Temenos Ag · SIX:TEMN
Temenos — Investor Day (February 2024)
97 slides from Temenos's investor day presentation, Feb 19, 2024
Slide 1: Capital Markets Day
temenos Capital Markets Day
Slide 2: Today's Agenda
Capital Markets Day 2024 Today’s Agenda 09:00 – 09:30 Registration 09:30 – 09:40 Industry Trends Kanika Hope, Chief Strategy Officer 09:40 – 10:10 Strategy and Vision Andreas Andreades, Chief Executive Officer 10:10 – 10:30 Product and Technology Prema Varadhan, President Product and Chief Operating
Slide 3: Disclaimer
Disclaimer Our presentation and this document may contain forward-looking statements relating to the future of the business and financial performance of Temenos AG. Any statements we make about our expectations, plans and prospects for the Company, including any guidance on the Company’s financial p
Slide 4: Non-IFRS information
Non-IFRS information In its presentation and in this document, the Company may present and discuss non-IFRS measures. Readers are cautioned that non-IFRS measures are subject to inherent limitations. Non-IFRS measures are not based on any comprehensive set of accounting rules or principles and shoul
Slide 5: Introductory Remarks
Introductory Remarks Thibault de Tersant Non-Executive Chairman of the Board 5
Slide 6: Introduction
Introduction • Client satisfaction and implementations • c.3,000 clients globally • 391 implementations on our software in 2023 • Churn c.3% on a dollar basis • Net Promotor Score of +54 • Only one open client litigation at present • Mbanq • Investment in a partner in the strategic Banking as a Serv
Slide 7: Introduction (cont'd)
Introduction (cont’d) • Pulling forward of contracts and discounting • Normal for renewal discussion to take place well before contract expiration date • Retention (NRR) from existing customers of 112% • Generating significant value from existing customers • Back-dating of deals • Strong control and
Slide 8: Introduction (cont'd)
Introduction (cont’d) • R&D capitalisation • R&D capitalised as required under IFRS • Net capitalisation reduced in FY-23 vs. FY-22; USD5m less expense relief in FY-23 • Partners • Significant majority of sales are direct • Licenses sold to partners represented c.4% of total software licensing in 20
Slide 9: Industry Trends
Industry Trends Kanika Hope, Chief Strategy Officer 9
Slide 10: The Banking Market Opportunity
The Banking Market Opportunity 10
Slide 11: The banking sector outperformed the market until bank collapses and thereafter remained resilient
The banking sector outperformed the market until bank collapses and thereafter remained resilient Relative price movements Silicon Valley Bank Credit Suisse First Republic Bank 1.25 Signature Bank NY Failure 3/23 Failure 5/23 Silvergate Bank 1.20 Failure 3/23 S&P 500 IT Sector 1.15 1.10 Dow Jones Ba
Slide 12: IT spend to continue to rise despite market pressures
IT spend to continue to rise despite market pressures 58% Banks globally had Return on Equity below Cost of Equity in 2022 Technology spend Of banks report it is more challenging to predicted to rise 70% win and retain customers than it was a year ago across all regions and tiers in 2024 80% Drop in
Slide 13: Top areas of technology spend
Top areas of technology spend Retail Banking Corporate Banking Private Wealth Embedded Finance BNPL or PoS Digital Corporate digital Trade services & Client lifecycle Data analytics Alternative ESG solutions & Baas finance lending channels Supply chain Finance management & insights investments propo
Slide 14: Banks moving more mission critical workloads to Public Cloud, paving the way for SaaS
Banks moving more mission critical workloads to Public Cloud, paving the way for SaaS 51% of bankers believe banks will not own any data centres in 5 years because they will have moved to public cloud Applications banks will move to the cloud in next 12-24 months (% of responses) Digital channels 48
Slide 15: Double-digit medium term growth in serviceable addressable market; SaaS growth remains robust
Double-digit medium term growth in serviceable addressable market; SaaS growth remains robust Serviceable addressable market1 (SAM) $ B By Product By SaaS vs On Premise By Incumbent vs Non-incumbent CAGR CAGR 2023-27 2023-27 10% 37 37 37 9% 17% 30% 30% 26 26 26 16% 7% 91% 9% 70% 5% 93% 84% 2023 2027
Slide 16: How we leverage the Temenos Value Benchmark?
