1

GO DEEPER
Transform business with IT

Investor Presentation
Q2 FY 17

Product Engineering
Enterprise IT Services
Technology Infrastructure

DEPTH MAKES A DIFFERENCE

Sonata Software Ltd, 2014. Confidential.

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

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
3

Sonata Software Corporate Structure

Sonata Software Limited
Reporting Segment

International IT
Services

Domestic Products
& Services

Legal Entities

Geography

Nature of Business

Sonata Software Ltd

India

Digital IT solutions & services

Product Engineering Services

Sonata Europe Ltd

UK

Software Service & Development

Sonata Software GmbH

Germany

IT Program Mgmt. for Travel customers

Sonata FZ LLC

Dubai

Sales & Marketing

Account Management

IT Program Management

Sonata Software North

America

USA

Onsite IT Services
Account Management

IT Program Management
Sales & Marketing

Sonata Software Qatar

Qatar

Onsite IT Services
Account Management

IT Program Management
Sales & Marketing

Rezopia Inc

USA

Cloud based PaaS travel IT solutions platforms

Halosys

USA

Unified Enterprise Mobile Enablement platform

IBIS Inc

USA

Supply Chain solutions for Distributors, Manufacturers & Retailers

Sonata Information
Technology Ltd

India

Distribution of packaged, Saas &

PaaS based software products
Domestic IT Services

IT Consulting & Outsourcing

Managed IT Services

Onsite IT Services
Account Management
IT Program Management
4

Operating Business Lines

International Services

Technology Infrastructure

Product Engineering & Enterprise

IT solutions
International footprint
40% of Co Revenues
78% of Co PAT

IT Infrastructure Consulting, Licensing

& Deployment
Primary India footprint
60% of Co Revenues
22% of Co PAT

International IT Services

Industry Footprint

Travel
Most Innovative Partner
2012

TO | OTA | Corporate | Air | Rail

Strategic Customers
World leading Tour Operator
Top NA Corporate Travel Co

Retail & Distribution

ISV

Most Innovative Partner

2012

Hyper | Grocer | Apparel | CPG | Industrial

Strategic Customers
World leading Retailer
Global F&B CPG Leader

ERP | SCM | Travel | Retail

Strategic Customers
Global Software Leader
Top SMB ERP Co
7

Business Solutions Footprint

DIGITAL
ENGAGEMENT

Omni-channel Commerce
Analytics & Personalization
CRM, Loyalty
Mobile & Social Business

Winning the Shift to Digital

Commerce
Top travel company

ENTERPRISE
EFFICIENCY

ERP
SCM, HR & Finance
BI & Analytics
Mobile & Social Work

Direct Store Distribution

Solutions
Global CPG leader

IT COST
MANAGEMENT
Managed Services &
Infrastructure
Cloud & Virtualization
Licensing

Remote Infrastructure
Management
Top European Retailer

Engineering Solutions Footprint

PRODUCT
INNOVATION
Cloud engineering
Mobile engineering
Analytics integration

Cloud & Mobile Enabled SaaS

Migration
Global SMB ERP ISV

PRODUCT
ENGINEERING

Consult, Architect
Develop, QA
Performance Engineering
Globalize and Localization

End-to-end engineering
services for an ERP
World leading ISV

PROFESSIONAL
SERVICES

Professional Services
Integration, Customization
Sustenance Engineering
Product support

Premium managed product

support
Leading cloud platform
9

Transformational Partner to Customers

Enabling a World Leader in Travel Retail
stay ahead of the digital business shift
Evolution from brick and click to OmniChannel business
20%+ YoY digital sales growth, 50%+ digital
revenue
Front Office to Back Office IT systems services
300+ team of On-site and Off-shore mix;
30% saving in IT costs, est > 50Mn E p.a.;
50+ core applications transitioned,
modernized; >80% Managed Services

10 Year Partnership Milestone

Sonata is a very important extension of the team
and over the years has made a significant
contribution to our success in serving our
customers better than anyone else in our business
sector. Director IT
10

Transformational Partner to Customers

Partnering launch of a new ERP by a
Global Software leader
Engineering Excellence
Beta One thru to global roll-out stages with ERP
& engineering skills
Vertical solutions partner industry specific
offering of core ERP

Value Added Services

Engineering and integration services to partner
eco-system globally
Managed support with SLA adherence improved
by over 30% to > 90%
Go-to-Market partner with marquee Fortune
500 clients wins and project implementations

10 Year Partnership Milestone

Sonata has been an important partner in our journey for
over a decade. The expertise they bring to the table makes them
a valuable part of the ecosystem.., its partners and customers
who seek to get more out of our enterprise class business
solution. This 10 year anniversary is a significant milestone in
our relationship with Sonata and we look to newer horizons
ahead. VP Engineering
11

