Temenos Ag · SIX:TEMN
Temenos — Investor Day (May 2019)
146 slides from Temenos's investor day presentation, May 21, 2019
Slide 1: Capital Markets Day 2019
(i. CAPITAL MARKETS TEMENOS | pay 2019 THE BANKING SOFTWARE COMPANY
Slide 2: Agenda
Agenda Time Session Presenter 09:00 – 09:30 Registration 09:30 – 10:15 Strategy & Key Growth Drivers Max Chuard, Chief Executive Officer Mark Winterburn, Chief Product Officer Temenos T24 Transact: Alex Duret 10:15 – 11:00 Product Leadership Part 1 Temenos Infinity: Darryl Proctor Temenos Payments:
Slide 3: Strategy and vision
Strategy and vision Max Chuard, CEO
Slide 4: A business model that has delivered strong growth…
A business model that has delivered strong growth… Total software licensing Significant addressable market of 400 USD 57bn globally The leader in a winner takes all 300 market USD m Benefiting from six drivers of 200 growth An expanding ecosystem of 6000+ 100 consultants M&A to accelerate organic 0
Slide 5: …and will deliver sustainable long-term growth
…and will deliver sustainable long-term growth Total software licensing 2018 Long term +15 years 5
Slide 6: Our market opportunity
| Our market opportunity
Slide 7: A large and growing market
A large and growing market Addressable Bank IT spend 60 USD 57bn 50 USD 46bn 40 USD bn 30 20 USD 12bn 10 USD 9bn 0 2015 2019 Total addressable market 5% CAGR Third party spend 8% CAGR Source: Gartner, IDC, Celent, Ovum, Oliver Wyman, Temenos estimates Note 2015 addressable market increased due to op
Slide 8: The market will continue to grow
The market will continue to grow 16.00 USD 15.1bn 14.00 USD 12bn 12.00 10.00 USD bn 8.00 6.00 4.00 2.00 - Third-party spend 2019 Third-party spend 2022 Source: Gartner, IDC, Celent, Ovum, Oliver Wyman, Temenos estimates N.B. Digital Front Office comprises previous segments stated as Digital Channels
Slide 9: The urgency to change has never been greater
The urgency to change has never been greater Increasing Tough Market Regulations – Conditions Open Banking Demands for Personalized Diverse Experiences Competitors Accelerating Technology Change Banks without a modern digital platform will find it hard to remain competitive in the next five to seven
Slide 10: Banks are hindered by their legacy systems
Banks are hindered by their legacy systems Higher Higher Poor operating operational customer costs risk experience Reduced speed to Poor market analytics 10
Slide 11: Our market position and our ambitions
Our market position and our ambitions
Slide 12: Temenos has a unique value proposition
Temenos has a unique value proposition Open & Only focused on Leading functionality, independently banking, 3,000+ localisation and implementable banking client advanced technology products Relentless 6,000+ consultants Continuous & focus on taking a bank live faster innovation every day deployment
Slide 13: The vendor of choice for core banking transformation globally
The vendor of choice for core banking transformation globally 250 Top 10 global* core banking systems by new-named deals 200 - aggregate 2013-2018 150 1.9x 2.9x 3.2x 5.4x 7.2x 8.8x 9.9x 13.9x 18.2x 100 50 T24 T24 Core Amplitude Amplitude Loans Loans Banking Banking Banking Transact Flexcube Banking
Slide 14: Accelerating our leadership position
Accelerating our leadership position Core banking systems sales by new-named deals 50 2012 2018 45 40 35 30 2.2x 25 1.8x 20 2.4x 3.3x 15 10 5 0 Note: Oracle 2018 deals is estimate based on average of deals from 2012-2015. 14 Oracle did not participate in IBS since 2015
Slide 15: The world's best selling banking software vendor
The world’s best selling banking software vendor #1 #1 #1 #1 Best-selling Best-selling Best-selling Best-selling Core Banking Digital Banking Payments Compliance for 14 years & Channels system & Risk Mgmt. New-name clients: New and existing clients: Top global power seller for the Top global player
