Sonata Software Ltd. — Investor Presentation 2020

Aug 10, 2020

10th August, 2020

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 ended 30th June, 2020.

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 Kulkarni MANGAL KRISHNARAO KULKARNI Digitally signed by MANGAL KRISHNARAO KULKARNI Date: 2020.08.10 15:59:16 +05'30'

Company Secretary and Compliance Officer

Encl: As above

Sonata Software

Investor Presentation

Q1 2021

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

For the Community

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 ofsoftware products	Extends corecapability toservices inSoftwareEngineering,Implementationand Redistribution	'13 –'16 Digital
		Industry focusedglobal digitalsolutions provider	'17+Platformation
			Platform and IPLed Digital

Sonata - A Snapshot

The Company	30+ YEARSas a IT SolutionsProvider	$537+ M REVENUE16% 3 Yr. CAGR	4000+ TEAMacross US, EU, Asia& ANZ	SEI CMMI L5, ITIL& ISO certified
Industry Focus	CPG & MFGConsumer Goods, IndustrialGoods, Wholesale	RETAILApparel, Hard Goods,Grocery, Hypermarket	TRAVELTO, OTA, Airline, Rail,Hotel, Cruise	SOFTWARE VENDORSERP, SCM, Retail, Travel
Competencies	DIGITALOmni-channel, Mobility &IoT, Analytics, Cloud	APPLICATION LIFECYCLESOLUTIONSADM, Testing, IMSManaged Services	PLATFORM IPBrick & Click Retail,Rezopia Digital Travel,Modern Distribution	TECHNOLOGYINFRASTRUCTURESOLUTIONSSoftware, Cloud, Server &Storage, Systems Integration
Credentials	CUSTOMERSGlobal Top 5 –LeisureTravel Co, Grocery Retailer,F&BCPG Co, Software Co	TECHNOLOGYMicrosoft, SAP, Oracle,Open Source, IBM	RECOGNITIONSMicrosoft –Inner Circle,SAP Pinnacle Award,Microsoft Country Partnerof Year India	FINANCIALNational Stock ExchangeListed Public Ltd Co

A Global IT Solutions Organization, with focused Industry Verticals, versatile Portfolio of Services covering wide range of Technologies and delivering value through our unique Platformation™ approach

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 stability at the top

Differentiated Strategy

• IP-led Service Offerings
• Platformation™
• Alliances
• Acquisitions and Competency around MS Tech
• Domestic Business

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

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 assessment )
• Marchitecture™ aligned to CDAT
• Platform Characteristic Requirements ( With a 16 point Framework )
• Technology Architecture to achieve the Platform Characteristics
• Cloud Engineering ( Cloud Native Development )
• Data Platformation Methodology ( Structured Assessment of Data Infrastructure & Platform)
• Accelerated Platform Engineering ( Solution Accelerators )
• IPs aligned to Platformation™

9

PLATFORMATION™

Sonata's approach to Digitizing business using platforms

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

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

Omni channel reservation system for a large Australian rail network built on a travel platform ensuring seamless booking experience

Versatile retail store and e-Commerce integration for a US fashion brand ensuring scalable, omnichannel shopping experiences

A US-based travel company innovating on membershipbased business models, increasing bookings by 200%, and scaling service 6X

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 Won Microsoft Eagle Award 2019-20

CERTIFIED COMPETENCIES

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

PARTNER

MS 4 areas – Business Applications, Apps & Infra, Data & AI and, Modern Workplace Product Engineering, Professional Support, Delivery, LSP Partner for MS, MCS and ISV/SI Ecosystems.

1500+

TEAM On Microsoft Technologies with 1000+ on Microsoft Dynamics

ACROSS THE GLOBE

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

REVENUE TO MICROSOFT

Across the Service Lines

INDUSTRY

FOCUS DIGITAL

Across Retail, CPG, Distribution, Travel, ISV

ON MS DYNAMICS & AZURE-ENABLED

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

STRATEGIC

ACQUISITIONS

IBIS Inc US, Scalable Data Systems, ANZ, Sopris US, GBW Australia

Microsoft's Global strategy

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

Sustainability Goals

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 India Business and Strategic Advantage
• Consistent growth in revenues & margins over 8 years

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

Revenue – last 12 Quarters

International Business Revenue Growth

* Indicates Annualized numbers

Consistent Growth over last 8yrs

International IT services – Revenue by Customers

Revenue - High end Service Mix and Vertical Mix

© Sonata Software Ltd, 2020. Confidential.

Alliance, Platformation and IP Led Revenue

© Sonata Software Ltd, 2020. Confidential.

International Business - Revenue Enablers

© Sonata Software Ltd, 2020. Confidential.

International Services - Average Revenue per Head

Human Capital

Domestic Business - Gross Contribution

EBITDA, PBT and PAT – last 12 Quarters

International Services

Domestic Business

Strategic Investment

International and Domestic ROCE & RONW

Capital Allocation Cash Deployment

2015 to 2021

Days Sales Outstanding

Cash conversion & Credit Management – Domestic Business