Sonata Software Limited · NSE:SONATSOFTW
Sonata Software — Investor Day (May 2017)
81 slides from Sonata Software's investor day presentation, May 30, 2017
Slide 1: Analyst Presentation
Analyst Presentation Analyst Day, May 30th 2017 by Srikar Reddy © Sonata Software Ltd, 2013. Confidential.
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: Current status
Current status • Account mix • New customers – FY17 • Strong Alliances • IP – developed, initial customers for each. – Revenues 108 Cr. in FY17 vs 56 Cr. in FY16 • Senior leadership acquisition © Sonata Software Ltd, 2013. Confidential.
Slide 4: New Clients Snapshot – FY17
New Clients Snapshot – FY17 INR Crores 2017 New Clients by Geo No. of New Clients 10 8 Europe, 4, 6 10 20% 4 US, 9, 45% 6 5 6 2 Asia, 7, 35% 3 0 Q4 16 Q1 17 Q2 17 Q3 17 Q4 17 2017 New Clients by Verticals 2017 New Clients - Acquisition Route Others Trave 5% l, 2, 13% Vertically Alliance Distribution
Slide 5: Current Pipeline
Current Pipeline INR Crores Pipeline Clients by Geo Pipeline Clients by Verticals Travel, 2, 13% Europe, 6, 24% Distribution, US, 12, 48% Retail, 7, 47% 3, 20% Asia, 7, 28% ISV, 3, 20% Pipeline Clients - Acquisition Route Split of New Pipeline Others, 1, 6% Vertically led, 3, 47% 18% 53% Alliance, 7
Slide 6: IP Led Revenues
IP Led Revenues INR Crores Trend - IP Led Revenues (Rs. Cr) 120.0 25% 108.2 100.0 20% 20% 80.0 15% 14% 60.0 56.3 10% 40.0 8% 5% 20.0 7.3 1% - 0% FY 15 FY 16 FY 17 FY 18 Total % of International Services Revenues Rs. 108 Cr (14% of International Services Revenues) in FY17 Vs. Rs. 56 Cr (8% of Interna
Slide 7: CAGR – Mid Size Companies (Intl Services)
CAGR – Mid Size Companies (Intl Services) CAGR - 4 Yrs - Revenue CAGR -4Yrs - EBIDTA 30% 50% 25% 25% 44% 40% 22% 22% 20% 30% 15% 10% 10% 20% 8% 10% 16% 5% 6% 10% 10% 11% 11% 7% 6% 0% 0% 3% 0% Sonata A B C D E F G -5% Sonata A B C D E F G CAGR - 4 Yrs - PAT 60% 55% 50% 40% 30% 23% 20% 10% 13% 8% 5% 5
Slide 8: CAGR - Tier 1 Companies (Intl Services)
CAGR - Tier 1 Companies (Intl Services) CAGR - 4 Yrs - Revenue CAGR - 4 Yrs - EBIDTA 30% 50% 25% 25% 44% 40% 20% 17% 30% 15% 16% 14% 20% 10% 10% 17% 16% 10% 12% 12% 5% 0% 0% M N O P Sonata M N O P Sonata CAGR - 4 Yrs - PAT 60% 55% 50% 40% 30% 20% 20% 17% 10% 11% 6% 0% M N O P Sonata 8 © Sonata Softw
Slide 9: Industry scenario
Industry scenario • Digital / platforms • Tech leaders – investments in platforms and digital enterprises • Statutory risks like H1B • General sentiment around globalization, protectionism • Automation and margin pressure © Sonata Software Ltd, 2013. Confidential.
Slide 10: Plan – 3 year to FY 2020
Plan – 3 year to FY 2020 • Continue focus on verticals – retail, travel, distribution, ISVs. • IP led • Alliance led • Platformation partner – customers, alliances • Continue investments in IP • TISG – continue to focus on digital infrastructure partner. New growth areas – cloud / security/sonata IP
Slide 11: 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 © Sonata Software Ltd, 2013. Confidential.
