Sonata Software Limited · NSE:SONATSOFTW
Sonata Software — Q4 FY2015 Earnings Presentation
27 slides from Sonata Software's earnings presentation, May 2015
Slide 1: Go Deeper: transform business with IT
GO DEEPER transform business with IT In a world where IT is transforming the way we live and work, Sonata seeks to be a partner of choice who goes deeper in harnessing the power of IT - to make a difference to the needs of our customers, our people and our community. Product Engineering Enterprise I
Slide 2: About Sonata
About Sonata 2 360 SERVICE FOOTPRINT PRODUCT ENTERPRISE TECHNOLOGY ENGINEERNIG IT SERVICES INFRASTRUCTURE GLOBAL STANDARDS WORLD CLASS ALLIANCES FORTUNE 100 CLIENTS QUALITY ASSURED GLOBAL FOOTPRINT STRONG FINANCIALS MS | SAP | ORACLE ISV | ENTERPRISE SEI CMM L5, ITIL, AGILE NA, EUROPE, ASIA, ANZ NSE
Slide 3: Our Vision
Our Vision 3 A world class firm that is a benchmark for Catalyzing Business Transformation for our Clients, Fulfilling Employee Aspirations & Caring for our wider Community thru Depth of Thought Leadership Customer Centricity Execution Excellence 3 © Sonata Software Ltd, 2014. Confidential.
Slide 4: For Customers: Catalyzing business transformation
For Customers : Catalyzing business transformation partner of choice for transformational IT projects 4 PRODUCT ENTERPRISE TECHNOLOGY ENGINEERING IT SERVICES INFRASTRUCTURE • Product Engineering • Customer Engagement • Business Applications • Professional Services • Enterprise Efficiency • Employee
Slide 5: Through deep technology expertise
Through deep technology expertise Getting technology ready to work for customers 5 WORLD-CLASS ALLIANCES 3600 TECHNOLOGY SOLUTION ASSETS NEW TECHNOLOGY ENGAGEMENTS & FRAMEWORKS APPLICATIONS PE | PDS | EAP Components | Vertical Solutions SMAC| Platforms| Appliances Implementation | Licensing Process
Slide 6: …and deeper customer commitment.
…and deeper customer commitment. translating technology to business results 6 CUSTOMER SPECIFIC CENTRE OF EXCELLENCE Governance Value Co-Creation Leadership Role SLAs & Outcomes Strategic Metrics Co Investment in IP TECHNOLOGY | SKILLS | ASSETS | PROCESSES Decade+ customer relationships with sustain
Slide 7: Range of services that go deep
Range of services that go deep Enabling technology partners & Enterprises get more from one another 7 7 PRODUCT ENTERPRISE TECHNOLOGY ENGINEERING IT SERVICES INFRA Product Engineering Customer Engagement Core IT Infrastructure • Architecture, Design & • Multi-channel Commerce • OS, Servers, Cloud &
Slide 8: A team focused on one objective: Your Win!
A team focused on one objective: Your Win! Thought Leadership | Customer Commitment | Execution Excellence 8 ENVIRONMENT VALUES ATTITUDES • Fun &Fearless • Thought Leadership Deep Thinking Emotions@Work • Enhance Potential & • Customer Centricity Passion for work Encourage Initiative • Execution Exc
Slide 9: People Results
People Results Qualified, Committed, Engaged 9 Qualified Committed Engaged Engineers “The work environment in Sonata is very 70% conducive and you have great opportunities to learn and work with the latest technologies. I joined Sonata as a fresher and have learned a lot, not only in Post Graduates
Slide 10: For Community: Positively impacting wider society
For Community: Positively impacting wider society thru a deep appreciation of our responsibility 10 EDUCATION ART & CULTURE Teach a Class Foundation INTACH educational “hotspot” walking-tour application devices, to partnering for heritage sites schools Supporting IT needs of projects with social imp
Slide 11: Depth Makes a Difference
Depth Makes a Difference 11 DEEP TECHNOLOGY DEEPER CLIENT GLOBAL REACH IT PARTNER FOR EXPERTISE COMMITMENT TRANSFORMATION Customer-specific USA | Europe Product | Enterprise IT| World Class Alliances Centers of Excellence ME | APAC | ANZ Infrastructure Solution Innovations Outcome-based Pricing Indi
Slide 12: Sonata Software – Business Structure
Sonata Software – Business Structure 12 Sonata Software Limited Reporting Domestic Segment International IT Services Products & Services Legal Entities Sonata Sonata Sonata Sonata FZ Sonata Sonata Rezopia Inc. Sonata Information Software Ltd Europe Software LLC Software Software Technology Ltd Ltd G
Slide 13: Result Snapshot – Q4 FY 15