How we leverage the Temenos Value Benchmark? 16
Slide 17: The Value Benchmark is an industry leading program
The Value Benchmark is an industry leading program 150 banks >70,000 data 5 regions, points collected 76 countries covered 4 banking verticals – Retail, >1,400 C-level / senior >2,100 hours SME, Corporate, Wealth executives met of consulting workshops 17
Slide 18: The TVB provides industry insights into banks' performance (1/2)
Temenos Value Benchmark The TVB provides industry insights into banks’ performance (1/2) Drivers of Retail Banking performance: Top performing banks are best-in-class in 15 key operational metrics Performance indicators Cost-income ratio Return on Equity Effective Risk Performance Innovation Custome
Slide 19: The TVB provides industry insights into banks' performance (2/2)
Temenos Value Benchmark The TVB provides industry insights into banks’ performance (2/2) High performing banks focus on growing and retaining their customer base and increasing share of wallet, underpinned by critical front office and product building capabilities Customer growth Cross-sell Customer
Slide 20: The TVB enables us to build data-driven investment cases collaboratively with our clients
The TVB enables us to build data-driven investment cases collaboratively with our clients during the sales cycle Project benefits (EUR M) (Year 1 post go-live; recurring and to grow in line with assumptions) 11.3 0.4 2.6 Quantified in banks internal 0.4 0.7 0.2 business case (42% of total) 1.0 3.3 0
Slide 21: The TVB enables us to both prioritize product investments and focus sales opportunities
The TVB enables us to both prioritize product investments and focus sales opportunities Temenos relative maturity vs Banks maturity Size of bubble = Banks importance Low Product Investment opportunity AI enabled conversational banking Next-best interaction analytics Sales opportunity Seamless onboar
Slide 22: Thank you
Thank you 22
Slide 23: Strategy and vision
Strategy and vision Andreas Andreades CEO 23
Slide 24: Introduction to Temenos
Introduction to Temenos Everyone’s Banking Platform 24
Slide 25: Delivering tangible business value through our platform
Temenos Value Benchmark Delivering tangible business value through our platform Customer Agility to Grow Scalability Experience Faster innovation with cloud native, Improved operational Hyper-personalization powered by API-first banking capabilities and efficiency with hyper elastic open banking and
Slide 26: Continuing to make Banking better…globally
Continuing to make Banking better…globally Market leading Embedded Lending platform Top bank in Africa Top thrift bank in Philippines Sought to rapidly securitize loans across 5 Modernizing Corporate Payments Adopting SaaS to scale & lower time to markets in line with new Strategy across ~20 countri
Slide 27: Expanding existing relationships and continuing to grow client base
Expanding existing relationships and continuing to grow client base Expansion of relationship New win Global Tier 1 Bank Global Tier 1 Bank Leading Swiss Private Bank Modernizing Wealth platform on the Cloud Upgrading international Corporate Banking Harmonizing platform by expanding through end-to-e
Slide 28: Global client base across Retail, Corporate and Wealth
Global client base across Retail, Corporate and Wealth 3K Clients 150+ Countries 700+ SaaS Clients Challenger 100+ Clients x 300k Largest to smallest client accounts 28
Slide 29: Temenos SaaS Value Proposition
Temenos SaaS Value Proposition Banking Innovation Customer Operational Effective Risk Advanced Performance & Growth Centricity Efficiency & Compliance Analytics Drivers Breadth & depth of Extensibility, Advanced What we provide Elastic Governance, service, continuous service computing power scalabil
Slide 30: Continued market leadership
Continued market leadership New named deals 2020-22 393 Top traditional vendors Top neo-vendors 286 144 83 37 47 26 33 32 31 20 6 2 Source: IBS Sales league table - global core banking and digital banking, Omdia, desktop research 30
Slide 31: IBS top spot for over 20 years in 8 different categories
(Retail Core) IBS top spot for (Wealth) over 20 years in 8 different categories (Digital, Wealth) (Core, Digital) (Core) (Digital, Funds, Wealth) (Funds) (Wealth) 31
Slide 32: Recurring revenue model delivering value and continuing to drive growth
