#1III Sonata Software Investor presentation Dec 2019 SONATA SONATA SOFTWARE#2Sonata Vision SONATA SONATA SOFTWARE 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 Sonata Software Ltd, 2019. Confidential. 2#3Sonata Evolution - '86-'92 Indian Software Product Pioneer Produced and distributed its own portfolio of software products '92-'12: 360 IT Service Provider Extends core capability to services in Software Engineering, Implementation and Redistribution '13-'16 Digital '17+ Platformation Industry focused global digital solutions provider Platform and IP Led Digital Sonata Software Ltd, 2019. Confidential. SONATA SONATA SOFTWARE 3#4Sonata - A Snapshot The Company SONATA SONATA SOFTWARE 30+ YEARS as a IT Solutions Provider $427+ M REVENUE 15% 3 Yr. CAGR 4000+ TEAM across US, EU, Asia & ANZ SEI CMMI L5, ITIL & ISO certified Industry Focus CPG & MFG Consumer Goods, Industrial Goods, Wholesale RETAIL Apparel, Hard Goods, Grocery, Hypermarket TRAVEL TO, OTA, Airline, Rail, Hotel, Cruise SOFTWARE VENDORS ERP, SCM, Retail, Travel O Sonata Softw Competencies Credentials DIGITAL Omni-channel, Mobility & IoT, Analytics, Cloud CUSTOMERS Global Top 5 - Leisure Travel Co, Grocery Retailer, F&B CPG Co, Software Co APPLICATION LIFECYCLE SOLUTIONS ADM, Testing, IMS Managed Services TECHNOLOGY Microsoft, SAP, Oracle, Open Source, IBM PLATFORM IP Brick & Click Retail, Rezopia Digital Travel, Modern Distribution RECOGNITIONS Microsoft - Inner Circle, SAP Pinnacle Award, Microsoft Country Partner of Year India TECHNOLOGY INFRASTRUCTURE SOLUTIONS Software, Cloud, Server & Storage, Systems Integration FINANCIAL National Stock Exchange Listed Public Ltd Co A Global IT Solutions Organization, with focused Industry Verticals, versatile Portfolio of Services covering wide range of Technologies and delivering value through our unique Platformation™ approach#5Sonata Story . • • . Platformation™M Long term relationships with clients Alliance with Microsoft IP led Engineering excellence and advanced technologies Track record of running mission critical operations on cloud with own IP Over all growth story last 8 years and recognition • Talent stability at the top. Sonata Software Ltd, 2019. Confidential. SONATA SONATA SOFTWARE 5#6Differentiated Strategy ● IP-led Service Offerings Platformation™ • Alliances • Acquisitions and Competency around MS Tech Domestic Business Sonata Software Ltd, 2019. Confidential. SONATA SONATA SOFTWARE 6#7Vertical Focus • Retail, travel, distribution & CPG, ISV, Commodity Trading, and services industry - field services IPBrick and Click, Modern Distribution, CTRM, Rezopia Platform led Digital Transformation Digital Business Process Library Client Digital Agenda Templates ● Track record Sonata Software Ltd, 2019. Confidential. SONATA SONATA SOFTWARE 7#8What is different about Platformation TM as a tool for Digital Transformation Sonata's structured process for Platformation comprises the following: . Digital Business Process Library & Identification • CDAT based approach • • SONATA SONATA SOFTWARE Platform Maturity Assessment (Separate Business & Technology maturity assessment) MarchitectureTM aligned to CDAT • Platform Characteristic Requirements ( With a 16 point Framework) • Technology Architecture to achieve the Platform Characteristics . • Cloud Engineering (Cloud Native Development ) . • Data Platformation Methodology (Structured Assessment of Data Infrastructure & Platform) • Accelerated Platform Engineering ( Solution Accelerators) • IPs aligned to Platformation™M Sonata Software Ltd, 2019. Confidential. 8#9Platformation™ Platforms - the secret behind the digital economy's most successful companies SONATA SONATA SOFTWARE ☆☆ amazon.com OPEN SCALABLE CONNECTED INTELLIGENT Sonata's approach to Digitizing business using platforms PLATFORMATION™M Sonata Software Ltd, 2019. Confidential. airbnb Expedia EL Alibaba Group 6#10Approaches to achieve Platformation™M Sonata READY End-to-end, industry- specific digital business platforms Sonata ACCELERATE • Deploy popular horizontal platforms adding required functionality Omni channel reservation system for a large Australian rail network built on a travel platform ensuring seamless booking experience Versatile retail store and e-Commerce integration for a US fashion brand ensuring scalable, omnichannel shopping experiences • Sonata CUSTOM Engineer custom platforms that deliver unique digital capability and scalability A US-based