Slide 1: Regulation 30 filing cover letter
6th November, 2024 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 Stock Code – SONATSOFTW Stock Code - 532221 Dear Sirs/Madam, SUB: INVES
Slide 2: Q2 FY'25 Investor Presentation
Q2 FY’25 Investor Presentation www.sonata-software.com www.sonata-software.com
Slide 3: Sonata At A Glance
38 Years IT solutions provider Delivering Outcome-based Sonata Public Listed Modernization Services At A (SONATSOFTW) Glance We are a Modernization and a $1B+ Cloud AI & Data Revenue Digital Engineering company powered by our unique PLATFORMATION 15.10% framework. 10 years CAGR Dynamics Managed Serv
Slide 4: Serving our Global clients with right talent mix
APAC Bangalore UK & Europe Hyderabad Serving our London Chennai Dublin Delhi Amsterdam Global clients Kolkata Stockholm Pune Canada Frankfurt Mumbai with right Poland Ahmedabad Toronto USA Vancouver Selangor (Malaysia) Redmond Singapore Talent mix Atlanta, GA Fremont, CA East Brunswick, NJ Shanghai
Slide 5: Key Verticals, Partners, IPs
Key Verticals, Partners, IPs Industries Innovation: IPs TMT LISA Chatbot Technology, Media and (Conversational AI) Telecom Partnership Workbox.io Tech Domain (Archival) RMD Ecosystem Retail, Manuf., Travel and Distribution Lightning Build + BFSI Banking, Financial Services and Insurance Sustainabili
Slide 6: Our Objective and Goal
Our Objective and Goal Objective: Be the fastest-growing Modernization Engineering company Goal: Revenue of $ 1.5B by FY 27 Intl EBITDA @ low-20’s Domestic GC YoY growth of 12% A Modernization 5 © Sonata Software Ltd, 2024. Confidential. THE MODERNIZATION ENGINEERING COMPANY 5 © Sonata Software Ltd,
Slide 7: Our Performance Vision
Revenue Growth (In $M) SCALE – Key Drivers Our Performance ~$1.5B Vision: Making progress and Harvest Invest adapting to changing +$500M Microsoft sell-to; Dynamics Sales, Large deals, Sustain SITL momentum BFSI, Healthcare Life times… Retail, Manufacturing, Sciences and technical Travel and TMT cap
Slide 8: What's working well for us…
What’s working well for us… Large Deals 3 Large deals won during Q2FY’25 AI & Fabric 2 significant deal wins Modernization Cloud & Data pipeline is 51% Verticals/Partnerships MS Sell to, HLS, BFSI, TMT AWS and MS Sell with Domestic Business Steady GC growth A Modernization 7 © Sonata Software Ltd, 2
Slide 9: We won Large Deals in Q2
We won 3 Large Deals in Q2 1 Multinational Tech Corporation – US 2 Top Financial Corp. – US 3 Personal facilities & Food Safety – US Consumer Experience Data Modernization Cloud Modernization Modernization 8 © Sonata Software Ltd., 2024. Confidential.
Slide 10: Healthy Large Deals Pipeline
Healthy Large Deals Large Deals Pipeline Pipeline of Active Pipeline of Large deals 49% consists of Large 36% pipeline are with Deals Fortune 500 clients Overall Pipeline has grown 5% QoQ 9 © Sonata Software Ltd., 2024. Confidential.
Slide 11: Quality Of Growth – Top Client's Movement
Quality Of Growth – Top Client's Movement Top 10 Accounts Q4 FY 24 Q1 FY 25 Q2 FY 25 2 3 3 Fortune 50 clients clients clients 3 4 4 Fortune 500 clients clients clients 40% of Top 10 Accounts are Fortune 500 Companies 10 © Sonata Software Ltd., 2024. Confidential.
Slide 12: Large Deal Win: Consumer Experience Modernization
A global technology leader, this company offers a broad range of software and cloud services that support digital transformation for businesses and Large Deal Win: Client Overview individuals. It delivers platforms that enable seamless communication, collaboration, and business management across var
Slide 13: Large Deal Win: Data Modernization
Customer is one of the largest commercial bank in the US by assets. Customer offers a broad range of services including retail and Large Deal Win: Client Overview commercial banking, asset management, and insurance. The bank is committed to leading in technology and innovation while maintaining Data
Slide 14: Large Deal Win: Cloud Modernization
A leader in personal, facility and food safety systems, products that assist restaurants and other food service establishments in complying with Large Deal Win: Client Overview FDA and other compliance codes. Food Safety products are served globally through our network of trained food service distri
Slide 15: Key bets for the future
Key bets for the future …. Microsoft Fabric AI & Gen AI Joint GTM $91 M pipeline created across 110+ $67 M Pipeline created across 110+ MS GTM funding customers customers AWS – Rescale Program VMWare->Cloud Migration Key Deal win for an ANZ based Retailer Key Deal win for an US based HLS client Comp
Slide 16: Harmoni.AI
Supersizing growth through AI – Key Executions in progress Harmoni.AI Client – Fortune 500 Global Client – US based tech developer for Sonata’s Responsible- 1 Manufacturer 2 medical trials Modernizing client operations and Building AI platform for clinical trials first AI offering for consumer exper
Slide 17: Our GTM's are aligned with our partners and investment focus
Our GTM’s Cloud Apps Data & Microsoft Service Experience Hyper Managed are aligned Modernization Analytics Business Apps Automation Services Transformation with our Partners and our investment focus… MSFT Market Place Partners 16 © Sonata Software Ltd., 2024. Confidential.