Slide 12: Platformation: The Technology Framework
PLATFORMATION The Technology Framework Integrated systems Auto Scalable / Distributed Localization and Cloud enabled Transactions Internationalization Intelligent Micro-services Multi Device / Multi Customer IOT & Telemetry Architecture Channel capability Experience Security & Full Automation Multi-
Slide 13: Approaches to achieve Platformation
Approaches to achieve Platformation Sonata READY Sonata ACCELERATE Sonata CUSTOM • End-to-end, industry- • Deploy popular horizontal • Engineer custom specific digital business platforms adding platforms that deliver platforms required functionality unique digital capability and scalability Omni cha
Slide 14: Enabled by our Platformation DNA
Enabled by our Platformation DNA Engineering Excellence Operations Excellence • Product engineering • Cost-optimized cloud mind-set operations • Distributed agile - rapid • Tools-based delivery management • DevOps and full • Security compliance automation focus • Business continuity © Sonata Softwar
Slide 15: Engines that will drive growth & value
Engines that will drive growth & value Vertical Existing Alliances Transformation IP & Platform Digital Tech Infra Customers Deals • Grow by • Grow by • Win new • Grow IP & • Gain value and becoming a synergistically strategic proprietary profit by larger & more leveraging customers thru platform ex
Slide 16: Thank You
THANK YOU © Sonata Software Ltd, 2013. Confidential.
Slide 17: Finance Presentation
Finance Presentation Analyst Day, May 30th 2017 by Prasanna Oke © Sonata Software Ltd, 2013. Confidential.
Slide 18: FY17 in perspective
FY17 in perspective INR Crores International Business Group Industry Beating 15% YOY Growth in International Revenues (Excluding Brexit, 18.6% YOY Growth) 31% of Revenues from Digital Business, among the highest in the Industry 20 New Logo’s added in current year across Verticals, Regions. 9
Slide 19: FY17 in perspective – Consolidated Business
FY17 in perspective – Consolidated Business INR Crores 3,291 3,303 3,314 3,366 Attrition % 3,259 148 147 156 153 153 25% 3,000 23% 20% 19% 2,000 18% 18% 3,111 3,144 3,147 3,161 3,213 17% 15% 1,000 10% 5% - Q4-16 Q1-17 Q2-17 Q3-17 Q4-17 0% Q4 16 Q1 17 Q2 17 Q3 17 Q4 17 International Service Domestic
Slide 20: 2017 - International Business - Revenue Mix
2017- International Business - Revenue Mix Geography Vertical 100% 100% 14% 13% 15% 15% 16% 17% 17% 17% 17% 18% 26% 26% 26% 24% 24% 24% 24% 23% 27% 26% 50% 50% 31% 29% 28% 26% 27% 60% 61% 59% 60% 60% 28% 30% 31% 30% 29% 0% 0% Q4 16 Q1 17 Q2 17 Q3 17 Q4 17 Q4 16 Q1 17 Q2 17 Q3 17 Q4 17 USA Europe inc
Slide 21: International IT Services - Revenue by Competency
International IT Services - Revenue by Competency 100% 4% 4% 4% 4% 4% 2% 2% 2% 2% 1% 90% 7% 6% 6% 6% 9% 9% 8% 80% 9% 9% 9% 70% 16% 19% 19% 15% 18% 60% 4% 5% 4% 4% 5% 50% 15% 16% 15% 15% 15% 40% 16% 16% 17% 17% 18% 30% 20% 23% 26% 25% 24% 25% 10% 0% Q4 16 Q1 17 Q2 17 Q3 17 Q4 17 ADM Test AX ERP IMS/
Slide 22: International IT Services - Revenue by Customers
International IT Services - Revenue by Customers New Customers No. of customers by Vertical 10 9 OPD 8 Others 20 37 7 TTL 6 12 5 10 4 Retail Distribution 3 6 6 5 35 2 3 1 0 Q4 16 Q1 17 Q2 17 Q3 17 Q4 17 Revenue from Top Customers Asia No. of customers by Geo 6 Europe 85% ANZ, 7 14 80% 80% 81% Middle
Slide 23: Looking ahead
Looking ahead INR Crores Strategic Investments in FY2017 impacting PAT Development of IP products, Platforms (3% of Revenues) Increased spend on marketing activities (1.6% of Revenues) Augmented Leadership across Sales, Verticals and Delivery (1.2% of Revenues) FY18 Strategic Focus Focus on
Slide 24: Thank You
Thank You © Sonata Software Ltd, 2013. Confidential.
