Temenos Ag · SIX:TEMN
Temenos — Merger or Acquisition (March 2015)
20 slides from Temenos's merger presentation, Mar 4, 2015
Slide 1: Acquisition of Multifonds
Acquisition of Multifonds Broadening our portfolio of mission-critical banking software 4 March 2015
Slide 2: 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 3: Agenda
Agenda Transaction summary David Arnott, CEO About Multifonds Oded Weiss, CEO of Multifonds Financials Max Chuard, CFO Q&A 3
Slide 4: Transaction summary
Transaction summary Acquiring a leader in fund administration software, a complementary, adjacent market for Temenos The acquisition will give Temenos - access to highly complementary products - client relationships with more than 30 of the world’s largest FIs - entry point to the fast-growing f
Slide 5: What the transaction brings to Temenos
What the transaction brings to Temenos A leader in fund • Global leader in fund administration software, processing USD5trn in assets administration • Mission critical products on a single software platform software • Fund administration is a new, complementary market for Temenos • Excellent tier 1
Slide 6: Agenda
Agenda Transaction summary David Arnott, CEO About Multifonds Oded Weiss, CEO of Multifonds Financials Max Chuard, CFO Q&A 6
Slide 7: Third party administrator market overview
Third party administrator market overview • Assets under management are growing at c.7% p.a... - Growth in global wealth, especially Asia • …But, asset managers’ margins are under pressure - Outsourcing to third-party administrators (TPAs), whose revenues growing at c.10% p.a (large tier 1 TPAs seei
Slide 8: Overview of Multifonds' solutions
Overview of Multifonds’ solutions Middle Office Fund Accounting Transfer Agency Services & Compliance & Investor Services Accounting Global Investor Investment accounting General ledger KYC / AML Transaction processing Corporate actions Shareholder record keeping Cash flow forecasting
Slide 9: Competitive landscape (Investor Servicing / Transfer Agency)
Competitive landscape (Investor Servicing / Transfer Agency) Multifonds Global Investor World Investor (Partner) NTAS Paxus Icon Retail (UK) mShare Equitrak Hedgetek Rufus / GFAS / GTAS iFast InvestarOne Investier US 1940 Act UCITS Other Equalization Series Partnership Traditional Long Only Funds Al
Slide 10: Competitive landscape (Fund administration)
Competitive landscape (Fund administration) Multifonds Global Accounting 2015 HiPortfolio* Geneva Paxus mFact Icon Beauchamp* / mFact STAR* Dimension* eFront GP3 InvestOne InvestOne / Investier Investran US 1940 Act UCITS Asian Long Short Other Hedge PE / RE Traditional Long Only Funds Alternative F
Slide 11: Tier 1 client base across all key regions globally
Tier 1 client base across all key regions globally North America Europe Asia Pacific Accounting Accounting and Global Investor Global Investor Cross-sell opportunity with major clients of both Temenos and Multifonds 11
Slide 12: Agenda
Agenda Transaction summary David Arnott, CEO About Multifonds Oded Weiss, CEO of Multifonds Financials Max Chuard, CFO Q&A 12
Slide 13: Multifonds as part of Temenos
Multifonds as part of Temenos • Joint go-to-market and branding activities to commence straight away • Global accounts structure will be leveraged immediately to seek cross-sell opportunities • Temenos partner network to be leveraged to help scale sales and delivery • Products to be brought together
Slide 14: Financial impact
Financial impact • The consideration for the acquisition is EUR 235m • Expected to contribute revenues of USD46m in 2015 (USD56m on a pro-forma basis), of which more than 60% will be recurring revenues (see Appendix) • Multifonds has been growing total revenues at around 10% per annum over recent ye
Slide 15: Revised non-IFRS 2015 guidance
Revised non-IFRS 2015 guidance Total software licensing growth of 36% to 41% (implying total software licensing revenue of USD 194m to USD 202m) • includes software licensing growth of 13%+ (implying software licensing revenue of at least USD 154m) Revenue growth of 18% to 23% (implying revenue of U
Slide 16: Key takeaways
Key takeaways Acquiring a leader in fund administration software The acquisition will give Temenos - access to highly complementary products - client relationships with more than 30 of the world’s largest FIs - entry point to the fast-growing fund administration market - scale to fund future gro
Slide 17: Appendices
Appendices
Slide 18: FX assumptions underlying 2015 guidance
FX assumptions underlying 2015 guidance In preparing the 2015 guidance, the Company has assumed the following: • USD to Euro exchange rate of 0.891 • USD to GBP exchange rate of 0.666; and • USD to CHF exchange rate of 0.890. 18
Slide 19: Multifonds 2015 non-IFRS income statement
Multifonds 2015 non-IFRS income statement 10 month contribution Non-IFRS (USDm) Full year basis to Temenos Software licensing 5 6 SaaS and subscriptions 25 30 Total software licensing 30 36 Maintenance 3 4 Services 13 16 Total revenues 46 56 Costs 33 40 EBIT 13 16 19
Slide 20: Thank you
Thank you www.temenos.com