travel company innovating on membership- based business models, increasing bookings by 200%, and scaling service 6X Sonata Software Ltd, 2019. Confidential. S, SONATA SONATA SOFTWARE SONATA SOFTWARE 10 Sonata Software copyright 2018#11SCSONATA ☐ I SONATA SOFTWARE SONATA SOFTWARE SONATA, A BEST-IN-CLASS MICROSOFT PARTNER (Top 1%) 25 Years MICROSOFT PARTNER GISV, ISP, CSP, ISV Dev Centre, Sl. Country Partner India 2014, 15, 17. Global Alliance Footprint 13 Gold CERTIFIED COMPETENCIES Dynamics 365, Power BI, Cortana Azure, .Net, Mobility 360º PARTNER MS 4 areas - Business Applications, Apps & Infra, Data & Al and, Modern Workplace Product Engineering, Professional Support, Delivery, LSP Partner for MS, MCS and ISV/SI Ecosystems. 1400+ TEAM On Microsoft Technologies with 1000+ on Microsoft Dynamics 90 Clients ACROSS THE GLOBE USA, Europe, Asia, India, Australia, Middle East $225 million/annum REVENUE TO MICROSOFT Across the Service Lines INDUSTRY FOCUS DIGITAL Across Retail, CPG, Distribution, Travel, ISV PLATFORM IP ON MS DYNAMICS & AZURE-ENABLED Brick & Click, Modern Distribution, Rezopia, Kartopia, Halosys, Rapid STRATEGIC ACQUISITIONS IBIS Inc US, Scalable Data Systems, ANZ, Sopris US Sonata Software Ltd, 2019. Confidential. 11 Sonata Software, © 2018#12Microsoft's Global strategy Engage Customers Transform Products SONATA SONATA SOFTWARE Solution Areas Modern Workplace Partner Practices Collaboration Modern Desktop Security and compliance Cloud Voice KEY EXECUTION PLAN / PLAYS 1. Adoption Drive for Teams, Yammer, OneDrive 2. PowerApps Practice 3. Upsell motion to M365 E3/E5 4. Bots for Teams 5. Security Empower Employees Business Applications Microsoft Optimize Operations Apps & Infra Digital Transformation Vision of Microsoft Sonata Software Ltd, 2019. Confidential. Customer Engagement Operations Business Apps 1. Dynamics 365 2. CE Workloads 3. Power Platform Cloud Infrastructure and Management Application Innovation 1. Cloud Consulting & Migrations 2. Managed Services under CSP 3. Automation & Cloud Management 4. App Service, SQL Azure, Containerization 5. SQL Retiral Migrations Data & Al Data Platform & Analytics Their GTM Strategy & Approach 1. SQL Modernization 2. Reporting and Analytics 3. Cognitive Services 12#13Sonata Retail Offerings Digital Journey Phase-> Sonata offerings↓ Digitize Infrastructure and applications Digital Consulting Industry specific Digital Solutions Digital Smart Operations Digital Customer Experience Add SMAC for existing applications • Differentiate backend office operations through Mobile/loT devices Improved business process execution through better analytics and workflow Implement Omni- Channel Commerce • Increase ops efficiency leveraging SMAC Move apps to Cloud • Optimize Apps management using Cloud and Front office transformation DevOps Retail Omni commerce: Brick & Click Modern Distribution Platform : ASCS Digital Innovation Reimagine products, business models and processes . Reimagine multi-department functions with customer centric design Analytics UDAP Cloud Cortana Digital Platforms e-Commerce Hybris Ofbiz Mobility Halosys Prebuilt Apps Digital Services Cloud Services BI/Analytics Dev Ops Mobility BigData Machine Learning#14• Sonata Case Study QueenslandRailONATA SONATA SOFTWARE Business Challenges Outdated rail passenger reservation system Client server application has limited features Upgradation costs too high and time consuming Lack of user friendliness for day-to-day operations Reliance on manual process for ancillary product sales • Sonata's Solution Rezopia Rail Platform is a next generation rail reservation system capable of addressing all our client's needs, and more. Cloud-based platform was able to fulfil a lengthy wish list, ranging from end to end travel reservations, contracts, operations and distribution management. Multi-channel booking engine consolidated bookings and generated passenger manifest reports. Users were now able to book not only a train seat with a dynamic shopping cart, but also ancillaries like hotel rooms, transfers and activities. In addition, the Rezopia platform was integrated with SAP to send financial data of bookings a XML. AN eNet integration ensured suppliers were automatically paid on their due dates. Benefits Increased business capability with web based application and efficient process for ancillary products sales. Train bookings for seat and berths are available in consumer site. Effective handling disruptions scenarios caused by natural disasters, track repair work, station interruptions Enabled business with platform that supports extending to providing uniform experience to customer for packing train with products like hotel, tours Scalable system implemented which can sale up to 6,000 bookings per day Omni-Channel booking experience across various distribution channels and devices Sonata delivers a next-generation reservation system for a government owned railway operator in Australia Sonata Software Ltd, 2019. Confidential. 