Slide 1: Regulation 30 filing cover letter
1st February, 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: Investor Presentation Q3 FY'24
A Modernization Engineering Company Q3 FY’24 Investor Presentation
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 38 YEARS Cloud AI & Data IT Solutions Provider $1B+ Revenue 15.3% CAGR Managed Services Dynamics across 10 years Lis
Slide 4: Serving our Global clients with right Talent mix
Serving our Global clients with right Talent mix (Global & Local Talent) APAC China Canada Japan Offices: Singapore Toronto Europe Malaysia Richmond Netherlands Korea North America Denmark Philippines Development Center: Germany Thailand Redmond Vietnam Offices: Eastern Atlanta, GA Europe Fremont, C
Slide 5: Key Verticals, Partners, IPs
Key Verticals, Partners, IPs Industries Ecosystem: Partnerships Tech + Domain BFSI: Banking, Financial Services and Insurance Sustainability Target: Innovative IPs HLS: Healthcare and Carbon Neutrality Life Sciences by 2030 LISA Chatbot (Conversational AI) Single Use Plastic Free certified RMD: Reta
Slide 6: A Modernization Engineering Company
A Modernization 5 © Sonata Software Ltd, 2024. Confidential. Engineering Company
Slide 7: Our Objective and Goal
Our Objective and Goal Objective: Goal: Be one of the fastest-growing Revenue of $ 1.5B by FY 26 end. Modernization Engineering company Intl EBITDA @ low-20’s A Modernization 6 © Sonata Software Ltd, 2024. Confidential. Engineering Company
Slide 8: Our Performance Vision
Our Performance Vision: Making progress and adapting to changing times… 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 cap
Slide 9: In Q3 we crossed $330M in Revenue Run-rate & $2.5B In Market Cap
In Q3 we crossed $330M in Revenue Run-rate & $2.5B In Market Cap Intl. Services Rev. $M SITL GC INR Cr 90 80.9 83.7 80 71.3 77.3 80 70 61.8 62.4 65.8 56.7 58.1 70 60.5 60 53.6 55.7 56.8 57.8 50.8 60 53.4 45.1 47.4 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 Q3'2
Slide 10: Stock Return of 160%+ For Our Shareholders over the past one year
100% 200% 300% 400% 500% 700% 0% 600% 31-Dec-18 31-Jan-19 28-Feb-19 31-Mar-19 30-Apr-19 31-May-19 30-Jun-19 31-Jul-19 31-Aug-19 30-Sep-19 31-Oct-19 30-Nov-19 31-Dec-19 31-Jan-20 29-Feb-20 31-Mar-20 9 9© Sonata Software Ltd, 2024. Confidential. 30-Apr-20 31-May-20 30-Jun-20 31-Jul-20 31-Aug-20 30-Sep
Slide 11: What's working well for us…
What’s working well for us… Large Deals Quant M&A Modernization Verticals/Partnerships SITL 13 Large deals won Integrated with Sonata Cloud & Data pipeline Retail/Mfg., BFSI, HLS, TMT and Strong GC YTD systems is 37% MS, AWS growth A Modernization 10 © Sonata Software Ltd, 2024. Confidential. Engine
Slide 12: Large Deals: 49 large deals under pursuit
Large Deals: 49 large deals under pursuit. 45% of Large deals pipeline are with Fortune 500 clients Key Large Deal Wins Large Deals in the pipeline Client - Premier 3rd party logistics $8.7M over 1 Years Logistics application and Infra Support RMD = 18 deals TMT = 11 deals Client – Multinational Ret
Slide 13: Quality Of Growth – Top Client's Movement
Quality Of Growth – Top Client's Movement Top 10 Accounts Q1 FY 23 Q3 FY 24 2 4 Fortune 50 clients clients 3 5 Fortune 500 clients clients 50% of Top 10 Accounts are Fortune 500 Companies vis-à-vis 30% in previous year Outside of Top 10, We added 11 New Fortune 500 Logos during the calendar year A M
Slide 14: Large Deal Win - Logistics application and Infrastructure support ($8.7M)
Large Deal Win - Logistics application and Infrastructure support ($8.7M) Client Overview American transportation services company specialized in shipping Industry Logistics Areas in Scope Digital Transformation partner – maintain application and infrastructure footprint Client Client HQ Overview US
Slide 15: Large Deal Win – Implementation of Dynamics D365
Large Deal Win – Implementation of Dynamics D365 ($6.4 M) Customer is a large home improvement retail corporation in the United States. American multinational, home Client Overview improvements retail corporation that sells tools, construction products, appliances, and services, including fuel and t
Slide 16: Key bets for the future
Key bets for the future …. Microsoft Fabric AI & Gen AI Joint GTM Pipeline created across 70+ customers; Harmony.AI launched; Pipeline created MS GTM funding We believe Fabric as infra for all AI deals across 50+ customers AWS – Rescale Program Continued focus Verticalization Focused GTM Large Deals
Slide 17: Responsible-first AI offering for Enterprise scale – Harmoni.AI
Sonata’s Responsible-first AI offering for Enterprise scale – Harmoni.AI Geared towards building an AI first culture; We are helping Clients in 3 ways 1 2 3 Leveraging AI to drive higher Leveraging AI to drive efficiencies Driving innovative business model consumer experience/modern sales 30 Interna
