SONATSOFTWNSE13 May 2022

Sonata Software Limited has informed the Exchange about Investor Presentation made on 13th May 2022.

Sonata Software Limited

13th May, 2022

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

Dear Sirs,

BSE Limited P.J. Towers, Dalal Street Mumbai Kind Attn: Manager, Listing Department Email Id: listing.centre@bseindia.com Stock Code - 532221

Sub: Investors’ Presentation

Pursuant to Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, we are enclosing presentation made to Analyst/Investor meet held on 13th May, 2022.

The aforesaid details are also made available at the Company’s website www.sonata-software.com.

Thanking you,

Yours faithfully, For Sonata Software Limited

Mangal Kulkarni Company Secretary, Compliance Officer and Head Legal

Sonata Software Limited - SSL Registered Office: 208, T V Industrial estate, 2nd Floor, S K Ahire Marg, Worli, Mumbai – 400 030 Corporate Office: APS Trust Building, Bull Temple Road, N. R. Colony, Bangalore - 560 004, India

Website: www.sonata-software.com email: info@sonata-software.com Tel: +91 80 6778 1999

Sonata Software

Investor Presentation

Q4’22

Sonata - A Snapshot

The Company

36 YEARS as a IT Solutions Provider

$740+ M REVENUE 23% 3 Yr. CAGR

5100+ TEAM across US, Canada, EU, Asia, ANZ, Japan, Malaysia, and China

SEI CMMI L5, ITIL & ISO certified

Industry Focus

CPG & MFG Consumer Goods, Industrial Goods, Wholesale

RETAIL Apparel, Hard Goods, Grocery, Hypermarket

TRAVEL TO, OTA, Airline, Rail, Hotel, Cruise

SERVICES Energy & Utilities, Oil & Gas, Specialty Contractors & Professional Services

AGRI & COMMODITY Agri manufacturers & commodity Traders

SOFTWARE VENDORS ERP, SCM, Retail, Travel

Competencies

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

APPLICATION LIFECYCLE SOLUTIONS ADM, Testing, IMS Managed Services

PLATFORM IP Brick & Click Retail, Rezopia Digital Travel, Modern Distribution

Credentials

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

TECHNOLOGY Microsoft, SAP, Oracle, Open Source, IBM

Strategic acquisitions and investments Microsoft – Inner Circle, SAP Pinnacle Award, Microsoft Country Partner of Year India

TECHNOLOGY INFRASTRUCTURE SOLUTIONS Software, Cloud, Server & Storage, Systems Integration

FINANCIAL National Stock Exchange Listed 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 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

Sonata – In 4 ‘P’s

•Employees as consultants •Employees as family •Employees as enablers •Employees as citizens

•Common goals •Lasting relationships •Shared values •Growing together

People

Partners

Platforms

Performance

•PlatformationTM Advantage •Platform engineering leadership •World class IP’s •Farsighted vision

•Value creation •For customers •For Partners •For employees •For Investors

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 • 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 ever-

evolving landscape for a company looking at digital transformation

Platformation™

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

OPEN

SCALABLE

CONNECTED

INTELLIGENT

Sonata’s approach to Digitizing business using platforms

PLATFORMATION™

Approaches to achieve Platformation™

Sonata READY

Sonata ACCELERATE

Sonata CUSTOM

• End-to-end, industry-

• Deploy popular

• Engineer custom

specific digital business platforms

horizontal platforms adding required functionality

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 membership- based business models, increasing bookings by 200%, and scaling service 6X

Engineering Excellence

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

MICROSOFT PARTNER

GISV, lSP, CSP, ISV Dev Centre, SI.

Country Partner India 2014, 15, 17.