14#15Delivering value through our innovative engagement models Customer-Specific Center of Excellence Sonata Software Ltd, 2019. Confidential. Governance Leadership role Strategic metrics Charter SONATA SONATA SOFTWARE Value Co-creation • SLAs and outcomes Co-investment in IP TECHNOLOGY | SKILLS | ASSETS | PROCESSES Domain Knowledge | Technical Knowledge | Knowledge Management | Innovation Process & Capability | Reusability Commercial Models: Project-based | Outsourced | Output-based Build-Operate-Transfer | Turnkey-managed | Joint Venture 15#16With a team nurtured to make a difference " SONATA SONATA SOFTWARE Deeper roles Customer impact Freedom to contribute Regular exposure to newer technologies, evolving business scenarios, and building cross-functional expertise Continuous exposure to clients to assess business impact of solutions delivered Our flexible working style encourages ideation within broad boundaries Growth Early identification, mentoring, and nurturing of talent for growth by senior leaders We need to take a pause and appreciate the drive and determination we have seen from every player on what is a complex effort and delivery. We commend you all for your effort...keep up the good work! Director - Platform Systems, US Travel Leader Sonata Software Ltd, 2019. Confidential. 16#17Our CSR Programs Education Traditional Arts, Textile and Handicrafts Education India's first full-featured hand-held computer, the SIMPUTER, which made computing affordable and accessible, overcoming barriers of price, language, and literacy, was conceived and created here during 1998-2001 by Profs. Vijay Chandru, Ramesh Hariharan, Swami Manohar, and V Vinay танишим ене Women The Women Weave Story Helping vessing handlooming int Sonata-Agastya MOBILE SCIENCE LAB NCH SONATA CLIJLLILLIJ SONATA SOFTWARE Preservation of our Cultural Heritage IIIT-B (Bangalore), IISc (Bangalore) "We encourage research activities in cutting-edge areas of Computer Science and also focus on research fellowships, evangelization of technology for digital transformation" Upgradation of existing infrastructure Classroom 112 at IISc where the first handheld computer (Simputer) was invented Women Weave (Maheshwar), The Kishkinda Trust (Koppal) "We developed a digitally enabled craft store front and e-commerce platform for our partners" Agastya (Kuppam), Telangana Yuvathi Mandali (Hyderabad), WCT (Mumbai) "We are developing digitally- enabled learning platforms such as Lab on tab for teachers and students. Inaugurated MSL, hands on science experiments for students in villages We are also providing scholarships and grants, especially for the girl child" Museum of Art & Photography (Bangalore) "We are providing technology support for the Museum by building responsive website and mobile app along with developing a digital repository to host the digitized version of all the artifacts by MAP as well as giving them a Grant for building a Private Museum" O Sonata Software Ltd, 2019. Confidential. 17#18Financials SONATA SONATA SOFTWARE#19Strong Execution • • . • • . Growth from existing clients. Acquiring new clients Strong growth in new clients. Alliance led growth IP led growth PlatformationTM led growth Margin levers on utilisation and revenue per person High-end service mix Digital execution and growth Strong growth in India Business and Strategic Advantage Consistent growth in revenues & margins over 8 years Sonata Software Ltd, 2019. Confidential. SONATA SONATA SOFTWARE 19#20Financial Management • Focus on ROCE and RONW • Focus on margins Focus on strong cash management • Sound capital allocation • Very strong credit and risk management in India business. Sonata Software Ltd, 2019. Confidential. SONATA SONATA SOFTWARE 20#21Revenue - last 12 Quarters International Services 350.0 300.0 CQGR - 4.3% 250.0 200.0 150.0 100.0 50.0 Domestic Business 329.8 1,000.0 912.0 900.0 800.0 700.0 600.0 CQGR-5.9% 