Slide 18: Our GTM's are aligned with our Partners and investment focus
Our GTM’s are aligned with our Partners and our investment focus… Cloud Apps Microsoft Service Experience Hyper Data & Analytics Managed Services Modernization Business Apps Transformation Automation MSFT Market Place Partners A Modernization 17 © Sonata Software Ltd, 2024. Confidential. Engineering
Slide 19: Microsoft-Sonata Partnership: 30+ Years
Microsoft-Sonata Partnership: 30+ Years of jointly driving Customer Success Sonata named again in Inner Circle for Microsoft Business Application 2023-24 AI/Gen-AI 400+ Clients $650+ Million Across The Globe Partner for RPA Partner for Industry Partnership Per Annum Revenue To Microsoft USA, Europe,
Slide 20: Success Stories (1/2) Digital Solution for Business Process Transformation
Success Stories (1/2)…Digital Solution for Business Process Transformation Industry Presence Client Overview Manufacturing 18 locations serving> 100 countries Leading Global fragnance house The Pressure Points Solutions Results • Need for seamless Intercompany • Integrated systems with implementatio
Slide 21: Success Stories (2/2) AI enabled Foodservices
Success Stories (2/2)…AI enabled Foodservices Industry Locations Client Overview Retail > 850 Leading food services distribution cooperative in US The Pressure Points Solutions Results • Client was on a 30-year old AS400 • Designed, developed and deployed • Modernized platform with enhanced that was
Slide 22: Key Recognition
Key Recognition A Modernization 21 © Sonata Software Ltd, 2024. Confidential. Engineering Company
Slide 23: Key Recognition from Analyst
Key Recognition from Analyst A Modernization 22 © Sonata Software Ltd, 2024. Confidential. Engineering Company
Slide 24: People – Strength of Sonata
People – Strength of Sonata A Modernization 23 © Sonata Software Ltd, 2024. Confidential. Engineering Company
Slide 25: Financial Management
Financial Management 1 2 3 4 High Revenue growth Strong Cash Position Superlative returns for Sound Capital with Industry Leading & Balance Sheet Shareholders Allocation margins Focus on high revenue Very strong positive Industry leading Sound capital rate realization and cash generation and ROCE an
Slide 26: Consistent Growth over last 10 years
Consistent Growth over last 10 years Consolidated Revenue & profitability ($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 – Q3 FY24
Financial Performance of International Services – Q3 FY24 Industry leading QoQ growth in Revenue and EBIDTA; Process improvements result in Collection rigour *Adj.30.0% PAT $80.9 $83.7 $18.0 EBITDA & PAT in $ Mn 3.5% QoQ EBITDA excl OI & Fx 25.0% $60.5 $13.0 38.3% YoY 1.1% QoQ Revenue in $ Mn 20.0%
Slide 28: Client Concentration
No. of $ Million Customers International Business: Revenue Drivers New Customers added 20 11 12 6 5 13 5 4 48 49 4 37 Q3 23 Q2 24 Q3 24 Q3 23 Q2 24 Q3 24 1-3 Mn 3-5 Mn 5+ Mn 70% 69% 66% Revenue by Geography 61% Client Concentration 55% 56% 17% 15% 27% 15% 13% 20% 69% 71% 53% Q3 23 Q2 24 Q3 24 Q3 23
Slide 29: International Business: Operational Performance
International Business: Operational Performance 6,500 6,092 6,134 6,000 352 85.8% 371 111 107 5,500 5,348 84.2% 84.2% 283 5,000 99 4,500 5,610 5,675 4,000 4,966 3,500 3,000 Q3 23 Q2 24 Q3 24 Q3 23 Q2 24 Q3 24 Delivery S&M G&A Total Utilization Headcount by Function Continued strong utilization A Mod
Slide 30: International Business: Revenue by Verticals Mix
International Business: Revenue by Verticals Mix Q3 FY24 YTD Q3 FY 24 Healthcare 12% Healthcare 11% BFSI BFSI 17% TMT 18% TMT 31% 28% Revenue Revenue Share Share Emerging Emerging 8% 6% Retail and Manufacturing 34% Retail and Manufacturing 36% A Modernization 29 © Sonata Software Ltd, 2024. Confiden
Slide 31: International Business: Revenue by Top GTMs
International Business: Revenue by Top GTMs Cloud & Data continue to contribute over 50% Q3 FY 24 YTD Q3 FY 24 Others Others Emerging Tech 6% 6% 10% Emerging Tech 10% Cloud 38% Cloud Revenue 36% Revenue Share Share Dynamics Dynamics Data 25% 23% 24% Data 21% A Modernization 30 © Sonata Software Ltd,
Slide 32: Domestic Business: Delivering consistently strong growth
Domestic Business: Delivering consistently strong growth with Industry leading ROCE EBITDA 14.6% YoY Cloud ~79.1% Gross Contribution & EBITDA (INR crs) Annuity ~76.3% 1.5% YoY GC 25.8% YoY 1,773 1,800 0.86 71 0.90 Net working Capital ÷ Gross 63 57 59 56 0.72 0.80 52 Revenue (INR crs) Contribution 1,
Slide 33: Thank You
The fastest growing firm in IT Services in the next 3-4 years Thank You