Slide 1: Revised Investors' Presentation filing letter to exchanges
1st August, 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: INVESTO
Slide 2: Investor Presentation Q1 FY'25
A Modernization Engineering Company Q1 FY’25 Investor Presentation 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 UK & Europe Bangalore London Serving our Hyderabad Dublin Chennai Amsterdam Delhi Global clients Stockholm Kolkata Copenhagen Pune Canada Frankfurt Mumbai with right USA Redmond Toronto Vancouver Poland Selangor (Malaysia) Singapore Talent mix Atlanta, GA Shanghai Fremont, CA Kumamoto (Japan) E
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 26 Intl EBITDA @ low-20’s A MODERNIZATION ENGINEERING COMPANY © Sonata Software Ltd, 2024. Confidential 5
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: We are back to growth path in Q1…
We are back to growth path in Q1… Intl. Services Rev. $M SITL GC INR Cr 90 80.9 83.7 81.7 82.7 80 71.3 80 77.3 68.5 70 61.8 62.4 64.8 70 65.8 58.3 60.6 56.8 56.8 57.8 60 53.6 60 53.4 55.7 50.8 45.4 47.5 50 50 40 40 30 30 20 20 10 10 0 0 Q3'22 Q4'22 Q1'23 Q2'23 Q3'23 Q4'23 Q1'24 Q2'24 Q3'24 Q4'24 Q1'
Slide 9: Stock Return of ~110%+ For Our Shareholders
Stock Return of ~110%+ For Our Shareholders# Total Return to Shareholders 1 Yr 5 Yrs Stock Price Return %** 17% 351% Div Yield 1% 5% * Till June 28, 2024 Market Data NSE Symbol SONATSOFTW Market Cap** $ 2B * 1 USD = INR 83.38 ** as on 28th June 24 # From April’22 to June’24 A MODERNIZATION ENGINEERI
Slide 10: What's working well for us…
What’s working well for us… Large Deals 3 Large deals won during Q1FY’25 AI Harmoni.AI enabled new wins Modernization Cloud & Data pipeline is 52% Verticals/Partnerships MS Sell to, HLS, BFSI, TMT AWS and MS Sell with SITL Steady GC growth A MODERNIZATION ENGINEERING COMPANY © Sonata Software Ltd, 2
Slide 11: We won 3 Large Deals in Q1
We won 3 Large Deals in Q1 1 2 3 Medical & Mental Manufacturing & Top Financial Healthcare – US Services – ANZ Corp. – US Cloud & Infra. Operations Dynamics Implementation Cloud Modernization A MODERNIZATION ENGINEERING COMPANY © Sonata Software Ltd, 2024. Confidential 10
Slide 12: Healthy Large Deals Pipeline
Healthy Large Deals Pipeline Large Deals of Active Pipeline of Large deals Pipeline 47% consists of Large 37% pipeline are with Deals Fortune 500 clients Large Deals in the pipeline RMD HLS TMT BFSI 22 12 11 4 A MODERNIZATION ENGINEERING COMPANY © Sonata Software Ltd, 2024. Confidential 11
Slide 13: Quality Of Growth – Top Client's Movement
Quality Of Growth – Top Client's Movement Top 10 Accounts Q3 FY 23 Q4 FY 24 Q1 FY 25 4 2 3 Fortune 50 clients clients clients 5 3 4 Fortune 500 clients clients clients 40% of Top 10 Accounts are Fortune 500 Companies A MODERNIZATION ENGINEERING COMPANY © Sonata Software Ltd, 2024. Confidential 12
Slide 14: Cloud & Infra Services Operations
Client is a premier provider of localized, high-quality, compassionate Large Deal Win: Client Overview care to vulnerable patients in challenging clinical environments. Cloud & Infra Services Areas in Scope Operations To create an optimum Global Delivery Model, working cohesively with Client’s IT &
Slide 15: Dynamics D365 Business Transformation
Customer is a global group whose offerings include products and services related to locks, doors, gates, and entrance automation and Large Deal Win: Client Overview and services include controlling access and confirming identities with keys, cards, tags, mobile, and biometric identity verification s
Slide 16: SAS grid to SAS Viya Migration
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 SAS
Slide 17: Key bets for the future ….
