Sonata Software Ltd. - Investor Presentation 2021

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19[th] October, 2021

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 half year ended 30[th] September, 2021.

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 Digitally signed by MANGAL KRISHNARAO KRISHNARAO KULKARNI Date: 2021.10.19 16:10:18 KULKARNI +05'30' Mangal Kulkarni Company secretary, Compliance Officer and Head-Legal

Encl: As above

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Sonata Software
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Sonata - A Snapshot

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The Company
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4200+ TEAM 34 YEARS $550+ M REVENUE across US, EU, Asia, SEI CMMI L5, ITIL as a IT Solutions 14% 3 Yr. CAGR ANZ, Japan, & ISO certified Provider Malaysia, and China CPG & MFG SERVICES AGRI & RETAIL TRAVEL SOFTWARE Consumer Energy & Utilities, COMMODITY Apparel, Hard TO, OTA, VENDORS Goods, Industrial Oil & Gas, Specialty Agri manufacturers Goods, Grocery, Airline, Rail, ERP, SCM, Goods, Contractors & & commodity Hypermarket Hotel, Cruise Retail, Travel Wholesale Professional Services Traders

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Industry
Focus
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Competencies
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TECHNOLOGY PLATFORM IP INFRASTRUCTURE Brick & Click Retail, SOLUTIONS Rezopia Digital Travel, Software, Cloud, Server & Modern Distribution Storage, Systems Integration

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APPLICATION LIFECYCLE

DIGITAL Omni-channel, Mobility & IoT, Analytics, Cloud

SOLUTIONS ADM, Testing, IMS Managed Services

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Credentials
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Strategic acquisitions and investments TECHNOLOGY FINANCIAL Microsoft – Inner Circle, Microsoft, SAP, Oracle, National Stock Exchange Open Source, IBM SAP Pinnacle Award, Listed Public Ltd Co Microsoft Country Partner of Year India

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CUSTOMERS

Global Top 5 – Leisure Travel Co, Grocery Retailer, F&B CPG Co, Software Co

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

through Depth of: Thought Leadership Customer Centricity Execution Excellence

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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

Sonata – In 4 ‘P’s

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•Employees as consultants •Common goals
•Employees as fa mily •Lasting rela tionships
•Employees as en ablers •Shared valu es
•Employees as citi zens •Growing to gether
People Partners
Platforms Performance
•Platformation [TM ] Advantage •Value cre ation
•Platform engine ering •For custo mers
leadership •For Partn ers
•World class IP’s •For emp loyees
•Farsighted vision •For Inves tors
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Vertical Focus

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Retail, travel, Distribution & CPG, ISV, Commodity Trading, and Services Industry – Field Services
IP – Brick and Click, Modern Distribution, Agri Business, Rezopia, Service Industry, GBW
Platform led Digital Transformation
Track record

What is different about Platformation™ as a tool for Digital Transformation

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Sonata’s structured process for Platformation comprises the following :
Digital Business Process Library & Identification
Customer Digital Agenda led 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™
4 Years of Proven Success, Only methodology that remains relevant in an everevolving landscape for a company looking at digital transformation

Platformation™

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

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OPEN SCALABLE CONNECTED INTELLIGENT

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Sonata’s approach to Digitizing business using platforms PLATFORMATION™

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Approaches to achieve Platformation™

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Sonata Sonata Sonata READY ACCELERATE CUSTOM • • • End-to-end, industryDeploy popular Engineer custom specific digital horizontal platforms platforms that deliver business platforms adding required unique digital functionality capability and scalability Omni channel reservation Versatile retail store and A US-based travel company system for a large e-Commerce integration innovating on membershipAustralian rail network for a US fashion brand based business models, built on a travel platform ensuring scalable, increasing bookings by ensuring seamless omnichannel shopping 200%, and scaling service booking experience experiences 6X

Engineering Excellence

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Focused approach

Industry Specialization
Retail, travel, distribution & CPG, ISV, Commodity Trading, and Services Industry – Field Services
Expertise through IP’s
Brick and Click, Modern Distribution, Agri Business, Rezopia, Service Industry, GBW
Proprietary & proven approach to Digital Transformation
Platform led across Data, Cloud, Modern Technologies, Mobility, Digital Assurance, Devops

Global Full Stack Microsoft Partner aligned to the Digital Transformation vision

30 Years

360[0] Partnership

18 Gold certified & 8 Advanced specializations Skills in Dynamics 365, Azure, Power BI, Cortana, .Net, Mobility

MICROSOFT PARTNER

Product Engineering, Professional support, Delivery, LSP partner for MS, MCS and ISV/SI ecosystems.