Way Forward : Platforms + Services for digital business

Consumer

Customer

IT Connected world - Seamless, Personalized,

Social Commerce

Transform business to remain competitive with

new technologies

Solutions that keep your business ready for a digital future

Travel : the future of Travel Experience
Retail & Distribution : grow with Brick & Click
ISV : future ready software
Competition
Large multi industry multi service providers,
Niche technology specialist

Sonata
Digital Engagement: Integrated Omni-Comm. +
Mobility + Analytics + Cloud based solutions
Industry specific IP led platforms + services

Turnkey partner for mid size (USD 500M+) customers in Travel, Retail & Distribution, ISV vertical
12

The Future Industry specific Platform solutions

Next Gen Travel Experience

Omni Channel Retailer

Digital Distribution

Rezopia Travel Experience Platform

Brick & Click Retailing Platform

Modern Distribution Platform

Search & Book across Web, Mobile,

Shop & Call Centre channels
On the fly packaging across Air, Rail,
Hotel & ancillary service inventory
Pre-Built Mobile & Analytics
features
Integration to leading GDS and ERP
applications

Seamless Personalized Shopping

Experience In Store, Mobile,
Online
Pre-built Customer and Store mobile
service Apps
Pre-built big data Analytics platform
Integrated to core Retail ERP

Advanced Supply Chain Software

built-in functionalities like sales &
operations planning, demand planning,
revenue management.
B2B Ecommerce
Mobile Ordering & Fulfilment Apps
Core ERP enabled on Microsoft
Dynamics
13

Strategic acquisitions & builds to enable the Future

Unified Enterprise
Mobility Platform

TRAVEL SAAS
Reservation, Distribution, Contracts &
Operations on one single Cloud Platform

Advanced Supply chain Software for

Distributors, Manufacturers & Retailers

Core features of MADP, MAM, MBaaS &

APIs on a single, unified mobile platform

Big Data ready Retail Analytics Platform

Continuing to build, integrate and acquire platforms across Ecommerce, Analytics

& DevOps to complete portfolio for Future Ready IP led solutions.
14

Increasing impact on customers digital solution needs

Top SMB ERP Company
Cloud & Mobile engineering ERP for SaaS enablement

World Leading Retailer

Engineering Omni Channel retail systems on a new technology
stack

Top ANZ Rail Company

Enabling next-gen Rail reservation & ancillary services

15

Digital Travel Platform in Action

Drives customer service and ancillary revenue of a leading ANZ Rail Operator

Business Need: Upgrade reservations systems across core Rail and ancillary package sales
Solution: Rezopia Travel SAAS customized to next gen reservation systems

Manage Services, Schedules, Inventory, Fares and Rules

Multi-channel booking engine web, call center, stations and agents
Dynamic shopping cart with ancillaries like hotels, transfers and activities
Integration to back end SAP ERP for Financial data integration

Business Benefits: Cost effective, quick transition from legacy systems & continuous feature upgrades with releases

16

Global Service & Delivery Footprint

UK
Netherlands

US
Development Centers
Redmond & Atlanta

Germany
Singapore
North America

Australia

Qatar, UAE

India
Bangalore, Hyderabad
17

Technology Infrastructure

18

TIS : Strategic fit to overall Sonata business

Strategic partnerships with leading technology providers Microsoft,
SAP, Oracle, Appcelerator
Relationships act an advantage in accessing emerging technology
solutions
360 degree footprint across Engineering, Implementation, Go to
Market in IT value chain in key technologies e.g. Dynamics AX

19

Wide portfolio of technology solutions

with leading and emerging partners
PORTFOLIO OF WORLD-CLASS ALLIANCES

360 DEGREE CORPORATE

FOOTPRINT

IN-HOUSE SOLUTION
CENTRE OF EXCELLENCE

NEW TECHNOLOGY
ADOPTION

PE | PDS Implement | GTM

Expert Deployment Team |

Customer POC | Best
Practices Templates

SMAC| Platforms| Appliances

End to End Capability

on Technology Needs

Cloud, MoovWeb,
Exadata

EXPERTISE | RELIABILITY | SPEED

in accessing technology solutions

20

Keeping business prepared to compete

with up to date technology infrastructure

CORE IT
INFRASTRUCTURE

EMPLOYEE
PRODUCTIVITY

OS, Servers, Cloud &

Virtualization
Security, Identity & Access
Infrastructure
Management, Optimization
& Support

