SONATSOFTWNSE15 May 2023

Sonata Software Limited has informed the Exchange about Investor Presentation

Sonata Software Limited

SONATA Pe SUC Caren fee| ob @ UKAS vars ike MANA SONATA SOFTWARE CMMIDEV/5 15 May, 2023 National Stock Exchange of India Limited BSE Limited Exchange Plaza, Bandra Kurla Complex, Mumbai P.J. Towers, Dalal Street, Mumbai Kind Attn: Manager, Listing Department Kind Attn: Manager, Listing Department Stock Code — SONATSOFTW 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 year ended 31% March, 2023. The above said presentation is also made available on the Company’s website www.sonata-software.com. Please take the same on record. Thanking you, Yours faithfully, For Sonata Software Limited Mangal Kulkarni Company Secretary, Compliance Officer and Head Legal Encl.: As above Sonata Software Limited - SSL Website: www.sonata-software.com Registered Office: 208, T V Industrial Estate, 2™ Floor, S K Ahire Marg, Worli, Mumbai — 400 030 email: info@sonata-software.com Corporate Office: APS Trust Building, Bull Temple Road, N. R. Colony, Bangalore - 560 004, India Tel: +91 80 6778 1999 | Fax: +91 80 26610972 | CIN: L72200MH1994PLC082110Investor Presentation

Q4 FY’23

Sonata At A Glance

We are a Modernization and a Digital Engineering company powered by our unique PLATFORMATION™ framework.

The Company

35 YEARS IT Solutions Provider

$925+M Revenue 14.3% CAGR across 10 years

Listed (SONATSOFTW) Robust Balance sheet

6400+ Employees Across US, EU, Asia & ANZ Powered by Unified Engineer Program (UEP)

Delivering Outcome-based Modernization Services

Cloud

Managed Services

Data

Dynamics

Automation

Digital Contact Center

Digital Transformation Using PlatformationTM

Serving Our Global Clients With Right Talent Mix (Global & Local Talent)

APAC China Japan Singapore Malaysia Korea Philippines Thailand Vietnam

Europe Netherlands Denmark Germany

Eastern Europe

UK (London) & Ireland (Dublin)

Indonesia and Phillipines

North America Development Center: Redmond

Offices: Atlanta, GA Fremont, CA Bridgewater, NJ East Brunswick, NJ Florida Dallas Minneapolis Warren, PA

Canada

Costa Rica

Mexico

Middle East & Africa Qatar Dubai

India Development Centers: Bangalore (3) Hyderabad (2) Chennai

Offices: Bangalore Chennai Delhi Hyderabad Kolkata Pune Mumbai

Australia Brisbane Sydney Melbourne

Development Centers & Sales Offices - 21

Partners - 5

Global Delivery centers recent/InProgress - 6

Key Verticals, Partners, IPs

Industries

TMT

Ecosystem: Partnerships Tech + Domain

Retail, Travel & Mfg.

BFSI

Healthcare and Life Sciences

Emerging

Innovative IPs

LISA Chatbot (Conversational AI)

Workbox.io (Archival)

Lightning Build

Sustainability Target: Carbon Neutrality by 2030

10% Reduce Energy consumption in FY 22-23

10% Increase Renewable energy/ REC mix in FY 22-23

Creating Value For Our Shareholders

400

350

300

250

200

150

100

- 31-Mar-18

318

220

167

31-Mar-19

31-Mar-20

31-Mar-21

31-Mar-22

31-Mar-23

CNXIT

SONATA

NIFTY

Total Return to Share Holders

Stock Price Return %**

Dividend Yield# %

* Till March 31, 2023

1 Yr

36%

5 Yrs

318%

Market Data

NSE Symbol

Market Cap**

SONATSOFTW

$ 1.4B

* 1 USD = INR 82.2 # Annualized ** Market cap as on 31st Mar’23

Our Performance Vision For Sonata

Revenue Growth (In $M)

SCALE – Key Drivers

~$1.5B

+$580M

$0.92B

Microsoft sell-to; Dynamics

Harvest

Sustain SITL momentum

Retail, Manufacturing, Travel and TMT

Invest

Invest: Sales, Large deals, BFSI, Healthcare Life Sciences and technical capabilities

FY23

3-4 Years

Diversify

Clients: Build multiple large accounts.

