Slide 1: Cover letter to stock exchanges: Investors' Presentation
17th January, 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 Co
Slide 2: Investor Presentation Q3'22
Sonata Software Investor Presentation Q3’22 1 © Sonata Software Ltd, 2022. Confidential.
Slide 3: Sonata - A Snapshot
Sonata - A Snapshot 4200+ TEAM 34 YEARS $550+ M REVENUE across US, EU, Asia, SEI CMMI L5, ITIL The Company as a IT Solutions 14% 3 Yr. CAGR ANZ, Japan, & ISO certified Provider Malaysia, and China CPG & MFG SERVICES AGRI & RETAIL TRAVEL SOFTWARE Industry Consumer Goods, Industrial Apparel, Hard TO,
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
COUICICET 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 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) 420 395 CQGR - 2.7% 370 361 330 325 319 324 301 320 304 304 313 276 288 284 270 Revenue in Rs cr 220 170 120 EBITDA (in crs) 70 120.0 110.5 20 CQGR 3.2% 103.5 97.1 100.0 (3 0) Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 8
Slide 19: Financial Performance of International Services – Q3 FY22
Financial Performance of International Services – Q3 FY22 Revenue in INR. Cr EBITDA 200.0 45.0% 180.0 40.0% 160.0 29.0% 28.7% 28.0% 35.0% 140.0 30.0% INR in Crore 120.0 INR in Crore 360.8 395.2 9.5% QoQ 100.0 25.0% 6.8 % QoQ 103.5 110.5 20.0% 300.9 80.0 60.0 87.2 15.0% 31.3% YoY 40.0 10.0% 26.8% YoY
Slide 20: International Business Revenue Growth
International Business Revenue Growth Revenue in $Million New Customer added 14 13 12 11 $200.0 10 $180.8 10 Revenue in $Mn $150.0 $161.4 $160.3 8 $100.0 $144.0 8 $121.5 6 $50.0 4 $- FY 17 FY 18 FY 19 FY 20 FY 21 2 Years 0 Q4 21 Q1 22 Q2 22 Q3 22 Client Concentration No. of $Million Customers 38 36
Slide 21: Operational Performance – Q3 FY22
Operational Performance – Q2 FY22 Revenue by Geography No. of Customers by Geo 120% 100% 22% 22% ANZ, 39 Europe, 44 23% 80% QoQ Growth 26% 24% 23% USA – 11.0% 60% Asia, 14 Europe – 2.5% Middle East, 2 40% ROW – 2.3% 55% India, 28 52% 53% 20% US, 98 0% Q3 21 Q2 22 Q3 22 USA Europe Rest of World No. o
Slide 22: Revenue by Vertical Mix
Revenue by Vertical Mix 110.0% 100.0% 1.9% 2.4% 7.0% 2.8% 2.9% 90.0% 1.3% 6.5% 6.3% 8.0% 2.5% 3.2% 80.0% 8.9% 9.0% 20.5% 70.0% 19.9% 20.0% 60.0% 50.0% 21.2% 16.5% 15.4% 40.0% 10.0% 9.7% 9.4% 30.0% 20.0% 32.0% 31.3% 31.4% 10.0% 0.0% Q3 21 Q2 22 Q3 22 ISV Travel Others Distribution & Manufacturing Ret
Slide 23: Revenue by high end Service Mix
Revenue by high end Service Mix Service Mix QoQ Trend Q3'21 Q4'21 Q1'22 Q2'22 Q3'22 100.0% 2.0% Data & Analytics 1.7% 7.1% 10.9% 12.0% 12.0% 0.6% 0.3% 10.9% 10.6% Managed Cloud Services 13.1% 12.3% 3.4% 22.9% 16.1% 90.0% 1.7% 10.6% 0.6% 0.3% IMS -7.3% 1.8% -2.8% 11.1% 4.5% 9.9% 9.0% 80.0% 11.7% Micr
Slide 24: Platformation Revenue %, IP Led Revenue %, Digital Revenue %
IP Led Revenue % PlatformationTM Revenue % 34% 35% 35% 23% 35% 33% 22% 32% 20% 30% 18% 18% 25% 20% 15% 10% Q3 21 Q421 Q122 Q222 Q322 Q3 21 Q421 Q122 Q222 Q322 % of Contribution on Total Revenue Platformation Revenue % Digital Revenue % 75% 72% 70% 70% 68% 67% 65% 64% 60% 55% Q3 21 Q4 21 Q1 22 Q2 22
Slide 25: International Business - Revenue Enablers
International Business - Revenue Enablers Revenue by Onsite / Offshore Mix Utilization & Billability 95% 89% 89% 89% 90% 100% 90% 88% 90% 80% 85% 81% 79% 79% 80% 65% 78% 70% 68% 68% 69% 69% 80% Billability 60% Offshore 75% 50% Utilisation Onsite 70% 40% 30% 65% 20% 35% 32% 32% 31% 31% 60% 10% Q3 21