Recurring revenue model delivering value and continuing to drive growth Enhanced value-based AI driven sales execution selling to capture uplift Enhancing predictability and Optimized deal structures and aligned to value capture business value Aligned sales organization Strengthened sales to ARR mod
Slide 33: Key strategic initiatives
Key strategic initiatives 33
Slide 34: Key strategic initiatives
Key strategic initiatives Continued SaaS Partner centric focus approach Increasing North America penetration focus in larger banks 34
Slide 35: Continuing momentum in North America
Continuing momentum in North America NAM strategy maturing s Strengthened organization and product offering • Recruited seasoned industry resources across Sales, Cloud and Delivery • Enhanced US model bank, US specific data privacy and security Targeting top tier banks for digital transformation • 1
Slide 36: Continued focus on Partners to scale capabilities
Continued focus on Partners to scale capabilities Partner plays + 27ppts Sales partners for • 9 Country Model Partnerships setup • 15+ in pipeline localization Win rate in competitive deals brought or influenced by partner (2020-23) Resellers • Tiering of resellers Customization revenue (USD M) and
Slide 37: We continue to top ESG global indices
Top 25 Ranked #1 in the Top Participant Swiss SOF category 10% since 2021 stocks globally Dow Jones SXI Switzerland FTSE4GOOD Sustainability Index CDP Sustainability 25® Index Index World & Europe We continue Highest Highest PRIME Low to top ESG rating rating status risk global indices MSCI AAA Rati
Slide 38: TEMENOSITY
We We Collaborate Care TEMENOSITY We We Commit Challenge People and Culture - A Strategic Asset built over 30 years 38
Slide 39: Summary
Summary ü Our continued investment in our market leading platform (single code and configuration base) puts us in a strong competitive position vs both traditional and neo vendors ü Our global client base across Retail, Corporate and Wealth built over 30 years, and recent expansion in SaaS client ba
Slide 40: Appendix
temenos Appendix
Slide 41: Revenue and operating models
Revenue and operating models Subscription revenue Subscription revenue SaaS revenue Bank Runs software Bank Runs software Partner Runs software Temenos Runs software Temenos Partner Temenos Public SaaS Ops temenos On-premise Private Software SaaS Ops temenos temenos temenos Software Software Softwar
Slide 42: Significant progress in SaaS
Significant progress in SaaS SaaS penetration in revenue driven by cloud-native platform SaaS growth levers Serviceable Addressable Market (SAM) vs Temenos product revenues: 2023 Enterprise services: • 120+ pre-configured products, 700 APIs and 1800 business service flows • Reduced modernization cos
Slide 43: Significant product enhancements and targeted go-to-market campaigns for large banks
Significant product enhancements and targeted go-to-market campaigns for large banks s Increasing penetration within larger banks Standalone capabilities supporting build & migrate modernization strategies: • Retail: Party, Holdings, Product Manager; Retail Enterprise Service for digital spin offs •
Slide 44: Product & Technology
Product & Technology Prema Varadhan President Product & Chief Operating Officer 44
Slide 45: Having always been pioneers, accelerating innovation
Having always been pioneers, accelerating innovation Enterprise Services Packaged Cloud Cloud-native Upgradable ready (All products) AI Embedded platform 2003 2020 2022 1993 2011 2021 2024 Cloud-native (Core Banking) 24x7 banking Open platform Multiple Stack Cloud- for composable support agnostic ba
Slide 46: Temenos banking platform
temenos banking platform temenos services temenos banking services temenos enterprise services Composable Services End-to-end services Compose as needed Retail Business & Wealth Payments Retail Supply Chain Portfolio Cross Border Corporate FCM Lending Finance Management Payments temenos temenos bank
Slide 47: The Temenos Capability Landscape
The Temenos Capability Landscape GROUPED BY BANKING SERVICE DOMAINS Retail Business Corporate Wealth XAI Financial Crime Risk & External Channels Mobile Banking Web Banking Hybrid Banking Branch Banking RM Workspace Mitigation Compliance Ecosystem Payment Fraud Digital Credit coring CRS Reporting En
