Saksoft Limited — Investor Presentation 2021

Nov 11, 2021

Q2FY22 & H1FY22 11[th] November 2021 INVESTOR PRESENTATION

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Safe

Harbor

This presentation and the accompanying slides (the “Presentation”), which have been prepared by Saksoft Limited (the “Company”), have been prepared solely for information purposes and do not constitute any offer, recommendation or invitation to purchase or subscribe for any securities, and shall not form the basis or be relied on in connection with any contract or binding commitment what so ever. No offering of securities of the Company will be made except by means of a statutory offering document containing detailed information about the Company.

This Presentation has been prepared by the Company based on information and data which the Company considers reliable, but the Company makes no representation or warranty, express or implied, whatsoever, and no reliance shall be placed on, the truth, accuracy, completeness, fairness and reasonableness of the contents of this Presentation. This Presentation may not be all inclusive and may not contain all of the information that you may consider material. Any liability in respect of the contents of, or any omission from, this Presentation is expressly excluded

Certain matters discussed in this Presentation contain statements the market and business that are and may regarding Company’s opportunity prospects individually collectively forward-looking statements. Such forward-looking statements are not guarantees of future performance and are subject to known and unknown risks, uncertainties and assumptions that are difficult to predict. These risks and uncertainties include, but are not limited to, the performance of the Indian economy and of the economies of various international markets, the performance of the industry in India and world-wide, competition, the company’s ability to successfully implement its strategy, the Company’s future levels of growth and expansion, technological implementation, changes and advancements, changes in revenue, income or cash flows, the Company’s market preferences and its exposure to market risks, as well as other risks. The Company’s actual results, levels of activity, performance or achievements could differ materially and adversely from results expressed in or implied by this Presentation. The Company assumes no obligation to update any forward-looking information contained in this Presentation. Any forward-looking statements and projections made by third parties included in this Presentation are not adopted by the Company and the Company is not responsible for such third party statements and projections.

Table of

Contents

ABOUT SAKSOFT 04 THE TEAM 11 FINANCIAL HIGHLIGHTS 14

STRATEGY FOR GROWTH 25 INVESTMENT RATIONALE 27

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About Saksoft

Saksoft Group

• Offerings

• Domain Specific Solutions

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• Journey

Digital Transformation Partner

Digital transformation solutions help Automate, Modernize, and Manage IT Systems Domain-specific technology solutions and solution accelerators from consulting to Support

Saksoft Group

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1500+
Employees
Cyber Essentials Plus,
ISO 9001, 27001
14 Strategic
Locations
$50 Million+
Revenues
20+ Years
Track-record
Captive Centers for clients US / UK and Europe / APAC
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Innovation
Customer focus
Openness
Respect
Enterprising
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Listed in NSE / BSE
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www.saksoft.com

Domain Specific Services

Domain Specific Services

FINTECH
Customer Profile	Offerings
• Cards &	• Mobile Cash
Payment	Disbursement
gateways	Solution
• Credit	• API Integration
Management agencies	• Mobile/Web Development
• Regulatory & Compliance	• Big data analytics
• Asset & Wealth Management	• Credit Scoring, Fraud prevention &Risk
• SMB &	Assessment,
Consumer	Anticipate /
Lending,	handle
Mortgages	disruptions

RETAIL
E- COMMERCE
Customer Profile	Offerings
• Multi Store e-	• Social Listening
Commerce	(Micro
Solutions	Influencer)
• Store Front	• Customer 360
Solutions	• Customer
• Customer	Journey
Engagement	Tracking
Solutions	• eCommerce
• Order Inventory	Portal
Management	Development

TELE -
COMMUNICATION
Customer Profile	Offerings
• Business Support	• SharePoint
Systems	development
• Operations	• Advanced
Support Systems	analytics to
• Enterprise Resource Planning	reduce customer churn
• IT Strategy	• Oracle Support
Consulting	• Testing CoE

06/28

Domain Specific Services

Domain Specific Services

HEALTHCARE TRANSPORTATION & LOGISTICS Customer Profile Offerings • Healthcare Providers • Healthcare Payers • Healthcare Compliance • Clinical Research and Life Sciences • Telehealth • EHR integration • Imaging analytics • Integrated health monitoring via wearables • HL7/FHIR enabled provider apps Customer Profile Offerings • 3PL’s • Shippers • Carriers • ISV’s • Port Operators • IoT Solutions • Freight Management Software • Warehouse Management • Supply Chain Management • EDI Integration • Logistics Dashboard

