering Modernization by FY 26 end @ EBITDA of early 20’s outcomes for enterprises 8 © Sonata Software Ltd, 2023. Confidential.
Slide 10: We Have Made Some Big Moves
We Have Made Some Big Moves…. Acquisition Winning D&I: Building Diverse Quant Systems Inc Large Deals Global Firm 9 © Sonata Software Ltd, 2023. Confidential.
Slide 11: Sonata Acquires Quant Systems Inc
Sonata Acquires Quant Systems Inc 10 © Sonata Software Ltd, 2023. Confidential.
Slide 12: Quant Is On A Fast-Paced Growth
Quant Is On A Fast-Paced Growth Quant Systems Inc. BFSI & Healthcare Enterprise Data & Cloud $37M Revenue 35%+ EBITDA CY22 300+ Engineers $37M Across US, India, Mexico, Costa Rica CY21 $25M CY20 $8M 11 © Sonata Software Ltd, 2023. Confidential.
Slide 13: $160M Over 10 Years - Modernization Deal
$160M – Over 10 Years - Modernization Deal Industry Revenue Employees Business Overview Client Overview Retail and Finance $1.5 B 2600+ Catalog, eCommerce, Credit, Apparel, and fashion The Pressure Points The End Goal Legacy Tech Lack of Customer Standardize Service Delivery Stack standardization Ex
Slide 14: D&I Charter: Building a Diverse Global team
D&I Charter : Building a Diverse Global team Proud Associate Partners Of Mumbai Indians In WPL! 13 © Sonata Software Ltd, 2023. Confidential.
Slide 15: A Diverse Global Leadership Team Aligned For Growth
A Diverse Global Leadership Team Aligned For GROWTH D&I Council Xinwen Liang Radha Krishnan Anthony Lange Sundaralata A China North America North America India Sathish K Nuggu Santos Jha Naseebunnisa Abdul India North America North America
Slide 16: Digital Engineering Led Platform Modernization
Digital Engineering Led Platform Modernization Sonata’s Modernization Services helps in creating digital businesses with connected ecosystems to improve Business agility, Experience and Productivity Modernization Adoption Optimization Cloud Apps Microsoft Business Service Experience Hyper Data & Ana
Slide 17: Microsoft Relationship – Jointly Driving Customer Success
Microsoft Relationship – Jointly Driving Customer Success Competency Name Status 30 Years 400+ Clients $350+ Million Application Development Gold Microsoft Partnership Across The Globe Per Annum Revenue To Microsoft Application Integration Gold USA, Europe, Asia, India, Australia, Middle 21.9% YoY G
Slide 18: Our "People-First" focus
Our “People-First” focus 88% * say Sonata is a great place to work What it means for our people: 1. Career growth: 70% leaders from within 2. Average tenure: Middle managers 9+ years and Senior managers 13+ years 3. Learn new technologies – leading and bleeding edge 4. Diversity and Inclusion 5. Sta
Slide 19: Success Stories (1/2): Leveraging Cutting Edge AI Tech - GPT
Success Stories (1/2)… Leveraging Cutting Edge AI Tech - GPT Industry Revenue Employees Client Overview Technology > $190 B Fortune 25 > 220,000 The Pressure Points Solutions Results • Accelerate the ability to bring new Applying the Large Language Model • Reduced response time for products and feat
Slide 20: Success Stories (2/2): Cruise Control
Success Stories (2/2)… Cruise Control Industry Revenue Line of business Destination Client Overview Travel & Tourism $18.53 B Fortune 500 6 160 The Pressure Points Solutions Results • Disparate monolithic systems • Creation of modernized BI with a cloud- • Seamless expansion to 3 geo-markets across
Slide 21: Key Recognitions!
Key Recognitions ! 20 © Sonata Software Ltd, 2023. Confidential.