Slide 25: Existing Business Growth
Existing Business Growth Analyst presentation 29th May 2017 by Raju P V S N © Sonata Software Ltd, 2013. Confidential.
Slide 26: Existing Business Growth: Objectives
Existing Business Growth. Objectives • Become strategic partner to our clients – Increased wallet share – Annuity business © Sonata Software Ltd, 2013. Confidential.
Slide 27: Annual Revenues
Good Runway for Growth in existing accounts Large Strategic • Good quality of existing accounts Annual Revenues (9.5 %) (12.5%) • Long term relationships. Maintain Growth • Average Tenure (35%) (43%) • Top 10 accounts is 9.20 years • Top 25 accounts is 7.32 years Growth Potential • Increasing averag
Slide 28: Game Plan
Game Plan • Reposition as “Platformation partner” in their digital transformation journey. • Specialized services – MS Dynamics, SAP Hybris, MS Azure, Cortana Analytics… • IP is our “differentiator”. • Leveraging Alliances : Joint pursuits • Leveraging Industry expertise in focused verticals • Incre
Slide 29: Account Management Process & CCOE
Account Management Process & CCOE • Account Growth mandate co-owned by Account Manager and CCoE Assessment Delivery Manager (PAIR) Rating Benchmark Innovation and • Comprehensive Account plans and Governance framework Thought Leadership 5 • Dashboard based management. Technology and 4 3 2 Solutionin
Slide 30: Focus on delivery excellence
Focus on delivery excellence • Agile” methodology implementation. • Sonata own “DevOps”/”Cloud ops” tool for full automation. • Engineering excellence : • Platform” architecture patterns to build open, scalable, connected and intelligent systems • Automation (bots, RPA, ..) : Reduce costs in applica
Slide 31: Good Traction in FY17
Good Traction in FY17 • Platformation seeing traction in existing accounts • Early adopters • Travel multi level marketing company based in US • Electronic gadget e-talier based in India • European Tour operator • Active conversations in other clients • Entry and growth using specialized services of
Slide 32: Thank You
THANK YOU © Sonata Software Ltd, 2013. Confidential.
Slide 33: Alliance Led – Growth Engine
Alliance Led – Growth Engine Analyst presentation May 2017 by Ranganath Puranik © Sonata Software Ltd, 2013. Confidential.
Slide 34: Market Opportunity
Market Opportunity: Paradigm shift from on-prem to Cloud solutions in ERP, CRM, E-Commerce across our Verticals of Retail, High Tech, Travel, Dstribution/Manufacturing/ CPG driven by adopting modern platforms. Transition to Cloud along with access from mobile devices will see a huge growth in the
Slide 35: Sonata Growth Engine – Alliances: Vision
Sonata Growth Engine – Alliances: Vision Core part of Sonata’s Platformation vision where we go to market with our Partner’s platforms to deliver digital solutions to customers across our verticals of Distribution/ Manufacturing/CPG; Retail; Travel and High Tech. Microsoft Dynamics-365 and SAP (
Slide 36: Microsoft Alliance
Microsoft Alliance Sonata has been a strong Microsoft R&D partner and India #1 sales partner over the past 2 decades. We have significant exec connects in Microsoft globally. We have our Apps (IP) for Distribution, Retail, Travel and High Tech on Microsoft AppSource. Last year, with the acquisit
Slide 37: Microsoft Dynamics 365
Dynamics 365 Microsoft AppSource Microsoft Dynamics 365 Common application platform: PowerApps, Microsoft Flow, Common Data Service © Sonata Software Ltd, 2013. Confidential.