Slide 48: R&D priorities aligned to banks' performance drivers
Temenos Value Benchmark R&D priorities aligned to banks’ performance drivers Performance indicators Cost-income ratio Return on Equity Effective Risk Performance Innovation Customer Operational Advanced and Analytics drivers and Growth Centricity Efficiency Analytics Compliance A A A A A % IT spend
Slide 49: Strategic Priorities
Strategic Priorities Temenos Temenos Enterprise Leap Services Generative & Lean Responsible AI Core 49
Slide 50: Enterprise Services
Enterprise Services Standardized end-to-end SaaS services preconfigured products and journeys for specific segments (Retail, Business & Corporate, Wealth) Low Touch Enterprise Service Optional Base Path to Live Australia- Country Partner “Try before you buy” UK-MB US-MB MB X-MB MB Automated Continuo
Slide 51: Temenos Leap
Temenos Leap Holistic modernization program enabling Temenos clients to move to the Using AI to accelerate traditionally manual Paving the way for cloud-readiness and latest Temenos release and platform from older versions and architecture and complex areas of migration and testing future SaaS Faste
Slide 52: The Temenos AI Journey
The Temenos AI Journey Generative and Responsible AI AI Embedded platform Generative and Responsible AI Explainable AI (2019) Predictive analytics (2018) Prescriptive analytics (2016) 52
Slide 53: How AI delivers business value
How AI delivers business value Customer growth transformed by AI through improvement in time to market, onboarding experience and IT innovation Customer growth Temenos Value Benchmark insights Fast time to Digital customer IT Innovation market onboarding and Cloud Temenos Solutions Temenos Product T
Slide 54: Lean Core
Lean Core Progressive Modernization Tooling Componentized Architecture Components prioritized based on Temenos’ 30 year experience in banking Retail Corporate Party Retail Enterprise Secondary Loan Trading Service Settlement and portfolio allocation Holdings (for digital spinoffs) AI Dashboard for c
Slide 55: Temenos' Exchange Ecosystem
Temenos’ Exchange Ecosystem 55
Slide 56: Leading functionality + Latest technology = The winning combination
Leading functionality + Latest technology = The winning combination 56
Slide 57: Thank you
Thank you 57
Slide 58: Our Approach to AI
Our Approach to AI Hani Hagras Chief Science Officer 58
Slide 59: Need for Explainability in the Banking Industry
Need for Explainability in the Banking Industry Challenges for Traditional AI Approaches Regulatory pressures The implications of decision making within banks are under more scrutiny than ever There is a need to provide “trust” in AI Decision via: The “wait-and-see” approach adopted by regulators to
Slide 60: Responsible AI Models
Responsible AI Models True explainable AI where models are: EU AI Act 2025 Understood Ensuring that AI systems in the EU by business are "safe, transparent, traceable, Analysed stake holders non-discriminatory and and regulators environmentally friendly“ Augmented Fines up to 35 million euros or 7%
Slide 61: Temenos AI & Banking
Temenos AI & Banking In 2019, Temenos introduced the explainable AI platform for banking clients who can now: Procure Temenos explainable models for banking automation, efficiency and meaningful customer engagement Create, and run self-developed AI models with explainability features on the Temenos
Slide 62: Temenos XAI Platform and Available Models
Temenos XAI Platform and Available Models XAI Platform FCM AML Mortgage Retail Customer SME Customer Transaction Smart Money Smart Wealth Retail Scoring SME Scoring Outlier Smart Management Management Management Management Advice Detection Optimizer Retail Credit SME Credit Transaction FCM Sanction
Slide 63: Temenos GenAI for Banking
Temenos GenAI for Banking Automating and hyper-personalising the manual processes Improving the response to specific customer / user needs Summarizing complex information into a coherent narrative Simplifying the process of creating content in a particular style 63
Slide 64: Temenos Approach to Generative AI
Temenos Approach to Generative AI Transaction Classification Infusing AI into Temenos • Front Office use cases Fast and accurate automatic Banking Platform • Back Office use cases classification of transactions serving Next best product Cashflow Enabling banks to deploy • Testing prediction and impl
