Sonata Software Limited · NSE:SONATSOFTW
Sonata Software — Investor Day (August 2018)
72 slides from Sonata Software's investor day presentation, Aug 14, 2018
Slide 1: Welcome Analyst Day 2018
WELCOME Analyst Day 2018 August 14, 2018 Bangalore Sonata Software copyright 2018
Slide 2: Analyst Presentation
Analyst Presentation Analyst Day, May 30th 2017 by Srikar Reddy Sonata Software copyright 2018
Slide 3: 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 I
Slide 4: 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 becoming Grow by Win new strategic Grow IP & Gain value and a larger & more synergistically customers thru proprietary profit by extending strategic partner leve
Slide 5: Last year
Last 1 year. • Significant traction and interest with Platformation • Growth with existing clients • IP led growth and maturing of IP • New talent addition • Strong momentum with Microsoft alliance Dynamics/ISV • Transformation of India business Sonata Software copyright 2018
Slide 6: Next 3 year strategy till 2021
Next 3 year strategy.. Till 2021 • Platformation • Platforms – Brick and Click, Modern Distribution, Rezopia, Kartopia, Halosys, Rapid • Alliance - Microsoft • Geography expansion • Strategic M&A • Focus services - Dynamics, Hybris, Azure • Platformation of services – Data/ML, Modern App Engg, RPA •
Slide 7: Welcome Analyst Day 2018
WELCOME Analyst Day 2018 August 14, 2018 Bangalore Sonata Software copyright 2018
Slide 8: Finance Presentation
Finance Presentation Analyst Day, Aug 14th 2018 by Prasanna Oke Sonata Software copyright 2018
Slide 9: Q119 – An overview
Q119 – An overview Trend - International Services (INR.Cr) 280 257 International Business 260 240 235 241 242 211 220 • Q119: 6.3% QoQ Growth and 21.7% YoY growth in International Revenues in 200 180 INR terms (3% in constant currency $ terms). EBITDA growth of 11.6% on QoQ 160 140 basis and 33.8% o
Slide 10: Q119 - Consolidated business
Q119 - Consolidated business 3,575 3,628 3,459 3,476 3,615 Attrition % 157 164 163 163 161 20% 18% 3,000 18% 15% 16% 16% 16% 14% 2,000 14% 3,418 3,464 3,296 3,313 3,454 12% 10% 1,000 8% 6% - 4% Q1-18 Q2-18 Q3-18 Q4-18 Q1-19 2% 0% International Service Domestic Products & Service Q1 18 Q2 18 Q3 18 Q4
Slide 11: New Clients Snapshot – Q119
New Clients Snapshot – Q119 No. of New Clients New Clients by Geo – Q119 14 12 12 10 10 US, 2, 25% 8 Asia, 2, 25% 8 6 6 4 4 2 Europe, 4, 50% 0 Q1 18 Q2 18 Q3 18 Q4 18 Q1 19 New Clients by Vertical – Q119 New Clients by Acquisition Route - Q119 IP/Platformation, Others, 1, 1, 13% 13% Retail, 4, Verti
Slide 12: IP Led Revenues
IP Led Revenues Trend - IP Led Revenue Growth % 17.0% 16.5% 16.3% 16.0% 15.5% 15.6% 15.0% 15.2% 14.5% 14.7% 14.0% 13.5% 13.7% 13.0% 12.5% 12.0% Q1'18 Q2'18 Q3'18 Q4'18 Q1'19 % of International Services Revenue Sonata Software copyright 2018
Slide 13: CAGR – Mid Size Companies (Intl Services)
CAGR – Mid Size Companies (Intl Services) CAGR - 4 Yrs - Revenue CAGR -4Yrs - EBIDTA 20% 30% 27% 18% 18% 25% 16% 16% 16% 14% 20% 12% 12% 10% 15% 11% 9% 8% 8% 9% 6% 7% 10% 6% 6% 4% 5% 2% 2% 1% 0% 0% Sonata A B C D E F Sonata A B C D E F CAGR - 4 Yrs - PAT 30% 28% 25% 20% 15% 13% 12% 10% 7% 6% 5% 5% 0