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

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INDUSTRY PLATFORM IP STRATEGIC DIGITAL TRANSFORMATION ON MS DYNAMICS & AZURE ACQUISITIONS for Brick & Click, Modern Scalable Data Systems, Sopris Retail, Consumer goods, Distribution, Commodity Systems, Encore Systems, GBW, Distribution, Agri Products, Trading, Rezopia, & IBIS Inc Field Service, Travel, ISV Kartopia, Halosys, Rapid

Clients

2500+ TEAM

On Microsoft Technologies ACROSS THE GLOBE with USA, Europe, Asia, India, 1200 + on Microsoft Biz Apps Australia, Middle East

Recognition and Awards

Inner Circle member 2021-22, Partner of the Year, India for BizApps 2021-22

Delivering value through our innovative engagement models

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Customer-Specific Center of Excellence

Governance • Value Co-creation
• Leadership role • SLAs and outcomes • Strategic metrics • Co-investment in IP

TECHNOLOGY | SKILLS | ASSETS | PROCESSES

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With a team nurtured to make a difference

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Deeper roles Customer impact Freedom to contribute Growth

Regular exposure to newer technologies, evolving business scenarios, and building cross-functional expertise

Continuous exposure to clients to assess business impact of solutions delivered

Our flexible working style encourages ideation within broad boundaries

Early identification, mentoring, and nurturing of talent for growth 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

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Financials

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Strong Execution

International Services

Platformation™, IP & Alliance led growth
Stronger & Deeper revenue mining from existing customers
Strong Pipeline and Acquiring new clients
Strong sales hunting leading to acquiring of new clients
Margin levers -platformation driven execution, onsite and offshore mix, utilization and revenue per person
High-end digital services
Consistent quarter on quarter growth in topline and bottom line over last10 years.

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Domestic Business

Very large deals, Consistent absolute gross margin growth
Strong Customer Retention
Consistent growth in Marker share
Established Customer Base
Strategic shift towards cloud
Addition of new strategic business lines for expansion
Multi year annuity license sales
Time tested risk and credit management
Consistent growth of absolute profitability, positive cash flow with zero increase in working capital investment
Globally leading ROCE and ROE

Financial Management

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Focus on high revenue rate realization and high margins business

Focus on Reduction of DSO days

Very strong positive cash generation and cash position

Industry leading ROCE and ROE

Sound capital allocation

Consistent Growth Over Last 10 years

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Consolidated Revenue & EBITDA

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International Services Revenue & EBITDA trend for last 12 Quarters

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Revenue (Rs. Cr)

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400
CQGR - 2.3% 361
350
300 275 [284 304 ] [304 ] [313 330 325 276 288 301 319 324 ]
250
200
150
100
50
-
Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2
19 19 19 20 20 20 20 21 21 21 21 22 22
Revenue in Rs cr
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EBITDA (Rs. Cr)

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Financial Performance of International Services – Q2 FY22

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Revenue in INR. Cr EBITDA
11.4% QoQ 6.5% QoQ
25.2% YoY 46.9% YoY
Revenue in $ Mn PAT
11.1% QoQ 5.5% QoQ
54.3% YoY
26.7 % YoY
Excluding Encore QoQ – 5% and YoY -19.7%
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International Business Revenue Growth

Revenue in $Million

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$200.0
$180.0
$160.0 $180.8
$140.0
$120.0 $100.0 $144.0 $161.4 $160.3
$80.0 $121.5
$60.0
$40.0
$20.0
$-
FY 17 FY 18 FY 19 FY 20 FY 21
Years
Revenue in $Mn
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New Customer added
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Client Concentration
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No. of $Million Customers
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Operational Performance – Q2 FY22

Revenue by Geography

No. of Customers by Geo

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QoQ Growth
USA – 13.7%
Europe – 7.3%
ROW – 9.5%
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Includes customers from Encore

No. of Customers by industry

Customer Category

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© Sonata Software Ltd, 2020. Confidential.
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Revenue by Vertical Mix

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Vertical	QoQTrend	QoQTrend	QoQTrend	QoQTrend
	Q2'21	Q3'21	Q4'21	Q1'22	Q2'22
Commodity business & ServiceIndustry	-13.5%	24.3%	7.1%	1.1%	3.6%
Distribution&Manufacturing	-2.3%	7.6%	11.8%	-0.5%	5.3%
ISV	-4.6%	14.7%	9.2%	1.9%	5.9%
Others	10.6%	-11.5%	-5.7%	-3.5%	3.2%
Retail(Essential)	62.4%	13.7%	13.7%	8.7%	8.7%
Retail(Non Essential)	-34.5%	-39.6%	24.7%	35.4%	38.9%
Travel	-60.1%	5.2%	9.1%	2.9%	4.2%

QoQ Growth from focussed verticals ISV – 5.9% , Retail(Essential) – 8.7% Distribution and Manufacturing – 5.3% Commodity business & service industry – 3.6%

