Temenos Ag · SIX:TEMN
Temenos — Q3 2011 Earnings Presentation
24 slides from Temenos's earnings presentation, Oct 13, 2011
Slide 1: The Banking Software Company
\é The Banking Software Company
Slide 2: Financial Results & Business Update
Financial Results & Business Update Quarter ended 30 September 2011
Slide 3: Disclaimer
Disclaimer Any remarks that we may make about future expectations, plans and prospects for the company constitute forward-looking statements. Actual results may differ materially from those indicated by these forward-looking statements as a result of various factors. In particular, the forward-looki
Slide 4: Agenda
Agenda 1 Introduction | Sarah Bowman | Investor Relations 2 Strategy and Business update | Guy Dubois | CEO 3 Financial update | David Arnott | CFO 4 Outlook and Summary | Guy Dubois | CEO 5 Q&A 4
Slide 5: Strategy and Business update
Agenda 1 Introduction | Sarah Bowman | Investor Relations 2 Strategy and Business update | Guy Dubois | CEO 3 Financial update | David Arnott | CFO 4 Outlook and Summary | Guy Dubois | CEO 5 Q&A 5
Slide 6: Q3 Summary: Resilient performance, but uncertainty remains
Q3 Summary 1. Solid Q3 against tough comparative, despite deteriorating market conditions 2. 11 new banks signed, demonstrating that core banking drivers are intact 3. We withdraw our licence outlook, given increased macro uncertainty 4. We continue to give an outlook on total revenue and adjusted E
Slide 7: Q3 Income Statement Highlights
Q3 Income Statement Highlights • Licence revenue (USD 37.7m) was flat against Q3 2010 which was up 41% • Maintenance trending towards USD 200m on a LTM basis (40% of LTM total) • Services revenue up 15% y/y, loss continues to narrow • Total revenues (USD 121m), up 16% y/y • Like-for-Like costs +1% i
Slide 8: Q3 Operating Highlights
Q3 Operating Highlights • 11 new banks signed vs 9 in Q3 2010, including 2 Tier 1 banks • Three replacements of competitor products • Excluding Europe, licence revenues +40% • APAC demonstrates momentum, representing 27% of LTM licence revenues • 9 T24 Go-lives and 6 additional go-lives from PWM • 8
Slide 9: CEO Agenda Update
CEO Agenda Update • Visited many stakeholders, providing comprehensive view of the business • Confirmed market opportunity and validated business model • Focus on sales execution, services delivery model, and organizational alignment • Organic growth has priority, but tracking M&A opportunities • St
Slide 10: Financial update
Agenda 1 Introduction | Sarah Bowman | Investor Relations 2 Strategy and Business update | Guy Dubois | CEO 3 Financial update | David Arnott | CFO 4 Outlook and Summary | Guy Dubois | CEO 5 Q&A 10
Slide 11: Income Statement Highlights
Income Statement Highlights in USDm Q3 11 Q3 10 LTM 11 LTM 10 Licences 37.7 37.7 0% 165.9 143.2 16% Maintenance 49.6 37.1 34% 195.1 138.7 41% Services 33.6 29.2 15% 135.3 134.9 0% Total Revenue 120.9 104.0 16% 496.3 416.8 19% Adj. operating costs (97.1) (74.8) 30% (389.9) (314.2) 24% Adj. EBIT 2
Slide 12: Like-for-Like Revenue and Cost Performance
Like-for-Like Revenue and Cost Performance Total revenue and costs +1% 140 140 Revenue* 120 120 Costs** 100 (5)% Licence 100 Licence 80 80 60 5% Maintenance 60 1% Maintenance Like-for-Like Like-for-Like Costs Costs 40 40 20 2% 20 Services Services 0 0 Q3 2010 Q3 2011 Q3 2010 Q3 2011 * Q3 2010 adjust
Slide 13: Cash Flow Conversion
Cash Flow Conversion EBITDA conversion into operating cash flow – Q3 & LTM 2010/11 120 71% 100 104% 80 USDm 60 8% 42% 40 20 0 Q3 2011 Q3 2010 LTM 2011 LTM 2010 EBITDA (USD m.) Operating cashflow (USD m.) LTM cash conversion strong despite seasonally weak Q3 13
Slide 14: Outlook and Summary
Agenda 1 Introduction | Sarah Bowman | Investor Relations 2 Strategy and Business update | Guy Dubois | CEO 3 Financial update | David Arnott | CFO 4 Outlook and Summary | Guy Dubois | CEO 5 Q&A 14
Slide 15: FY 2011 Outlook
FY 2011 Outlook Key Performance Indicators Outlook Implied Range Total Revenue Growth 5%-14% USDm 470-510 Adj. EBIT Margin 18-26% EBITDA Conversion to Cashflow 100% Tax Rate 10%-12% Efficiency Program Charge (Q4) USD 15-25m Robust performance against headwinds 15
Slide 16: Q3 Summary: Despite uncertainty, business is resilient
Q3 Summary 1. Solid Q3 against tough comparative, despite deteriorating market conditions 2. 11 new banks signed, demonstrating that core banking drivers are intact 3. We withdraw our licence outlook, given increased macro uncertainty 4. We continue to give an outlook on total revenue and adjusted E
Slide 17: Q&A
Agenda 1 Introduction | Sarah Bowman | Investor Relations 2 Strategy and Business update | Guy Dubois | CEO 3 Financial update | David Arnott | CFO 4 Outlook and Summary | Guy Dubois | CEO 5 Q&A 17
Slide 18: Appendices
Appendices ‘e TEMENOS 18 The Banking Software Company
Slide 19: Adjusted EPS Reconciliation
Adjusted EPS Reconciliation Q3 2011 Q3 2010 (USDm) (USDm) Net Earnings 12.5 21.9 Amortization of acquired 4.5 3.2 intangible assets Bond interest - 1.5 Restructuring 1.0 2.3 Earnings for adjusted EPS 18.0 28.9 Number of Dilutive Shares 69.9 72.3 Adjusted EPS 0.26 0.40 19
Slide 20: Non-Operating Items
Non-Operating Items in USDm Q3 11 Q3 10 y-o-y LTM 11 LTM 10 y-o-y Adjusted EBIT 23.8 29.2 (18)% 106.3 102.5 4% Net finance charge (2.4) (2.3) 4% (12.2) (8.9) 37% FX loss (1.3) 0.5 n/m (2.2) 0.7 n/m Tax (2.3) (0.2) n/m (3.2) (0.5) n/m Bond Interest - 1.5 n/m 1.6 5.9 (46%) Adjusted Net 17.8 28.7 (
Slide 21: DSOs Trend
DSOs Trend Days sales outstanding 200 183 180 165 160 147 140 120 100 Days 80 60 40 20 0 Q3 2009 Q3 2010 Q3 2011 21
Slide 22: Geographical breakdown of licence revenue
Geographical breakdown of licence revenue 22
Slide 23: Breakdown of Licence Revenue by Customer Tier
Breakdown of Licence Revenue by Customer Tier 23
Slide 24: Thank You
c hh Thank You