Communication &
Collaboration
Work Tools & Applications
Onboarding & Support

Core Enterprise Infrastructure

migration to Cloud for cost
optimization
Leading Brewery Company

Patient care enhancement thru

collaborative work tools for
doctors
Leading Hospital Chain

BUSINESS
APPLICATIONS

E. Comm, Digital
Marketing, CRM, BI,
Mobility, ERP, SCM
IT Appliances
Consulting & Support

Enhanced business
responsiveness thru next gen IT
Appliances
Leading Bank
21

Financials

22

Result Snapshot Q2 FY 17

INR Crores
in ` Crores
For the Quarter ended

Description
30-Sep-16

30-Jun-16

30-Sep-15

For the half year ended

QoQ

YoY

30-Sep-16

30-Sep-15

YoY

Revenues
International IT Services

209.1

195.7

170.7

7%

23%

404.9

336.3

20%

Domestic- Products & Services

317.4

489.3

231.6

-35%

37%

806.7

550.7

46%

Consolidated

522.5

677.8

398.4

-23%

31%

1,200.2

877.6

37%

International IT Services

45.5

44.0

46.1

3%

-1%

89.4

87.5

2%

Domestic- Products & Services *

14.2

15.3

14.2

-7%

0%

29.5

28.6

3%

Consolidated

59.0

58.5

59.6

1%

-1%

117.4

114.5

3%

29.6

28.0

31.0

6%

-4%

57.6

60.8

-5%

8.2

8.8

8.4

-7%

-2%

17.0

16.7

2%

37.8

36.8

39.3

3%

-4%

74.6

77.5

-4%

EBITDA

PAT
International IT Services
Domestic- Products & Services
Consolidated

* Includes "exceptional Item" Interest income received on Income-Tax refund of `2.09 crores in Q1 of FY2016-17 (of which Domestic relates to `1.11 crore
and balance ` 0.97 crore relates to International).

Consolidated - by Quarter

INR Crores

Revenue
500
400
300
200
100
-

398
232

522

344

541
356

EBIDTA
678

522
317

489

40.0

171

182

Q2-16

Q3-16

189

209

196

Q4-16

Q1-17

Domestic Products & Service

39.3

40.2

40.8

8.4

8.6

8.6

30.0
31.0

60.4

58.5

59.0

14.2

15.0

14.9

15.3

14.2

46.1

49.3

46.2

44.0

45.5

31.6

Q2-16

Q2-17

PAT

20.0

20.0

63.2

International Service

40.0

60.0

59.6

32.3

8.2

8.8

29.6

28.0

Q4-16

International Service

37.8

36.8

Q3-16

Q2-17

Domestic Products & Service

QoQ
Revenue

Q1-17

YoY

-23%

31%

EBIDTA

1%

-1%

PAT

3%

-4%

10.0
Q2-16

Q3-16

International Service

Q4-16

Q1-17

Q2-17

Domestic Products & Service

Note : Q1-16 ,Q2-16 & Q1-17 EBITDA and PAT includes exceptional income of Interest on IT
Refund
24