Slide 38: Product : Offerings
Product : Offerings • Modern Distribution • Upgrade • Brick and Click - Retail • Extensibility • Global Engineering Factory & Rollout. Solutions for Enterprises Dynamics 365 Services Key Offerings • Global solution definition • Global Engineering factory • Global 24/7 helpdesk • Modern App services
Slide 39: Microsoft Alliance Go To Market business segments
Microsoft Alliance Go To Market business segments Dynamics- 365 for Distribution/ CPG/ Manufacturing, Retail, Installed Base, New upgrades Includes ERP, CRM, BI, Machine Learning Azure (& Power BI) – migration, onboarding, Azure Market place ISV Development Services/ App Source Industry/Vert
Slide 40: Microsoft Alliance – Recent Platform Wins
Microsoft Alliance – Recent Platfrom Wins Recent Platform Wins include: • Hardware retailer with 5000+ retail locations; • Leading global manufacturer and retailer of Women’s wear, • One of the world’s leading toy manufacturers; • Leading manufacturer & distributor of food packaging products; • Lead
Slide 41: SAP Hybris Alliance
SAP Hybris Alliance • Hybris + Travel E-Commerce has emerged as a strategic area of focus for Travel vertical • Several global customers • Alliance led large pursuits • Europe (UK) & US SAP Hybris alliance has begun working together; Well aligned in Asia • Planning to drive significant YoY growth ov
Slide 42: Alliance Partnership with SAP Hybris
Alliance Partnership with SAP Hybris On stop Shop – Ecommerce, Mobility, Business Dedicated Analytics, Cloud hybris COE 'Most Innovative Partner of the Year’ Recognized by hybris Hybris specific accelerators and frameworks SAP Hybris Global Consulting Deployment Testing AMS Alliance Delivery Model,
Slide 43: SAP Hybris Alliance Plan
SAP Hybris Alliance Plan Net New Deals Salient Points • Travel – Strong base of Hybris Commerce Customers • Strategic focus area for SAP – Alliance Status • Entry Barrier- Knowledge of Travel Domain • Partners in APAC, US, Europe, Australia • Sub verticals: Airlines, Hotel Chains, Airline • Well est
Slide 44: SAP Hybris Capability Snapshot
SAP Hybris Capability Snapshot Module Stack Highlights Product Customer Order Mgmt Content Experience System Mgmt Customer Marketing Sales Service Domain Flexible End to End Reusable Best practices Complex Knowledge Business hybris Product Assets in project development Models Knowledge Hybris add-on
Slide 45: Other Alliance-led Platformation Solutions
Other Alliance-led Platformation Solutions Focus on new emerging alliances to help support platform led business transformation – recent examples include Snowflake (Cloud Data Warehouse), Outsystems (Low code platform for enterprise rapid app development), Analytics/ Demand Forecasting platform etc.
Slide 46: Thank You
THANK YOU © Sonata Software Ltd, 2013. Confidential.
Slide 47: Digital Transformation - Industry Vertical led Growth
Digital Transformation - Industry Vertical led Growth Analyst Day, May 30th 2017 by Omprakash Subbarao © Sonata Software Ltd, 2017. Confidential. © Sonata Software Ltd, 2013. Confidential.