Global alliance footprint

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

3600 Partnership

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

INDUSTRY

PLATFORM IP

DIGITAL TRANSFORMATION for

Retail, Consumer goods, Distribution, Agri Products, Field Service, Travel, ISV

ON MS DYNAMICS & AZURE

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

STRATEGIC

ACQUISITIONS

Scalable Data Systems, Sopris Systems, Encore Systems, GBW, & IBIS Inc

2500+ TEAM

On Microsoft Technologies with 1200 + on Microsoft Biz Apps

Clients

ACROSS THE GLOBE

USA, Europe, Asia, India, 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

Customer-Specific Center of Excellence

• Governance

• Leadership role

• Strategic metrics

•

Value Co-creation

SLAs and outcomes

Co-investment in IP

TECHNOLOGY | SKILLS | ASSETS | PROCESSES

Charter

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 business scenarios, and building cross-functional expertise

Customer impact

Continuous exposure to clients to assess business impact of solutions delivered

Freedom to contribute

Our flexible working style encourages ideation within broad boundaries

Growth

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

Financials

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

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

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

Consolidated Revenue & *EBITDA

*Consolidated EBITDA for FY22 is adjusted for one off item of INR 22.9 cr which pertains to gain associated with write-off of Earn out provision.

International Services Revenue & EBITDA trend for last 12 Quarters

Revenue (in crs)

EBITDA (in crs)

EBITDA for Q4’ 22 is adjusted for one off item of INR 22.9 cr which pertains to gain associated with write-off of Sopris Earn out provision.

Adjusted EBITDA % (excluding one-off item, other-income and FX) for FY22 was at 24.4% and for Q4'22 was at 24.8%.

Financial Performance of International Services – Q4 FY22

Revenue in INR. Cr

*EBITDA

Revenue in $ Mn

PAT

*EBITDA for Q4’ 22 is adjusted for one off item of INR 22.9 cr which pertains to gain associated with write-off of Earn out provision.

