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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.
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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
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International IT Services
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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
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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 customer’s 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
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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
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Global Service & Delivery Footprint UK Netherlands
US Development Centers – Redmond & Atlanta
Germany Singapore North America
Australia
Qatar, UAE
India Bangalore, Hyderabad 17
Technology Infrastructure
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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
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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
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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
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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
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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!
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Sonata Software Ltd., © Aug 2015
