Slide 1: Exchange filing cover letter
29th July, 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 Stock Code – SONATSOFTW Stock Code - 532221 Dear Sir/Madam, SUB: INVESTORS
Slide 2: Investor Presentation Q1 FY'24
Investor Presentation Q1 FY’24
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 $950+M Revenue 15.3% 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 Canada China Offices: Japan North America Toronto Singapore Development Center: Europe Malaysia Richmond Netherlands Redmond Korea Denmark Philippines Germany Offices: Thailand Atlanta, GA Vietnam Fremont, CA Bridgewater,
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) Single Use Plastic Free certified by FY 24 BFSI Workbox.io (Archival) Aim for 100% Tier 1 suppliers
Slide 6: © Sonata Software Ltd, 2023. Confidential.
5 © Sonata Software Ltd, 2023. Confidential.
Slide 7: Our Objective and Goal
Our Objective and Goal Objective: Goal: Be the fastest-growing Modernization Revenue of $ 1.5B by FY 26 end @ EBITDA Engineering company, powered by its of early 20’s unique PlatformationTM framework 6 © Sonata Software Ltd, 2023. Confidential.
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 Sales, Large deals, BFSI, Healthcare Life Sciences Invest and technical capabilities $0.92B Clients: Build multip
Slide 9: In Q1 we crossed $300M annual run rate for the International Business
In Q1 we crossed $300M annual run rate for the International Business Intl. Services $M SITL GC INR Crs 77.3 80 65.8 70 58.1 61.8 60.5 53.6 56.7 55.7 56.8 57.8 60 50.8 60 53.4 45.1 47.4 49.4 50 39.9 40 40 30 20 20 10 0 0 Q2'22 Q3'22 Q4'22 Q1'23 Q2'23 Q3'23 Q4'23 Q1'24 Q2'22 Q3'22 Q4'22 Q1'23 Q2'23 Q
Slide 10: Stock Return of 99% for our Shareholders over the past year
Stock Return of 99% for our Shareholders over the past 1 year 500% 450% 439% 400% 350% 300% Total Return to Share Holders 1 Yr 5 Yrs 250% 206% Stock Price Return %** 99% 339% 200% Dividend Yield# % 2% 6% 150% 180% * Till June 30, 2023 100% Market Data 50% NSE Symbol SONATSOFTW 0% Market Cap** $ 1.7B
Slide 11: Big moves are being enabled by firm incremental steps
Big moves are being enabled by firm incremental steps Large Deals M&A - Quant BFSI & HLS 5 Geo launched NA, UK, Nordics, India, Australia Modernization Partners Focused GTMs ecosystem RMD/TMT 10 Mega Radiation Accounts RMD – Retail, Manufacturing & Distribution TMT – Tech, Media & Telecom BFSI – Ban
Slide 12: What's working well for us…
What’s working well for us… Large deals Wins Quant accelerated Modernization – New invest verticals SITL – steady 7 large deals in flight synergy growth. Cloud & Data growing (HLS, BFSI). GC growth pipeline is 40% Partnerships (MS, AWS) 11 © © Sonata Sonata Software Software Ltd, Ltd, 2023. 2023. Co
Slide 13: Large Deal Win#1 - ERP transformation by implementing MS Dynamics 365
Large Deal Win#1 - ERP transformation by implementing MS Dynamics 365 Client Overview The Client provides advanced and high-quality belting solutions for 20 different industries including global logistics, food production, fitness equipment, household appliances and energy production. Areas in Scope
Slide 14: Large Deals Win #2 - Build and Maintain Digital Hub
Large Deals Win #2 - Build and Maintain Digital Hub to enhance customer experience and improve operational efficiency Client Overview The client, Europe’s largest multinational leisure, travel, and tourism company, operates over 150 aircraft, 16 cruise ships, and 381 hotels. Areas in Scope Industry
Slide 15: Aligned with our Partners to drive our Joint GTM Strategy
…Aligned with our Partners to drive our Joint GTM Strategy Cloud Apps Microsoft Service Experience Hyper Data & Analytics Managed Services Modernization Business Apps Transformation Automation MSFT Market Place Partners 14 © Sonata Software Ltd, 2023. Confidential.
Slide 16: Microsoft Relationship – Jointly driving Customer Success
Microsoft Relationship – Jointly driving Customer Success Sonata is now a Microsoft Cloud Solutions Partner 30+ Years 400+ Clients $650+ Million Across The Globe Partner for RPA Partner for Microsoft Partnership Per Annum Revenue To Microsoft USA, Europe, Asia, India, Australia, Middle East Migratio
Slide 17: What are the key bets we are making for the future?
What are the key bets we are making for the future? 1 2 3 Microsoft Fabric: Overcoming Data Silos AI & Gen AI Modernization and Dark Data Continued focus Verticalization Focused GTM Large Deals 10 Mega accounts 16 © Sonata Software Ltd, 2023. Confidential.