500.0 400.0 300.0 200.0 100.0 Q4 17 Q1 18 Q2 18 Q3 18 Q4 18 Q1 19 Q2 19 Q3 19 Q4 19 Q1 20 Q2 20 Q3 20 Sonata Software Ltd, 2019. Confidential. Consolidated 1,400.0 1,200.0 1,000.0 CQGR-5.5% 800.0 600.0 400.0 200.0 Q4 17 Q1 18 Q2 18 Q3 18 Q4 18 Q1 19 Q2 19 Q3 19 Q4 19 Q1 20 Q2 20 Q3 20 1,236.9 Q4 17 Q1 18 Q2 18 Q3 18 Q4 18 Q1 19 Q2 19 Q3 19 Q4 19 Q120 Q2 20 Q3 20 SONATA SONATA SOFTWARE 21#22International IT services - Revenue by Customers 10 80 6 9 4 New Customers 2 7 7 3 0 Q3 19 Q4 19 Q1 20 Q2 20 Q3 20 Geography SONATA SONATA SOFTWARE Revenue from Top Customers No. of customers by Geo Asia 9 85% 80% Europe, 30 ANZ, 43 75% 78% 76% 70% 75% 73% 75% 65% 68% 69% India, 20 66% US, 72 65% 66% 60% 61% 61% 59% 55% 59% 57% Middle East 50% 3 Q3 19 Q4 19 Q1 20 Q2 20 Q3 20 Top 5 Customer Top 10 Customer Top 20 Customer Customer Category 30 30 No. of customers by Vertical 24 30 100% 30 28 28 12% 13% 14% 17% 16% 24 24 25 23 23 80% 32% 32% 30% 30% 30% 60% 245 20 15 40% 56% 55% 56% 10 53% 54% 20% сл 5 0% 0 Q3 19 Q4 19 Q1 20 Q2 20 Q3 20 Q3 19 Q4 19 Q1 20 Q2 20 Q3 20 USA Europe Rest of World # of Fortune 500 accounts No. of Global 2000 customers Sonata Software Ltd, 2019. Confidential. TTL, 13 Others OPD, 43 18 Retail Distribution, 103 22#23Revenue by Competency Competency Vertical 100% 4% 3% 2% 2% 2% 5% 6% 5% 5% 5% 100% 90% 9% 9% 9% 9% 8% 90% 19% 19% 18% 19% 22% 80% 14% 12% 12% 80% 16% 16% 70% 4% 4% 4% 70% 4% 4% 26% 27% 28% 26% 60% 28% 60% 26% 28% 20% 22% 26% 50% 50% 40% 28% 40% 28% 26% 27% 25% 17% 17% 15% 16% 15% 30% 30% 20% 20% 27% 26% 28% 28% 25% 25% 24% 24% 27% 26% 10% 10% 0% 0% Q3 19 Q3 19 Q4 19 Q1 20 Q2 20 Q3 20 Q4 19 Q1 20 Q2 20 Q3 20 ADM Test AX ERP IMS/Cloud BI E-Commerce Mobility OPD TTL Retail Distribution Others Sonata Software Ltd, 2019. Confidential. SONATA SONATA SOFTWARE 23#24IP Led Revenues Sonata Software Ltd, 2019. Confidential. 29.0% Trend IP Led Revenues (%) - 27.0% 25.0% CQGR 6% 23.8% 25.1% 24.2% 23.0% 21.7% 21.0% 19.1% 19.0% 17.0% 15.0% Q3'19 Q4'19 Q1'20 Q2'20 Q3'20 SONATA SONATA SOFTWARE 24#25Digital Revenues as % of Revenues Sonata Software Ltd, 2019. Confidential. Digital revenues 39% 38% 38% 38% 37% 37% CQGR - 2% 37% 36% 36% 36% 36% 35% 35% 35% 34% 34% Q3 19 Q419 Q1 20 Q2 20 Q3 20 SONATA SONATA SOFTWARE 25#26International & Domestic Business - Revenue Enablers Utilization and Billability 110% 100% 88% 89% 90% 86% 86% 86% 86% 86% 80% 79% 79% 78% 78% 77% 76% 70% 74% 60% 50% 40% Q119 Q2 19 Q3 19 Q4 19 Q1 20 Q2 20 Q3 20 Utilization -Biliability Sonata Software Ltd, 2019. Confidential. REVENUE PER HEADCOUNT Avg. Revenue Per Head $50,000 $43,517 $45,751 4,500 $45,000 $42,973 4,000 $38,721 $40,000 3,500 $35,000 3,000 $30,000 2,500 $25,000 2,000 $20,000 1,500 $15,000 1,000 $10,000 $5,000 $0 500 FY17 FY18 FY19 FY 20 YTD YEAR Onsite/Offshore 100% 58% 57% 56% 56% 58% 50% 42% 43% 44% 44% 42% 0% Q3 19 0419 Q1 20 Q2 20 Q3 20 ▾ Onsite Offshore I Revenue Per Headcount In $ International Total HC HEADCOUNT SONATA SONATA SOFTWARE 26#27Human Capital 4,000 3,000 3,967 4,042 4,011 4,181 4,177 2,000 1,000 Sonata Software Ltd, 2019. Confidential. Q3 19 Q4 19 Q1 20 Q2 20 Q3 20 Attrition % 24% 22% 20% 18% 17.0% 17.4% 17.6% 16.2% 15.5% 16% 14% 12% 10% Q3 19 Q4 19 Q1 20 Q2 20 Q3 20 SONATA SONATA SOFTWARE 27#28International Business Revenue Growth International Revenue $ Mn 3 year CAGR 14% - * Figures for FY20 are REVENUE IN US MILION 50.0 45.0 46.8 45.0 43.5 44.3 45.4 40.0 40.8 39.2 35.0 40.0 36.4 37.4 37.4 37.8 35.0 32.7 30.7 30.0 25.0 REVENUE USD MN 30.0 25.0 20.0 15.0 20.0 10.0 15.0 5.0 10.0 5.0 Q4 17 Q118 Q2 18 Q3 18 Q4 18 Q1 19 Q2 19 Q3 19 Q4 19 Q1 20 Q2 20 Q3 20 $1Mn Revenue -Existing and New 3 years CAGR New - 179% 3 years CAGR Existing -16% Q4 17 Q1 18 Q2 18 Q3 18 Q4 18 Q1 19 Q2 19 Q3 19 Q4 19 Q1 20 Q2 20 Q3 20 PERIOD $Mn Customer - Existing $Mn Customer - New FY 17 180 160 140 120 100 80 60 40 20 Revenue Growth Trend 3 Years CAGR - 85% for New Customers* 15 24 用 3 Years CAGR 10% for Exisiting Customers* 117 129 $Mn Customers 28 28 28 30 25 24 20 25 20 138 15 116 10 5 0 FY 18 FY 19 FY 20 YTD Q3 19 Q419 Q1 20 Q2 20 Q3 20 YEARS YTD as of Q3'20. CAGR is on annualized basis. Sonata Software Ltd, 2019. Confidential. Exisiting New # of million dollar clients SONATA SONATA SOFTWARE 28#29Domestic Business - Gross Contribution 40 40 11% 35 30 25 20 20 20 20 21 21 15 5% 4% 10 5 24 24 5% 8% 27 25 25 24 25 SONATA LLIJLLILLI] SONATA SOFTWARE 12% 36 10% 32 29 29 30 8% 8% 6% 6% 6% 6% 5% 5% 4% 4% 2% 0% Q4 17 Q1 18 Q2 18 Q3 18 Q4 18 Q1 19 Q2 19 Q3 19 Q4 19 Q1 20 Q2 20 Q3 20 -GC-GC% Sonata Software Ltd, 2019. Confidential. 