Brand: Global brand in Modernization

Our Objective and Goal

Objective:

Be the fastest-growing Next-gen Digital Engineering firm delivering Modernization outcomes for enterprises

Goal: International business Revenue of $ 0.5B by FY 26 end @ EBITDA of early 20’s

We Have Made Some Big Moves….

Acquisition Quant Systems Inc

Winning Large Deals

D&I: Building Diverse Global Firm

Sonata Acquires Quant Systems Inc

Quant Is On A Fast-Paced Growth

Quant Systems Inc.

BFSI & Healthcare Enterprise Data & Cloud

$37M Revenue 35%+ EBITDA

300+ Engineers Across US, India, Mexico, Costa Rica

CY22

$37M

CY21

$25M

CY20

$8M

$160M – Over 10 Years - Modernization Deal

Client Overview

Industry Retail and Finance

Revenue $1.5 B

Employees 2600+

Business Overview Catalog, eCommerce, Credit, Apparel, and fashion

The Pressure Points

The End Goal

Legacy Tech Stack

Lack of standardization

Customer Experience

High cost of IT operations

Skilled Talent Availability

Solutions

•

IT enabled Modernization resulting in better Customer Experience

Automation and Innovation led optimized IT operations

Seamless people transfer and process transition solution

Reduction in HW & SW spent on Y-o-Y basis

Standardize Service Delivery

Address Skilled Talent Availability

Optimize Costs + Efficiency

Customer Experience

D&I Charter : Building a Diverse Global team

Proud Associate Partners Of Mumbai Indians In WPL!

A Diverse Global Leadership Team Aligned For GROWTH

D&I Council

Xinwen Liang China

Radha Krishnan North America

Anthony Lange North America

Sundaralata A India

Sathish K Nuggu India

Santos Jha North America

Naseebunnisa Abdul North America

Digital Engineering Led Platform Modernization

Sonata’s Modernization Services helps in creating digital businesses with connected ecosystems to improve Business agility, Experience and Productivity

Modernization

Adoption

Optimization

Cloud Apps Modernization

Data & Analytics

Microsoft Business Apps

Service Experience Transformation

Hyper Automation

Managed Services

• Application

Modernization and Cloud Native Digital Engineering

• Cloud Infrastructure Modernization

• Application

Migration to Cloud

• Data Platform Modernization

• Database migration

to Cloud

• Data Strategy and

Consulting

• Data Privacy,

Governance and Compliance

• MDM – Customer,

Supplier and Product

• Advanced Analytics and Adaptive AI

•

Business Apps Modernization- AX, GP, NAV, CRM, Legacy

Industry Transformation – Consulting, IP led Engineering Services

• App innovation and automation on Power Platform

• Managed Services

and Support

• Digital Contact

•

Center

•

Intelligent IOT Driven Field Service

• Customer Experience Assessment and Measurement

Business Process Automation – AI & RPA

• Multi-Cloud Devops Implementation

•

IT Process Optimizationion

•

Infrastructure and Operations

• Application

Managed Services

• Microsoft Cloud

Support (Expert MSP Partner)

• Omnichannel

• Digital Assurance

Customer Experience

• Human Centered Design and UX services

and Testing Automation

Microsoft Relationship – Jointly Driving Customer Success

30 Years Microsoft Partnership

400+ Clients Across The Globe USA, Europe, Asia, India, Australia, Middle East

$350+ Million Per Annum Revenue To Microsoft 21.9% YoY Growth , Cloud Mix 73.4%

2500+ Team On Microsoft Technologies

18 Gold Certified Competencies. 10 Advanced Specialization Dynamics 365, Microsoft Azure Expert MSP, Data Analytics, Teams, CAF, M365, Azure

Joint Execution Microsoft Fasttrack, Global Delivery, Microsoft Consulting Services

Catalyst Led Sales Process Industry Point Of View, Business Value Assessment, Envisioning Workshops, Design Thinking

Industry Clouds Go To Market Retail, Sustainability, Manufacturing

Industry Digital Transformation Retail, CPG, Manufacturing, Telecom, Healthcare, Hi-tech, BFSI