PUBLIC SECTOR	PUBLIC SECTOR
Customer Profile	Offerings
• City Councils in	• Smart cities -
UK	Machine
• Police	learning & facial
Departments	recognition from IoT data feeds
• Central
Government	• Predictive
agencies	Analytics & BI to provide better
• Housing	healthcare,
communities	decrease crime
• Public Utilities	rates, and
	improve citizen’s
	life
	• People identity
	management

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Digital Services

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Legacy
Co-development
Modernization
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Independent Analytics Testing

SOFTWARE PRODUCT ANALYTICS ENGINEERING

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Cloud
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Support
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TESTING QA

Digital Services

• Web Technologies J2EE & .Net

• Enterprise Data Management

• • Business Insights

• • Big Data

• • Data Science

• Android, iOS, Xamarin, HTML5 / JS based apps

• • SharePoint : Development, Migration, Support

• Business Intelligence product implementation

• EXTENDED S/W AUTOMATION DELIVERY FACILITIES

• • • Near Shore Development Centre Test Automation

• • • Offshore Development Centre Internet of Things

• • • Build-Operate-Transfer RPA • ML / AI

• Functional

• • Non-Functional

• • Test Automation

• • Frameworks

• SUPPORT SERVICES

• • Product Support : SAP, Microsoft

• • Application Support

• • Enhancement, upgrades

• • Cloud Migration : Application / Infra

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Digital Transformation Solutions

Digital Transformation Solutions

• LEGACY • Architecture / Technology Upgrade

• MODERNIZATION • Mobility Solutions

• • Application / Platform Integration

• • User Experience

• • On-Premise to Cloud

• MANAGED • Reporting Factory

• ANALYTICS • Scripting Factory

• • Data Science Factory

• • System Management

INTELLIGENT AUTOMATION

MANAGED INFRA

• Robotics Process Automation

• • Internet of Things

• • Data Analytics

• • ML / AI

• • Test Automation

• • IT Infrastructure Support ; 24X7 Monitoring

• • End Point Management

• • Application & DB operations

• • Software asset management

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Saksoft Group Journey

Saksoft Group Journey

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1999	2000	2001		2005		2006	2013	2014
The journey	Incorporated in	Incorporated in	Went public,		First Acquisition		Acquired	In roads to
Begins	Singapore	US & UK	got listed in NSE			of Acuma	EDP, US	testing & QA by
					Solutions, UK			acquiring 360
2015	2016	2017		2018			2019	Logica 2020
Traditional	In roads to	Become a		In roads to			Digital	Domain Specific
services to	Transportation	vertical focused		Healthcare		Transformation		Technology
digital	& Logistics, IOT,	serviced		vertical	by	Partner, Ageon		Solutions to
Transformation	RPA by	Provider		acquiring	Faichi			Modernize,
services	acquiring			Solutions, US				Automate,
	DreamOrbit							Manage

10/28

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Management Team

• Board of Directors

• • Leadership Team

Core Values

At Saksoft, the team believes in a culture of Innovation, Customer Focus, Openness, Respect and Enterprising (iCORE)

Board of Directors

Board of Directors

ADITYA KRISHNA

Founder, Chairman & Managing Director

Over 30 years of experience in the banking and financial services industry.

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GANESH CHELLA

Independent Director

Alumnus of XLRI, Jamshedpur and a founder of Totus HR School,

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AJIT THOMAS

Independent Director & Chairman- Audit Committee

Chairman of AV Thomas Group of companies

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KANIKA KRISHNA

Non-Executive Director

MBA in Financial Management from Pace University, New York, USA. Master’s program in International Business from the Manchester Business School

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VVR BABU

Independent Director & ChairmanNomination & Remuneration Committee

MSc, Applied Mathematics and Operations Research, Master of Philosophy and Computer Science, Business Administration

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MALINI THADANI

Independent Director

Sustainability, communications and investor relations advisor

For more details please refer to our website: Saksoft Board of Directors

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Leadership Team

Leadership Team

ADITYA KRISHNA

Founder, Chairman & Managing Director

Over 30 years of experience in the banking and financial services industry.

