Sonata Software Ltd. — Investor Presentation 2019

Oct 30, 2019

30th October, 2019

National Stock Exchange of India Limited Exchange Plaza, Bandra Kurla Complex, Mumbai Kind Attn: Manager, Listing Department Email Id: neaps@nse.co.in Stock Code - SONATSOFTW

BSE Limited P.J. Towers, Dalal Street Mumbai Kind Attn: Manager, Listing Department Email Id: listing.centre@bseindia.com Stock Code - 532221

Dear Sir/Madam,

SUB: Investors' Presentation

Pursuant to Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, we are enclosing Investors' Presentation for the quarter and half year ended 30th September, 2019.

The above said presentation is also made available on the Company's website www.sonatasoftware.com.

Kindly take the same on record.

Thanking you,

Yours faithfully, For Sonata Software Limited

MANGAL KRISHNARAO Digitally signed by MANGAL KRISHNARAO KULKARNI Date: 2019.10.30 16:33:28 +05'30'

Mangal Kulkarni Company secretary and Compliance Officer KULKARNI

Encl: As above

Sonata Software

Investor Deck

Q2 FY 19-20

Sonata Vision

A world class firm that is a benchmark for Catalyzing Business Transformation for our Clients, Fulfilling Employee Aspirations & Caring for our wider Community

For the Customers

IT Partner of choice for transformation thru deeper industry, technology & customer focus

For the Employee

A fun & fearless environment where the potential & passion for work flourishes

CSR initiatives to support IT needs of projects with Social impact

'86-'92 : Indian Software Product Pioneer

	'92 –	'12 : 360 IT Service Provider
Produced anddistributed itsown portfolio of	Extends core	'13 –'16 Digital
software products	capability toservices inSoftwareEngineering,Implementationand Redistribution	Industry focusedglobal digitalsolutions provider	'17+Platformation
			Platform and IPLed Digital

Platforms - the secret behind the digital economy's most successful companies

Sonata's approach to Digitizing business using platforms

PLATFORMATION

PLATFORMATION

The Technology Framework

API basedIntegration	Cloud-enabled	Blockchain	Scalable
Micro-servicesarchitecture	Multi-device /Multi-channelcapability	CUI & bots	IoT
Robotic ProcessAutomation	Multi-tenancy	Security &compliance	Telemetry & SelfHealing
Data strategy	Data analytics	Intelligentcustomerexperience	Self-learning(Platform machinelearning)

Approaches to achieve Platformation

Sonata READY

• End-to-end, industryspecific digital business platforms

Sonata ACCELERATE

• Deploy popular horizontal platforms adding required functionality

Sonata CUSTOM

• Engineer custom platforms that deliver unique digital capability and scalability

Sonata READY

Leverage Sonata's IP for platform-led business transformation

Accelerate speed to market, use proven industry practices, and reduce investments with a solution for your industry that is ready-to-go

Omnichannel Retail Platform

Digital Travel Platform

Modern Distribution Platform

Commodity Trading Platform

Success Story

Omnichannel reservation system for a large Australian rail network built on Rezopia platform ensuring seamless booking experience for customers across Web, Ticket Counter, and Call Center channels.

Sonata ACCELERATE

Leverage Sonata's experience of assessing, implementing, and supporting leading platforms for business process enhancement

Industry-leading horizontal platforms, that address needs of key business process & technology areas, and lets companies scale their investments by enhancing functionality

Dynamics 365 Cortana

Intelligence Suite

Cloud for Customer

Success Story

Versatile retail store and e-Commerce integration for a US fashion brand ensuring scalable, omnichannel shopping experiences & operations using Dynamics retail platform

Sonata CUSTOM

Leverage Sonata's deep platform engineering skills, methodologies, and white-labelled assets to build customized platforms for business differentiation

For businesses looking to create environments supporting very specific requirements, and looking to build a scalable open platform with finite license costs

Sonata Platform Component Assets

B2C & B2B Digital Commerce Platform

Unified Enterprise Mobility Platform

DevOps & CloudOps Platform

Success Story

Enabled a US-based travel company innovate on membership-based business models, increasing bookings by 200%, and scaling service 6X to 120,000+ members

Enabled by our Platformation DNA

Engineering Excellence

• Product engineering mind-set
• Distributed agile rapid delivery
• DevOps and full automation focus

Operations Excellence

• Cost-optimized cloud operations
• Tools-based management
• Security compliance
• Business continuity

our innovative engagement models Delivering value through

Customer-Specific Center of Excellence

• Governance

• Leadership role

• Strategic metrics

• Value Co-creation

• SLAs and outcomes

• Co-investment in IP

TECHNOLOGY | SKILLS | ASSETS | PROCESSES

Domain Knowledge | Technical Knowledge | Knowledge Management | Charter Innovation | Process & Capability | Reusability

Commercial Models: Project-based | Outsourced | Output-based

Build-Operate-Transfer | Turnkey-managed | Joint Venture

With a team nurtured to make a difference

Deeper roles	Regular exposure to newer technologies, evolving businessscenarios, and building cross-functional expertise
Customerimpact	Continuous exposure to clients to assess business impact ofsolutions delivered
Freedomto contribute	Our flexible working style encourages ideation within broadboundaries
Growth	Early identification, mentoring, and nurturing of talent forgrowth by senior leaders

We need to take a pause and appreciate the drive and determination we have seen from every player on what is a complex effort and delivery. We commend you all for your effort…keep up the good work!

