Sonata Software Ltd. — Investor Presentation 2021

Feb 4, 2021

4th February, 2021

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 nine months ended 31st December, 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 KRISHNARAO KULKARNI Digitally signed by MANGAL KRISHNARAO KULKARNI Date: 2021.02.04 15:43:36 +05'30'

Mangal Kulkarni Company secretary, Compliance Officer and Head-Legal

Encl: As above

Sonata Software

Investor Presentation

Q3 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

Sonata – Corporate Entity

The Company	30+ YEARSas a IT SolutionsProvider	$427+ M REVENUE15% 3 Yr. CAGR	4000+ TEAMacross US, EU, Asia& ANZ	SEI CMMI L5, ITIL& ISO certified
Industry Focus	CPG , distbn,& MFGConsumer Goods, IndustrialGoods, Wholesale	RETAILApparel, Hard Goods,Grocery, Hypermarket	TRAVELTO, OTA, Airline, Rail,Hotel, Cruise	SOFTWARE VENDORSERP, SCM, Retail, Travel
Competencies	DIGITALPlatform engineering, cloudmodernization, dataanalytics and ai,	Modern APPLICATIONLIFECYCLESOLUTIONSDevops, rpa, automatedvalidation ,cloudmanagement	PLATFORM IPBrick & Click Retail,RezopiaDigital Travel,Modern Distribution	TECHNOLOGYINFRASTRUCTURESOLUTIONSSoftware, Cloud, Server &Storage, Systems Integration
Credentials	CUSTOMERSGlobal fortune 500 companiessustained relationships over 15years	TECHNOLOGYMicrosoft full stack,MSdynamics , AWS,GCPOpen Source,	Strategic acquisitionsand investmentsIbis, halosys, rezopia, sopris,scalable, gbw	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 – differentiated strategy

• Platformation™
• Long term relationships with clients
• Alliance with Microsoft
• IP led investment in IP in key industries
• Engineering excellence and investment in advanced technologies
• Track record of running mission critical operations on cloud with own IP
• Talent stability at the top management
• Acquisitions and Competency around MS Tech
• India Domestic Business

Vertical Focus

• 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

• 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™

Platformation™

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

Sonata's approach to Digitizing business using platforms

PLATFORMATION™

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

Global Full Stack Microsoft Partner aligned to the Digital Transformation vision

25 YearsMICROSOFT PARTNERGISV, lSP, CSP, ISV Dev Centre, SI.Country Partner India 2014, 15, 17.Global alliance footprint		15 Gold certifiedcompetencies. Skills inDynamics 365, Power BI,Cortana, Azure, .Net, Mobility	360 Partner PartnershipProduct Engineering,Professional support, Delivery,LSP partner for MS, MCS andISV/SI ecosystems.
	INDUSTRY
	DIGITAL TRANSFORMATION	PLATFORM IP	STRATEGIC
	for	ON MS DYNAMICS & AZURE	ACQUISITIONS
	Retail, Consumer goods,Distribution, CommodityTrading, Field Service, Travel,ISV	Brick & Click, ModernDistribution, CommodityTrading, Rezopia,Kartopia, Halosys, Rapid	Scalable Data Systems, SoprisSystems & IBIS IncInvestment in Retail 10X
	2500+ TEAM	Clients
	On Microsoft Technologies	ACROSS THE GLOBE	Over 230M+ USD pa revenues
with1200 + on Microsoft Biz Apps		USA, Europe, Asia, India,	to Microsoft across servicelines
		Australia, Middle East

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

Strong Execution

International Services

• Growth from existing clients
• Acquiring new clients
• Strong growth in new clients
• Alliance led growth
• IP led growth
• Platformation™ led growth
• Margin levers on utilization and revenue per person
• High-end service mix
• Digital execution and growth
• Consistent growth in revenues & margins over 8 years

Domestic Business

• Strong Customer Retention
• Established Customer Base
• Multi year annuity sales ensure revenue continuity & growth
• Very strong credit and risk management
• Strategic shift towards cloud .
• Addition of new strategic business lines for expansion
• Business managed on gross margin growth hence profitability .

Financial Management

• Focus on ROCE and RONW
• Focus on margins
• Focus on Reduction of DSO days
• Focus on strong cash management
• Sound capital allocation

Revenue – last 12 Quarters

© Sonata Software Ltd, 2020. Confidential.

International Business Revenue Growth

Strong growth in revenue from new customer additions added in last 3 years

Consistent Growth Over Last 8yrs

International IT services – Revenue by Customers

QoQ revenue growth in all geographies. USA 7.1% QoQ growth ; Europe 4.9% QoQ growth ; Rest of World 1.4 % QoQ growth.

Revenue - High end Service Mix and Vertical Mix

Growth from focussed verticals ISV – 14.4% QoQ growth , Retail(Essential) – 13.5% Commodity business & service industry – 24.4%

Growth from Digital competencies

PlatformationTM and IP Led Revenue

IP led & PlatformationTM aligned to growth in competency wise growth

Digital Revenue

International Business - Revenue Enablers

Human Capital

© Sonata Software Ltd, 2020. Confidential.

Domestic Business - Gross Contribution

Domestic Business - Revenue

Domestic business major revenue contribution from multi year annuity enterprise sales Steady growth in cloud business

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Domestic Business - Gross margin Analysis by customers

Top ~ 90 customers contribute to about 80% of Gross Margin Strong customer retention - ~ 60% if Gross Margin contributed from customers associated for more than 5 years Established customer base - ~82% Gross Margin from customers with revenue greater than 1,000 crs

EBITDA, PBT and PAT – last 12 Quarters

53.5 56.6 63.5 70.4 72.9 71.6 72.6 77.6 80.0 60.4 51.8 57.7 74.5 - 10.0 20.0 30.0 40.0 50.0 60.0 70.0 80.0 90.0 Q3 18 Q4 18 Q1 19 Q2 19 Q3 19 Q4 19 Q1 20 Q2 20 Q3 20 Q4 20 Q1 21 Q2 21 Q3 21 International Services PBT

International Services

Domestic Business

Q3'21 PAT includes Vivaad se Viswas tax provision of INR 15.6 crs in international services & INR 6.2 crs in Domestics business

© Sonata Software Ltd, 2020. Confidential.

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Strategic Investment

© Sonata Software Ltd, 2020. Confidential.

* Annualized numbers for FY'21 Lower S&M cost in FY21 due to reduction in travel cost

International and Domestic ROCE & RONW

Vivad se viswas provisions normalized for calculation of Q3 '21 ROCE & RONW

Capital Allocation Cash Deployment

Days Sales Outstanding

Cash conversion & Credit Management – Domestic Business