International Business Revenue Growth

Revenue in $Million

New Customer added

Q1 22

Q2 22

Q3 22

Q4 22

Client Concentration

No. of $Million Customers

71%

61%

53%

71%

63%

56%

72%

62%

54%

80%

60%

40%

20%

Q4 21

Q3 22

Q4 22

Top 5 Customer

Top 10 Customer

Top 20 Customer

Operational Performance – Q4 FY22

Revenue by Geography

No. of Customers by Geo

120%

100%

80%

60%

40%

20%

24%

25%

51%

22%

23%

55%

21%

22%

57%

Q4 21

Q3 22

Q4 22

USA

Europe

Rest of World

105

Europe

India Middle East

Asia

ANZ

No. of Customers by industry

Customer Category

ISV Retail (Essentials) Distribution & Manufacturing Others

TTL Retail (Non Essentials) Commodity Business & Service Industry Health Care

110.0%

100.0%

90.0%

80.0%

70.0%

60.0%

50.0%

40.0%

30.0%

20.0%

10.0%

0.0%

7.0% 1.5% 8.5%

21.4%

18.7%

10.2%

32.7%

Q4 21

Revenue by Vertical Mix

2.4% 2.9% 6.3% 3.2%

9.0%

20.0%

15.4%

9.4%

31.4%

Q3 22

2.6% 3.6% 4.8% 4.2%

10.0%

20.7%

12.3%

9.4%

32.4%

Q4 22

ISV Distribution & Manufacturing Commodity business & Service Industry

Travel Retail (Essential) Heath Care

Others Retail (Non Essential) Logistics

Revenue by high end Service Mix

100.0%

90.0%

80.0%

70.0%

60.0%

50.0%

40.0%

30.0%

20.0%

10.0%

0.0%

1.5% 1.0%

11.1%

10.7%

29.2%

20.3%

4.7%

9.5%

12.0%

Q4 21

0.3%

10.6%

9.0%

30.1%

20.2%

4.4%

11.5%

13.7%

Q3 22

0.1% 0.1% 11.0%

7.6%

30.5%

20.6%

4.4%

11.7%

14.0%

Q4 22

Data & Analytics

IMS

Managed Cloud Services

Microsoft Digital Platformation Services

Microsoft Dynamic Services

Modern Validation and Dev Eng Mgmt Ser

Open Source Digital Platform Services

Other ERP Services

Other Services

Service Mix

QoQ Trend

Q4'21 Q1'22 Q2'22 Q3'22 Q4'22

Data & Analytics

7.1% 10.9% 12.0% 12.0% 6.7%

Managed Cloud Services

12.3% 3.4% 22.9% 16.1% 6.0%

IMS

1.8% -2.8% 11.1% 4.5% 5.5%

Microsoft Digital Platformation Services

9.1% 2.5% 9.5% 7.9% 6.3%

Microsoft Dynamic Services

11.1% 1.9% 11.5% 10.4% 5.8%

Modern Validation and Dev Eng Mgmt Ser

-2.3% -6.8% 11.8% -1.8% -12.3%

Open Source Digital Platform Services

12.2% 6.1% 4.4% 5.5% 7.8%

Other ERP Services

Other Services

-37.9% -18.8% -16.7% -46.0% -57.1%

-19.1% -52.0% -5.0% -46.0% -48.5%

International Business

IP Led Revenue %

PlatformationTM Revenue %

Digital Revenue %

72%

73%

70%

67%

68%

75%

70%

65%

60%

Q4 21

Q1 22

Q2 22

Q3 22

Q4 22

International Business - Revenue Enablers

Revenue by Onsite / Offshore Mix

Utilization & Billability

100%

90%

80%

70%

60%

50%

40%

30%

20%

10%

68%

69%

72%

Offshore

Onsite

32%

31%

28%

Q4 21

Q1 22

Q2 22

Q3 22

Q4 22

2,00,000

1,50,000

1,00,000

50,000

Revenue per Billable HC

1,86,480

1,86,511

1,87,515

1,90,024

1,89,199

43,450

44,183

44,268

45,182

46,666

Q4 21

Q1 22

Q2 22

Q3 22

Q4 22

Onsite Rev/Billable HC

Offshore Rev/Billable HC

Human Capital

Overall Headcount

Headcount by Business Type

Domestic Business – Gross Contribution

33.0

5.4%

30.1

5.8%

30.0

4.4%

47.4

45.1

38.0

38.1

38.0

39.9

6.6%

5.0%

4.0%

3.5%

4.5%

3.1%

Q4 20

Q1 21

Q2 21

Q3 21

Q4 21

Q1 22

Q2 22

Q3 22

Q4 22

Gross Contribution in INR Cr.

Gross Contribution %

Domestic Business - Revenue

Domestic Revenue (Annuity/Others)

Domestic Revenue (Cloud/Non Cloud)

120%

100%

80%

60%

40%

20%

28%

26%

25%

24%

72%

74%

75%

76%

120%

100%

80%

60%

40%

20%

25%

24%

23%

22%

75%

76%

77%

78%

Q4'21

Q1'22

Q2'22

Q3'22

Q4'22

Q4'21

Q1'22

Q2'22

Q3'22

Q4'22

% of Revenue - Annuity Biz

% of Revenue - others

Cloud Revenue %

Non Cloud Revenue %

Domestic business major revenue contribution from multi year annuity enterprise sales

Domestic Business - Gross margin Analysis by customers

Domestic Customer Count

Domestic Customer by GC %

120

100

Q4'21

Q1'22

Q2'22

Q3'22

Q4'22

> 1 cr

>50 L upto 1 cr

> 25 L upto 50L

Calculated based on annualized GC

Gross Margin Analysis in terms of number of years of Association

> than 10 years

42%

5 - 10 years

17%

3 - 5 years

< than 3 years

36%

120%

100%

80%

60%

40%

20%

16% 9% 9%

66%

14% 9% 9%

68%

15% 9% 9%

67%

15% 7% 10%

68%

13.0% 10.1% 9.0%

67.9%

Q4'21

Q1'22

Q2'22

Q3'22

Q4'22

> 1 cr

>50 L upto 1 cr

> 25 L upto 50L

Upto 25L

Gross Margin Analysis in terms of Customer's revenue

More than 500,000 crs

100,000 - 500,000 crs

50,000 - 100,000 crs

30,000 - 50,000 crs

15,000 - 30,000 crs

10,000 -15,000 crs

5,000 - 10,000 crs

1,000 - 5,000 crs

500 -1000 crs

Less than 500 crs

10%

12%

21%

16%

5% 10% 15% 20% 25% 30% 35% 40% 45%

10%

15%

20%

25%

Top ~ 58 customers contribute to about 80% of Gross Margin Strong customer retention - ~ 59% if Gross Margin contributed from customers associated for more than 5 years Established customer base - ~83% Gross Margin from customers with revenue greater than 1,000 crs