Slide 14: CAGR – Tier 1 Companies (Intl Services)
CAGR – Tier 1 Companies (Intl Services) CAGR - 4 Yrs - Revenue CAGR - 4 Yrs - EBIDTA 20% 30% 27% 18% 18% 25% 16% 14% 20% 11% 11% 12% 10% 9% 15% 8% 6% 10% 8% 8% 8% 6% 6% 4% 5% 2% 0% 0% G H I J Sonata G H I J Sonata CAGR - 4 Yrs - PAT 30% 28% 25% 20% 15% 11% 10% 8% 8% 5% 1% 0% G H I J Sonata *CAGR for
Slide 15: Q119 – International Business – Revenue Mix
Q119 – International Business – Revenue Mix Geography Vertical 100% 100% 14% 14% 14% 14% 11% 18% 18% 17% 20% 20% 80% 80% 26% 27% 27% 28% 29% 24% 26% 27% 25% 25% 60% 60% 40% 40% 28% 27% 28% 27% 27% 60% 59% 59% 58% 60% 20% 20% 30% 29% 28% 28% 28% 0% Rev - $ Mn (Actual $ Currency) 0% Q1 18 Q2 18 Q3 18
Slide 16: Q119: International Services – IP & Competency revenues
Q119:International Services – IP & Competency revenues Competency 100% 5% 5% 4% 4% 3% 33% 90% 5% 6% 5% 5% 7% 6% from 8% 8% 8% 80% 7% Digital 17% 17% 19% 17% 18% 70% 4% 5% 4% 5% 5% 60% Trend - IP Led Revenues (Rs. Cr) 20% 19% 18% 50% 17% 19% 16.5% 16.0% 16.3% 40% 17% 15.5% 19% 18% 19% 18% 30% 15.6% 1
Slide 17: International IT Services – Revenue by Customers
International IT Services – Revenue by Customers New Customers No. of customers by Geo 12 Asia Middle East ANZ, 7 3 10 2 Europe, 22 8 India, 15 6 12 10 4 8 6 US, 59 2 4 0 Q1 18 Q2 18 Q3 18 Q4 18 Q1 19 Revenue from Top Customers No. of customers by Vertical 85% Others OPD, 13 80% 35 TTL, 11 75% 79% 7
Slide 18: Looking ahead - Focus
Looking ahead - Focus Trend - Consolidated EBITDA & PAT (INR. Cr) • Platformation along with IP Led revenues to drive 90 Differentiation, Growth across Both Segments of the 83 80 Business 72 75 70 64 66 • Ensuring strong Financials 60 55 58 • Margins 50 43 45 49 • Cash 40 30 • Operational Levers to
Slide 19: Welcome Analyst Day 2018
WELCOME Analyst Day 2018 August 14, 2018 Bangalore Sonata Software copyright 2018
Slide 20: International Services
INTERNATIONAL SERVICES Vikas Gurugunti August 14th 2018 Sonata Software copyright 2018
Slide 21: FY18/Q1 Highlights
FY18/Q1 Highlights New logos : 20+ across geographies An American home improvement supplies retailing company that sells tools, construction products, and services A British-based company that operates ferries from the united kingdom to Ireland and continental Europe A multinational professional ser
Slide 22: FY18/Q1 Highlights…contd.
FY18/Q1 Highlights…contd. MS Alliance activity strengthened across US, Europe and ASIA regions • Solution showcasing in Microsoft Technology Centres @ Singapore, Dubai, London and Mumbai o Planned in Chicago, Atlanta • IP led Wins in US/ISV Dev centre wins in Europe Expansion of markets in Europe Tr
Slide 23: Strategy and Opportunities
Strategy and Opportunities Technology Industry Verticals Microsoft • Focus on PLATFORMATION • Retail/ CPG/Distribution : • Dynamics , Data and promising potential in the Analytics continue to be • Shore up on IP driven mid segment markets the leading technology sales’ motions across geographies plat
Slide 24: How do we get there….