Slide 16: We benefit from six drivers of growth
We benefit from six drivers of growth Medium-term third party spend (bn) CAGR $5.0 7% ALL DEPLOYMENT OPTIONS $5.3 8% $0.6 8% $2.7 10% On- $1.6 8% premise 16
Slide 17: Set to take market share across all drivers of growth
Set to take market share across all drivers of growth Temenos Infinity Payments Temenos T24 Transact WealthSuite Fund administration SaaS Temenos market share Temenos combined market share 5% 16% >2x >3x 2018 Long term 2018 Long term Note: independent scales, market share based on licenses only 17
Slide 18: Expanding our tier 1 and 2 client base
Expanding our tier 1 and 2 client base EMEA #205 banks 45% penetration up from 43% The Americas APAC #103 banks #174 banks 19% penetration 23% penetration up from 18% up from 22% # - number of Tier 1 and 2 banks % - Temenos account penetration of T1 and T2 banks 18 Source: FT Banker Database; Temeno
Slide 19: Increasing wallet share in Tier 1 and 2 banks
Increasing wallet share in Tier 1 and 2 banks Temenos’ average share of wallet in Average annual spend from tier 1 and 2 banks tier 1 and 2 banks undergoing transformation >2x 4% 4.5% 2015 2016 2017 2018 2017 2018 Long term * Based on Temenos estimates of average addressable transformational softwar
Slide 20: Our strategic initiatives
Our strategic initiatives
Slide 21: Our strategic initiatives to drive growth
Our strategic initiatives to drive growth Enhance award winning solutions to accelerate penetration and open new markets Geographic market development to drive faster growth Investing in sales and marketing, cloud/SaaS and talent/people An expanding partner ecosystem to support growth Using M&A to a
Slide 22: Enhance award winning solutions to accelerate penetration and open new markets
Enhance award winning solutions to accelerate penetration and open new markets Cloud-native and cloud-agnostic – elastic scalability, security, multi-cloud resilience, reduced TCO Temenos Continuous Deployment – code in the morning and deploy in the afternoon Open-API first – rapidly integrate and i
Slide 23: Market expansion in the U.S.
Market expansion in the U.S. Strategy Presence Major wins Major accounts: top 120 FIs, assets ≥ $10bn 430+ for all products Employees T1 Retail Signing Mid-market: $3bn < Assets < $10bn for 2018 7 T1 Corporate Signing Temenos Infinity in particular Offices 2017 Digital/new entrants: proactive
Slide 24: Structuring sales around the six drivers of growth
Structuring sales around the six drivers of growth Total sales headcount Quota-carrying sales investment across products* Transact Infinity Wealth Funds Payments Global pre-sales investment across products* Transact Infinity Wealth Funds Payments FY 2018 FY 2019 recruitment target 2016 2017 2018 *%
Slide 25: Accelerating adoption through cloud and SaaS
Accelerating adoption through cloud and SaaS 2011 33 400+ 120+ 22% x6 First Core Clients use Temenos of all new Increase in Temenos banking Temenos Cloud deals are Total Cloud client clients Cloud employees cloud Contract services Value 2011 2012 2013 2014 2015 2016 2017 2018 25
Slide 26: An expanding partner ecosystem to support our growth
An expanding partner ecosystem to support our growth 700+ 1054 233 Core banking Go-lives 2018 go-lives clients (2011-17) 6000+ 30 Experienced Global and Temenos and Regional partner consultants Implementation Partners (SIs) 26
Slide 27: Using M&A to accelerate organic growth
Using M&A to accelerate organic growth Increased scale Accelerated growth in key markets and segments Adjacent markets and complementary products
Slide 28: Our ambition: delivering sustainable long-term growth
Our ambition: delivering sustainable long-term growth Significant addressable market of USD 57bn globally The leader in a winner takes all market Benefiting from six drivers of growth An expanding ecosystem of 6000+ consultants M&A to accelerate organic growth 28