Key bets for the future …. Microsoft Fabric AI & Gen AI Joint GTM $46 M pipeline created across 80+ $64 M Pipeline created across 110+ MS GTM funding customers customers AWS – Rescale Program Continued focus Verticalization Focused GTM Large Deals Mega accounts A MODERNIZATION ENGINEERING COMPANY ©
Slide 18: Harmoni.AI
Geared towards building an AI first culture; We are helping Clients in 3 ways Harmoni.AI 1 2 3 Leveraging AI to drive Sonata’s Leveraging AI to drive efficiencies higher consumer Driving innovative business model experience/modern sales Responsible-first AI offering for 40 Programs Pursuing a Large
Slide 19: Our GTM's are aligned with our Partners and our investment focus
Our GTM’s Cloud Apps Data & Microsoft Service Experience Hyper Managed are aligned Modernization Analytics Business Apps Transformatio n Automation Services with our Partners and our investment focus… MSFT Market Place Partners A MODERNIZATION ENGINEERING COMPANY © Sonata Software Ltd, 2024. Confide
Slide 20: Microsoft-Sonata Partnership: 30+ Years
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 2023-24 AI/Gen-AI 400+ Clients $650+ Million Across The Globe Industry Partnership Per Annum Re
Slide 21: Success Stories (1/2): Modernization of CRM system
Success Stories (1/2)… Client Industry Locations An American health Overview HLS 14 states in USA insurance provider Modernization of CRM system The Pressure Points Solutions Results for through • Need for Process controls, adoption, compliance, updation • Implementation of D365 CE Platform - one so
Slide 22: Success Stories (2/2): IP led Modernization
Success Stories (2/2)… Client Industry 17+ countries, Leading Nordics based Agri Co- Overview Retail & Manufacturing 5000+ employees operative IP(Partner Co Sell) led The Pressure Points Solutions Results Modernization Ambitious vision to connect the Farm to Fork modernization Modernizing Commodity
Slide 23: Key Recognition
Key Recognition A MODERNIZATION ENGINEERING COMPANY © Sonata Software Ltd, 2024. Confidential 22
Slide 24: People – Strength of Sonata
People – Strength of Sonata A MODERNIZATION ENGINEERING COMPANY © Sonata Software Ltd, 2024. Confidential 23
Slide 25: Financial Management
Financial Management 1 2 3 4 High Revenue growth with Strong Cash Position Superlative returns for Sound Capital Industry Leading margins & Balance Sheet Shareholders Allocation Focus on high revenue Very strong positive Industry leading Sound capital rate realization and cash generation and ROCE an
Slide 26: Financial Performance of International Services – Q1FY25
Financial EBITDA & PAT in $ Mn Revenue in $ Mn 1.3% QoQ Performance of 1.2 6.9% YoY *$10. 3 *PAT 7.6% QoQ International 1.22 4 1.24 Constant Currency 19.6% YoY Services – 1.4% QoQ 7.5% YoY Q1FY25 Industry leading QoQ 46 growth in Revenue and Return on Capital EBIDTA DSO 45 45 45 45 Q1 24 Q2 24 Q3 24
Slide 27: International Business: Revenue Drivers
No. of $ Million Customers New Customers added International Business: Revenue Drivers 69% Revenue by Geography Client Concentration 58% 52% 61% 60% 50% Q1 24 Q4 24 Q1 25 Top 10 Customer Top 20 Customer Including Quant A MODERNIZATION ENGINEERING COMPANY © Sonata Software Ltd, 2024. Confidential 26
Slide 28: International Business: Operational Performance
International Business: Operational Performance Utilization Headcount by Function Continued strong utilization A MODERNIZATION ENGINEERING COMPANY © Sonata Software Ltd, 2024. Confidential 27
Slide 29: International Business: Q1 FY25 Revenue
International Business: Q1 FY25 Revenue Verticals Mix GTMs A MODERNIZATION ENGINEERING COMPANY © Sonata Software Ltd, 2024. Confidential 28
Slide 30: Domestic Business: Delivering consistently strong growth
Domestic Business: Delivering consistently strong growth with Industry leading ROCE Cloud ~80.0% 32.9% YoY Annuity ~76.0% EBITDA 0.4% YoY GC 10.7% YoY 0.99 Net working Capital ÷ Revenue (INR crs) 1,849 Gross Contribution & Gross Contribution 69 EBITDA (INR crs) 62 65 0.75 1,515 56 56 57 1,392 0.59 Q
Slide 31: Thank You
The fastest growing firm in IT Services in the next 3-4 years Thank You