Competency Name

Application Development

Application Integration

Cloud Business Applications

Cloud Platform

Cloud Productivity

Collaboration and Content

Communications

Data Analytics

Data Platform

Datacenter

DevOps

Enterprise Mobility Management

Enterprise Resource Planning

Messaging

Project & Portfolio Management

Security

Small & Midmarket Cloud Solutions

Windows and Devices

Status

Gold

Winner “Technology Partner of the Year - BizApps”

Winner “Microsoft US Eagle Award 2019-2020” For winning new D365 customers

Member

Our “People-First” focus

88%

say Sonata is a great place to work

What it means for our people:

1. Career growth: 70% leaders from within

2. Average tenure: Middle managers 9+ years and Senior

managers 13+ years

Learn new technologies – leading and bleeding edge

4. Diversity and Inclusion

Stability and security

*Internal Survey

Success Stories (1/2)… Leveraging Cutting Edge AI Tech - GPT

Client Overview

Industry Technology

Revenue > $190 B

Fortune 25

Employees > 220,000

The Pressure Points

Solutions

Results

• Accelerate the ability to bring new

products and features to the market

Applying the Large Language Model through OpenAI GPT3 services

• High quality - Right first time in a complex engineering ecosystem

• Utilizing a natural language processing (NLP) model to process user inquiries and retrieve answers

• Generating unit test cases and increasing

test coverage; hyper automation

•

Real-time system monitoring and remediation

•

Reduced response time for inquiries by 50%

Reduced average resolution time by 75%.

Success Stories (2/2)… Cruise Control

Client Overview

Industry Travel & Tourism

Revenue $18.53 B

Fortune 500

Line of business 6

Destination 160

The Pressure Points

Solutions

Results

• Disparate monolithic systems

across multiple markets

•

Creation of modernized BI with a cloud- based on-demand warehousing solution

•

Lack of real time pricing and configurable dynamic packaging

Volatile sales volumes

Expensive infrastructure and operations cost

• Development of a data mesh and innovative ML models on AWS for domain-centric services

•

Implementation of serverless adapters and intelligent caching for dynamic flight combinations – MACH architecture

Implementation of a modernized “selling platform” on AWS

Execution of end-to-end automation with DevSecOps and DataOps

•

Seamless expansion to 3 geo-markets

• Data-driven dynamic package

configurations

•

Improved business opportunities and ~70M GBP op-ex saving/annum

Key Recognitions !

Financial Management

High Revenue growth with Industry Leading margins

Strong Cash Position & Balance Sheet

Superlative returns for Shareholders

Sound Capital Allocation

Focus on high revenue rate realization and high margins business

Very strong positive cash generation and cash position

Industry leading ROCE and ROE & Bonus share issue

Sound capital allocation

EPS : ₹32.6* / Share

Liquidity of ~ ₹900+Crs

ROCE > 35%

Dividend : ₹15.75* / share

*Bonus issue 1:3, record date - Sep 10, 2022

Consistent Growth Over Last 10 years

Consolidated Revenue & profitability ($Mn)

Revenue

EBITDA*

PAT

926

745

570

528

436

354

381

254

270

288

FY 14 FY 15 FY 16 FY 17 FY 18 FY 19 FY 20 FY 21 FY 22 FY 23

CAGR 15%

CAGR 18%

Predictable and resilient growth trajectory

*Before OI and FX

International Services - A Sustainable, Resilient Recovery After COVID-19

FY 23: YoY Revenue Growth 18.7%

Industry Leading Returns

Stable DSO performance < 50

23.0%

180.8

25.2%

160.3

27.0%

24.3% Normalized

24.4%

240.9

203.0

23.4%

41.6

40.5

49.5

56.4

300.0

250.0

200.0

150.0

100.0

50.0

39.2%

38.3%

25.0%

23.0%

21.0%

19.0%

17.0%

15.0%

38.2%

37.6%

34.3%

FY 22

FY 23

FY 20

FY 21

FY 22

FY 23

RONW

36.1%

33.6%

FY 21

ROCE

FY 20

FY 21

FY 22

FY 23

FY 20

Revenue

EBITDA

EBITDA%

Accelerated growth and higher quality returns through diversified offerings

Financial Performance Of International Services – Q4 FY23

*$65.8

$60.5

$55.7

8.6% QoQ

18.1% YoY

Q4 FY22

Q3 FY23

Q4 FY23

Revenue in $ Mn *Including Quant:

68.2

63.2

56.3

*8.0% QoQ

*21.1% YoY

24.8%

13.8

23.8%

14.4

23.9% Normalized

28.0%

23.0%

18.0%

20.7%

*13.6

13.0%

-5.9% QoQ

-1.9% YoY

8.0%

3.0%

-2.0%

Q4 FY22

Q3 FY23

Q4 FY23

EBITDA** in $ Mn

*Including Quant:

**Before OI and FX

17.5%

9.7

16.6%

10.0

16.5% Normalized

28.0%

23.0%

18.0%

14.0%

13.0%

* 9.2

8.0%

3.0%

-2.0%

-8.4% QoQ

-5.5% YoY

20.0

15.0

10.0

5.0

0.0

20.0

15.0

10.0

5.0

Q4FY22

Q3 FY23

Q4 FY23

Q4 FY22

Q3 FY23

Q4 FY23

Constant Currency in $ Mn

*Quant: contributes: QoQ – 3.9%, YoY – 4.4%

PAT in $ Mn

*Including Quant:

$70.0

$65.0

$60.0

$55.0

$50.0

80.0

75.0

70.0

65.0

60.0

55.0

50.0

45.0

40.0

International Business: Revenue Growth

5 2

Q4 22

Q3 23

Q4 23

1-3 Mn

3-5 Mn

5+ Mn

No. of $ Million Customers *Quant:- 4; 3; 2 in each category

72%

62%

66%

55%

66%

54%

Q4 22

Q3 23

Q4 23

Top 10 Customer

Top 20 Customer

Client Concentration

Q1 23

Q2 23

Q3 23

Q4 23

New Customers added

21%

22%

57%

27%

20%

53%

28%

20%

52%

Q4 22

USA

Q3 23

Q4 23

Europe

Rest of World

Revenue by Geography

International Business: Operational Performance

82.0%

84.2%

86.4%

6,500

6,000

5,500

5,000

4,500

4,000

3,500

3,000

5,348

283 99

4,966

4,789

252 79

4,458

6,055

323 104

5,628

13% QoQ

26% YoY 600

550

500

450

400

350

300

250

200

Q1 23

Q2 23

Q3 23

Q4 23

Utilization

Q4 22

Delivery

Q3 23 S&M

G&A

Q4 23

Headcount by Function Including Quant

International Business: Vertical Mix

Revenue by Verticals

FY 23

Q4 FY 23

BFSI 8%

Emerging 9%

Healthcare 11%

TMT 33%

BFSI 8%

Emerging 7%

Healthcare 11%

TMT 31%

Revenue Share

Retail and Manufacturing 39%

Retail and Manufacturing 42%

International Business: Solutions Mix

Revenue by Top GTMs

FY 23

Q4 FY 23

Others 2%

Emerging Tech 13%

Others 2%

Emerging Tech 13%

Cloud 36%

Revenue Share

Cloud 36%

Revenue Share

Dynamics 36%

Data 13%

Dynamics 37%

Data 12%

Domestic Business:– Delivering Consistently Strong Growth With Industry Leading ROCE

Cloud ~77.5% Annuity ~75.8%

5,540

219

197

170

4,067

2,492

3,066

131

136

142

1.30

1.29

1.17

0.85

1.50

1.30

1.10

0.90

0.70

0.50

0.30

0.10

FY20

FY21

FY22

FY23

Revenue (INR crs) CAGR - 22%

FY 20

FY 21

EBITDA

FY 22 GC

FY 23

Gross Contribution (INR crs) CAGR- 14% EBITDA (INR crs) CAGR- 20%

FY 20

FY 21

FY 22

FY 23

Net working Capital ÷ Gross Contribution

Head Count

ROCE

47.3%

DSO

369

379

374

32.2%

35.5%

28.2%

Q4 22

Q3 23

Q4 23

FY 20

FY 21

FY 22

FY 23

FY 20

FY 21

FY 22

FY 23

SONATA SOFTWARE The fastest growing firm in IT Services in the next 3-4 years

← All Transcripts SONATSOFTW Stock Page →

Sonata Software Limited has informed the Exchange about Investor Presentation

Market Movers