Sonata Software Limited · NSE:SONATSOFTW

Sonata Software — Investor Presentation (September 2007)

40 slides from Sonata Software's investor presentation, Sep 4, 2007

  1. Slide 1: Investor Update

    INVESTOR UPDATE B Ramaswamy President and Managing Director Sonata Software Limited September 04, 2007

  2. Slide 2: Group Structure

    Group Structure Sonata Software Ltd (Software Services, IT Infrastructure Management for Overseas clients) 100% 100% 100% 100% Sonata Information Offshore Digital Sonata Europe Sonata Software Technology Ltd Services Inc, USA Limited, London GmbH, Frankfurt (Software Product (Sales & Marketing arm i

  3. Slide 3: Financial Highlights (FY 06-07)

    Financial Highlights (FY 06-07)  Growth : Consolidated PAT 74% YoY  Total Consolidated Income : Rs 914 Cr  Total Consolidated Profit : Rs 48 Cr  Investment in TUI InfoTec : Euro 18 mill

  4. Slide 4: Highlights: Consolidated

    Highlights : Consolidated PAT 98.66 100.00 80.00 60.00 44.08 40.00 26.99 18.18 20.00 0.00 Total Income FY 04 FY 05 FY 06 EBIDT FY 07

  5. Slide 5: ROCE % & RONW %: Consolidated

    ROCE % & RONW %: Consolidated 28.34 30.00 ROCE % 30.00 RONW % 25.59 25.00 25.00 18.19 18.06 20.00 20.00 15.00 15.00 10.80 10.82 7.04 10.00 7.06 10.00 5.00 5.00 0.00 0.00 FY 04 FY 05 FY 06 FY 07 FY 04 FY 05 FY 06 FY 07

  6. Slide 6: Highlights: Sonata Software

    Highlights : Sonata Software PAT 50.00 44.35 Rs. In Crores 40.00 35.92 30.00 21.71 20.00 14.34 10.00 Total Income 0.00 FY 04 FY 05 FY 06 FY 07 EBIDT

  7. Slide 7: Revenue Spread (in %)

    Revenue Spread (in %) 60 55 55 52 50 50 50 48 45 45 40 30 US Europe 20 10 0 FY 04 FY 05 FY 06 FY 07

  8. Slide 8: ROCE % & RONW %: Sonata Software

    ROCE % & RONW %: Sonata Software 30.00 ROCE % 30.00 RONW % 25.00 21.25 25.00 20.95 20.00 16.46 20.00 16.46 15.00 15.00 10.47 10.47 10.00 7.61 10.00 7.61 5.00 5.00 0.00 0.00 FY 04 FY 05 FY 06 FY 07 FY 04 FY 05 FY 06 FY 07

  9. Slide 9: Cash Generation: Sonata Software

    Cash Generation : Sonata Software Rs. In Crores 50.00 44.06 40.00 34.93 30.00 19.48 20.00 6.00 10.00 0.00 FY 04 FY 05 FY 06 FY 07

  10. Slide 10: Dividend Payout: Sonata Software

    Dividend Payout : Sonata Software Rs. In Crores 15.00 11.57 10.52 10.00 6.84 5.26 110% 100% 5.00 65% 50% 0.00 FY 04 FY 05 FY 06 FY 07

  11. Slide 11: Fixed Assets: Sonata Software

    Fixed Assets : Sonata Software Rs. In Crores  Gross Block 60.53 60.00  Net Block 54.13 50.00 41.53 40.00 31.37 26.65 29.12 30.00 22.87 20.00 9.1 10.00 0.00 FY 04 FY 05 FY 06 FY 07

  12. Slide 12: SSL Balance Sheet: Mar 31, 2007

    SSL Balance Sheet : Mar 31, 2007 Rs. In Millions Adv Tax 51 Deposits & Adv. 100 SITL 45 ODSI-Equity 12 ODSI-Pref. 120 Sonata Europe 573 Sonata GmbH 3 Gr. Block 655 Dep. 341 Less Current Liab. & Prov 168 Shareholders Funds 1785