29#30III Going Deeper, casting wider Large Travel Client in UK O Sonata Software Lt 40 35 30 25 .≤ 20 Revenue in USD Mn 15 10 10 5 FY'15 FY'16 FY'17 FY'18 FY'19 FY'20 YTD Cloud Mobility MS Others DevOps ERP IMS D&A E-Commerce OS Testing SONATA SONATA SOFTWARE 30#31EBITDA - last 12 Quarters Sonata Software Ltd, 2019. Confidential. 140.0 120.0 100.0 80.0 60.0 40.0 20.0 EBITDA Consolidated CQGR-7.1% Domestic CQGR - 6.1% 27.0 International CQGR - 7.4% 91.6 Q4 17 Q1 18 Q2 18 Q3 18 Q4 18 Q1 19 Q2 19 Q3 19 Q4 19 Q1 20 Q2 20 Q3 20 International Services Domestic Business SONATA SONATA SOFTWARE 31#32PBT - last 12 Quarters Sonata Software Ltd, 2019. Confidential. 120.0 100.0 80.0 60.0 40.0 20.0 PBT Consolidated CQGR - 6.9% Domestic CQGR - 6.6% 24.8 International CQGR - 6.7% 80.0 Q4 17 Q1 18 Q218 Q3 18 Q4 18 Q1 19 Q2 19 Q3 19 Q4 19 Q1 20 Q2 20 Q3 20 International Services Domestic Business SONATA SONATA SOFTWARE 32#33PAT - last 12 Quarters 80.0 70.0 60.0 50.0 40.0 30.0 20.0 10.0 Sonata Software Ltd, 2019. Confidential. PAT Consolidated CQGR -7.1% 18.1 Domestic CQGR - 7.0% International CQGR - 7.1% 57.8 Q4 17 Q1 18 Q2 18 Q3 18 Q4 18 0119 Q2 19 Q3 19 Q4 19 Q1 20 Q2 20 Q3 20 International Services Domestic Business SONATA SONATA SOFTWARE 33#34Consistent Growth over last 8yrs 3,000 2,500 2,000 3,500 Consolidated Revenue and EBITDA Consolidated Revenue CAGR -17% * 2,961 2,815 2,371 2,454 1,941 1,500 1,682 1,566 1,000 1,311 Consolidated EBITDA CAGR -38% * 500 59 117 191 239 246 278 366 336 * Figures for FY20 are YTD as of Q3'20. CAGR is on annualized basis. O Sonata Software Ltd, 2019. Confidential. FY13 FY14 FY15 FY16 FY17 FY18 FY19 FY20 YTD Revenue EBITDA SONATA SONATA SOFTWARE 34#35Other Strategic Investments * Figures for FY20 are YTD as of Q3'20. CAGR is on annualized basis. 80.00 70.00 60.00 50.00 45.63 40.00 30.00 20.00 10.00 70.14 34.05 0.64 13.36 39.52 2014 2015 2016 2017 2018 2019 ■M&A IP & R&D Invesment and % of Revenue 35.0 31.8 30.0 25.0 20.0 15.0 10.0 5.0 32.3 S&M Invesments Revenue CAGR of 17% 5% 60.0 6.0% 5.3% 5% 4% 50.0 4.5% 4.5% 4.4% 5.0% 23.7 22.2 4% 20.4 HH 40.0 3.6% 4.0% 3% 3% 30.0 3.0% 2% 49.2 47.5 2% 20.0 42.2 2.0% 36.7 1% 25.3 10.0 1.0% 1% 0% 0.0% FY'19 FY'20 YTD FY'16 FY'17 FY'18 FY'19 FY'20YTD % of Revenue S&M Invesment % of Revenue FY'16 FY'17 FY'18 IP & R&D Sonata Software Ltd, 2019. Confidential. SONATA SONATA SOFTWARE 35#36Consolidated - ROCE & RONW ROCE 50% 42% 40% 38% 38% 39% 40% 39% 36% 30% 35% 35% 36% 33% 30% 27% 20% 24% 24% 10% 0% Q3 19 Q4 19 Q1 20 Q2 20 Q3 20 Consolidated Intl Serv Domestic Sonata Software Ltd, 2019. Confidential. RONW 50% 42% 39% 40% 36% 37% 40% 37% 37% 30% 36% 35% 33% 28% 30% 20% 26% 26% 26% 10% 0% Q3 19 Q4 19 Q1 20 Q2 20 Q3 20 Consolidated Intl Serv Domestic SONATA LLIJLLILLI] SONATA SOFTWARE 36#37Days Sales Outstanding 50 40 40 50 40 40 30 88 48 45 Consolidated-DSO 45 44 44 41 37 Q119 Q219 Q319 Q419 Q120 Q220 Q320 International Services - DSO 44 42 42 60 41 41 41 60 40 40 40 20 Domestic DSO - SONATA SONATA SOFTWARE 47 43 。།: 33 55 48 47 42 20 0 Q119 Q219 Q319 Q419 Q120 Q220 Q320 Q119 Q219 Q319 Q419 Q120 Q220 Q320 37 30 Sonata Software Ltd, 2019. Confidential.#3830,000 25,000 20,000 15,000 10,000 5,000 Capital Allocation Cash Deployment 2015 2016 2017 2018 2019 Consolidated PAT Shareholders Payout Sonata Software Ltd, 2019. Confidential. 53% 4% 14% 30% ■Capex Share holder Pay out Acuqisition Invested 2015 to 2019 SONATA SONATA SOFTWARE 38#39Cash conversion & interest cost- Domestic Business Cash conversion positive Trends Avg Borrowing & Int Cost 80.00 100 140.00 14,000 70.00 60.00 50.00 40.00 30.00 20.00 10.00 90 120.00 80 100.00 70 70 60 60 80.00 50 60.00 40 30 40.00 20 20 20.00 10 0 Q1 FY18 Q2 Q3 Q4 Q1 Q2 FY18 FY18 FY18 FY19 FY19 FY19 Q3 Q4 Q1 Q2 Q3 FY19 FY20 FY20 FY20 Negative days Positive days Interest Cost Sonata Software Ltd, 2019. Confidential. احالا 12,000 10,000 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 FY17FY17FY17FY17FY18FY18FY18FY18FY19FY19FY19FY19FY20FY20FY20 Average Borrowing Interest Cost 8,000 6,000 4,000 2,000 SONATA SONATA SOFTWARE 39#40Cash & Credit management - Domestic Business SONATA SONATA SOFTWARE Bad Debts as a % of sales 1,000 900 47% Domestic 0.50% 47% 50% 45% 0.40% 800 40% 700 35% 0.30% 600 30% 500 21% 22% 28% 20% 25% 400 20% 0.20% 300 15% 0.11% 200 10% 0.10% 0.06% 0.07% 0.06% 100 0% 5% 0.02% 0% 0.01% 0.00% 0.00% Q119 Q2 19 Q3 19 Q419 Q1 20 Q2 20 Q3 20 0.00% FY 12-13 FY 13-14 FY 14-15 FY 15-16 FY 16-17 FY 17-18 FY 18-19 FY 19-20 YTD Revenue Net Working Capital -NWC as % of revenue Bad debts as % of sales Sonata Software Ltd, 2019. Confidential. 