Slide 1: Exchange filing cover letter: Investors' Presentation
11th May, 2020 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 Code -
Slide 2: Sonata Software Investor Presentation Mar 2020
Sonata Software Investor Presentation Mar 2020 1 © Sonata Software Ltd, 2020. Confidential.
Slide 3: Sonata Vision
Sonata Vision For the Customers IT Partner of choice for A world class firm transformation thru deeper industry, that is a benchmark for technology & customer focus Catalyzing Business Transformation for our Clients, Fulfilling Employee Aspirations & For the Employee Caring for our wider A fun & fea
Slide 4: Sonata - Evolution
Sonata - Evolution ’86-’92 : Indian Software Product Pioneer ’92 – ’12 : 360 IT Service Provider Produced and distributed its ’13 – ’16 Digital Extends core own portfolio of ’17+Platformation capability to software products Industry focused services in global digital Software Platform and IP solutio
Slide 5: Sonata - A Snapshot
Sonata - A Snapshot 30+ YEARS 4000+ TEAM $427+ M REVENUE SEI CMMI L5, ITIL The Company as a IT Solutions 15% 3 Yr. CAGR across US, EU, Asia & ISO certified Provider & ANZ CPG & MFG RETAIL TRAVEL SOFTWARE VENDORS Industry Focus Consumer Goods, Industrial Apparel, Hard Goods, TO, OTA, Airline, Rail, E
Slide 6: Sonata Story
Sonata Story • Platformation™ • Long term relationships with clients • Alliance with Microsoft • IP led • Engineering excellence and advanced technologies • Track record of running mission critical operations on cloud with own IP • Over all growth story last 8 years and recognition • Talent stabilit
Slide 7: Differentiated Strategy
Differentiated Strategy • IP-led Service Offerings • Platformation™ • Alliances • Acquisitions and Competency around MS Tech • Domestic Business 6 © Sonata Software Ltd, 2020. Confidential.
Slide 8: Vertical Focus
Vertical Focus • Retail, travel, distribution & CPG, ISV, Commodity Trading, and services industry – field services • IP – Brick and Click, Modern Distribution, CTRM, Rezopia • Platform led Digital Transformation • Digital Business Process Library • Client Digital Agenda Templates • Track record 7 ©
Slide 9: 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 • CDAT based approach • Platform Maturity Assessment ( Separate Business & Technology maturity ass
Slide 10: 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™ 9 © Sonata Software Ltd, 2020. Confidential.
Slide 11: 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 12: Sonata, a best-in-class Microsoft partner
SONATA, A BEST-IN-CLASS MICROSOFT PARTNER (Top 1%) 25 Years 13 Gold 3600 MICROSOFT PARTNER CERTIFIED COMPETENCIES PARTNER GISV, lSP, CSP, ISV Dev Centre, SI. Dynamics 365, MS 4 areas – Business Applications, Apps & Infra, Country Partner India 2014, 15, 17. Power BI, Cortana Data & AI and, Modern Wo
Slide 13: Microsoft's Global strategy
Microsoft’s Global strategy Solution Areas Partner Practices KEY EXECUTION PLAN / PLAYS Collaboration 1. Adoption Drive for Teams, Yammer, OneDrive Modern Modern Desktop 2. PowerApps Practice 3. Upsell motion to M365 E3/E5 Workplace Security and compliance 4. Bots for Teams Cloud Voice 5. Security 1
Slide 14: Sonata Retail Offerings
Sonata Retail Offerings Digital Digital Journey Phase-> Digitize Infrastructure Digital Smart Operations Customer Digital Innovation Sonata offerings ↓ and applications Experience • Differentiate backend office operations • Reimagine products, • Implement through Mobile/IoT devices business models a
Slide 15: Sonata Case Study
Sonata Case Study Business Challenges Sonata’s Solution Benefits • Outdated rail passenger reservation • Rezopia Rail Platform is a next generation rail • Increased business capability with web based system reservation system capable of addressing all our application and efficient process for ancill
Slide 16: 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 17: 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 18: Sustainability Goals
Sustainability Goals 17 © Sonata Software Ltd, 2020. Confidential.
Slide 19: Our CSR Programs
Our CSR Programs Traditional Arts, Textile Preservation of our Education Education and Handicrafts Cultural Heritage IIIT-B (Bangalore), IISc Women Weave Agastya Museum of Art & (Bangalore) (Maheshwar), The (Hubli),Telangana Photography (Bangalore) Kishkinda Trust (Koppal) Yuvathi Mandali “We encour
Slide 20: Financials
IN COICO SONATA SOFTWARE
Slide 21: Strong Execution
Strong Execution • Growth from existing clients • Acquiring new clients • Strong growth in new clients • Alliance led growth • IP led growth • Platformation™ led growth • Margin levers on utilisation and revenue per person • High-end service mix • Digital execution and growth • Strong growth in Indi
Slide 22: Financial Management
Financial Management • Focus on ROCE and RONW • Focus on margins • Focus on strong cash management • Sound capital allocation • Very strong credit and risk management in India business 21 © Sonata Software Ltd, 2020. Confidential.
Slide 23: Revenue – last 12 Quarters
Revenue – last 12 Quarters 22 © Sonata Software Ltd, 2020. Confidential.
Slide 24: International IT services – Revenue by Customers
International IT services – Revenue by Customers 23 © Sonata Software Ltd, 2020. Confidential.
Slide 25: Revenue Mix by Competency and Vertical
Revenue Mix by Competency and Vertical 24 © Sonata Software Ltd, 2020. Confidential.
Slide 26: IP Led and Digital Revenues
IP Led and Digital Revenues 25 © Sonata Software Ltd, 2020. Confidential.