JONATHAN EELEY

CCO – Acuma Solutions

Heading UK Enterprise and Public Sector accounts

AVANTIKA KRISHNA Chief Sales Officer

SWARAJ DASH

DHIRAJ MANGLA

NIRAJ KUMAR GANERIWAL COO & CFO Heading Delivery, Finance , HR, IT Support and Admin

SVP Sales – US Region

Executive Vice President

Heading the Top customer, and Sales Strategy

Heading US Sales

Heading Sales and Delivery for Top 2 Customers

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ROHAN PANDYA

AMIT VERMA

GOPAKUMAR

SOUMYA SHASHI

BHASKAR

Vice President

Executive Vice President

Vice President

KAVUNKAL

NARAYANAN

SVP & BU Head

SVP – India & APAC Head – APAC Sales and Marketing

Heading Testing Practice

Heading Transportation & Heading Fintech Solutions Logistics Vertical Vertical

Head –IM and Analytics Practice

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For more details please refer to our website: Transformation Drivers - Saksoft

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• Financial Highlights

• P&L performance

• Strong Financial performance

• Business Mix

• Latest quarter updates

Strong Financial Position, Consistent Profit Sharing

(INR Crore)

P&L Performance

P&L Performance

CONSOLIDATED REVENUE

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385.81
358.05 358.78
285.87
FY18 FY19 FY20 FY21
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CONSOLIDATED PAT*

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45.44
38.21 38.65
24.41
FY18 FY19 FY20 FY21
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CONSOLIDATED EBITDA

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64.42
61.03
59.16
39.60
FY18 FY19 FY20 FY21
EPS
45.68
38.66 38.67
21.98
FY18 FY19 FY20 FY21
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*PAT is before minority interest ** In INR

Consolidated Income Statement (Q2 & H1FY22)

Consolidated Income Statement

Particulars (In INR Crore)	Q2FY22	Q1FY22	%	Q2FY21	%	H1FY22	H1FY21	%
Total Revenue	114.73	102.14	12.3%	97.19	18.0%	216.87	190.94	13.6%
Employee Expenses	50.82	48.80		46.26		99.62	91.45
Support/ Third Party charges	37.67	32.42		27.68		70.09	56.22
Other Expenses	6.97	5.37		6.75		12.35	11.92
Operating EBITDA	19.27	15.55	23.9%	16.50	16.8%	34.81	31.35	11.0%
Operating EBITDA(%)	16.8%	15.2%	157bps	17.0%	(18bps)	16.1%	16.4%	(37bps)
Other Income	(0.02)	7.46		0.14		7.45	1.16
Depreciation	1.55	1.47		1.73		3.02	3.46
EBIT	17.70	21.54	(17.8%)	14.91	18.7%	39.24	29.05	35.1%
EBIT(%)	15.4%	21.1%	(566bps)	15.3%	9bps	18.1%	15.2%	288bps
Finance Cost	0.60	0.72		0.89		1.32	1.89
Profit Before Tax	17.10	20.82	(17.9%)	14.02	22.0%	37.92	27.16	39.6%
Tax	4.01	3.13		3.29		7.14	6.30
Profit After Tax*	13.09	17.69	(26.0%)	10.73	22.0%	30.78	20.86	47.6%
Profit After Tax (%)	11.4%	17.3%	(591bps)	11.0%	37bps	14.2%	10.9%	327bps
EPS (INR)	13.13	17.76	(26.1%)	10.79	21.7%	30.89	20.98	47.2%

*PAT in Q1FY22 was higher by Rs 6.57 crore on account of one time forgiveness of the Paycheck Protection Program loan availed by the subsidiaries in United States, that are no longer repayable

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Consolidated Balance Sheet

Consolidated Balance Sheet

Particulars (INR Crore)	Sep-21	**Mar-21 **	**Mar-20 **	**Mar-19 **	Mar-18
Assets
Non-current assets	176.83	174.08	156.36	145.76	152.88
Property, Plant and Equipment	11.46	10.69	8.49	2.14	2.60
Goodwill on consolidation	147.78	148.70	140.30	137.06	142.11
Other Intangible assets	-	-	2.17	2.93	4.64
Financial Assets
(i) Loans	-	0.00	0.00	-	0.03
(ii) Others	12.66	10.22	2.50	2.02	2.39
Deferred Tax Assets (Net)	4.89	4.47	2.89	1.56	1.09
Other Non-Current Assets	0.04	-	-	0.04	0.02
Current assets	213.90	191.13	147.00	132.74	110.02
Financial Assets
(i) Investments	13.24	10.46	5.51	-	-
(ii) Trade receivables	77.94	64.40	67.52	64.95	58.43
(iii) Cash and cash equivalents	94.16	90.01	42.93	40.06	30.02
(iv) Loans	0.56	0.09	0.14	0.06	0.20
(v) Other Financial Assets	11.58	8.00	12.00	6.49	7.46
Current Tax Assets (Net)	1.52	1.65	1.88	1.38	0.23
Other Current Assets	14.90	16.52	17.02	19.80	13.68
TOTAL – ASSETS	390.73	365.21	303.36	278.49	262.90