Revenue by high end Service Mix

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Si Mi	QoQTrend	QoQTrend	QoQTrend	QoQTrend	QoQTrend
ervce x	Q2'21	Q3'21	Q4'21	Q1'22	Q2'22
Data & Analytics	18.6%	1.7%	7.1%	10.9%	12.0%
Managed Cloud Services	8.4%	13.1%	12.3%	3.4%	22.9%
IMS	8.2%	-7.3%	1.8%	-2.8%	11.1%
Microsoft Digital Platformation Services	5.9%	9.1%	9.1%	2.5%	9.5%
Microsoft Dynamic Services	-12.2%	5.8%	11.1%	1.9%	11.5%
Modern Validation and Dev EngMgmt Ser	43.4%	0.5%	-2.3%	-6.8%	11.8%
Open Source Digital Platform Services	41.7%	15.7%	12.2%	6.1%	4.4%
Other ERP Services	-21.6%	-20.0%	-37.9%	-18.8%	-16.7%
Other Services	15.0%	-15.3%	-19.1%	-52.0%	-5.0%

QoQ Growth from Digital based competencies Managed cloud services – 22.9% MSFT Digital Platformation services 9.5% Open source Digital platform services – 4.4%

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Platformation[TM] Revenue %

IP Led Revenue %

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Digital Revenue %

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IP led & Platformation aligned to growth in competency wise growth

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International Business - Revenue Enablers

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Revenue by Onsite / Offshore Mix Utilization & Billability
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Revenue per Billable HC
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Human Capital

Overall Headcount

Headcount by Business Type

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Note: Includes Encore Software services Headcount of 287 (Delivery – 257, S&M-4, G&A -26)

Domestic Business – Gross Contribution

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Domestic Business - Revenue

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Domestic Revenue (Annuity/Others)

Domestic Revenue (Cloud/Non Cloud)

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Domestic business major revenue contribution from multi year annuity enterprise sales

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Domestic Business - Gross margin Analysis by customers

Domestic Customer by GC %

Domestic Customer Count

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Top ~ 93 customers contribute to about 80% of Gross Margin

Strong customer retention - ~ 67% if Gross Margin contributed from customers associated for more than 5 years Established customer base - ~79% Gross Margin from customers with revenue greater than 1,000 crs

EBITDA, PBT and PAT – last 12 Quarters

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Domestic Business

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Strategic Investment

M&A Investment

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46.3
50.0
39.5
40.0
30.0
20.0
13.4
10.0 4.3
0.6
-
FY 17 FY 18 FY 19 FY 20 FY 21
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IP & R&D Investment

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32.3
35.0
28.3
30.0
25.2
22.2
25.0 20.4
20.0
15.0
10.0
5.0
-
FY 17 FY 18 FY 19 FY 20 FY 21
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S&M Investment

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70.0 62.9
60.0 52.3
49.2
50.0 42.2
36.7
40.0
30.0
20.0
10.0
-
FY 17 FY 18 FY 19 FY 20 FY 21
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Lower S&M cost in FY21 due to reduction in travel cost

International and Domestic ROCE & RONW

ROCE

RONW

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Capital Allocation Cash Deployment
30,000
27,693
24,927
24,396
25,000
21,295
20,000 19,253
15,859 15,634
15,000
13,369 13,408
11,042
9,464 9,464
10,000
7,361
5,000 4,206
-
FY15 FY16 FY17 FY18 FY19 FY20 FY21
Consolidated PAT Share Holders Payout
Amount in Rs. lakhs
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Days Sales Outstanding

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Credit Management – Domestic Business

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Thank you

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AI assistant

Sonata Software Ltd. — Investor Presentation 2021

60845_rns_2021-10-19_170d42f2-7104-42cd-95c6-23299e92e364.pdf

SUB: Investors’ Presentation

Sonata - A Snapshot

APPLICATION LIFECYCLE

CUSTOMERS

Sonata Vision

For the Customers

For the Community

Sonata – In 4 ‘P’s

Vertical Focus

What is different about Platformation™ as a tool for Digital Transformation

Platformation™

Approaches to achieve Platformation™

Engineering Excellence

Focused approach

Global Full Stack Microsoft Partner aligned to the Digital Transformation vision

30 Years

2500+ TEAM

Delivering value through our innovative engagement models

With a team nurtured to make a difference

Strong Execution

International Services

Domestic Business

Financial Management

Consistent Growth Over Last 10 years

Consolidated Revenue & EBITDA

International Services Revenue & EBITDA trend for last 12 Quarters

Revenue (Rs. Cr)

EBITDA (Rs. Cr)

Financial Performance of International Services – Q2 FY22

International Business Revenue Growth

Operational Performance – Q2 FY22

No. of Customers by Geo

Customer Category

Revenue by Vertical Mix

Revenue by high end Service Mix

Platformation[TM] Revenue %

IP Led Revenue %

Digital Revenue %

International Business - Revenue Enablers

Human Capital

Headcount by Business Type

Domestic Business – Gross Contribution

Domestic Business - Revenue

Domestic Revenue (Cloud/Non Cloud)

Domestic Business - Gross margin Analysis by customers

Top ~ 93 customers contribute to about 80% of Gross Margin

EBITDA, PBT and PAT – last 12 Quarters

Domestic Business

Strategic Investment

M&A Investment

IP & R&D Investment

S&M Investment

International and Domestic ROCE & RONW

ROCE

RONW

Days Sales Outstanding

Credit Management – Domestic Business

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Sonata Software Ltd. Investor Presentation 2021