EBITDA, PBT and PAT – Last 12 Quarters

Domestic Business

Domestic Business EBITDA

Domestic Business PBT

45.0 40.0 35.0 30.0 25.0 20.0 15.0 10.0 5.0 -

5 9 3

9 6 3

8 1 3

4 2 3

7 3 3

3 7 2

4 2 2

5 2 2

0 7 2

2 3 2

6 9 1

9 6 1

45.0 40.0 35.0 30.0 25.0 20.0 15.0 10.0 5.0 -

0 1 2

8 4 2

0 2 2

8 5 1

1 5 2 2 8 1

5 8 3

4 5 3

3 0 3

0 1 3

9 1 3

Q1 20

Q2 20

Q3 20

Q4 20

Q1 21

Q2 21

Q3 21

Q4 21

Q1 22

Q2 22

Q3 22

Q4 22

Q1 20

Q2 20

Q3 20

Q4 20

Q1 21

Q2 21

Q3 21

Q4 21

Q1 22

Q2 22

Q3 22

Q4 22

Domestic Business PAT

5 8 2

4 6 2

6 2 2

0 3 2

9 3 2

1 8 1

6 6 1

1 6 1

7 3 1

6 3 1

4 2 1

6 1 1

30.0

25.0

20.0

15.0

10.0

5.0

Q1 20

Q2 20

Q3 20

Q4 20

Q1 21

Q2 21

Q3 21

Q4 21

Q1 22

Q2 22

Q3 22

Q4 22

Strategic Investment (In crs)

M&A Investment

58.1

46.3

39.5

13.4

4.3

FY 18

FY 19

FY 20

FY 21

FY22

60.0

50.0

40.0

30.0

20.0

10.0

IP & R&D Investment

28.3

28.1

25.2

20.4

22.2

S&M Investment

62.9

49.2

42.2

52.3

45.0

70.0

60.0

50.0

40.0

30.0

20.0

10.0

FY 18

FY 19

FY 20

FY 21

FY22

FY 18

FY 19

FY 20

FY 21

FY22

30.0

25.0

20.0

15.0

10.0

5.0

Lower S&M cost in FY22 due to reduction in travel cost

International and Domestic ROCE & RONW

ROCE

RONW

50%

40%

36%

37%

33%

32%

30%

20%

10%

41%

39%

38%

37%

35%

50%

40%

39%

38%

30%

35%

33%

34%

40%

38%

40%

39%

20%

10%

Q4 21

Q1 22

Q2 22

Q3 22

Q4 22

Q4 21

Q1 22

Q2 22

Q3 22

Q4 22

International Business

Domestic Business

International Business

Domestic Business

Capital Allocation (INR Lakhs)

Cash Deployment

To be verrified

40,000

35,000

30,000

25,000

20,000

15,000

13,369

15,859

15,634

9,464

7,361

10,000

5,000

37,659

27,693

24,927

24,396

21,295

19,253

13,408

11,042

14,722

8,413

FY15

FY16

FY17

FY18

FY19

FY20

FY21

FY22

Cosnol Pat

Share H Payout

48%

38%

11%

Capex

Share holder Pay out

Acuqisition

Invested

Days Sales Outstanding

Credit Management – Domestic Business

Average Borrowings & Interest Cost

140

120

100

8,000

7,000

6,000

5,000

4,000

3,000

2,000

1,000

Average Borrowing

Interest Cost

Domestic Business

r c

s r n

t n u o m a

2,000

1,500

1,000

500

607

681

523

1,099

946

761

606

1,464

1,051

156

153

170

175

203

219

189

175

206

Q4 20 Q1 21 Q2 21 Q3 21 Q4 21 Q1 22 Q2 22 Q3 22 Q4 22

Revenue

Networking Capital

Thank you

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Sonata Software Limited has informed the Exchange about Investor Presentation made on 13th May 2022.

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