Slide 27: International & Domestic Business - Revenue Enablers
International & Domestic Business - Revenue Enablers 26 © Sonata Software Ltd, 2020. Confidential.
Slide 28: Human Capital
Human Capital 27 © Sonata Software Ltd, 2020. Confidential.
Slide 29: International Business Revenue Growth
International Business Revenue Growth 28 © Sonata Software Ltd, 2020. Confidential.
Slide 30: Domestic Business - Gross Contribution
Domestic Business - Gross Contribution 29 © Sonata Software Ltd, 2020. Confidential.
Slide 31: EBITDA, PBT and PAT – last 12 Quarters
EBITDA, PBT and PAT – last 12 Quarters International Services Domestic Business 30 © Sonata Software Ltd, 2020. Confidential.
Slide 32: Consistent Growth over last 8yrs
Consistent Growth over last 8yrs 31 © Sonata Software Ltd, 2020. Confidential.
Slide 33: Strategic Investment
Strategic Investment 32 © Sonata Software Ltd, 2020. Confidential.
Slide 34: Consolidated – ROCE & RONW
Consolidated – ROCE & RONW 33 © Sonata Software Ltd, 2020. Confidential.
Slide 35: Days Sales Outstanding
Days Sales Outstanding 34 © Sonata Software Ltd, 2020. Confidential.
Slide 36: Capital Allocation Cash Deployment
Capital Allocation Cash Deployment Shareholder Payout Judicious usage 30,000 25,000 Capex, 3% 20,000 Investment, AMOUNT IN RS CR 40% Shareholder Payout, 44% 15,000 10,000 Acquisition, 13% 5,000 - 15 16 17 18 19 20 YEAR Cosnolidated PAT Shareholder Payout Capex Shareholder Payout Acquisition Investme
Slide 37: Cash conversion & Credit Management – Domestic Business
Cash conversion & Credit Management – Domestic Business Cash Conversion Positive Trends Average Borrowing 100 3,000 AMOUNT IN RS CR 80 2,500 60 2,000 DAYS 1,500 40 1,000 20 500 - - Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 FY18 FY18 FY18 FY18 FY19 FY19 FY19 FY19 FY20 FY
Slide 38: Thank you
IN COICO SONATA SOFTWARE
Slide 39: Marchitecture - Platform Architecture sample
Marchitecture - Platform Architecture sample Dispensers Hearing Device Consumer Mobile Dispenser App Bots Website (Consumer) APIs B2B APIs Commercial Sensor APIs Event APIs GPS APIs Info APIs Client APIs Fitting APIs Device APIs APIs Platform Core Components Profile APIs Configuration Profile PIM Av
Slide 40: Creating Platforms to anchor the Platformation journey
Creating Platforms to anchor the Platformation journey Technology anchored Platformation™ brings together digital platform technology excellence, design thinking-led innovation, agile way of working and modern delivery to deliver true digital transformation DESIGN THINKING CONTINUOUS INNOVATION AGIL
Slide 41: Retail Categories and Retail Digital Processes
Retail Categories Retail Digital Processes ML Based Personalized Unified Fulfillment & Unified Pricing & Customer 360 Unified Process Recommendations & Returns Merchandising Engagement Promotions In-Store Mobile In-Store Clienteling Queue Busting Digital Payments Shopping AR/Chatbot based Digitized
Slide 42: Enabled through structured Methods and Tools
Enabled through structured Methods and Tools Applied Sonata’s frameworks that help uncover the business & technology needs and priorities of the client, and developed a best-fit roadmap for “Platformation” Technology Implementation Platform Design Step – 02 Step – 03 Assessment Roadmap BUSINESS ARCH
Slide 43: Microsoft Sonata - Joint GTM for Digital Transformation
Microsoft Sonata - Joint GTM for Digital Transformation Platformation™ Unique approach to Digital Transformation through Platforms Digital business processes Industry CDAT led Approach & Focus Retail, CPG, Distribution, Consulting methodology Service, Manufacturing and Platform maturity as
Slide 44: Step 7 - Technology Roadmap
Step 7 - Technology Roadmap EXECUTIO N Ready & On Board API based Integration Cloud-enabled Blockchain Scalable Not Initiated Yet 1 1 2 3 In Progress 1 “Must” have in Near Future Micro-services Multi-device / Multi- CUI & bots IOT 2 “SHOULD” have in long term Architecture channel capability 1 1 1 2
Slide 45: MS & Non-MS Revenue
MS & Non- MS MS & Non MS 180.00 160.00 140.00 REVENUE USD MN 120.00 100.00 80.00 60.00 40.00 20.00 - FY 17 FY 18 FY 19 FY 20 PERIOD Non MS MS 44 © Sonata Software Ltd, 2020. Confidential.
Slide 46: Steps taken to establish Sonata as Digital Transformation partner of choice
Steps taken to establish Sonata as Digital Transformation partner of choice • Content - Include thought leadership Digital Transformation messaging in all marketing communications. E.g: Sonata Stories, Digital case studies, brochures, blogs/articles, videos, whitepapers and POV etc. • PlatformationT
Slide 47: Content, Branding, Customer Event, Analyst and Industry Relations
Content, Branding, Customer Event, Analyst and Industry Relations Blog Digital ODC Sonata SPARK Customer Event Digital Case Study Everest Group Software Product Engineering Zinnov Enterprise Software ER&D Services Peak Matrix Assessment 2019 Ratings 2019 NASSCOM Pavilion at Gartner IT PlatformationT
Slide 48: Webinar, Website, People Engagement, WEF and Newsletter
Webinar, Website, People Engagement, WEF and Newsletter IP Digital Transformation Webinar People Engagements Upcoming Website WEF Article Alliance Newsletter 47 © Sonata Software Ltd, 2020. Confidential.