Sonata Software Limited · NSE:SONATSOFTW
Sonata Software — Q1 FY2018 Earnings Presentation
34 slides from Sonata Software's earnings presentation, August 2017
Slide 1: Go Deeper: Investor Presentation Q1 FY 17-18
GO DEEPER Transform business with IT Investor Presentation Q1 FY 17-18 Product Engineering Enterprise IT Services Technology Infrastructure DEPTH MAKES A DIFFERENCE © Sonata Software Ltd, 2014. Confidential. 1
Slide 2: Disclaimer
Disclaimer This presentation may include statements which may constitute forward-looking statements. All statements that address expectations or projections about the future, including, but not limited to, statements about the strategy for growth, business development, market position, expenditures,
Slide 3: Sonata Vision
Sonata Vision For the Customers IT Partner of choice for transformation thru deeper industry, technology & A world class firm customer focus that is a benchmark for Catalyzing Business Transformation for our Clients, For the Employee Fulfilling Employee Aspirations & A fun & fearless environment whe
Slide 4: Sonata Software – Corporate Structure
Sonata Software – Corporate Structure Sonata Software Limited Reporting Segment Legal Entities Geography Nature of Business Sonata Software Ltd India • Digital IT solutions & services • IT Consulting & Outsourcing • Product Engineering Services • Managed IT Services Sonata Europe Ltd UK • Software S
Slide 5: Operating Business Lines
Operating Business Lines International Services Technology Infrastructure • Product Engineering & Enterprise • IT Infrastructure Consulting, Licensing IT solutions & Deployment • International footprint • Primary India footprint • 32% of Co Revenues • 68% of Co Revenues • 80% of Co PAT • 20% of Co P
Slide 6: International IT Services
International IT Services 6
Slide 7: Industry Footprint
Industry Footprint Travel Retail & Distribution ISV Most Innovative Partner Most Innovative Partner 2012 2012 TO | OTA | Corporate | Air | Rail Hyper | Grocer | Apparel | CPG | Industrial ERP | SCM | Travel | Retail Strategic Customers Strategic Customers Strategic Customers • World leading Tour Ope
Slide 8: Business Solutions Footprint
Business Solutions Footprint DIGITAL ENTERPRISE IT COST ENGAGEMENT EFFICIENCY MANAGEMENT • Omni-channel Commerce • ERP • Managed Services & • Analytics & Personalization • SCM, HR & Finance Infrastructure • CRM, Loyalty • BI & Analytics • Cloud & Virtualization • Mobile & Social Business • Mobile &
Slide 9: Engineering Solutions Footprint
Engineering Solutions Footprint PRODUCT PRODUCT PROFESSIONAL INNOVATION ENGINEERING SERVICES • Cloud engineering • Consult, Architect • Professional Services • Mobile engineering • Develop, QA • Integration, Customization • Analytics integration • Performance Engineering • Sustenance Engineering • G
Slide 10: Transformational Partner to Customers
Transformational Partner to Customers Enabling a World Leader in Travel Retail stay ahead of the digital business shift Evolution from brick and click to Omni- Channel business • 20%+ YoY digital sales growth, 50%+ digital revenue 10 Year Partnership Milestone Front Office to Back Office IT systems
Slide 11: Transformational Partner to Customers
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 10 Year Partnersh
Slide 12: Way Forward: Platforms + Services for digital business
Way Forward : Platforms + Services for digital business Consumer Customer IT Connected world - Seamless, Personalized, Transform business to remain competitive with Social Commerce new technologies Solutions that keep your business ready for a digital future Travel : the future of Travel Experience
Slide 13: The Future – Industry specific Platform solutions
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, • Seamless Personalized Shopping • Advanced Sup