Slide 29: Software companies leading their categories
Software companies leading their categories 1bn 3bn 5bn 110bn (today) ~1990 1bn 3bn 5bn 40bn ~1991 1bn 3bn 5bn 25bn ~1994 1bn 3bn 5bn 13bn 2009 1bn 3bn 5bn 9bn 2007 1bn 3bn 5bn 9bn 1999 *figures rounded Once they achieved the USD 1bn revenue mark 29
Slide 30: Capital Markets Day 2019
(i. CAPITAL MARKETS TEMENOS | pay 2019 THE BANKING SOFTWARE COMPANY
Slide 31: Product leadership
Product leadership Mark Winterburn, Chief Product Officer
Slide 32: Relentless focus on innovation
Relentless focus on innovation 20% revenues 1.9 billion USD in R&D cumulative R&D investment 1990-2018 Relentless 180,000+ MD 6x TCV focus on SaaS growth in 2018 invested in R&D in innovation 2018 Evolutionary Continuous R&D Migration to cloud- Virtuous cycle of functionality and investment native,
Slide 33: 25 years of leadership in banking software
25 years of leadership in banking software REVOLUTIONARY TECHNOLOGY Client Server Multi-Tier Cloud Ready Cloud-Native 1993 2003 2013 2019 EVOLUTIONARY FUNCTIONALITY 33
Slide 34: Temenos software – the big picture
Temenos software – the big picture Banks and their ecosystem Digital Front Office Bank Peripheral APIs APIs APIs Systems 3rd party developers Core Banking 3rd party providers Client Runs Software Temenos Runs Software On Premise Temenos Cloud 34
Slide 35: Global software with localization capability
Global software with localization capability Bank branding Banks’ products and 800+ banking processes processes Pre-defined parameters 45+ role based dashboards Country Model Bank Product localizations Software Tax Global software with more than 200 modules Regulatory reporting ava
Slide 36: Significant investment in innovation
Significant investment in innovation MARKET DRIVERS Clients Prospects Partners Staff PRODUCT INPUTS Rational Rational PRODUCT MANAGER REVIEWS PRODUCT MANAGER PROPOSAL PRODUCT BOARD Core Regional Customer Reject 36
Slide 37: Enabling Continuous Deployment
Enabling Continuous Deployment Temenos Model Bank MarketPlace provider updates software & updates Temenos Continuous Assemble Integration/testing Development (TCD) Bank Production Developers Extend Release Development Deployment Bank code and tests Build in the morning, consume in the afternoon 37
Slide 38: The six drivers of growth
| The six drivers of growth ¥* TEMENOS T24 Transact 4 TEMENOS Payments 4 TEMENOS Fund Administration of ¥. TEMENOS Infinity 4) TEMENOS WealthSuite TEMENOS SaaS WO TEMENOS 38
Slide 39: Temenos T24 Transact
Temenos T24 Transact Alex Duret, Product Director
Slide 40: The core banking market opportunity
The core banking market opportunity Core banking is the transaction processing and position keeping system of the bank Medium term spend of $5.0bn growing at 7% CAGR Our product offering is Temenos T24 Transact Our value proposition is to deliver a faster and cheaper transformation through technolog
Slide 41: Competitive landscape
Competitive landscape Infosys Oracle Sopra Mambu Global presence Cloud-native All market segments, all sizes Pre-integrated, end-to-end solutions Long term upgrade path 41
Slide 42: Modern core technology is a top priority
Modern core technology is a top priority Most important technology areas to financial institutions in 2019 Create digital capability 28% Modernize legacy systems 23% Manage security, identity and privacy 18% Build a modern workplace 15% Adopt cloud services 10% Source: 2019 Banking and Capital Marke
Slide 43: Cloud-native: a revolution in banking software
Cloud-native: a revolution in banking software Hardware Cloud Hosting Applications Containers & Microservices Databases Distributed Database Enterprise IT DevOps Interfaces Open APIs 43
Slide 44: What is the business value?