Slide 26: Human Capital
Human Capital Overall Headcount Headcount by Business Type 5,200 5,025 5,200 5,025 4,850 5,000 4,850 157 5,000 278 4,800 157 4,800 276 4,600 4,600 217 4,250 215 4,400 4,250 4,400 G&A 4,102 4,102 4,200 3,997 149 Domestic 4,200 3,997 240 S&M 4,000 146 4,000 257 146 4,868 International 256 182 Delivery
Slide 27: Domestic Business – Gross Contribution
Domestic Business – Gross Contribution 50.0 45.1 45.0 39.9 38.0 38.1 38.0 40.0 36.0 33.0 35.0 30.0 30.1 30.0 6.6% 5.4% 5.8% 25.0 5.0% 4.4% 4.0% 20.0 3.9% 3.5% 3.1% 15.0 10.0 5.0 0.0 Q3 20 Q4 20 Q1 21 Q2 21 Q3 21 Q4 21 Q1 22 Q2 22 Q3 22 Gross Contribution in INR Cr. Gross Contribution % 26 © Sonata S
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% 25% 24% 23% 22% 80% 32% 80% 37% 60% 60% 40% 75% 75% 40% 75% 76% 77% 78% 68% 72% 74% 63% 20% 20% 0% 0% Q3'21 Q4'21 Q1'22 Q2'22 Q3'22 Q3'21 Q4'21 Q1'22 Q2'22 Q3'22 % 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% 100 100% 11% 16% 14% 15% 15% 80 18 80% 10% 9% 9% 9% 7% 42 9% 9% 9% 10% 44 60% 12% 60 35 37 43 40% 60% 66% 68% 67% 68% 40 23 20% 24 16 17 20 0% 24 27 27 28 29 Q3'21 Q4'21 Q1'22 Q2'22 Q3'22 0
Slide 30: EBITDA, PBT and PAT – Last 12 Quarters
EBITDA, PBT and PAT – Last 12 Quarters Domestic Business Domestic Business EBITDA Domestic Business PBT 40.0 36.9 33.7 40.0 35.0 31.8 32.4 35.4 35.0 31.9 30.0 27.0 27.3 30.3 31.0 23.2 30.0 25.0 21.2 22.4 22.5 24.8 25.1 19.5 19.6 25.0 20.6 21.0 21.0 22.0 20.0 16.9 18.1 18.2 20.0 15.8 15.0 15.0 10.0 1
Slide 31: Strategic Investment
Strategic Investment M&A Investment 50.0 46.3 39.5 40.0 30.0 20.0 13.4 10.0 4.3 0.6 - FY 17 FY 18 FY 19 FY 20 FY 21 IP & R&D Investment S&M Investment 35.0 32.3 70.0 62.9 28.3 30.0 25.2 60.0 52.3 49.2 25.0 22.2 20.4 50.0 42.2 36.7 20.0 40.0 15.0 30.0 10.0 20.0 5.0 10.0 - - FY 17 FY 18 FY 19 FY 20 FY
Slide 32: International and Domestic ROCE & RONW
International and Domestic ROCE & RONW ROCE RONW 50% 40% 39% 39% 38% 38% 40% 39% 37% 37% 39% 40% 35% 36% 35% 30% 33% 34% 41% 30% 30% 35% 33% 32% 28% 20% 20% 10% 10% 0% 0% Q3 21 Q4 21 Q1 22 Q2 22 Q3 22 Q3 21 Q4 21 Q1 22 Q2 22 Q3 22 International Business Domestic Business International Business Domes
Slide 33: Capital Allocation (INR Lakhs) Cash Deployment
Capital Allocation (INR Lakhs) Cash Deployment 30,000 27,693 27,551 24,927 24,396 25,000 21,295 2% 19,253 20,000 17,789 15,859 15,634 15,000 13,369 13,408 11,042 10,516 38% 9,464 9,464 49% 10,000 8,673 8,413 7,361 4,206 5,000 - - 10% Capex Share holder Pay out Acuqisition Invested Cosnol Pat Share H
Slide 34: Days Sales Outstanding
Days Sales Outstanding Consolidated DSO 70 58 60 55 50 45 47 50 43 38 38 40 35 30 20 10 0 Q3 20 Q4 20 Q1 21 Q2 21 Q3 21 Q4 21 Q1 22 Q2 22 Q3 22 International Services DSO Domestic Services DSO 57 60 70 63 59 57 47 47 60 50 43 52 42 47 49 36 36 37 38 50 40 39 40 32 33 30 30 20 20 10 10 0 0 Q3 20 Q4 2
Slide 35: Credit Management – Domestic Business
Credit Management – Domestic Business Average Borrowings & Interest Cost 140 12,000 120 10,000 100 8,000 80 6,000 60 4,000 40 20 2,000 Domestic Business - - Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 1,600 1,464 FY17 FY17 FY18 FY18 FY18 FY18 FY19 FY19 FY19 FY19 FY20 FY20 FY20 FY2
Slide 36: Thank you
COUICICET SONATA SOFTWARE