Slide 48: Agenda
– Digital Transformation – Market Landscape – Competitive Landscape to Deliver Digital Transformation – Our focus verticals – Leveraging Industry Knowledge for Digital Use Cases – Channels to Access Future Growth – Investments are Key to Our Successful Wins – Our success stories © Sonata Software Lt
Slide 49: Digital Transformation – Market Landscape
Digital Transformation – Market Landscape • IDC forecasts worldwide spending on digital transformation technologies to be more than $1.2 trillion in 2017, an increase of 17.8% over 2016 and set to reach $2 trillion by 2020 at a CAGR of 17.9% • United States and Asia Pacific will see the largest inve
Slide 50: Competitive Landscape to Deliver Digital Transformation
Competitive Landscape to Deliver Digital Transformation Too large to react quickly to customer needs Management focus spread thin across multiple industries and System customers Integrators Solutions and services with Solving only the immediate proprietary technologies, limits customization
Slide 51: Our Focus Verticals
Our Focus Verticals Travel Retail & Distribution ISV TO | OTA | Corporate | Air | Rail Hyper | Grocer | Apparel | CPG | Industrial ERP | SCM | Travel | Retail IPs Customers • World leading Tour Operator • World leading Retailer • Global Software Leader • Top NA Corporate Travel Co • Global F&B CPG L
Slide 52: Our Differentiation - Industry Knowledge for Digital Use Cases
Our Differentiation - Industry Knowledge for Digital Use Cases Decades of experience in key verticals of Travel, Retail & Distribution and ISV uniquely position Sonata to deliver Digital Solutions to our customer leveraging our industry know how and reach the Platform goals Industry specific Busines
Slide 53: Channels to Access Future Growth
Channels to Access Future Growth Value to Alliance Value to Customer • IPs for vertical solutions as a natural extension of licenses of Microsoft Dynamics and Azure Microsoft • Jump start your customer with our IPs on AppSource • Pre built IPs on their existing deployed Alliances platforms • Best pr
Slide 54: Investments are Key to Our Successful Wins
Investments are Key to Our Successful Wins The current organization structure reflects the vertical focus with dedicated leadership for Travel, Retail, Vertical leaders Distribution and ISV to tasked to create and define offerings, roadmap for IPs and drive new business Dedicated team to focus o
Slide 55: Our success stories
Our success stories Travel Retail Distribution ISV Asian tour operator Convenience store chain in US Mfg & Distributor – Food Enterprise Software Provider Nordics packaging Offer new business models and Value Delivered Additional revenue streams Embrace new industry Increase customer & supplier SaaS
Slide 56: Our success stories
Our success stories Travel Retail Travel ISV Scaling a US based Supported a leading Omni channel Engineering membership travel software vendor in solutions for a customer business leader’s the successful launch top global leisure engagement bookings 2X and of a SaaS & holiday retailer systems on a n
Slide 57: Thank You
THANK YOU © Sonata Software Ltd, 2016. Confidential. © Sonata Software Ltd, 2013. Confidential.
Slide 58: IP/Platform Led Growth
IP/Platform Led Growth Analyst Day, May 30th 2017 by Omprakash Subbarao IP/Platform Led Growth © Sonata Software Ltd, 2017. Confidential. © Sonata Software Ltd, 2013. Confidential.
Slide 59: Market landscape and our positioning
Market landscape and our positioning Digital Transformation is a long term investment that creates a need for Support our customer’s digital journey through platforms that can support future technology needs and scale that comes with platformation leveraging the Sonata ready IPs changes in busines
Slide 60: Current Status
Current Status 6 IP’s / Products in the Sonata Stable with a few in various stages of development Products built (a) In-house leveraging expertise or (b) Through strategic acquisitions FY’17 REVENUE USD MN 4.36 Sonata has been investing over course of the last 3 years 4.06 4.03 3.80 Platformation /
Slide 61: Sonata IPs
Sonata IPs Modern distribution Platform Digital Supply chain enterprise Cloud Based Digital Travel Digital Retail Platform software Platform / Modern management platform Distributor Solution Sonata Digital Commerce (OfBiz) Unified Enterprise Mobility Testing / Cloud Ops/DevOps Open source e-commerce
Slide 62: Modern Distribution Platform
Modern Distribution Platform Market Drivers Modern Distribution Solution Key Features Disruption in Value Chain with in Online Simplifies pricing models including & charge Sales and Operations Planning, End – to- end players backs , including Omni channel distribution planning Inventory Pull
Slide 63: Rezopia