  13. Slide 13: Analysis

    Analysis Onsite Offshore Mix % Geography Mix % 26 26 50 45 38 32 41 45 62 74 74 59 50 55 68 55 FY 04 FY 05 FY 06 FY 07 FY 04 FY 05 FY 06 FY 07 53 54 60 60 2242 13 15 1606 16 15 932 1251 34 31 24 25 Client Concentration % Manpower

  14. Slide 14: Highlights: SITL

    Highlights : SITL PAT 10.00 Rs. In Crores 8.00 5.68 6.00 4.25 3.80 4.00 3.13 2.00 Total Income 0.00 FY 04 FY 05 FY 06 FY 07

  15. Slide 15: ROCE % & RONW %: SITL

    ROCE % & RONW % : SITL 30.00 ROCE % 30.00 RONW % 24.95 25.00 25.00 18.73 20.00 20.00 16.24 15.88 14.81 13.99 12.65 12.92 15.00 15.00 10.00 10.00 5.00 5.00 0.00 0.00 FY 04 FY 05 FY 06 FY 07 FY 04 FY 05 FY 06 FY 07

  16. Slide 16: Highlights: TUI InfoTec

    Highlights : TUI InfoTec Rs. In Crores 15.00 Rs. In Crores 200.00 173.61 10.42 10.40 10.00 136.43 150.00 5.00 0.00 Q3 Q4 100.00 PAT 22.45 Rs. In Crores 25.00 20.66 20.00 50.00 15.00 10.00 5.00 0.00 Q3 Total Income Q4 0.00 Q3 EBIDT Q4

  17. Slide 17: Highlights: ODSI

    Highlights : ODSI PAT 5.00 Rs. In Crores 4.00 3.53 3.44 3.00 2.00 1.17 0.96 1.00 Total Income 0.00 FY 04 FY 05 FY 06 FY 07 EBIDT

  18. Slide 18: Highlights: International

    Highlights : International 50.00 45.40 Rs. In Crores Rs. In Crores 600.00 504.65 40.00 25.66 500.00 30.00 20.00 14.37 400.00 10.00 300.00 0.00 FY 05 PAT FY 06 FY 07 93.18 Rs. In Crores 100.00 174.08 200.00 132.86 80.00 60.00 100.00 39.83 40.00 23.20 0.00 20.00 FY 05 FY 06 FY 07 0.00 Total Income FY

  19. Slide 19: Highlights: Domestic

    Highlights : Domestic 3.00 2.62 Rs. In Crores Rs. In Crores 600.00 1.88 1.72 2.00 500.00 409.79 1.00 400.00 336.82 0.00 FY 05 FY 06 FY 07 300.00 PAT 200.86 10.00 Rs. In Crores 8.00 200.00 5.49 6.00 4.25 3.79 100.00 4.00 2.00 0.00 FY 05 FY 06 FY 07 0.00 Total Income FY 05 EBIDT FY 06 FY 07

  20. Slide 20: Q1 FY08 Highlights

    SONATA LLIULUNLE SONATA SOFTWARE Q1 FY08 HIGHLIGHTS

  21. Slide 21: Highlights: Sonata Software

    Highlights: Sonata Software 60.00 Total Income Rs. In Crores USD in Mn. 49.90 44.48 48.26 45.60 15.00 50.00 46.24 Growth Turnover in USD - Sonata 40.00 YOY 4% QOQ –7% 30.00 11.37 11.58 20.00 10.56 10.02 10.00 9.26 0.00 FY 07 Q1 FY 07 Q2 FY 07 Q3 FY 07 Q4 FY 08 Q1 10.00 15.00 PAT Growth 9.86 YOY 25%

  22. Slide 22: Highlights: Sonata Software

    Highlights: Sonata Software 15.00 EBIDT 30% ROCE 12.34 11.70 22% 10.28 10.81 20% 20% 10.04 10.00 20% 16% 16% 5.00 10% 0.00 0% FY 07 Q1 FY 07 Q2 FY 07 Q3 FY 07 Q4 FY 08 Q1 FY 07 Q1 FY 07 Q2 FY 07 Q3 FY 07 Q4 FY 08 Q1 26% 26% 22% 21% 23%