40#41Thank you SONATA SONATA SOFTWARE#42Marchitecture - Platform Architecture sample Consumer Mobile Dispensers Website Dispenser App Bots (Consumer) APIs B2B APIs GPS APIS Info APIs Client APIs Fitting APIs Device APIs Commercial APIs Hearing Device Sensor APIs Event APIs Platform Core Components Configuration Types Profile Tenant/Users PIM Devices Availability Periodic Pricing Unit Branches Consumers Offerings On Request Subscrptions Parameters Dispensers Services Rules Promotions Rules/Promotions Configura tion Profile PIM Inventor y Pricing Transactions Order Accounting Receivables/ Payables Analytics Recommendations Reports Mfg Operational Reports R&D Cancellation Invoices / Bills Personalization Accounting Reports Manufacture Delivery Payments / Bills Events Custom Reports Ship Transacti Accounti on ng Sonata Software Ltd, 2019. Confidential. Data warehous Hadoop e Mfg SONATA SONATA SOFTWARE Profile APIs Application Supplier Extranet Supplier APIs Management APIS Accounting Service APIs APIs 42#43Creating Platforms to anchor the Platformation journey Technology anchored Platformation TM brings together digital platform technology excellence, design thinking-led innovation, agile way of working and modern delivery to deliver true digital transformation DESIGN THINKING CONTINUOUS INNOVATION Open Business Apps Productivity Apps Consumer Apps User Experience Platform Partner Apps Supplier Apps Web Mobile Social Wearable Devices Connected Scalable Intelligent PLATFORMATION O Sonata Software Ltd, 2019. Confidential. AGILE/LEAN Cognitive Intelligent Services Continuous Delivery API Platform loT Platform API Gateway, ESBS, IPaaS Micro Services Event Broker API Integration IoT HUB, IoT Gateway Data & Events Robotic Process Canary Releases Automation Stream Analytics Data Platform Developer Experience Toggle Architecture Self Service Data Data Security Data Lake AI & ML Real Time Data Data Integration Low Code Development Telemetry & Intelligence Monitoring Cloud Platform Server-less Containers Elastic Experimental Infra Self Healing COLLABORATION HYPER PRODUCTIVITY DEVOPS SONATA SONATA SOFTWARE FULL AUTOMATION 43#44Retail Categories Unified Process ML Based Personalized Recommendations & Promotions In-Store Ecommerce Operations Analytics Clienteling Retail Digital Processes Unified Fulfillment & Returns Unified Pricing & Merchandising Customer 360 Engagement Queue Busting In-Store Mobile Shopping Digital Payments AR/Chatbot based customer interaction ML based Demand forecasting 360 View Of Customer Digitized Product discovery Outbound Marketing Social Integrations Loyalty based engagement RFID based product tracking Predictive Analysis Web Analytics Barcode based product movement Dashboard based decision making Customer Service O Sonata Software Ltd, 2019. Confidential. Customer Identification Virtual Customer Service Self Service - Portals & Chatbots Customer Engagement RE 44#45SONATA SONATA SOFTWARE Enabled through structured Methods and Tools Applied Sonata's frameworks that help uncover the business & technology needs and priorities of the client, and developed a best-fit roadmap for "Platformation" Platform Design BUSINESS ARCHITECTURE [Platform Design Canvas] ENABLING SERVICES Core Value Proposition Platform Owners (Platform To Partners) Ancillary Value Propositions Transactions Partners Technology Assessment AS-IS and TO-BE STATE [Assessment on 16 point Framework of Platformation] API based Integration Cloud-enabled Blockchain Implementation Roadmap PLATFORMATION ROADMAP [Roadmap& Recommendations] Scalable Sonata READY Sonata ACCELERATE Micro-services Architecture Multi-device/ Multi-channel capability CUI & bots loT Platform EMPOWERING Stake- holders SERVICES (Platform To Peer Producers) Infra-structure & Core Components Channels & Contexts PEERS (Producers) Robotic Process Automation Multi-tenancy Security & Compliance Telemetry & Self Healing Data strategy Data analytics OTHER SERVICES (Platform To Peer Consumers) PEERS (Consumers) Intelligent customer experience Self-learning (Platform machine learning) A mechanism to bring new insights on how the business ecosystem works, and the role of the platform