What is the business value? Up to Up to 10x 15-20% 100x faster lower infra revenue response costs uplift times Distributed, Faster time to market Query cloud-native with Continuous optimised architecture Deployment microservices (1) Azure TCO calculator (2) AWS TCO calculator (3) 50% decrease of hos
Slide 45: T24 Transact is a highly differentiated product
T24 Transact is a highly differentiated product Breadth & Depth Choice All banking segments Cloud-agnostic Country models Also on premise, or SaaS + Distribution, Analytics, KYC… Innovation Stability Quick adoption of new tech Continued R&D investments Continuous Deployment 25 year
Slide 46: Temenos Infinity
Temenos Infinity Darryl Proctor, Product Director
Slide 47: The digital front office market opportunity
The digital front office market opportunity Digital front office is the platform built for marketing to, acquiring and servicing customers of the bank digitally Medium term spend of $5.3bn growing at 8% CAGR Our product is Temenos Infinity, a digital banking solution focused on customer experience O
Slide 48: Competitive landscape
Competitive landscape Backbase EdgeVerve Crealogix Digital front to back Abstracted full banking capability Crosses all banking verticals Proven digital onboarding with journey analytics Extensive partner ecosystem 48
Slide 49: Temenos Infinity – The Window and Door to your bank
Temenos Infinity – The Window and Door to your bank Data Driven customer journeys Embedded or Integrated Embedded in T24 Transact And/OR Integrated to 3rd Party CBS 49
Slide 50: Banks struggle with fragmentation across silos…
Banks struggle with fragmentation across silos… Mobile Internet Call Centre Branch Agent RM Chat-bot ATM API Separate Channels Different CX Retail Business Loan Mortgage for every Wealth CX Banking Banking Origination Origination product Legacy Back office Retail Corporate Wealth Lending Mortgage Pr
Slide 51: Why is Temenos Infinity different
Why is Temenos Infinity different Mobile Internet Call Centre Branch Agent RM Chat-bot ATM API Mobile Internet Call Centre Branch Agent RM Chat-bot ATM API Omni- channel Front Office - Business Logic Abstracted Mortgage Banking Retail Business Loan Wealth CX Product Banking Banking Origination Origi
Slide 52: Temenos Infinity – The Big Picture
Temenos Infinity – The Big Picture Mobile Internet Call Centre Branch Agent RM Chat-bot ATM API Presentation Process Integration API layer Watchlist Customer Marketing Single Customer View - CRM Servicing Profitability KYC Real-time Account Money CMS Predictive Engagement Aggregation Mgmt/PFM. Analy
Slide 53: Payments
Payments Sujatha Venkatraman, Product Director
Slide 54: The payments market opportunity
The payments market opportunity Payments are the solutions banks use to manage, repair and process any type of payments Medium term spend of $2.7bn growing at 10% CAGR Our product offering is Temenos Payments Our value proposition is a centralized hub for real-time management, repair and processing
Slide 55: Competitive landscape
Competitive landscape Dovetail Fundtech Clear2Pay ACI (Fiserv) (Finastra) (FIS) Global presence Multi-product Universal payments process Extensive partner ecosystem 55
Slide 56: Multiple paradigm shifts impacting payments
Multiple paradigm shifts impacting payments Sharp increase in Increased customer payment volumes expectations Banks need a modern payment solution to remain competitive Instant Payments Rise of non-bank and open APIs players New global standards (ISO20022) 56
Slide 57: Proven products covering entire payments lifecycle
Proven products covering entire payments lifecycle Compliance Temenos Modules Channels Temenos Payment Analytics Temenos Order Payments Ecosystem Financial Temenos Crime Mitigation Payments Modules Hub Payment Repair Products designed to work separately & together, providing flexibility to tailor a
Slide 58: Widest range of deployment options
Widest range of deployment options Embedded Temenos Payments + T24 Transact On-Premise or Stand-alone Temenos Payments + any Cloud Core Banking solution 58
Slide 59: Temenos Payments consistently top-rated by analysts
Temenos Payments consistently top-rated by analysts #1 #1 #1 Core Banking Best-Selling Best-selling for the last Payments Digital Banking 7 years System & Channels Winner: Shortlisted: Leader Payments Innovation of Best Consumer Payments 2018 Asia Pacific Vendor the Year Initiative (with KBC) Landsc
Slide 60: Temenos Payments – Client growth
Temenos Payments – Client growth 2018 2016 2017 60 Public customer names only
Slide 61: Capital Markets Day 2019
(i. CAPITAL MARKETS TEMENOS | pay 2019 THE BANKING SOFTWARE COMPANY
Slide 62: WealthSuite
WealthSuite Pierre Bouquieaux, Product Director
Slide 63: The Wealth market opportunity