Slide 18: Microsoft-Sonata Partnership: 30+ Years of jointly driving Customer Success
Microsoft-Sonata Partnership: 30+ Years of jointly driving Customer Success Partner for RPA Partner for Migration 100 Microsoft Fabric Sonata named again in Inner Circle for Microsoft Business Application 2024-25 AI/Gen-AI 400+ Clients $650+ Million Across The Globe Industry Partnership Per Annum Re
Slide 19: Success Stories (1/2): Dynamic Modernization for Leading IT Solutions
Success Stories (1/2)… Client Industry Locations Global Leader in Overview Retail & Manufacturing > 100 countries IT Solutions Dynamic The Pressure Points Solutions Results Modernization • Upgrade, cloudification of • Enabled -Drive Digital and Automation • Need for Standardization & for Leading IT
Slide 20: Success Stories (2/2): IT Modernization & Transformation
Success Stories (2/2)… Client Industry Locations Premier provider of health care to Health Care & 550 Centres across 36 vulnerable patients in challenging Overview Life Sciences states in the USA clinical environments. IT Modernization & Transformation The Pressure Points Solutions Results for an op
Slide 21: Key Recognition
Key Recognition 20 © Sonata Software Ltd., 2024. Confidential.
Slide 22: People – Strength of Sonata
People – Strength of Sonata 21 © Sonata Software Ltd., 2024. Confidential.
Slide 23: Financial Highlights
SOAS The Modernization COC Engineering Company SONATA SOFTWARE Financial Highlights
Slide 24: Financial Snapshot
Financial Snapshot: International Services Revenue grew 2.3% QoQ, Domestic GC grew 2.5% QoQ INR Crs *Cash and Cash Equivalents reduced QoQ, primarily driven by earnout payments related to Quant and Encore, along with repayments of Bank Loans. • FY’24 Total Dividend of ₹7.90 per share. 23 © Sonata So
Slide 25: Details of Finance Cost, Depreciation and Other Income
Details of Finance Cost, Depreciation and Other Income INR Crs ▪ Amortization of Intangible Assets: Changes in Amortization costs QoQ due to fluctuations in foreign exchange rates. ▪ Other Income: Reduced due to lower investible surplus for the reasons mentioned below, though the avg. yield improved
Slide 26: Financial Performance of International Services – Q2FY25
Constant Currency PAT 2.3% QoQ 1.5% QoQ 5.3% QoQ 4.6% YoY 3.7% YoY 26.6% YoY Financial EBITDA & PAT in $ Mn Revenue in $ Mn Performance of *$10. 3 International Services – Q2FY25 Return on Capital DSO 25 © Sonata Software Ltd., 2024. Confidential.
Slide 27: International Services: Revenue Insights
No. of $ Million Customers New Customers added International Services: Revenue Insights Revenue by Geography Client Concentration Including Quant 26 © Sonata Software Ltd., 2024. Confidential.
Slide 28: International Services: Operating Parameters
Headcount by Function International Services: Operating Parameters Utilization Attrition% (LTM) 27 © Sonata Software Ltd., 2024. Confidential.
Slide 29: International Services: Q2 FY25 Revenue Composition
International Services: Q2 FY25 Revenue Composition Emerging Others 5% 4% (Q1’25: 5%) (Q1’25: 9%) HLS Emerging 10% 9% Cloud (Q1’25: 9%) TMT (Q1’25: 11%) 41% 32% (Q1’25: 39%) (Q1’25: 36%) BFSI Verticals Mix Dynamic GTM 22% 23% (Q1’25: 16%) (Q1’25: 25%) Data Retail and Manufacturing 31% 23% (Q1’25: 16
Slide 30: Financial Performance of Domestic Business – Q2FY25
Cloud ~80.3% GC 12.4% YoY EBITDA 9.4% YoY 17.5% YoY Annuity ~77.0% Financial Gross Contribution & EBITDA (INR crs) Revenue (INR crs) Performance of *$10. 3 Domestic Business– Q2FY25 Revenue % by Region A MODERNIZATION ENGINEERING COMPANY © Sonata Software Ltd, 2024. Confidential 29
Slide 31: Domestic Business: Delivering consistently strong growth
Domestic Business: Delivering consistently strong growth with Industry leading ROCE Net working Capital ÷ Gross Contribution ROCE and RONW * * Head Count DSO * After normalization of one timer of Dividend payout ( As reported ROCE – 78.4% , RONW- 78.6% ). A MODERNIZATION ENGINEERING COMPANY © Sonata
Slide 32: Stock Return of ~100%+ For Our Shareholders
Stock Return of ~100%+ For Our Shareholders# Total Return to Shareholders 1 Yr 5 Yrs Stock Price Return %** 19% 408% Div Yield 1% 5% * Till 30th Sept 2024 Market Data NSE Symbol SONATSOFTW Market Cap** $ 2.1B * 1 USD = INR 83.89 ** as on 30th Sept 24 # From April’22 to Sept’24 A Modernization 31 © S
Slide 33: Thank You
THANK YOU The fastest growing firm in IT Services in the next 3-4 years www.sonata-software.com www.sonata-software.com