  23. Slide 23: Highlights: Consolidated

    Highlights: Consolidated Rs. In Crores 400.00 367.18 40.00 36.09 359.41 Total Income 35.00 EBIDT 33.34 35.41 293.80 300.00 Growth 30.00 YOY 236% 25.00 QOQ 2% 200.00 152.14 20.00 14.39 14.84 109.27 15.00 100.00 10.00 5.00 0.00 0.00 FY 07 Q1 FY 07 Q2 FY 07Q3 FY 07 Q4 FY 08 Q1 FY 07 Q1 FY 07 Q2 FY 07 Q

  24. Slide 24: Highlights: SITL

    Highlights: SITL Rs. In Crores 200.00 Total Income 2.00 EBIDT 1.68 1.84 159.32 1.51 138.05 Growth 1.35 112.35 YOY 163% 1.13 100.39 QOQ 15% 100.00 1.00 60.63 0.00 0.00 FY 07 Q1 FY 07 Q2 FY 07 Q3 FY 07 Q4 FY 08 Q1 FY 07 Q1 FY 07 Q2 FY 07 Q3 FY 07 Q4 FY 08 Q1 2.00 PAT ROCE 30% 30% 28% 19% 1.00 20% 16%

  25. Slide 25: Highlights: TUI Infotec

    Highlights: TUI Infotec Rs. In Crores 10.00 Total Income PAT 200.00 170.7 160.39 5.25 5.18 5.00 137.12 2.69 150.00 0.00 FY 07 Q3 FY 07 Q4 FY 08 Q1 Growth 25.00 EBIDT 23.01 QOQ -6% 20.77 100.00 19.11 20.00 15.00 50.00 10.00 5.00 0.00 FY 07 Q3 FY 07 Q4 FY 08 Q1 0.00 FY 07 Q3 FY 07 Q4 FY 08 Q1

  26. Slide 26: Highlights: ODSi

    Highlights: ODSi Rs. In Crores 2.00 15.00 PAT Total Income 1.23 1.00 0.79 0.82 10.97 11.01 10.95 11.16 0.53 0.60 10.68 10.00 0.00 FY 07 Q1 FY 07 Q2 FY 07 Q3 FY 07 Q4 FY 07 Q1 2.00 EBIDT Growth YOY -3% 1.30 QOQ -4% 5.00 0.87 1.00 0.80 0.54 0.61 0.00 FY 07 Q1 FY 07 Q2 FY 07 Q3 FY 07 Q4 FY 08 Q1 0.00 F

  27. Slide 27: Highlights: International

    Highlights: International Rs. In Crores 250.00 221.36 50.00 Total Income 207.87 EBIDT 200.00 182.71 40.00 34.41 32.16 33.57 150.00 30.00 100.00 20.00 13.31 13.32 48.78 51.76 50.00 10.00 0.00 0.00 FY 07 Q1 FY 07 Q2 FY 07 Q3 FY 07 Q4 FY 08 Q1 FY 07 Q1 FY 07 Q2 FY 07 Q3 FY 07 Q4 FY 08 Q1 25.00 PAT ROCE

  28. Slide 28: Highlights: Domestic

    Highlights: Domestic Rs. In Crores 200.00 2.00 1.84 Total Income 159.32 EBIDT 1.52 1.68 138.05 150.00 1.19 111.09 1.08 100.38 100.00 1.00 60.49 50.00 0.00 0.00 FY 07 Q1 FY 07 Q2 FY 07 Q3 FY 07 Q4 FY 08 Q1 FY 07 Q1 FY 07 Q2 FY 07 Q3 FY 07 Q4 FY 08 Q1 1.50 PAT ROCE 30% 30% 28% 1.00 1.00 0.79 0.71 20%