How do we get there…. More rigor on existing Account Growth • Account planning, Account Management and execution discipline • Leverage on high customer satisfaction/goodwill Build on NBD strategy • Widen/Deepen MSA alliance • Along with: o Must Have Accounts (MHA) targeted for Platformation o Form b
Slide 25: Welcome Analyst Day 2018
WELCOME Analyst Day 2018 August 14, 2018 Bangalore Sonata Software copyright 2018
Slide 26: Platformation: Microsoft Alliance Growth Initiative
Experience the power of PLATFORMATION Microsoft Alliance Growth Initiative Sonata Software copyright 2018
Slide 27: Microsoft Alliance Growth Engine
Microsoft Alliance Growth Engine Sonata-Microsoft Corporate Vision: a partner who enables customers execute on next-gen Digital Transformation programs by utilizing the power of the Microsoft enterprise technology platforms and Sonata IP on Microsoft stack and proprietary digital transformation meth
Slide 28: Microsoft Alliance – Strategy
Microsoft Alliance – Strategy The digital transformation opportunity - International Data Corporation (IDC) predicts spending on cloud IT and services will more than double by 2021. That translates into a big revenue opportunity for Microsoft Partners. For every 1USD that Microsoft generates, partne
Slide 29: Sonata, A Best In Class Microsoft Partner
Sonata, A Best In Class Microsoft Partner (Top 1%) 25 Years 13 Gold 14+ Years MICROSOFT PARTNER CERTIFIED COMPETENCIES Product Engineering & Suppprt Partner GISV, lSP, CSP, ISV Dev Centre, SI. Dynamics 365, AX, D365, Dynamics Retail product engineering. Country Partner India 2014, 15, 17. Power BI,
Slide 30: Driving Digital Transformation Through Platforms
Driving Digital Transformation Through Platforms Synergies that drive success SONATA’S PLATFORMATIONTM MICROSOFT DT VISION Open, Connected, Intelligent & Scalable FUTURE-READY Platform based approach to business and + Engage Customers, Empower Employees, Transform Products and Optimize Operations En
Slide 31: Sonata's Value Proposition for Microsoft and Customers
Sonata’s Value Proposition for Microsoft and Customers Co-Sell ready ISV solutions One of the largest Dynamics for Retail, CPG, Distribution, Travel 1 2 practices (1,000+) globally serving Enterprise, Corporate and ISV customers ALLIANCE VALUE PROPOSITION Proprietary PLATFORMTIONTM Unique toolset fo
Slide 32: Microsoft Global Industry Solution Maps
Microsoft Global Industry Solution Maps Sonata Software copyright 2018
Slide 33: Microsoft Alliance – Business highlights
Microsoft Alliance – Business highlights • Several new enterprise customers with $b+ revenues & multimillion $ TCV’s for Sonata won through Microsoft Alliance: Some examples of $m+ TCV contracts : o Global clothing accessory retailer o National retailer of home goods o National hardware retailer wit
Slide 34: Microsoft Alliance – Summary
Microsoft Alliance – Summary • Our Platformation-led growth strategy on Microsoft Alliance aligns well with Microsoft’s market success with their new offerings (Cloud, Solution selling, Industry Focus & Digital Transformation) • Sonata’s capability mix and differentiated IP makes us a strong technol
Slide 35: Welcome Analyst Day 2018
WELCOME Analyst Day 2018 August 14, 2018 Bangalore Sonata Software copyright 2018
Slide 36: Existing Business Growth
Existing Business Growth Analyst presentation 29th May 2017 by Rajsekhar Sonata Software copyright 2018
Slide 37: Existing Business Growth Objectives
Existing Business Growth Objectives Become strategic partner to our clients • Increased wallet share • Annuity business • 50% of “60*5” clients from existing accounts Sonata Software copyright 2018
Slide 38: Good Runway for Growth in existing accounts
Good Runway for Growth in existing accounts • Good quality of existing accounts • Long term relationships. • 6 greater than 10 years Large Strategic • Initial success with plat formation Annual revenues (10%) (16%) • Increasing average revenue from key clients • Good visibility of growth Potential t
Slide 39: Highlights of past year
Highlights of past year • Platformation seeing traction in existing accounts o Travel client in Europe o ISV client in US o Distribution client Asia o Consumer Goods client in Europe o Active conversations in most high potential accounts • New accounts added with strong potential - 32 accounts – 13
Slide 40: Game Plan