Slide 65: Thank you
Thank you 65
Slide 66: Financial Growth Plan
Financial Growth Plan Takis Spiliopoulos CFO 66
Slide 67: Accelerating growth trajectory
Accelerating growth trajectory ARR to reach Non-IFRS EBIT to reach FCF to reach >USD1.3bn >USD570m >USD700m in the mid-term in the mid-term in the mid-term 67
Slide 68: Sustained ARR growth and accelerating Free Cash Flow
Sustained ARR growth and accelerating Free Cash Flow Annual Recurring Revenue Free Cash Flow % u t 15 *abo -21 CAGR AGR c.12% 17 17-23 C eas t c .13% >1.3bn *at l >700m 16% 730 358 626 494 553 280 269 297 243 391 462 227 345 193 2017 2018 2019 2020 2021 2022 2023 2024E Mid- 2017 2018 2019 2020 2021
Slide 69: Improved predictability on EBIT growth trajectory
Improved predictability on EBIT growth trajectory EBIT c.12% 17-21 CAGR *7-9% >570m 323 357 318 313 265 272 224 2017 2018 2019 2020 2021 2022 2023 2024E Mid- term Note: Numbers are non-IFRS. Growth rate is in constant currency * 2024 guidance 69
Slide 70: ARR mix shift from maintenance to SaaS and subscription
ARR mix shift from maintenance to SaaS and subscription ~20% 53% 62% 73% ~25% Maintenance ARR Subscription ARR SaaS ARR 17% 73% 10% c.50% ~55% 27% 28% 30% 2021 2022 2023 Mid-term Subscription and SaaS to become main contributors in the mid-term and beyond 70
Slide 71: Free Cash Flow to grow faster than ARR
Free Cash Flow to grow faster than ARR ARR Free Cash Flow t 15% *abou % eas t 16 16% *at l >700 >1.3bn >1.3bn >700m 26% 730 626 243 193 2022 2023 2024E Mid-term 2022 2023 2024E Mid-term * 2024 guidance. Growth rate is in constant currency * 2024 guidance. Free Cash Flow growth in excess of ARR and a
Slide 72: Alternative scenario with lower SaaS ACV CAGR would still deliver mid-term targets
Alternative scenario with lower SaaS ACV CAGR would still deliver mid- term targets ~25% 53% 62% 73% ~30% Maintenance ARR Subscription ARR SaaS ARR 17% 73% 10% c.50% ~45% 27% 28% 30% 2021 2022 2023 Mid-term • Alternative scenario provides for lower SaaS ACV CAGR of 20% offset by higher Subscription
Slide 73: Drivers of Growth
Drivers of Growth 73
Slide 74: Sustained strong momentum with Tier 1 and 2 clients…
Sustained strong momentum with Tier 1 and 2 clients… Non-IFRS total software licensing revenues by client tier 2014 2023 26% 43% Tier 1/2 Others Tier 1/2 Others Note: Total Software Licensing revenue are non-IFRS. 74
Slide 75: … and in North America
… and in North America Non-IFRS total software licensing, North America vs. Rest of World 2014 2023 10% 33% North America ROW North America ROW Note: Total Software Licensing revenue are non-IFRS. 75
Slide 76: 2024 guidance
2024 guidance Guidance 2023 (CCY) 2024 Targets ARR 729 About 15% growth Total Software Licensing 445 7-10% growth EBIT 310 7-9% growth EPS (Reported) 3.19* 6-8% growth Free Cash Flow (Reported) 243* At least 16% growth Targets are non-IFRS. Tax rates estimate: FY24 guidance at 20-22% * 2023 baseline
Slide 77: Mid-term guidance
Mid-term guidance Guidance 2023 (CCY) Mid-term Targets ARR 729 >1.3Bn EBIT 310 >570m Free Cash Flow (Reported) 243* >700m Targets are non-IFRS. * 2023 baseline on a reported basis 77
Slide 78: Significant ARR growth in the mid-term
Significant ARR growth in the mid-term >1.3bn 730 2023 ARR SaaS ARR Subscription ARR Maintenance ARR Mid-term • SaaS ARR to represent c.55% of Total ARR • Subscriptions will drive both subscription license ARR growth and maintenance ARR Note: Non-IFRS reported 78
Slide 79: EBIT expansion drivers
EBIT expansion drivers >570 313 2023 EBIT SaaS margin expansion Operating leverage Investment Mid-term • SaaS Gross Margin to expand to at least 80% • Continued leverage of G&A infrastructure, improvement in Services profitability • Sustained investment (e.g. S&M capacity, product, wage inflation, v
Slide 80: SaaS Gross Margin % Evolution
SaaS Gross Margin % Evolution 47% 57% 60% 6% c.66% 75-80% 2019 2022 2023 Ongoing cost efficiencies 2023 Exit Run Rate Mid-term • Hyper-scalers: unit costs to reduce as volumes increase • Automation to drive significant efficiencies in operation centres • Operations optimised into centralised offshor
Slide 81: Key cost lines as a percentage of revenue
Key cost lines as a percentage of revenue 31% Margin 26% 25%+ S&M Services 13% R&D <10% G&A 22% c.21-22% 8% ~6% 2023 Mid-term 81 Note: Non-IFRS.