The Wealth market opportunity Wealth is the solution banks use to service the investment needs of clients from retail to U/HNW Medium term spend of $0.6bn growing at 8% CAGR Our product offering is the Temenos WealthSuite Our value proposition is to leverage our best of breed components, PMS, CRM an
Slide 64: Competitive landscape
Competitive landscape ERI Charles Avaloq FNZ Bancaire River Global presence Multi-Components Multi-Segments Extensive partner ecosystem** 64
Slide 65: A growing market
A growing market Traditional Private/ New Retail/ Wealth Market Mass Affluent Market Growth Opportunities 65
Slide 66: The Retail & Affluent Wealth Opportunity
The Retail & Affluent Wealth Opportunity 53% of the The lost segment Source: Wealth Managers in Europe Join the world’s wealth > USD 1 million USD 142.0 tn (44.8 )% Hybrid Race, Aite, July 2018 USD 100,000 USD 124.7 tn to 1 million (39.3%) USD 10,000 USD 44.2 tn to 100,000 (13.9%) < USD 10,000 USD 6
Slide 67: New Modules
New Modules GOAL BASED INVESTING ROBO ADVISOR 67
Slide 68: Temenos Goal-based Investing
Temenos Goal-based Investing Attractive and easy to use screens provided Goal type, risk level, target amount, as well as API access for full functionality contributions and timeline Screens & Goal setting API’s Deposits and withdrawals fully integrated with Temenos T24 In-built Monte Carlo Transact
Slide 69: New Geographies
New Geographies Country Tax lots model bank Improve the wealth management scope by supporting the tax A standard out-of-the-box dimension for portfolio package that offers the management, analysis, specialization of reporting, optimization of WealthSuite according to investment ordering the regulato
Slide 70: Fund administration
Fund administration Oded Weiss, Managing Director
Slide 71: The Fund administration market opportunity
The Fund administration market opportunity Fund administration are the solutions banks use to provide fund administration services to asset managers Medium term spend of $1.6bn growing at 8% CAGR Our product offering is Temenos Fund Administration Our value proposition is a single platform for key a
Slide 72: Competitive landscape
Competitive landscape SS&C Simcorp FIS Linedata Global presence TPA Focused Integrated workflow Cross Assets Integrated ETF 72
Slide 73: The Global Fund Service Market
The Global Fund Service Market Third Party Asset Managers ~75% Administrators (TPA) 40,000 globally Back Office 80 globally $79tn AUM Outsourced $60tn AUA $33b Revenue Market Data In House 10% Annual Growth Order Management $8b Technology Spend Middle Office (IBOR) 50% Fund Accounting (ABOR) 8
Slide 74: The Fund Service Technology Market
The Fund Service Technology Market Third Party Administrators Asset Managers (TPA) 40,000 globally 80 globally Market Data Order Management Middle Office (IBOR) Fund Accounting (ABOR) Transfer Agency 74
Slide 75: Temenos Products
Temenos Products Third Party Asset Managers Administrators (TPA) 40,000 globally 80 globally 8 Clients 35 Clients Multifonds Middle Office (IBOR) 7 of the top global 10 Global Accounting (MFGA) Fund Accounting (ABOR) NAV Calculations for Mutual, ETF and Hedge funds 35 Jurisdictions 10 Sales/Pr
Slide 76: The Need for Contingency and Oversight
The Need for Contingency and Oversight The 2015 Bank of New York Mellon Outage Key market drivers A software problem at Bank of New York Mellon (BK) caused inaccurate values on up to 1,200 mutual and exchange-traded funds. The problem began Regulatory pressure to on August 24 -- just as U.S. markets
Slide 77: Navigator by Temenos and Bloomberg
Navigator by Temenos and Bloomberg Sales leveraging: Navigator Product 900 AIM Clients Target Market 350,000 Terminals NAV Oversight and 2,000 people sales force Contingency capability for 180 Asset Management sales specialists Asset Managers: Independent of their Customer Support Asse
Slide 78: Navigator Go to Market Plan
Navigator Go to Market Plan Integration with the Bloomberg network Sales force training Marketing material Proof of concept with H2 2018 H2 2019 selected clients Planning Full speed to Design H1 2019 market ! Commercial Agreement 78
Slide 79: SaaS and Cloud
SaaS and Cloud Andrew Reeves, Head of SaaS and Cloud
Slide 80: The SaaS and cloud market opportunity
The SaaS and cloud market opportunity SaaS and cloud enable banks to use our solutions in a cloud environment which can be run by Temenos Applicable across all Temenos products over time Our offering is Temenos Cloud and SaaS Our value proposition is enabling banks to optimise their use of cloud tec
Slide 81: Competitive landscape
Competitive landscape Mambu Fidor Finastra Infosys Avaloq Global presence with regional customization Extensive product offering Cloud Native capabilities for core services Robust API architecture Extensive partner ecosystem** 81