Headcount
Head Count
3,259
148

3,291

3,303

142

3,279
140

147

156

2,908

3,139

3,111

3,144

3,147

3,050
3,000
2,000
1,000
Q2-16

Q3-16

International Service

Q4-16

Q1-17

Q2-17

Domestic Products & Service

Diversity

Attrition %
25%

100.0%
80.0%

23.4%

24.8%

24.9%

24.6%

24.3%

60.0%
40.0%

23%
20%

21%
18%

15%

15%
76.6%

75.2%

75.1%

75.4%

17%

75.7%
10%

20.0%

5%

0.0%
Q2 16

Q3 16

Q4 16

Q1 17

Q2 17
0%

Men

Women

Q2 16

Q3 16

Q4 16

Q1 17

Q2 17

25

International IT services by Quarter

INR Crores

EBIDTA

Revenue
250
200
150

171

182

189

196

209

50.0
40.0
30.0
20.0
10.0
-

Q2-16

100
Q2-16

Q3-16

Q4-16

Q1-17

49.3

46.1

Q3-16

46.2

Q4-16

45.5

44.0

Q1-17

Q2-17

Q2-17

PAT
35.0
30.0
25.0
20.0
15.0
10.0
5.0

QoQ

31.0

Q2-16

31.6

Q3-16

32.3

Q4-16

28.0

Q1-17

29.6

Q2-17

YoY

Revenue

7%

23%

EBIDTA

3%

-1%

PAT

6%

-4%

Note : Q1-17 EBITDA and PAT includes exceptional income of Interest on IT Refund

26

Revenue Mix
Revenue $ mn

Geography

32.0

100%

31.0

14%

13%

14%

13%

15%

31%

31%

26%

26%

26%

55%

56%

60%

61%

59%

80%

30.0

60%

29.0
28.0

31.2

27.0
26.0

27.4

25.0

20%

29.2

28.5

40%

0%

26.0

Q2 16

24.0
Q2-16

Q3-16

Q4-16

Q1-17

Q3 16
USA

Q2-17

Q4 16

Europe incl UK

Q1 17

Q2 17

Rest of World

Vertical

Onsite / Offshore

100%

100%

80%

80%

60%

60%

62%

57%

58%

58%

55%

40%
20%

40%
20%

38%

43%

42%

42%

45%

19%

17%

17%

17%

17%

19%

21%

24%

24%

23%

31%

33%

31%

29%

28%

31%

29%

28%

30%

31%

0%
Q2 16

0%
Q2 16

Q3 16

Q4 16
Onsite

Offshore

Q1 17

Q2 17

OPD

Q3 16

Q4 16

TTL

Retail Distribution

Q1 17

Q2 17

Others
27

Revenues by Competency
100%
90%

1%2%
2%
9%

80%

7%

70%

12%

3%
2%
4%

3%
1%1%
6%

4%
0%
2%
9%

5%
1%2%
7%

9%

9%

15%

16%

18%

3%

4%

4%

4%

13%

15%

16%

15%

19%

18%

18%

15%

16%

26%

24%

23%

25%

26%

Q2 16

Q3 16

Q1 17

Q2 17

10%
9%
12%

6%

60%

14%

50%

9%

40%
30%

20%
10%
0%

ADM

Test

AX

ERP

Q4 16
IMS

BI

E-Commerce

Note:1. Digital components includes revenue from BI, E-commerce, Mobility, Cloud, Rezopia

Mobility

Cloud

Rezopia

28

Revenue by Customers
Customer Category
21

21
20

20
19

21

21

20

18

18

Q2 16

Q3 16

18

18

18

18
17
16
Q4 16

# of Fortune 500 accounts

Q1 17

Q2 17

# of million dollar clients

Revenue from Top 10 customers

Asia
5

80%

Middle
East
1

75%
70%
73%
65%

72%
67%

70%

71%

Q1 17

Q2 17

No. of customers by Geo

Europe
14

ANZ, 7
India
20
US
50

No. of customers by Vertical

Others
34 Retail
Distributi
on
30

OPD
22

TTL
11

60%
Q2 16

Q3 16

Q4 16

29

Domestic Product & Services by Quarter

INR Crores

Revenue

EBIDTA

600
400
200

232

344

356

489
317

15.5
15.0
14.5
14.0
13.5

15.0

Q2-16

Q3-16

Q4-16

Q1-17

Q3-16

Revenue

8.5
8.0

8.4

Q4-16

QoQ

9.0

8.6

14.2
Q1-17

Q2-17

Q2-17

PAT

8.6

15.3

14.2
Q2-16

14.9

8.8

YoY

-35%

37%

EBIDTA

-7%

0%

PAT

-7%

-2%

8.2

7.5
Q2-16

Q3-16

Q4-16

Q1-17

Q2-17
Note : Q1-16, Q2-16 & Q1-17 EBITDA and PAT includes exceptional income of Interest on IT Refund
30

Rupee Realization
110

104

104

103

105

101

100
90
80

80

80
70

78

74

76

67

68

69

66

66

Q2-16

Q3-16

Q4-16

Q1-17

Q2-17

60
50
40
US Dollar

Euro

GBP

ROCE & RONW

ROCE
40%
30%
20%

30%
30%
21%

28% 28%
25%

32%
28%
28%

27%
24%

24%

22% 24%
19%

10%
0%
Q2 16

Q3 16
Consolidated

Q4 16

Q1 17

Intl Serv

Domestic

Q2 17

RONW
50%
40%
30%

39%

33%
32%

37%
32%

34% 35%

30% 33%

31%

34%

Q3 16

Q4 16

Q1 17

Intl Serv

Domestic

20%

29%

29%

29%
28%

10%
0%
Q2 16

Consolidated

Q2 17

32

Day Sales Outstanding

Consolidated
90
85

84

80
70

61

60

60

60

50
40
30
Q2-16

Q3-16

Q4-16

Q1-17

Q2-17

International Services

Domestic

62
60

120
60

60

60

100

102

101

58
80

56
55

54
52

65

60

52

62

59

40

50
20

48
46

Q2-16

Q3-16

Q4-16

Q1-17

Q2-17

Q2-16

Q3-16

Q4-16

Q1-17

Q2-17
33

Utilization
90%
85%

85%

85%

85%

85%

Q2 16

Q3 16

Q4 16

Q1 17

Q2 17

85%

80%

75%

70%

65%

60%

GO DEEPER
Transform business with IT

Thank You!

www.linkedin.com/company/sonata-software
www.facebook.com/sonatasoftware
www.twitter.com/sonata_software

www.sonata-software.com

Sonata Software Ltd., Aug 2015