Slide 1: Cover letter to stock exchanges
19th October, 2021 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: Sonata Software Investor Presentation Q2 2022
Sonata Software Investor Presentation Q2 2022 1 © Sonata Software Ltd, 2020. 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 mily •Employees as family •Lasting rela relationships •Employees as enablers ablers values •Shared valu •Employees as citizens zens together •Growing to People Partners Platforms Performance •PlatformationTM Advantage e ••Value V lue cre Va
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, 2020. 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, 2020. 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
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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, 2020. Confidential.
Slide 17: Consistent Growth Over Last 10 years
Consistent Growth Over Last 10 years Consolidated Revenue & EBITDA 16 © Sonata Software Ltd, 2020. Confidential.
Slide 18: International Services Revenue & EBITDA trend for last 12 Quarters
International Services Revenue & EBITDA trend for last 12 Quarters Revenue (Rs. Cr) 400 CQGR - 2.3% 361 350 330 325 301 319 324 304 304 313 276 288 300 275 284 Revenue in Rs cr 250 200 150 100 50 EBITDA (Rs. Cr) - Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 19 19 19 20 20 20 20 21 21 21 21 22 22 17 © Son
Slide 19: Financial Performance of International Services – Q2 FY22
Financial Performance of International Services – Q2 FY22 Revenue in INR. Cr EBITDA 11.4% QoQ 6.5% QoQ 25.2% YoY 46.9% YoY Revenue in $ Mn PAT 11.1% QoQ 5.5% QoQ 26.7 % YoY 54.3% YoY Excluding Encore QoQ – 5% and YoY -19.7% 18 © Sonata Software Ltd, 2020. Confidential.
Slide 20: International Business Revenue Growth
International Business Revenue Growth Revenue in $Million New Customer added $200.0 $180.0 $160.0 $180.8 Revenue in $Mn $140.0 $120.0 $161.4 $160.3 $100.0 $144.0 $80.0 $121.5 $60.0 $40.0 $20.0 $- FY 17 FY 18 FY 19 FY 20 FY 21 Years Client Concentration No. of $Million Customers 19 © Sonata Software
Slide 21: Operational Performance – Q2 FY22
Operational Performance – Q2 FY22 Revenue by Geography No. of Customers by Geo QoQ Growth USA – 13.7% Europe – 7.3% ROW – 9.5% Includes customers from Encore No. of Customers by industry Customer Category 20 © Sonata Sof Softwa Software tware re Ltd Ltd,, 2 2020 2020. 020. C Conf Confidential. onfid
Slide 22: Revenue by Vertical Mix
Revenue by Vertical Mix QoQ Trend Vertical Q2'21 Q3'21 Q4'21 Q1'22 Q2'22 Commodity business & Service Industry -13.5% 24.3% 7.1% 1.1% 3.6% Distribution & Manufacturing -2.3% 7.6% 11.8% -0.5% 5.3% ISV -4.6% 14.7% 9.2% 1.9% 5.9% Others 10.6% -11.5% -5.7% -3.5% 3.2% Retail (Essential) 62.4% 13.7% 13.7%
Slide 23: Revenue by high end Service Mix
Revenue by high end Service Mix QoQ Trend Service Mix Q2'21 Q3'21 Q4'21 Q1'22 Q2'22 Data & Analytics 18.6% 1.7% 7.1% 10.9% 12.0% Managed Cloud Services 8.4% 13.1% 12.3% 3.4% 22.9% IMS 8.2% -7.3% 1.8% -2.8% 11.1% Microsoft Digital Platformation Services 5.9% 9.1% 9.1% 2.5% 9.5% Microsoft Dynamic Serv
Slide 24: Platformation, IP Led and Digital Revenue %
IP Led Revenue % PlatformationTM Revenue % Digital Revenue % IP led & Platformation aligned to growth in competency wise growth 23 © Sonata Software Ltd, 2020. Confidential.
Slide 25: International Business - Revenue Enablers
International Business - Revenue Enablers Revenue by Onsite / Offshore Mix Utilization & Billability Revenue per Billable HC 24 © Sonata Software Ltd, 2020. Confidential.
Slide 26: Human Capital
Human Capital Overall Headcount Headcount by Business Type Note: Includes Encore Software services Headcount of 287 (Delivery – 257, S&M-4, G&A -26) 25 © Sonata Software Ltd, 2020. Confidential.
Slide 27: Domestic Business – Gross Contribution
Domestic Business – Gross Contribution 26 © Sonata Software Ltd, 2020. Confidential.
Slide 28: Domestic Business - Revenue
Domestic Business - Revenue Domestic Revenue (Annuity/Others) Domestic Revenue (Cloud/Non Cloud) Domestic business major revenue contribution from multi year annuity enterprise sales 27 © Sonata Software Ltd, 2020. Confidential.
Slide 29: Domestic Business - Gross margin Analysis by customers
Domestic Business - Gross margin Analysis by customers Domestic Customer Count Domestic Customer by GC % Top ~ 93 customers contribute to about 80% of Gross Margin Strong customer retention - ~ 67% if Gross Margin contributed from customers associated for more than 5 years Established customer base
Slide 30: EBITDA, PBT and PAT – last 12 Quarters
EBITDA, PBT and PAT – last 12 Quarters Domestic Business 29 © Sonata Software Ltd, 2020. Confidential.
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 62.9 70.0 28.3 30.0 25.2 60.0 52.3 49.2 25.0 22.2 50.0 42.2 20.4 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 31 © Sonata Software Ltd, 2020. Confidential.
Slide 33: Capital Allocation Cash Deployment
Capital Allocation Cash Deployment 30,000 27,693 24,927 24,396 25,000 21,295 20,000 19,253 15,859 15,634 Amount in Rs. lakhs 15,000 13,369 13,408 11,042 10,000 9,464 9,464 7,361 5,000 4,206 - FY15 FY16 FY17 FY18 FY19 FY20 FY21 Consolidated PAT Share Holders Payout 32 © Sonata Software Ltd, 2020. Con
Slide 34: Days Sales Outstanding
Days Sales Outstanding 33 © Sonata Software Ltd, 2020. Confidential.
Slide 35: Credit Management – Domestic Business
Credit Management – Domestic Business 34 © Sonata Software Ltd, 2020. Confidential.
Slide 36: Thank you
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