Slide 82: Temenos Cloud History
Temenos Cloud History All Temenos Temenos First client on Cloud Native on software on Continuous Temenos Cloud Temenos Cloud Temenos Cloud Deployment 2011 2014 2018 2019 Temenos has amassed more cloud expertise and experience than any other banking software vendor. 82
Slide 83: Cloud is gaining traction
Cloud is gaining traction 81% 35% of companies surveyed have a multi-cloud are looking to cloud technologies to address their strategy, according to the RightScale report computing power needs “State of Cloud 2018” 94% 60% of responders from a Microsoft survey foresee deploying more computing power
Slide 84: The market for banking services in the Cloud
Company Confidential 6 The market for banking services in the Cloud Market Drivers Temenos Temenos Temenos Temenos Traditional Continuous Deployment Cloud Managed SaaS Continuous Deployment Cloud Managed SaaS Services Services Traditional “big banks” with vast on premise investments From the “Bi
Slide 85: Temenos Cloud Offering
Temenos Cloud Offering Temenos Continuous Deployment Extend Assemble Deliver Extend your Temenos software Bring together configuration Run your banking service from functionality through self- and local developments, with the cloud in Temenos Cloud. service environments with published versions of Te
Slide 86: Banking functionality coverage
Company Confidential A winning position Existing front Banking functionality coverage to back banking providers developing a cloud offering Emerging cloud- Front- native office back- providers office with cloud Cloud entrants offerings native back office Niche wrappers cloud native solutions Ability
Slide 87: Capital Markets Day 2019
(i. CAPITAL MARKETS TEMENOS | pay 2019 THE BANKING SOFTWARE COMPANY
Slide 88: Implementation and Partner strategy
Implementation and Partner strategy Alexa Guenoun, Chief Client Officer
Slide 89: Temenos – proven success
Temenos – proven success 700+ 1054 233 Core banking Go-lives 2018 go-lives clients (2011-17) 6000+ 30 Experienced Global and Temenos and Regional partner consultants Implementation Partners (SIs) 89
Slide 90: Banks have traditionally been unable to justify Banking Transformations
Banks have traditionally been unable to justify Banking Transformations Traditional Time to value Market reality approaches Best-of-breed approaches introduce delays and complexity High-profile failures Costly and time- consuming vendor + selections High profile outages* Business case Prog
Slide 91: Banks can transform faster and at reduced cost with Temenos
Banks can transform faster and at reduced cost with Temenos Ongoing operational • Accelerating testing by 100x • Turning fixed costs into variable costs costs • Overall efficiency gains • Inbuilt security and resilience (active- including faster TTM increasing active) Change revenues 15-20% • Reduce
Slide 92: Temenos enables continuous banking transformations
Temenos enables continuous banking transformations 1. Software Package 2. Modern 3. Continuous 4. New Maturity Architecture Deployment Implementation Strategies + + + Proven functionality API-first Continuous deployment (DevOps) Build and renovate Country model bank Model bank Cloud-na
Slide 93: Build & Renovate offers fastest time to market and minimises risk
Build & Renovate offers fastest time to market and minimises risk Build Progressive (& migrate) renovation Build & renovate* Build a new front-to-back stack for a ring-fenced business area with minimal core-to-core integration Renovate continuously to migrate remaining business and address chang
Slide 94: Temenos Partner landscape in 2018
Temenos Partner landscape in 2018 Global System Integrators Local/Regional System Integrators Technology Partners Technology 94
Slide 95: Blended Learning, Training & Certification of Temenos Software
Blended Learning, Training & Certification of Temenos Software Virtual or instructor-led Cloud-based, community Bank-specific, digital classroom training provided learning platform for unlimited, transformation platform by highly experienced, 24x7 access to official Temenos that shapes & documents a
Slide 96: Capital Markets Day 2019
(i. CAPITAL MARKETS TEMENOS | pay 2019 THE BANKING SOFTWARE COMPANY
Slide 97: Bank Leumi's digital transformation
Bank Leumi’s digital transformation Illan Buganim, First Executive Vice President and Head of Data Division, Bank Leumi
Slide 98: Hello Pepper
HELLO \__ PEPPER
Slide 99: The Digital Revolution
5021) The Digital Revolution pA an) Dei —Attention! Dangerous Autpnomnus (@) |@ fm (4 curves amazon M shoppe a, = e- = ane a ‘ 72> 2) (2011 igital retai “S \ e } = =| NOKIA — < The Mobil é a NS CY ee Revolution 2007) $ pus? ( eg NX = \ Social “ yale — = networks re a gg 1S) al | e- comers LL 2008) t
Slide 100: We are here to build a bank that people...