Slide 14: Strategic acquisitions & builds to enable 'the Future'
Strategic acquisitions & builds to enable ‘the Future’ Unified Enterprise Mobility Platform TRAVEL SAAS Reservation, Distribution, Contracts & Core features of MADP, MAM, MBaaS & Operations on one single Cloud Platform APIs on a single, unified mobile platform Advanced Supply chain Software for Big
Slide 15: Increasing impact on customer's digital solution needs
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 15
Slide 16: Digital Travel Platform in Action
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, Schedule
Slide 17: Global Service & Delivery Footprint
Global Service & Delivery Footprint UK Denmark Netherlands US Germany Development Centers – Redmond & Atlanta Singapore North America Australia Qatar, UAE India Bangalore, Hyderabad 17
Slide 18: Technology Infrastructure
Technology Infrastructure 18
Slide 19: TIS: Strategic fit to overall Sonata business
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 v
Slide 20: Wide portfolio of technology solutions
Wide portfolio of technology solutions with leading and emerging partners PORTFOLIO OF WORLD-CLASS ALLIANCES 360 DEGREE CORPORATE IN-HOUSE SOLUTION NEW TECHNOLOGY FOOTPRINT CENTRE OF EXCELLENCE ADOPTION PE | PDS Implement | GTM Expert Deployment Team | SMAC| Platforms| Appliances Customer POC | Best
Slide 21: Keeping business prepared to compete
Keeping business prepared to compete… with up to date technology infrastructure CORE IT EMPLOYEE BUSINESS INFRASTRUCTURE PRODUCTIVITY APPLICATIONS • OS, Servers, Cloud & • Communication & • E. Comm, Digital Virtualization Collaboration Marketing, CRM, BI, • Security, Identity & Access • Work Tools &
Slide 22: Financials
Financials 22
Slide 23: Result Snapshot – Q1 FY 18
Result Snapshot – Q1 FY 18 INR Crores Results Summary: Reconciliation for previous quarters from IGAAP to IndAS: For the Quarter ended Quarter Ended Description International Services 30/Jun/17 31/Mar/17 QoQ 30/Jun/16 YoY 31/3/17 30/6/16 Revenues PAT as per I GAAP (Rs. Crores) 32.0 28.0 Adjustments
Slide 24: Consolidated - Financials
Consolidated - Financials INR Crores Revenue - by Quarter EBIDTA - by Quarter 75.0 800.0 60.0 600.0 45.0 65.7 59.0 62.2 57.1 64.5 400.0 685.8 30.0 609.4 522.5 612.6 634.5 15.0 200.0 - - Q1-17 Q2-17 Q3-17 Q4-17 Q1-18 Q1-17 Q2-17 Q3-17 Q4-17 Q1-18 PAT - by Quarter 50.0 40.0 30.0 43.5 37.8 38.7 43.0 20
Slide 25: Consolidated – Human Capital
Consolidated – Human Capital 3,291 3,575 3,303 3,314 3,366 Attrition % 147 156 153 153 157 25% 3,000 23% 20% 19% 18% 17% 2,000 15% 3,213 3,418 14% 3,144 3,147 3,161 10% 1,000 5% - 0% Q1-17 Q2-17 Q3-17 Q4-17 Q1-18 Q1 17 Q2 17 Q3 17 Q4 17 Q1 18 International Service Domestic Products & Service Diversi
Slide 26: Consolidated - ROCE & RONW
Consolidated - ROCE & RONW 29% ROCE 27% 30% 27% 28% 25% 23% 27% 27% 23% 27% 25% 20% 22% 22% 21% 19% 10% 0% Q1 17 Q2 17 Q3 17 Q4 17 Q1 18 Consolidated Intl Serv Domestic RONW 40% 36% 36% 29% 29% 30% 29% 27% 29% 30% 33% 25% 26% 29% 29% 20% 25% 25% 10% 0% Q1 17 Q2 17 Q3 17 Q4 17 Q1 18 Consolidated Intl
Slide 27: Consolidated - Day Sales Outstanding
Consolidated - Day Sales Outstanding Consolidated 90 85 80 77 70 71 70 67 60 50 40 30 Q1-17 Q2-17 Q3-17 Q4-17 Q1-18 International Services 70 60 60 Domestic 60 120 52 48 47 102 50 100 90 40 80 76 80 69 30 60 20 40 10 - 20 Q1-17 Q2-17 Q3-17 Q4-17 Q1-18 - Q1-17 Q2-17 Q3-17 Q4-17 Q1-18 27
Slide 28: International IT services - Financials
International IT services - Financials INR Crores Revenue - by Quarter EBIDTA - by Quarter 250.0 50.0 40.0 200.0 30.0 51.2 45.5 48.0 49.8 44.0 20.0 195.7 209.1 206.5 204.0 211.3 150.0 10.0 - 100.0 Q1-17 Q2-17 Q3-17 Q4-17 Q1-18 Q1-17 Q2-17 Q3-17 Q4-17 Q1-18 Revenue $ mn 34.0 PAT - by Quarter 33.0 32.