Director – Platform Systems, US Travel Leader

Our CSR Programs

IISc (Bangalore), IIIT-B (Bangalore),

"We encourage research activities in cutting-edge areas of Computer Science and also focus on research fellowships, evangelization of technology for digital transformation"

Traditional Arts, Textile and Handicrafts Education Education Preservation of our

WomenWeave (Maheshwar), The Kishkinda Trust (Koppal)

"We developed a digitally enabled craft store front and ecommerce platform for our partners"

Agastya (Kuppam),Telangana Yuvathi Mandali (Hyderabad), WCT (Mumbai)

"We have developed digitallyenabled learning platforms such as Lab on tab for teachers and students. We also provide scholarships and grants, especially for the girl child"

Cultural Heritage

Museum of Art & Photography (Bangalore)

"We are providing technology support for the Museum by building responsive website and mobile app along with developing a digital repository to host the digitized version of all the artifacts by MAP as well as giving them a Grant for ongoing programs"

PLATFORMATION partner Sonata, the right

The Right PlatformSonata-READY Sonata-ACCELERATE Sonata-CUSTOM	Proven PlatformationRecordDelivery to Fortune 500 enterprises and ISVAlliances, Awards, and Recognitions
Deep Industry ExpertiseTravel Retail & Distribution Software	Deep Client CommitmentDecade+ partnership approachCustomer C0E-led Delivery
Quality, People, & ProcessesInnovation Commitment ImpactSEI CMMI L5 ISO Agile	Global ReachNorth America Europe Asia ANZ

Executing Strong Alliance SONATA, A BEST IN CLASS MICROSOFT PARTNER (Top 1%)

25 Years

MICROSOFT PARTNER

GISV, lSP, CSP, ISV Dev Centre, SI. Country Partner India 2014, 15, 17. Global alliance footprint

15 Gold CERTIFIED COMPETENCIES

Dynamics 365, Power BI, Cortana Azure, .Net, Mobility

14+ Years

Product Engineering & Support Partner

AX, D365, Dynamics Retail product engineering. D365 Support and Professional Direct Support services for CSS

2500+

TEAM On Microsoft Technologies with 1000 + on Microsoft Biz Apps

100+ Clients ACROSS THE GLOBE

USA, Europe, Asia, India, Australia, Middle East

$180+ million/annum REVENUE TO MICROSOFT

Across the service lines

INDUSTRY

FOCUS DIGITAL

Retail, Consumer goods, Distribution, Commodity Trading, Field Service, Travel, ISV

PLATFORM IP

ON MS DYNAMICS & AZURE-ENABLED

Brick & Click, Modern Distribution, Commodity Trading, Rezopia, Kartopia, Halosys, Rapid

STRATEGIC ACQUISITIONS

Scalable Data Systems, Sopris, IBIS Inc

Execution - Strategic Acquisitions

Rezopia	Halosys	IBIS Inc.	Scalable Data System	Sopris
•Cloud based travel ERPSaaS•Enhanced to widerdigital travel platformwith Commerce, Mobility& Analytics•Sub vertical specificsolutions –TourOperator, Corporate, Rail	•Unified EnterpriseMobility Platform•Integrated to Sonataindustry specificplatform IP to extendtheir mobile capability•Pre-built industryspecific Apps –Shopping, MassDistribution, TravelAssistant	•Advanced Supply ChainManagement Softwarefor Dynamics•Extended to ModernDistribution Platformwith Commerce andField Sales Apps•Dynamics capability &US Geo footprint	•Integrated Platform forCommodity Procurementand Trading to ManageContracts and ReduceRisks.•Execute contracts,Manage risk and fullytrack financials acrossmultiple contracts forraw materials.•Single, cloud-basedsolution which integratesseamlessly withMicrosoft Dynamics 365Finance and Operations.	•Platform corporations inUtilities, Engineering, Oil& Gas, ProfessionalServices etcdigitallytransform their fieldservices operations•Cloud based, Optimizeschedules, Increasesproductivity andcollaboration andensures Real timeinventory of parts &spares•Integrated with D365

Enablers – Strong Governance and financials

• Listed Company ( NSE and BSE)
• Best-in-Class Board and Top management Profiles
• Consistent Track record of Growth, profitability and Dividend
  • RoE and RoCE > 25%
  • Revenue Growth at 15%+ CAGR over last 4 years
  • PAT growth at 15%+ CAGR for 4 years
• Strong Balance sheet
• Regular Dividend payout

Financials (Q2 2019-20)

		Ш
				SONATA SOFTWA

								₹ in Crores
Description	For the Quarter ended				For the half year ended
	30-Sep-19	30-Jun-19	30-Sep-18	QoQ	YoY	30-Sep-19	30-Sep-18	YoY
Revenues
International IT Services	312.6	304.5	275.3	3%	14%	617.1	532.4	16%
Domestic- Products & Services	399.1	574.1	325.9	-30%	22%	973.2	763.1	28%
Consolidated	703.1	874.6	593.1	-20%	19%	1,577.7	1,281.4	23%
EBITDA
International IT Services	89.5	84.4	73.5	6%	22%	173.9	140.1	24%
Domestic- Products & Services	22.5	22.4	17.7	1%	27%	44.9	34.4	31%
Consolidated	111.4	106.4	90.7	5%	23%	217.7	173.8	25%
PAT
International IT Services	56.1	53.4	51.2	5%	10%	109.5	98.5	11%
Domestic- Products & Services	16.1	13.7	11.0	18%	46%	29.8	21.4	39%
Consolidated	72.2	67.1	62.2	8%	16%	139.3	119.8	16%

Days Sales Outstanding

© Sonata Software Ltd, 2019. Confidential.

INR Crores

USA Europe incl UK Rest of World

Vertical

OPD TTL Retail Distribution Others

Revenue Type

International IT services – Revenue by Competency

37%

from

Digital

© Sonata Software Ltd, 2019. Confidential.

Trend - IP Led Revenues (%)

International IT services – Revenue by Customers

© Sonata Software Ltd, 2019. Confidential.

29

Domestic Product & Services - Financials

INR Crores