Particulars (INR Crore)	Sep-21	**Mar-21 **	**Mar-20 **	**Mar-19 **	Mar-18
Equity & Liabilities
Equity	287.40	259.29	206.18	175.33	148.02
Equity Share capital	9.97	9.96	9.94	9.94	9.94
Other equity	277.43	249.33	196.24	165.39	138.08
Non-controlling interest	-	-	-	4.82	6.10
Liabilities
Non-current liabilities	18.82	30.47	33.55	35.28	46.78
Financial Liabilities
(i) Borrowings	10.00	20.00	24.69	31.60	38.05
(ii) Other Financial Liabilities	2.81	5.06	3.85	0.69	6.09
Provisions	6.01	5.41	5.01	2.99	2.64
Current liabilities	84.51	75.45	63.63	63.06	62.00
Financial Liabilities
(i) Borrowings	-	-	0.85	7.39	4.42
(ii) Trade Payables	33.88	27.05	22.95	24.32	28.63
(iii) Other Financial Liabilities	7.38	12.51	8.70	3.91	7.63
Other Current Liabilities	35.9	30.51	29.53	26.17	20.32
Provisions	7.35	5.38	1.60	1.27	1.00
TOTAL - EQUITY AND LIABILITIES	390.73	365.21	303.36	278.49	262.90

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Cash Flow Analysis

Cash Flow Analysis

Particulars (INR Crore)	Sep-21	Sep-20
Operating profit before working capital changes	43.44	32.78
Changes in working capital	-11.37	9.22
Cash generated from operations	32.07	42.00
Direct taxes paid (net of refund)	(7.38)	(5.36)
Net Cash from Operating Activities	24.69	36.64
Net Cash used from Investing Activities	(5.39)	(8.02)
Net Cash used from Financing Activities	(15.15)	(3.32)
Net Increase in cash and cash equivalents	4.15	25.30

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Strong Financial Position

(INR Crore)

Strong Financial Position

NETWORTH

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287.40
259.29
206.18
180.15
154.12
FY18 FY19 FY20 FY21 H1FY22
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ROE (%)
21.4%
20.8%
18.6% 17.5%
14.7%
FY18 FY19 FY20 FY21 H1FY22
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CASH POSITION

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94.16
90.01
42.93
40.06
30.02
FY18 FY19 FY20 FY21 H1FY22
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ROCE (%)
26.7%
26.4%
24.7%
22.1%
19.7%
FY18 FY19 FY20 FY21 H1FY22
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Sharing Profits Consistently

% of Face Value

Sharing Profits Consistently

35%	10% 30%	45%	25% 25%	30%
1	2	3	4	5
FY18	FY19	FY20	FY21	H1FY22
	Final Dividend		Interim Dividend

Particulars (In INR)	FY18	FY19	FY20	FY21	H1FY22
Consolidated Book Value / Share	148.86	176.35	207.37	260.40	288.19
Consolidated Earnings / Share	21.98	36.66	38.67	45.68	30.89
Dividend / Share	3.50	4.00	4.50	5.00	3.00

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Business Mix

REVENUE BY VERTICALS (H1FY22)

REVENUE BY VERTICALS (FY21)

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OTHERS OTHERS
27% FINTECH 20% FINTECH
26% 27%
RETAIL & HEALTH
CARE
11%
TELECOM TELECOM
22% 23%
RETAIL & HEALTH
CARE
10%
PUBLIC
SECTOR
PUBLIC
10%
SECTOR
TRANSPORTATION TRANSPORTATION
5%
& LOGISTICS & LOGISTICS
10% 9%
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REVENUE BY GEOGRAPHY