Slide 18: Sonata is the only Indian SI launch partner for MS Fabric
Sonata is the only Indian SI launch partner for MS Fabric Sonata Advantage 1) Early Mover with Microsoft. 2) Implemented the solution within Sonata for trial/testing. 3) Strong relationships with CVP, Data @ Microsoft Prelaunch product right now. Formal launch in Nov’ 2023 40+ customers in 6-7 weeks
Slide 19: Sonata's Responsible-first AI offering – Harmoni.AI
Sonata’s Responsible-first AI offering for Enterprise scale – Harmoni.AI 17 Use Harmoni.AI Platform Cases built for Responsible AI 03 04 Active Offerings and Conversations 02 05 methodology at 16 accounts Harmoni.AI published 01 06 All functions Core team built; identifying & training created implem
Slide 20: Success Stories (1/2)… Leveraging cutting edge LLMs
Success Stories (1/2)… Leveraging cutting edge LLMs Industry Revenue Employees Client Overview Technology > $190 B Fortune 25 > 220,000 The Pressure Points Solutions Results • Accelerate the ability to bring new • EPICS (Engineering Pipeline products and features to the market Infrastructure and Clo
Slide 21: Success Stories (2/2)… Unique Customer Identification using AI/ML
Success Stories (2/2)… Unique Customer Identification using AI/ML Industry Revenue Presence Client Overview Fintech $5.5 B Fortune 500 +180 The Pressure Points Solutions Results • Limited ability to recognise • Developed modern using AI/ML - to customers – fragmented data create One consistent custo
Slide 22: Key Recognitions!
Key Recognitions! 21 © Sonata Software Ltd, 2023. Confidential.
Slide 23: Key Partnerships unlocked!
Key Partnerships unlocked ! 22 © Sonata Software Ltd, 2023. Confidential.
Slide 24: People – Strength Of Sonata
People – Strength Of Sonata 23 © Sonata Software Ltd, 2023. Confidential.
Slide 25: Financial Management
Financial Management 1 2 3 4 High Revenue growth Strong Cash Position Superlative returns for Sound Capital with Industry Leading & Balance Sheet Shareholders Allocation margins Focus on high revenue Very strong positive Industry leading Sound capital rate realization and cash generation and ROCE an
Slide 26: Consistent Growth over last 10 years
Consistent Growth over last 10 years Consolidated Revenue & profitability ($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 27: Financial Performance of International Services – Q1 FY24
Financial Performance of International Services – Q1 FY24 30.0% Industry leading QoQ growth in Revenue and EBIDTA; Process improvements $20.0 result in Collection rigour 25.0% $90.0 21.1% 21.1% QoQ EBITDA & PAT in $ Mn $80.0 $77.3 17.5% QoQ $15.0 20.0% $65.8 24.4% 20.7% $70.0 36.1% YoY 22.1% YoY Rev
Slide 28: International Business: Revenue Drivers / Client Concentration
International Business: Revenue Drivers Profile of Customer improving, with higher share from our focussed market -US 20 No. of $ Million Customers 11 New Customers added 8 15 7 5 12 5 10 2 43 45 31 Q1 23 Q4 23 Q1 24 Q2 23 Q3 23 Q4 23 Q1 24 1-3 Mn 3-5 Mn 5+ Mn 72% 69% 66% Revenue by Geography 62% 58
Slide 29: International Business: Operational Performance
International Business: Operational Performance Performance has been based on significant scale up of Team Sonata 6,500 6,267 6,055 4% QoQ 361 6,000 323 109 37% YoY 104 86.4% 5,500 82.0% 82.7% 5,000 4,569 267 5,797 4,500 99 5,628 4,000 4,470 Q1 23 Q4 23 Q1 24 3,500 Q1 23 Q4 23 Q1 24 Delivery S&M G&A
Slide 30: International Business: Revenue by Verticals Mix
International Business: Revenue by Verticals Mix Invest verticals: Healthcare & BFSI have grown according to our strategy FY 23 Q1 FY 24 Healthcare Healthcare 11% 14% BFSI 8% BFSI TMT TMT 18% Emerging 33% 26% 9% Revenue Revenue Share Share Emerging 6% Retail and Manufacturing 39% Retail and Manufact
Slide 31: International Business: Revenue by Top GTMs
International Business: Revenue by Top GTMs Significant growth in Cloud and Data as revenue increase by more than 50% FY 23 Q1 FY 24 Others Emerging Tech Others Emerging Tech 2% 13% 6% 10% Cloud Cloud 36% 38% Revenue Revenue Share Share Dynamics Data Dynamics Data 37% 12% 26% 20% 30 © Sonata Softwar
Slide 32: Domestic Business: Gross Contribution & EBITDA
Domestic Business: Delivering consistently strong Growth with Industry leading ROCE EBITDA 28.2% YoY Gross Contribution & EBITDA (INR crs) Cloud ~78.8% Annuity ~75.9% GC 21.8% YoY 1.00 0.92 62 3.6% YoY 58 56 Net working Capital ÷ Gross 54 0.90 1,392 51 0.80 0.78 44 0.80 Revenue (INR crs) 1,343 1,350
Slide 33: Sonata Software
SONATA SOFTWARE The fastest growing firm in IT Services in the next 3-4 years © Sonata Software Ltd, 2023. Confidential.