addressing the motivations of ecosystem participants A mechanism to assess, evaluate and prioritize implementation of technology enablers to build connected, intelligent, open and scalable platforms Sonata Software Ltd, 2019. Confidential. Sonata CUSTOM Leverage Sonata's IP for platform-led business transformation Leverage Sonata's experience of assessing, implementing, and supporting leading platforms for business process enhancement Leverage Sonata's deep platform engineering skills, methodologies, and white-labelled assets to build customized platforms for business differentiation A recommendation to select the best fit Sonata's solution approach for effective and efficient execution of digital transformation programs through platformation 45#46Microsoft Sonata - Joint GTM for Digital Transformation SONATA SONATA SOFTWARE Industry Focus Microsoft Retail, CPG, Distribution, Service, Manufacturing and Travel focus Enable new and flexible business models Industry Digital Business Processes New services & adjacencies leading to Efficiencies & Innovation Industry aligned Marketecture Platformation TM SONATA SONATA SOFTWARE Unique approach to Digital Transformation through Platforms ✓ Digital business processes ✓ CDAT led Approach & Consulting methodology ✓ Platform maturity assessment ✓ Platform Engineering and Services IPs and Solution Accelerators Sonata Software Ltd, 2019. Confidential. Sonata - Microsoft Joint GTM for Digital Transformation SONATA SONATA SOFTWARE Microsoft Full Stack Execution and services through Microsoft full stack platform Primed by Azure and data driven consumption Ready, Accelerate and Custom platform approach ✔ Leverage MSFT solution & platform accelerators SONATA SONATA SOFTWARE Microsoft 46#47Step 7 - Technology Roadmap API based Integration Cloud-enabled Blockchain 1 1 2 Scalable 3 SONATA SONATA SOFTWARE EXECUTION Ready & On Board Not Initiated Yet In Progress 1) "Must" have in Near Future Micro-services Architecture Multi-device / Multi- channel capability CUI & bots IOT 2 "SHOULD" have in long term 1 1 3) Optional to have - Might not required Robotic Process Multi-tenancy Security & Compliance Automation Telemetry & Self Healing 1 3 1 1 Open Scalable Connected Intelligent Intelligent customer Self-learning (Platform Data strategy 1 Data analytics 1 experience machine learning) 2 Sonata Software Ltd, 2019. Confidential. 47#48MS & Non- MS Sonata Software Ltd, 2019. Confidential. REVENUE USD MN MS & Non MS 180.00 160.00 140.00 120.00 100.00 80.00 MS CAGR 19% 60.00 40.00 20.00 Non MS CAGR -3% FY 17 FY 18 FY 19 FY 20 PERIOD Non MS MS SONATA SONATA SOFTWARE 48#49Steps taken to establish Sonata as Digital Transformation partner of choice • • • Content - Include thought leadership Digital Transformation messaging in all marketing communications. E.g: Sonata Stories, Digital case studies, brochures, blogs/articles, videos, whitepapers and POV etc. Platformation TM-led website communication SONATA SONATA SOFTWARE Events & Webinars - Participate in Digital transformation event as speaker/sponsor. Conduct thought leadership webinars. Spearhead high profile Sonata customer events on Platformation TM like Sonata Spark Social Media - Use social channels to promote thought leadership and Platformation T TM content organically and paid Thought leadership through industry bodies - WEF, NASSCOM, CII Sonata Story on Platformation™ Branding: Facility, ODCS & CEC Analyst coverage on Platformation T People related branding and engagement around Platformation™ Sonata Software Ltd, 2019. Confidential. 49#50Content, Branding, Customer Event, Analyst and Industry Relations Solution Sonata's Platformation™ Framework Platformation is Sonala's unique approach to digital transformation and helps build open, connected, intelligent and infinitely seals bile digital businesses With Platformation", organizations can support a connected ecosystem of customers, business, partners, and vendors and enable value exchange between these participants PLATFORMATION™ Company Industry Services Plan Blog Props Contact Us Overcome Organizational Myopia To Achieve True Digital Transformation Platformation Principles OPEN Easily accessible for users ecosystem partners, and businesses to participate in CONNECTED So they are always-om, always connected INTELLIGENT To use the data generated in the platform to enable more efficient and meaningful transactions SCALABLE It gives the business the power to seale