Result Snapshot – Q4 FY 15 13 in ` Crores For the Quarter ended For the Year ended Description 31-Mar-15 31-Dec-14 QoQ 31-Mar-14 YoY 31-Mar-15 31-Mar-14 YoY Revenues International IT Services 162.21 156.18 4% 133.93 21% 606.69 483.58 25% Domestic- Products & Services 234.29 314.27 -25% 206.78 13% 1,
Slide 14: Consolidated Revenue & PAT – FY 15
Consolidated Revenue & PAT – FY 15 14 INR Crores Domestic Revenue Revenue Products & 1,682 Services 1,566 2,000 1,093 1,500 1,085 1,093 1,000 Intl IT 500 483 607 Services - 607 2013-14 2014-15 Intl IT Services Domestic Products & Services PAT 134 PAT 150 Domestic 78 25 Products 100 19 & 108 Intl IT
Slide 15: Consolidated - by Quarter
Consolidated - by Quarter 15 INR Crores Revenue EBIDTA 600 417 467 51.7 50.3 406 35.0 44.1 44.5 341 393 60.0 11.5 11.6 400 40.0 8.1 8.8 9.4 284 261 314 234 207 20.0 35.5 35.6 41.0 39.2 200 27.1 134 140 149 156 162 - - Q4-14 Q1-15 Q2-15 Q3-15 Q4-15 Q4-14 Q1-15 Q2-15 Q3-15 Q4-15 International Service
Slide 16: International IT services – by Quarter
International IT services – by Quarter 16 INR Crores Revenue EBIDTA 200 50.0 150 40.0 30.0 100 162 20.0 35.5 35.6 41.0 39.2 134 140 149 156 27.1 10.0 50 - - Q4-14 Q1-15 Q2-15 Q3-15 Q4-15 Q4-14 Q1-15 Q2-15 Q3-15 Q4-15 PAT 30.0 25.0 20.0 15.0 26.3 25.4 28.9 27.8 QoQ YoY 10.0 18.5 Revenues 4% 21% 5.0 -
Slide 17: Domestic Product & Services – by Quarter
Domestic Product & Services – by Quarter 17 INR Crores Revenue EBIDTA 400 15.0 300 10.0 200 314 11.5 11.6 284 261 234 5.0 8.1 8.8 9.4 100 207 - - Q4-14 Q1-15 Q2-15 Q3-15 Q4-15 Q4-14 Q1-15 Q2-15 Q3-15 Q4-15 PAT 8.0 6.0 QoQ YoY Rev -25% 13% 4.0 6.8 7.1 5.0 5.7 5.7 EBIDTA 1% 43% 2.0 PAT 4% 40% - Q4-14
Slide 18: Head count
Head count 18 2,951 3,018 3,500 2,686 2,856 2,565 114 122 3,000 110 120 111 2,500 2,000 1,500 2,746 2,837 2,896 2,445 2,575 1,000 500 - Q4-14 Q1-15 Q2-15 Q3-15 Q4-15 International Service Domestic Products & Service © Sonata Software Ltd, 2014. Confidential.
Slide 19: ROCE & RONW
ROCE & RONW 19 ROCE 40% 35% 32% 36% 31% 34% 31% 30% 30% 28% 30% 25% 25% 27%24% 29%25% 24% 20% 23% 15% 10% 5% 0% Q4 14 Q1 15 Q215 Q3 15 Q4 15 Consolidated Intl Serv Domestic RONW 45% 38% 40% 38% 40% 36% 36% 35% 32% 33% 32% 30% 30% 25% 25% 30% 32% 31% 29% 20% 15% 23% 10% 5% 0% Q4 14 Q1 15 Q215 Q3 15 Q
Slide 20: Day Sales Outstanding
Day Sales Outstanding 20 Consolidated 80 75 76 74 72 70 65 60 55 56 50 51 45 40 35 30 Q4-14 Q1-15 Q2-15 Q3-15 Q4-15 International Services Domestic 80 90 85 82 70 71 80 79 60 61 70 59 56 60 50 51 59 50 40 40 40 30 30 20 20 10 10 - - Q4-14 Q1-15 Q2-15 Q3-15 Q4-15 Q4-14 Q1-15 Q2-15 Q3-15 Q4-15 © Sonat
Slide 21: International IT Services – Key Metrics
International IT Services – Key Metrics © Sonata Software Ltd, 2014. Confidential.
Slide 22: Revenue $ mn
Revenues 22 Revenue $ mn Geography 30.0 100% 12% 11% 9% 14% 14% 25.0 80% 33% 35% 35% 31% Revenue $ mn 20.0 34% 60% 21.5 15.0 24.3 25.0 25.9 40% 23.1 10.0 56% 54% 53% 55% 52% 20% 5.0 - 0% Q4-14 Q1-15 Q2-15 Q3-15 Q4-15 Q4 14 Q1 15 Q215 Q3 15 Q4 15 USA Europe incl UK Rest of World Onsite / Offshore 100
Slide 23: Revenue by Customers
Revenue by Customers 23 Customer Category New Customers 19 19 19 8 19 18 18 18 18 18 18 18 7 18 6 18 17 5 17 4 8 8 17 3 16 2 4 4 Q4 14 Q1 15 Q215 Q3 15 Q4 15 1 1 0 # of Fortune 500 accounts # of million dollar clients Q4 14 Q1 15 Q215 Q3 15 Q4 15 Vertical Revenue from Top 10 customers 100% 80% 18% 1
Slide 24: Rupee - Realization Rates
Rupee - Realization Rates 24 110.00 104 104 105 100.00 101 90.00 88 87 85 85 83 80.00 75 70.00 63 63 63 60.00 60 57 50.00 40.00 Q4 14 Q1 15 Q215 Q3 15 Q4 15 US Dollar Euro GBP © Sonata Software Ltd, 2014. Confidential.
Slide 25: Utilization
Utilization 25 90% 85% 85% 85% 85% 83% 83% 80% 75% 70% 65% 60% Q4 14 Q1 15 Q215 Q3 15 Q4 15 © Sonata Software Ltd, 2014. Confidential.
Slide 26: Notes
Notes 26 • The financials by segment are after appropriate intercompany adjustments. • Consolidated financials include subsidiaries i.e, Sonata Information Technology Limited, Sonata Software North America Inc., Sonata Technology Solutions (India) Limited, Sonata Software GmbH, Sonata Europe Limited
Slide 27: Go Deeper – Thank You
GO DEEPER Transform business with IT THANK YOU www.linkedin.com/company/sonata-software www.facebook.com/sonatasoftware www.twitter.com/sonata_software www.sonata-software.com © Sonata Software Ltd, 2014. Confidential.