Slide 22: Financial Management
Financial Management 1 2 3 5 High Revenue growth Strong Cash Position Superlative returns for Sound Capital with Industry Leading & Balance Sheet Shareholders Allocation margins Focus on high revenue Very strong positive Industry leading Sound capital rate realization and cash generation and ROCE an
Slide 23: Consistent Growth Over Last 10 years
Consistent Growth Over Last 10 years Consolidated Revenue & profitability ($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 24: International Services - A Sustainable, Resilient Recovery After COVID-19
International Services - A Sustainable, Resilient Recovery After COVID-19 FY 23: YoY Revenue Growth 18.7% Industry Leading Returns Stable DSO performance < 50 300.0 24.3%27.0% 25.2% Normalized 45 24.4% 240.9 250.0 25.0% 39.2% 44 23.0% 203.0 23.4% 38.2% 44 200.0 180.8 23.0% 36.1% 160.3 38.3% 37.6% 34
Slide 25: Financial Performance Of International Services – Q4 FY23
Financial Performance Of International Services – Q4 FY23 23.9% Normalized 24.8% 28.0% $70.0 23.8% 20.0 *$65.8 23.0% 20.7% $65.0 13.8 14.4 15.0 *13.6 18.0% $60.5 $60.0 8.6% QoQ 10.0 13.0% -5.9% QoQ $55.7 18.1% YoY 8.0% -1.9% YoY $55.0 5.0 3.0% $50.0 0.0 -2.0% Q4 FY22 Q3 FY23 Q4 FY23 Q4 FY22 Q3 FY23
Slide 26: International Business: Revenue Growth
International Business: Revenue Growth 20 8 7 5 15 4 12 5 2 43 10 37 30 Q4 22 Q3 23 Q4 23* Q1 23 Q2 23 Q3 23 Q4 23 1-3 Mn 3-5 Mn 5+ Mn No. of $ Million Customers New Customers added *Quant:- 4; 3; 2 in each category 72% 21% 62% 66% 66% 27% 28% 55% 54% 22% 20% 20% 57% 53% 52% Q4 22 Q3 23 Q4 23 Q4 22
Slide 27: International Business: Operational Performance
International Business: Operational Performance 13% QoQ 26% YoY 6,500 600 6,055 6,000 550 323 104 500 5,500 5,348 283 450 86.4% 5,000 4,789 99 84.2% 82.0% 82.0% 400 252 4,500 79 5,628 350 4,000 4,966 300 4,458 3,500 250 3,000 200 Q1 23 Q2 23 Q3 23 Q4 23 Q4 22 Q3 23 Q4 23 Delivery S&M G&A Utilization
Slide 28: International Business: Vertical Mix
International Business: Vertical Mix Revenue by Verticals FY 23 Q4 FY 23 Healthcare Healthcare 11% 11% BFSI BFSI 8% 8% TMT TMT Emerging 33% Emerging 31% 9% 7% Revenue Revenue Share Share Retail and Manufacturing 39% Retail and Manufacturing 42% 27 © Sonata Software Ltd, 2023. Confidential.
Slide 29: International Business: Solutions Mix
International Business: Solutions Mix Revenue by Top GTMs FY 23 Q4 FY 23 Others Emerging Tech Others Emerging Tech 2% 13% 2% 13% Cloud Cloud 36% 36% Revenue Revenue Share Share Dynamics Data Dynamics Data 36% 13% 37% 12% 28 © Sonata Software Ltd, 2023. Confidential.
Slide 30: Domestic Business: Delivering Consistently Strong Growth With Industry Leading ROCE
Domestic Business:– Delivering Consistently Strong Growth With Industry Leading ROCE Cloud ~77.5% 1.50 Annuity ~75.8% 1.30 1.29 219 1.30 1.17 5,540 197 1.10 170 0.85 4,067 142 136 0.90 131 3,066 95 96 0.70 2,492 0.50 0.30 0.10 FY20 FY21 FY22 FY23 FY 20 FY 21 FY 22 FY 23 FY 20 FY 21 FY 22 FY 23 EBITD
Slide 31: SONATA SOFTWARE
SONATA SOFTWARE The fastest growing firm in IT Services in the next 3-4 years © Sonata Software Ltd, 2023. Confidential.