the platfarms by number of users, segments, & geography, easily Applying Platformation™ With the Platformation approach, Sonata helped the tour operator make strategic choices up-front on the technologies and design patterns to build an open, connected, intelligent, and scalable platform. The Sonata team applied the Technology Design Canvas, a 16-paint technology enablers framework, to evalving the client's platform capabilities in an iterative and incremental model. Sonata firstly implemented AP-based integration and micro-services architecture to achieve the following functionalities ⚫Faster on-boarding of travel and non- travel suppliers, insurance firms, and ather service providers; integration with GDS Integrated operational systems leading to better interconnectivity and automated processes Selective scaling of all activities across the travel booking lifecycle and anlatform sanira By Srikar Reddy, MD and CEO, Sonata Software Sridhar Rao Vedala, Head of Digital Business, Sonata Software Blog Everest Group Software Product Engineering Services PEAK Matrix Assessment 2019 High Zinnov Enterprise Software R&D Ratings 201 Major Contenders Leaders HCL Technologies Accenture Leaders High Nurture Zone Major Contender Aspirants HARMAN Connected Services Contract Star Peters GlobalLogice EPAM Wipro Aran infosys Toch Mahindra Digital Case Study CHORDS Market Impact impact created in the market) A Systems gma Software Persistent Systems e Virtusa * Суборе Mindtree istric Tata Exa logs RapidValue Solutions Not fo Low Aspirants Low hobges Mphasi Sonata Software Vision & capability (Measures ability to deliver services successfully) High Everest Group Software Product Engineering Services Peak Matrix Assessment 2019 Platformation™ - Playing The Perfect Chords of Business Excellence Sonata Story - Platformation™ O Sonata Software Ltd, 2019. Confidential. ENTERPRISE SOFTWARE ER Breakout Zone Proprietary SON Digital ODC hot for Redistribution without now's person Low Competency Cat E Execution Zone Leadership Zone Zinnov Enterprise Software ER&D Ratings 2019 SPARK LEADING PLATTOR DIGITAL TRANS Scalable Data Systems SONATA LLJJLEJLLIJ SONATA SOFTWARE Sonata SPARK Customer Event DOE aborigin Let's build remDriable products fogether accops NASSCOM® NASSCO NASSCOM Pavilion at Gartner IT Symposium XPO 2019 50#51Webinar, Website, People Engagement, WEF and Newsletter Platformation H Pr The Better way to do Digital Transformation Build open, Connect Scable and Intigent business Port Platform Led Digital Transformation Frijage with Ccted Sultysters with Open Setters wum Cap 2120 SONATA SONATA SOFTWARE ETCIO.com SONATA Anicke of The Tan SONALA SOFTWARE LIVE WEBINAR ON "Platform Thinking" - Key to Mobility-led Digital Transformation 23rd APRIL 2019, 2:00 PM IST Arpan Majumder Register Now AVP- Global Business Development, Sonata Software Revathi R AVP- Custom Platform Engineering, Sonata Software IP Digital Transformation Webinar INDUSTRIES WORLD ECONOMIC FORUM Agenda Platforms Reports Events About PLATFORMATION SERVICES Upcoming Website Sonata Software Ltd, 2019. Confidential. Industry Agenda Technological Transformation Digital Economy and Society Workforce and Employment 3 key talents for a successful digital transformation M90.H WEF Article English Top a Coffee Connect Voice of Sonatians It was a very informative session. with lots of fruitful discussions - Good platform to communicate and gain clarity on Company initiatives People Engagements SONATA SONATA SOFTWARE Microsoft SONATA | PLATFORMATION™ СОЛАТА БОТива Sonata's Platformation TM is now Co-Sell ready in 20 countries and available on Microsoft's OCP catalog In this newsletter, you will find: • Sonata's unique approach to Digital transformation-We call it platformationM ⚫ it's a Win-Win: Platformation seamlessly aligns with Microsoft' Digital transformation vision across the 4 pillars Success Stories - snippets from some of the ongoing Platformation journeys PLATFORMATIONTM-A Unique Approach to Digital Transformation Digital ecosystems and platform-based business models are taking the world by storm. McKinsey estimates a strong payoff from Platform strategy resulting in 7.5% of additional revenue growth for adopting companies. Overall, by 2025, they estimate that revenues worth $60 trillion will be redistributed - benefitting the companies with platform strategies incorporated in their digital transformation journey. Alliance Newsletter 51