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(H1FY22) (FY21)
APAC & APAC &
Others Others
22% 22%
Americas
47%
Americas
46%
Europe Europe
32% 31%
REVENUE MIX
(H1FY22) (FY21)
Offshore
Onsite Onsite Offshore
53%
47% 48% 52%
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Customer Metrics	H1FY22	FY21
No of clients/customers per Million Dollar
>1 Million	8	6
>0.5 Million to 1 Million	9	9
Clients Contribution to Revenue(%)
Top 5	50%	46%
Top 10	60%	56%
Top 20	71%	66%
Headcount Metrics	H1FY22	FY21
Total Employee Count	1,364	1,260
- Technical	1,222	1,127
- Support	142	133
Utilization – IT Services % (Excl. Trainees)	87%	82%

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Highlights for Q2FY22 & H1FY22

Highlights for Q2 & H1FY22

STRONG GROWTH
MOMENTUM		FOCUSSED EXECUTION
Revenue growth of 18.0%	for	Solid growth	in	Fintech,
current quarter as against	the	Transportation &	Logistics and
second quarter of previous	year	Retail Ecommerce;	expected		to
and 12.3% on QoQ basis		be key growth driver this		year
Despite challenging environment, reported double digit EBITDA margin at 16.8%		See growth in Healthcare and Telecom Vertical as well in coming years
Moved 1 customer from $0.5 Million to $1 Million segment
during the quarter
Added a customer in $0.5 Million
segment during the quarter

GROWTH ESTIMATES  Revenue to at expected grow least 15% in FY2022 driven by strong demand environment for our digital service offerings  Embark on our Vision 2025 to become a 100 million US$ over next 3 company years which will be a mix of organic and inorganic growth

22/28

(INR Crore)

Continued Growth Momentum

Continued Growth Momentum

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REVENUE EBITDA PAT
18.0% 22.0%
16.8%
YoY YoY
YoY
17.69
19.27
114.73
16.50
102.14
97.19 15.55
13.09
10.73
12.3%
23.9 %
QoQ
QoQ
(26.0%)
QoQ
Q2FY21 Q1FY22 Q2FY22 Q2FY21 Q1FY22 Q2FY22
Q2FY21 Q1FY22 Q2FY22
QUATERLY PERFORMANCE
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*PAT in Q1 FY22 was higher by Rs 6.57 crore on account of one time forgiveness of the Paycheck Protection Program loan availed by the subsidiaries in United States, that are no longer repayable

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Strategy of Growth

• Key Focus Area

Focus Emerging Sectors

Taking advantage of digitization wave with product and services offering to help clients achieve their needs

Our focused Strategy of Growth

Our Focused Strategy of growth

FOCUS ON EMERGING SECTORS

Addressing the sweep of digitisation to help clients enhance operational efficiency

INCH- WIDE AND MILEDEEP STRATEGY

Addressing target markets with services that differentiate from competition and emerging as one of the fastest-growing and most profitable across our verticals

BEING NIMBLE

We are a mid-tier company with few decision making layers, enhancing our agility

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STRING OF PEARL’S STRATEGY

By building high performance teams focused on sustainable growth

BUILDING A STRONG TEAM

VALUE OVER VOLUME

Address unoccupied territories represented by projects with higher profitability

CONSOLIDATING FRONT END

Consolidating marketing front-end to reach more clients, accounts, trades and systems with the objective to squeeze growth from our platforms at minimal costs

Engage in business complementing M&As that constitute a ‘string of pearls’ strategy that enhances our competence immediately following acquisition without corresponding gestation

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Investment Rationale

Investment Rationale

Investment Rationale

CLIENTS

• Digital transformation of clients at the core of our services

• We have customer focus and innovation built in our Core values. These values enables our business to stay more relevant in the ever evolving market

PERFORMANCE

• Strong Track Record - clean balance sheet, growing revenue and profitability

MARKET

• Focus on the trinity of Fintech, Transportation & Logistics and Retail/Ecommerce with their interconnectivity places us in a sweet spot to design & address solutions

TASK FORCE

• Experienced and dedicated management team with a diversified board

• Sharing profits consistently

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Contact Us

Contact Us

COMPANY CIN: L72200TN1999PLC054429 Mr. Niraj Kumar Ganeriwal Chief Operating Officer and Chief Financial Officer niraj.ganeriwal@saksoft.com Ms. Swetaleen Tripathy +91 9840024120 swetaleen.t@saksoft.com www.saksoft.com

INVESTOR RELATION ADVISORS Mr. Diwakar Pingle dpingle@christensenir.com Ms. Asha Gupta agupta@christensenir.com

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