Game Plan Become “Platformation partner” in their digital transformation journey. Key partner for managed operation in cloud world Continue to leverage IP for differentiation and stickiness. Specialized services – MS Dynamics, Big Data & machine learning , Platfrom Engineering, SAP Hybris, RPA, Leve
Slide 41: Three Phase Governance
Account Management Process & CCOE Three Phase Governance • Three phase governance driving Account Growth mandate co-owned by Account Manager and Delivery Manager (PAIR) Strategic • Design thinking in driving Innovation and support governance framework • Build on continued focus on Dashboard Business
Slide 42: Focus on delivery excellence
Focus on delivery excellence Platformation aligned competencies and methodology Expand large program management capacity Intelligent automation Automation, machine learning, (bots, RPA, ..) : Reduce costs in application and Infrastructure maintenance. Managed operation portfolio expansion Engineerin
Slide 43: Welcome Analyst Day 2018
WELCOME Analyst Day 2018 August 14, 2018 Bangalore Sonata Software copyright 2018
Slide 44: Sonata India Business
Sonata India Business Analyst Day, Aug 14th August 2018 by Sujit Mohanty Sonata Software copyright 2018
Slide 45: Sonata India Business Objectives
Sonata India Business Objectives • Platformation partner • Digital Infrastructure • Sonata IP • Cloud & Security solution provider • SI Business • MS Dynamics • Segment o Enterprise accounts o SMC • 200X1 Account program Sonata Software copyright 2018
Slide 46: Market Opportunities
Market Opportunities • India – Continue to be a growth market • Most enterprises as well as OEMs have digital transformation initiatives • Businesses moving to cloud & leading to cloud & security opportunities • Increase in adoption of MS Tech at enterprises • MS Dynamics has become a serious option
Slide 47: Our Strengths
Our Strengths • Existing customer base & relationships • Annuity business • SONATA IPs & Platforms • OEM relationships • One of the largest cloud partner of MS • Sales & technical teams in place • Success stories • MS Dynamics competency Sonata Software copyright 2018
Slide 48: FY 18-19 Business Focus
FY 18 -19 Business Focus • Retaining the customer base, multiyear contracts and growing them • Platformation partner • Larger SI contracts • Sell more of Sonata’s IPs • Cloud & Security solution provider • One of the leading MS Dynamics partner • Better margin & better processes • Incubate: Data & A
Slide 49: Welcome Analyst Day 2018
WELCOME Analyst Day 2018 August 14, 2018 Bangalore Sonata Software copyright 2018
Slide 50: Human Resources
Human Resources Analyst Day, Aug 14th 2018 by Madhavi Srinivas Sonata Software copyright 2018
Slide 51: Vision of the Organization
Vision of the Organization 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 Sonata Software copyright 2018
Slide 52: Sonata's DNA – DEEPER Nurtured Attributes
Sonata’s DNA – DEEPER Nurtured Attributes Deep Thinking Emotions @ Work Encourage Initiative Play to Win Everyone Counts Run for it • Reflects deep • Open to • Take initiative • Displays • Absence of • Focus on and considered expressing in challenging winning discrimination execution of thought in a
Slide 53: Capability Building
Capability Building Design Thinking • Journey that started 18 months ago • 400 Sonatians trained. Another 600 to be trained in the next 6 months • Improvements because of Design Thinking implementation were seen across various functions like Delivery, Product Development & Sales, among others Hackat
Slide 54: Corporate Social Responsibility
Corporate Social Responsibility IIIT-3 year Engagement – Architecting Digital IISc – Support Outreach Programs & River Foundation – Digitally enabled Transformation with Academia Research at Computer Science Dept Learning platform DHF Foundation – 360 degree WCT – Digitally enabling SKSVMA – Support
Slide 55: Outreach …
Outreach … Blogs – Platformation 2017 Sonata was Gold Sponsor at NASSCOM ILF 2018 Sonata sponsors Web and Internet Economics Conference 2017 Sonata Software copyright 2018
Slide 56: … Outreach
… Outreach Cracking the Digital Code – Srikar Reddy ‘s article on Outlook Business Rezopia wins World Travel Award Sonata wins 2nd place in BSPIN Lean-Agile Transformation Dataquest covers Sonata’s Platformation Strategy Conclave Sonata Software copyright 2018
Slide 57: Welcome Analyst Day 2018
WELCOME Analyst Day 2018 August 14, 2018 Bangalore Sonata Software copyright 2018
Slide 58: Succeeding with Platformation
Succeeding with PLATFORMATION™ Analyst Day, August 14th 2018 Balasubramanian K ( Bala K ) August 14th 2018 Sonata Software copyright 2018