Slide 82: FCF evolution 2023 to 2024
FCF evolution 2023 to 2024 Estimated movements for illustrative purposes only At least 16% growth 243 2023 Opex investment Net Services Term License Subsc License SaaS & Maint Tax Capex & Cap Dev 2024 & inflation Impact Impact Impact Revenue/Deferred 82
Slide 83: FCF evolution 2023 to Mid-term
FCF evolution 2023 to Mid-term Estimated movements for illustrative purposes only >700 243 2023 IFRS EBITDA Net Trade Deferred Revenue Tax Capex & Cap Dev Mid-term Receivables & Payables 83
Slide 84: SaaS ACV growth drivers
SaaS ACV growth drivers • SaaS ACV is priced on a fixed number of accounts per annum over the life of the contract • $1 per account x 1m accounts = $1m of SaaS ACV • There are multiple drivers of SaaS ACV growth ACV driver Description New deal signings New SaaS contracts signed with new clients Exis
Slide 85: SaaS contract value uplift
Conversion of tier 3-5 clients to SaaS in the mid-term Temenos historically signed 10-year license deals as standard Percentage of tier-3/5 client renewals converting to SaaS to achieve mid-term SaaS ACV CAGR Mid-term incremental SaaS ACV Relicensing represented 10-15% of Total Software growth CAGR
Slide 86: SaaS ACV modelling illustrative example
SaaS ACV modelling illustrative example 5 year impact of USD10m of SaaS ACV ACV ARR SaaS Revenue 10 10 10 10 10 10 10 10 10 10 5 Yr1 Yr2 Yr3 Yr4 Yr5 Yr1 Yr2 Yr3 Yr4 Yr5 Yr1 Yr2 Yr3 Yr4 Yr5 Deferred Revenue FCF 5 5 5 5 5 10 10 10 10 10 Yr1 Yr2 Yr3 Yr4 Yr5 Yr1 Yr2 Yr3 Yr4 Yr5 * Example assumes USD10m
Slide 87: Subscription modelling illustrative example
Subscription modelling illustrative example 5 year impact of USD10m of Subscription ARR ARR Subscription License Maintenance 25 5 5 5 5 10 10 10 10 10 2,5 Yr1 Yr2 Yr3 Yr4 Yr5 Yr1 Yr2 Yr3 Yr4 Yr5 Yr1 Yr2 Yr3 Yr4 Yr5 Receivables Deferred Revenue FCF 20 2,5 2,5 2,5 2,5 2,5 10 10 10 10 10 15 10 5 0 Yr1
Slide 88: Free Cash Flow growth driven by SaaS ACV
Free Cash Flow growth driven by SaaS ACV FCF assuming USD10m of ACV per quarter 120 20 100 20 20 80 20 60 68 10 63 10 55 40 45 10 33 10 28 20 20 12,5 15 10 7,5 10 2,5 5 10 10 10 10 10 10 10 10 0 0 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Year 1 ACV Revenue Deferred Revenue FCF Year 2 FCF and deferred revenue grow ev
Slide 89: Growing SaaS ACV drives incremental Free Cash Flow
Growing SaaS ACV drives incremental Free Cash Flow FCF assuming incremental USD2m of ACV per quarter 200 40 36 150 32 28 118 100 101 16 82 14 63 50 44 12 34 23 18 10 22 13 6 9 10 3 24 16 18 20 22 10 12 14 0 0 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 ACV Revenue Deferred Revenue FCF Year 1 Year 2 FCF accelerates ahea
Slide 90: Strong acceleration in FCF year-on-year with growing SaaS ACV
Strong acceleration in FCF year-on-year with growing SaaS ACV FCF assuming USD10m of ACV per quarters FCF assuming USD10m of ACV in Q1 and incremental USD2m of ACV per quarter 450 450 400 400 350 350 136 300 300 250 250 200 200 118 80 150 150 52 68 63 100 40 100 44 50 33 45 50 9 7,5 84 40 40 52 0 0
Slide 91: Capital Allocation
Capital Allocation 91
Slide 92: Disciplined Capital Allocation
Disciplined Capital Allocation Priorities for capital allocation Balance sheet (31-Dec-23) Targeted acquisitions Weighted average interest rate 2.3% Share buybacks Weighted average debt maturity 2.55 years Dividends Leverage ratio 1.6x Targeted acquisitions for USD1.2bn+ and returned c.USD1bn to sha
Slide 93: A three-pronged approach to M&A to accelerate organic growth
A three-pronged approach to M&A to accelerate organic growth Accelerated R&D Increased Adjacent markets and roadmap in key scale complementary markets and segments products 93
Slide 94: Conclusion
Conclusion 94
Slide 95: Accelerating Growth Trajectory
Accelerating Growth Trajectory ARR to reach Non-IFRS EBIT to reach FCF to reach >USD1.3bn >USD570m >USD700m in the mid-term in the mid-term in the mid-term 95
Slide 96: Thank you
Thank you 96
Slide 97: temenos
temenos