_ WE ARE H TO BUILD A BANK THAT PEOPLE
Slide 101: Let's face it. Banking today is painful.
Slide 102: Visit the branches, listen to them
VISIT THE £ TBM LISTEN TO THEM
Slide 103: Despite the digital transformation, we still need branches
Slide 104: Better banking experience
De MATS BETTERBANKING EXPERIENCE.
Slide 105: To do this, not renovate
TO DO THIS, NOTRENOVAT
Slide 106: These trends are affecting banking all over the world
THESE TRENDS ARE AFFECTING BANKING ALL OVER THE WORLD ¢ Digital banking in the US has tremendous potential, which has yet to be realized « Digital consumers and millennials are looking for alternatives to traditional banking + Digital players, fintechs and banks are trying to penetrate the digital b
Slide 107: What is Pepper?
WHAT IS PEPPER? Pepper is a retail mobile only bank, specially designed for the digital era Incubated in Leumi Bank, Israel’s largest financial group and the leader * in digital banking ow Founded in 2015, launched in 2017 Pe Highest market share of new bank accounts in Israel in 2017 Ranked among t
Slide 108: Temenos
WO TEMENOS
Slide 109: It's built to offer a full suite of banking services
Slide 110: Not even a website
Not even a website
Slide 111: No Fees. EVER.
» 2. ‘ No Fees. ~ EVER. x cannibalization
Slide 112: A Whole New Technology
er A Whole New Technology Real-time, on-the-go response
Slide 113: Personal, Simple and Smart
A __AAPersonal, Simple and Sma _ N Using our data to benefit our clients
Slide 114: We allow clients aged 16-18 to open an account all by themselves
we allow clients aged 16-18 to open an account all by themselves
Slide 115: Our financial solution suites
OUR 3 FINANCIAL SOLUTION SUITES RANKING PAY invest FRONT-END UI, UX, front-end code SERVICE LAYERS ESB, integration DATA Live data collected from current users TECHNOLOGY ‘Temenos core banking, Vmware cloud infrastructure, Big Data infrastructure | KNOWLEDGE & EXECUTION EXPERIENCE |
Slide 116: LeumiMind, Pepper
P LeumiMind, Pepper = Investments - & f | launching the app and expanding it &Bken Phase 2- Full Migration “y l Retail Pay - == C 7 : —_ < Payment vouchers, Pmt , biling authorizasorsal 2i4 Phase 1 Initial Migration | Pay for Businesses, __ Adding banking capabilies ) 4 ae PEPPER. ee Powered by Teme
Slide 117: Thank you
THANK YOU
Slide 118: Capital Markets Day 2019
(i. CAPITAL MARKETS TEMENOS | pay 2019 THE BANKING SOFTWARE COMPANY
Slide 119: Creating shareholder value
Creating shareholder value Takis Spiliopoulos, CFO
Slide 120: A sustainable and attractive business model
A sustainable and attractive business model 15 years 22% management board license revenue growth average tenure (CAGR) 57% Stable business $12bn total shareholder return model; market cap p.a. since IPO committed community $989m $314m FY 19 consensus revenue FY19 consensus EBIT Strong community of C
Slide 121: Strong growth across KPIs
Strong growth across KPIs Total software license revenue Recurring revenues 383 383 316 342 301 256 276 214 217 231 USDM 143 148 USDM 2013 2014 2015 2016 2017 2018 2013 2014 2015 2016 2017 2018 EBIT margin EPS 30.3% 31.5% 2.96 29.4% 27.3% 28.1% 2.45 2.07 24.1% 1.73 1.44 1.22 USD per % share 2013 201
Slide 122: Outstanding cash-flow generation
Outstanding cash-flow generation Operating Cash Flow DSOs 250 230 375 210 190 300 170 225 150 365 130 198 150 300 181 256 110 227 154 191 90 169 127 75 119 114 70 USDM DSO days - 50 2013 2014 2015 2016 2017 2018 2013 2014 2015 2016 2017 2018 122
Slide 123: Disciplined capital allocation (2013-2018)