Slide 59: Go Digital Through Platformation
Platformation™ – Sonata’s unique approach to Digital Go Digital Through Platformation™ Platforms – The secret behind the digital economy’s most successful companies Global Online Retail Leader OPEN SCALABLE CONNECTED INTELLIGENT Top P2P Hospitality Marketplace • Sonata’s unique approach to digitizin
Slide 60: The Platformation offering & why is it unique
The Platformation offering & why is it unique MARKET NEED • Digital mandates. Increasing spend on digital. Customer expectations are shifting • Customers / Enterprises struggling to find a meaningful approach to Digital OFFERING • Unique Approach to help anchor Digital Transformation journey • Struc
Slide 61: Seven step Sales motion & Methodology
Seven step Sales motion & Methodology 7 STEP PLATFORMATION METHODOLOGY Introduce Workshop Workshop1 Workshop2 Questionnaire Consulting Execution Concept Proposition Introduction Shared vision 1 2 3 4 5 6 7 OUTPUT 1 2 3 4 5 6 7 • Digital Journey • Workshop • Complete • Platformation • Marchitecture •
Slide 62: Structured Methods & Tools, Collaterals & Artifacts
Structured Methods & Tools, Collaterals & Artifacts Collaterals & Artifacts Aligned with 7 Step Methodology 1 Platformation video, Brochure, CEO Thought Leadership & POV videos 2 Questionnaires & Analysis Framework Design Thinking + 3 Workshop Fliers Platform mindset & Tools 4 Introduction Workshop,
Slide 63: Execution Approaches to realize Platformation
Execution Approaches to realize Platformation Sonata READY Sonata ACCELERATE Sonata CUSTOM End-to-end, industry-specific Deploy popular horizontal Engineer custom platforms that digital business platforms platforms adding required deliver unique digital capability functionality and scalability UDAP
Slide 64: Creating open, connected, scalable & intelligent Digital businesses
Creating open, connected, scalable & intelligent Digital businesses OPEN CONNECTED • Easily accessible – cross channel users, • On demand, Omnichannel access & experience ecosystem, businesses • Always on - Constant stream of data to and from • Foster collaboration & innovation platform participants
Slide 65: Creating success through a focused Platformation GTM
Creating success through a focused Platformation GTM Go-to-Market Existing Accounts New Businesss Platformation GTM Development with Microsoft • Platformation as the Go-to- • Joint Microsoft GTM theme for all new Business • Seamless with MS Digital proposition Development • Target set of accounts •
Slide 66: Traction & top of mind recall with customers navigating Digital
Traction & top of mind recall with customers navigating Digital • Platformation as an independent track in existing accounts o CXO mindshare & outreach o Shared vision with top management, champions & stakeholders • Addressing triple mandates of Transformation, Innovation & Efficiencies • Inflexion
Slide 67: Success stories – Current Platformation journey with Customers
Success stories – Current Platformation journey with Customers Customer Vertical Digital Mandate Current Platformation Journey Global Membership • Increase market share through a • Sonata Custom Platform Approach Travel based tour operator unique social travel platform • Transforming travelers holid
Slide 68: Go Forward Plan – Platformation as the key Growth Accelerator
Go Forward Plan – Platformation as the key Growth Accelerator 1 To help anchor customer digital mandates: • Target & On-board multi-year Digital programs & wallet share • Success stories, strong referrals & outreach • Strategic digital partner in existing accounts 2 Power the joint Sonata – Microsof
Slide 69: Succeeding with Platformation - Leadership & Innovation
Succeeding with Platformation™ - Leadership & Innovation • Design thinking intrinsic to customer centricity • Customer first approach & Platform mindset • Institutionalizing Design thinking – customer engagement, training, problem solving • Thought Leadership & Innovation Design • Institutionalizing
Slide 70: Welcome Analyst Day 2018
WELCOME Analyst Day 2018 August 14, 2018 Bangalore Sonata Software copyright 2018
Slide 71: Thank You
Take the first step to PLATFORMATION North America Rajiv Puri Thank You [email protected] Europe Tridip Saha [email protected] Asia Ananth Padmanabhan [email protected] ANZ Rakesh Munigala [email protected] Corporate: info@sonata-soft
Slide 72: Thank you
Thank you Sonata Software copyright 2018