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Sonata Software Ltd. Investor Presentation 2020

Jan 25, 2020

60845_rns_2020-01-25_b8f0bda7-9173-45e1-8caa-37cb019286a4.pdf

Investor Presentation

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25th January, 2020

National Stock Exchange of India Limited Exchange Plaza, Bandra Kurla Complex, Mumbai Kind Attn: Manager, Listing Department Email Id: [email protected] Stock Code ‐ SONATSOFTW

BSE Limited P.J. Towers, Dalal Street Mumbai Kind Attn: Manager, Listing Department Email Id: [email protected] 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 nine months ended 31st December, 2019.

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

Kindly take the same on record.

Thanking you,

Yours faithfully,

For Sonata Software Limited MANGAL KRISHNARAO KULKARNI

Digitally signed by MANGAL KRISHNARAO KULKARNI Date: 2020.01.25 08:50:03 +05'30'

Mangal Kulkarni Company secretary and Compliance Officer

Encl: As above

Sonata Software

Investor presentation

Dec 2019

2

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

through Depth of: Thought Leadership Customer Centricity Execution Excellence

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 PioneerProduced and distributed its own portfolio of software products '92 – '12 : 360 IT Service ProviderExtends core capability to services in Software Engineering, Implementation and Redistribution '13 – '16 Digital Industry focused global digital solutions provider '17+PlatformationPlatform and IP Led Digital

Sonata - A Snapshot

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© Sonata Software Ltd, 2019. Confidential. 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

  • • 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 structuredprocess for Platformation comprises the following :

  • •Digital Business Process Library & Identification
  • • CDAT basedapproach
  • • PlatformMaturity Assessment ( Separate Business & Technology maturity assessment )
  • Marchitecture™aligned to CDAT
  • PlatformCharacteristic Requirements ( With a 16 point Framework )
  • •Technology Architecture to achieve the Platform Characteristics
  • • CloudEngineering ( Cloud Native Development )
  • • Data Platformation Methodology ( Structured Assessment of Data Infrastructure & Platform)
  • Accelerated PlatformEngineering ( Solution Accelerators )
  • • IPsaligned to Platformation™

Platformation™

9

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

Sonata's approach to Digitizing business using platforms

PLATFORMATION™

Approaches to achieve Platformation™

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10

SONATA, A BEST‐IN‐CLASS MICROSOFT PARTNER (Top 1%)

MICROSOFT PARTNER

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

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.

1400+

TEAMOn Microsoft Technologies with 1000+ on Microsoft Dynamics

ACROSS THE GLOBE

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

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

STRATEGICACQUISITIONS

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

© Sonata Software Ltd, 2019. Confidential. Sonata Software, © 2018

Microsoft'sGlobal strategy

12

Sonata Retail Offerings

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Sonata Case Study

Business Challenges Sonata's Solution Benefits

  • • Outdated rail passenger reservation system
  • • Client server application has limited features
  • • Upgradation costs too high and time consuming
  • • Lack of user friendliness for day-to-day operations

• Reliance on manual process for ancillary product sales

  • • Rezopia Rail Platform is a next generation rail reservation system capable of addressing all our client's needs, and more.

  • • Cloud-based platform was able to fulfil a lengthy wish list, ranging from end to end travel reservations, contracts, operations and distribution management.

  • Multi-channel booking engine consolidated bookings and generated passenger manifest reports. Users were now able to book not only a train seat with a dynamic shopping cart, but also ancillaries like hotel rooms, transfers and activities.

  • In addition, the Rezopia platform was integrated with SAP to send financial data of bookings a XML. AN eNet integration ensured suppliers were automatically paid on their due dates.

  • • Increased business capability with web based application and efficient process for ancillary products sales.

  • Train bookings for seat and berths are available in consumer site.

  • • Effective handling disruptions scenarios caused by natural disasters, track repair work, station interruptions

  • • Enabled business with platform that supports extending to providing uniform experience to customer for packing train with products like hotel, tours

  • • Scalable system implemented which can sale up to 6,000 bookings per day

  • • Omni-Channel booking experience across various distribution channels and devices

Sonata delivers a next-generation reservation system for a government owned railway operator in Australiaaccommodate various design changes to carriages

our innovative engagement models Delivering value through

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

15

16

With a team nurtured to make a difference

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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

17

IIIT-B (Bangalore), IISc (Bangalore)

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

Upgradation of existing infrastructure Classroom 112 at IISc where the first handheld computer (Simputer) was invented

Traditional Arts, Textile and HandicraftsEducation Education Preservation of our Cultural Heritage

WomenWeave(Maheshwar), The Kishkinda Trust (Koppal)

"We developed a digitally enabled craft store front and e-commerce platform for our partners"

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

"We are developing digitallyenabled learning platforms such as Lab on tab for teachers and students. Inaugurated MSL, hands on science experiments for students in villages We are also providing scholarships and grants, especially for the girl child"

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 building a Private Museum"

© Sonata Software Ltd, 2019. Confidential.

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 IT services – Revenue by Customers

Revenue by Competency

© Sonata Software Ltd, 2019. Confidential.

24

Digital Revenues as % of Revenues

International & Domestic Business - Revenue Enablers

27

International Business Revenue Growth

Domestic Business - Gross Contribution

Going Deeper, casting wider

29

EBITDA – last 12 Quarters

Other Strategic Investments

Revenue CAGR of 17%

© Sonata Software Ltd, 2019. Confidential.

Capital Allocation Cash Deployment

2015 to 2019

Cash conversion & interest cost– Domestic Business

Cash & Credit management – Domestic Business