  29. Slide 29: SSL Balance Sheet: Jun 30, 2007

    SSL Balance Sheet : Jun 30, 2007 Rs. In Crores SITL 4.5 INVENTORY 3 ODSI-Equity 1.2 OTHER CURRENT ASSETS 4 LOANS & ODSI-Pref. 12.0 DEFFERED TAX ADVANCES 14 ASSET 11 Sonata Europe 57.3 INVESTMENT 75 Sonata GmbH 0.3 DEBTORS 45 No. of Days - 89 CASH &CASH EQUIVALENT 15 FIXED ASSETS 30 Less Current Liab

  30. Slide 30: SSL Consolidated Balance Sheet: Jun 30, 2007

    SSL Consolidated Balance Sheet : Jun 30, 2007 Rs. In Crores LOANS & ADVANCES SHORT TERM 32 LOANS & LONG TERM INVESTMENTINVESTMENT 10 4 ADVANCES 32 SHORT TERM INVESTMENT 10 FIXED INVENTORY 8 ASSETS 185LONG TERM INVESTMENT 4 CASH &CASH EQUIVALENT 98 DEFFERED TAX ASSET 16 DEBTORS 234 DEFFERED TAX ASSET

  31. Slide 31: Business Model

    Business Model Distinct, • Domestic synergistic • International businesses • Repeat business Strategic • Visibility Partnership • Business Value Overlay • Organic – free cash flow Inorganic • Funding – internal Growth generation / debt

  32. Slide 32: Organic: Account Mining

    Organic : Account Mining CAGR 127 % 281 % 26 % Others FY 03 FY 04 FY 05 FY 06 FY 07 3 Yrs Cust. 33 % 44 % 55 % 74 % 82% 4 Yrs Cust. BUSINESS FROM LONG TERM CUSTOMERS 5 Yrs cust.

  33. Slide 33: Inorganic: JV with TUI InfoTec: Strategic Rationale

    Inorganic : JV with TUI InfoTec : Strategic Rationale  Largest untapped IT services market in Europe  Tough to penetrate  Critical Success Factors : German Language and Culture At least one of the top Indian services companies will make a major acquisition in Germany within the next 3 years.

  34. Slide 34: Inorganic: Joint Value Proposition

    Inorganic : Joint Value Proposition • De-risked global delivery model – Established German presence • Trust, confidence, language capability & cultural alignment – Model proven by successful 3 year relationship • Full-service provider – Software services – a wide array of services & technology exper

  35. Slide 35: Our Strategy

    Our Strategy Market Segments • ISV’s • Enterprises • Travel • Infrastructure Alliances Broad set of offerings Core Research Group (CRG) • Solution Frameworks • Accelerators

  36. Slide 36: Organic: Alliances

    Organic : Alliances All Logos & Trade Marks are the registered properties of the respective owners

  37. Slide 37: Wide Range of Services

    Wide Range of Services Application Managed Business Packaged Infrastructure Maintenance Development Testing Intelligence Applications Management Data Center & Implementation App Hosting New Incidents Consulting DW Modelling Development Managed Global Roll- Services Outs Enhancements Test Planning ET

  38. Slide 38: Recognition

    Recognition Sep 06 • Oracle’s Best Value Added Distributor (VAD) in Asia Pacific Oct 06 • Mercury’s Asia Pacific Partner of the Year Award Nov 06 • Winner in the Deloitte Technology Fast 50 India 2006 Program Dec 06 • Winner in the Deloitte Technology Fast 500 Asia Pacific 2006 ….contd

  39. Slide 39: Recognition (contd)

    Recognition (contd) Dec 06 • Microsoft’s Best Partner – Compete Category, Greater New England District Feb 07 • Most Outstanding Mercury / HP Software Solution Partner Award 2006 Apr 07 • Oracle’s Best Mid Market Applications Vendor 2007 May 07 • BEA’s Best Distributor in India 2007 Jun 07 • Indian

  40. Slide 40: Thank You

    SONATA LLIULUNLE Thank You

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