Rezopia Market Drivers Rezopia Solution Key Features Real time supplier integration Reduce Overheads with automation and Service oriented architecture workflow Internet technologies and multiple Omni Channel Store front – Web, Mobile, devices/platforms being used by the end Lower IT spen
Slide 64: Brick and Click
Brick and Click Market Drivers Brick and Click Solution Key Features Commerce and E-commerce are merging; Anywhere, Anytime shopping – 24/7 business Unified commerce solution with intelligent Competition from online players cart Digital in-store shopping Need to support different channels
Slide 65: Halosys
Halosys Market Drivers Halosys Solution Key Features Businesses identify back-end integration as a ~40% faster time to market HaloMEM – Application builder & backend top challenge for mobile app development. integration Rapid prototyping leading to Building multiple apps for a multi-device
Slide 66: Sonata Digital Commerce (OfBiz)
Sonata Digital Commerce (OfBiz) Market Drivers SDC Solution Key Features Competition from e-tailers requires the brick Maximizing revenue- Additional revenue Personalization- Customer Specific and mortar stores to relook at business streams not just promotions, Cross Sell & Up-Sell strategy re
Slide 67: Rapid Platform
Rapid Platform Market Drivers RAPID Solution Key Features Single platform to manage the DevOps cycle, Automate aspects of DevOps like Continuous Common data model (projects/product) ability to implement organization wide rather Integration, Continuous testing or Continuous than on per project
Slide 68: Our Success Stories - Snapshot
Our Success Stories - Snapshot Hydronic products Women’s Activewear Distributor Retailer Health & Beauty Retailer • Addressed lack of • Enhanced the existing visibility on customer ERP Sofware Provider ERP system with rich Australian Rail Operator • Define and delivered payment status functionalitie
Slide 69: Channels to Access Future Growth
Channels to Access Future Growth Augment customer’s growth strategy, technologies and processes using Sonata Ready IP through our Existing existing project and the adjacent areas Customers Joint solutions with the alliances delivering larger scale and be the first to align with the latest Allian
Slide 70: Investments are Key to Our Successful Wins
Investments are Key to Our Successful Wins New leaders in the organization to lead the product roadmap, validate and keep pace with market needs, Product lead the product sales activities leverage the regional account teams and create product visibility through Management various marketing events
Slide 71: Thank You
THANK YOU © Sonata Software Ltd, 2017. Confidential. © Sonata Software Ltd, 2013. Confidential.
Slide 72: TISG (SITL: India Business) - The Growth Engine
TISG (SITL: India Business) - The Growth Engine Analyst Day, May 30th 2017 by Sujit Mohanty © Sonata Software Ltd, 2013. Confidential.
Slide 73: TISG Business Objectives
TISG Business Objectives • Digital Infrastructure, Platformation partner • Cloud solution provider • Sonata IP & platforms • Enterprise accounts • Aligned & critical to Sonata’s plan © Sonata Software Ltd, 2013. Confidential.
Slide 74: Addressable Market
Addressable Market • India - Growth market • Digital transformation plans • Platform based business • Cloud ready – Security – Hybrid Integration • Use of IT tools • OEM focus in India © Sonata Software Ltd, 2013. Confidential.
Slide 75: Our Differentiation
Our Differentiation • Customer contacts • SONATA IPs & Platforms • OEM relationships - 360⁰ • Successful adoption • Digital plumbing& cloud experience • Consistency & market understanding • Effective teams • Success stories © Sonata Software Ltd, 2013. Confidential.
Slide 76: Growth Engines
Growth Engines • On Premise business • Cloud asset & Platform business • Sonata IP • Cloud SI • Security SI • Hardware SI © Sonata Software Ltd, 2013. Confidential.
Slide 77: We Have Grown
We Have Grown • Rs 1700 Crs Revenue • Long Term Contracts • Annuity Business • No.1 Partner • Leading cloud partner • Awards © Sonata Software Ltd, 2013. Confidential.
Slide 78: We Have Incubated
We Have Incubated • Cloud solution provider • Security SI • Sonata IP • License Consulting • Hardware • SI Business © Sonata Software Ltd, 2013. Confidential.
Slide 79: FY 18 Overall Plan
FY 18 Overall Plan • Existing business retention & grow • Sonata’s IPs & platforms • Cloud business momentum • Growth engines • Cross selling & license consulting © Sonata Software Ltd, 2013. Confidential.
Slide 80: Focusing on Success Factors
Focusing on Success Factors • Customer engagement process • Sales structure, motions & velocity • Business processes • Recruiting, training & skilling • Alignment with partner’s digital strategy • Digital marketing, image & perception © Sonata Software Ltd, 2013. Confidential.
Slide 81: Thank you
Thank you © Sonata Software Ltd, 2013. Confidential.