Slide 29: International IT Services - Revenue Mix
International IT Services - Revenue Mix Geography Vertical 100% 100% 13% 15% 15% 16% 14% 17% 17% 17% 18% 18% 80% 80% 26% 26% 24% 24% 26% 24% 23% 24% 27% 26% 60% 60% 40% 40% 29% 28% 26% 27% 28% 61% 59% 60% 60% 60% 20% 20% 31% 30% 30% 29% 30% 0% 0% Q1 17 Q2 17 Q3 17 Q4 17 Q1 18 Q1 17 Q2 17 Q3 17 Q4 17
Slide 30: International IT Services - Revenue by Competency
International IT Services - Revenue by Competency 100% 4% 4% 4% 4% 4% 2% 2% 2% 1% 1% 6% 6% 5% 7% 6% 8% 8% 9% 9% 9% 80% 19% 18% 16% 18% 19% 60% 4% 5% 4% 5% 5% 16% 15% 15% 17% 15% 40% 16% 16% 17% 17% 19% 20% 26% 25% 24% 25% 23% 0% Q1 17 Q2 17 Q3 17 Q4 17 Q1 18 ADM Test AX ERP IMS/ cloud BI E-Commerce
Slide 31: International IT Services - Revenue by Customers
International IT Services - Revenue by Customers New Customers No. of customers by Vertical 6 5 Others OPD TTL 31 17 10 4 3 6 6 6 Revenue from Top Customers Retail Distribution 5 85% 39 2 3 80% 1 75% 78% 80% 81% 79% 76% 70% 0 Q1 17 Q2 17 Q3 17 Q4 17 Q1 18 65% 71% 70% 70% 70% 70% 60% 60% 59% 59% 61%
Slide 32: Utilization / Forward Cover Realization
Utilization / Forward Cover Realization Rupee Realization 110.00 105 104 105 100.00 100 99 90.00 78 78 80 80.00 76 79 70.00 70 68 69 70 71 60.00 50.00 40.00 Q1 17 Q2 17 Q3 17 Q4 17 Q1 18 US Dollar Euro GBP Utilisation 86.0% 85.4% 85.5% 85.1% 85.2% 85.1% 85.0% 84.8% 84.5% 84.0% 83.5% 83.0% 82.5% 82.0
Slide 33: Domestic Product & Services - Financials
Domestic Product & Services - Financials INR Crores Revenue - by Quarter EBIDTA - by Quarter 500.0 15.5 400.0 15.0 300.0 14.5 15.2 489.3 14.9 15.1 420.9 415.7 434.1 14.0 200.0 317.4 14.2 14.0 13.5 100.0 13.0 - Q1-17 Q2-17 Q3-17 Q4-17 Q1-18 Q1-17 Q2-17 Q3-17 Q4-17 Q1-18 PAT - by Quarter 9.0 8.8 8.6 8
Slide 34: Thank You!
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