Disciplined capital allocation (2013-2018) Balance sheet (31-Dec-18) Total available financing USD 1bn Share Weighted average interest buyback 44% Acquisitions 43% rate 3.0% Weighted average debt maturity 3 years Dividends 13% Leverage ratio 1.6x Targeted acquisitions for USD600m+ and returned USD80
Slide 124: Using M&A to accelerate organic growth
Using M&A to accelerate organic growth Date Price ($m) Capabilities Dec 18 $245.0 Digital front office Core banking, wealth Feb 17 $50.0 management Mar 15 $260.0 Fund and securities Feb 15 $55.0 Core banking, analytics Core banking, risk and Mar 13 $24.0 compliance Sep 12 $14.7 Channels Jul 11 $1.3
Slide 125: Shareholder value creation
Shareholder value creation Since IPO on Total shareholder return 1 year 4 years 10 years 25/6/01 at CHF (USD, 30/4/19) 23 per share Temenos 32% 372% 1158% 1248% Swiss Performance Index 8% 17% 193% 310% Stoxx Euro 600 -3% 13% 135% 184% Nasdaq 16% 72% 432% 376% Peer group average 17% 85% 495% 624% 125
Slide 126: Holding up well vs. US tech world dominators
Holding up well vs. US tech world dominators Since IPO on Total shareholder return 1 year 4 years 10 years 25/6/01 at CHF (USD, 30/4/19) 23 per share Temenos 32% 372% 1158% 1248% Amazon 23% 357% 2293% 14939% Apple 23% 72% 1170% 13217% Facebook 12% 146% N.A. N.A. Google 18% 118% 505% N.A. Netflix 19%
Slide 127: Drivers of growth
am © | Drivers of growth < -* be
Slide 128: A continuously growing market
A continuously growing market Total addressable market CAGR 5% Third party spend CAGR 8% 60.0 USD 57bn USD 50bn 50.0 USD 46bn 40.0 USD bn 30.0 20.0 USD 15bn USD 10bn USD 12bn USD 9bn 10.0 - Addressable Market Third Party Spend Addressable Market Third Party Spend Addressable Market Third Party Spend
Slide 129: Expanding our market opportunity
Expanding our market opportunity 16.0 14.0 Added compliance and origination 12.0 capabilities Added fund Third party spend (USD billions) administration 10.0 Added payments 8.0 6.0 4.0 2.0 - 2007 2013 2015 2018 2022 Core banking Front Office Wealth FO Payments Fund Admin Source: Gartner, IDC, Celent
Slide 130: Increasing the tier 1 and 2 client mix
Increasing the tier 1 and 2 client mix Non-IFRS total software licensing revenues by client tier Tier 1 & 2 Tier 3, 4 & 5 2015 2018 Long term 130
Slide 131: Building momentum in North America
Building momentum in North America Non-IFRS total software licensing, North America vs. Rest of World North America Rest of World 2015 2018 Long term 131
Slide 132: Increasing disclosure on SaaS metrics
Increasing disclosure on SaaS metrics Total Contract Value Annual Contract Value USDm USDm 59 14 4 5 9 1 2016 2017 2018 2016 2017 2018 SaaS revenue Annual Recurring Revenue USDm USDm 31 54 21 25 10 11 2016 2017 2018 2016 2017 2018 132
Slide 133: SaaS revenues are growing rapidly
SaaS revenues are growing rapidly Non-IFRS Software licensing vs. SaaS revenues SaaS Software licensing 2015 2018 Long term 133
Slide 134: A three-pronged approach to M&A
A three-pronged approach to M&A Accelerated growth in key markets and segments Increased scale Adjacent markets and complementary products
Slide 135: Sustainable annual growth targets
Sustainable annual growth targets
Slide 136: Sustainable annual growth targets
Sustainable annual growth targets Metric Sustainable long term annual targets (Non-IFRS) Total software licensing At least 15% CAGR Total revenue 10-15% CAGR EPS At least 15% CAGR DSOs Less than 90 days EBIT Margin 36%+ Tax rate c. 20% Cash conversion 100%+ of EBITDA p.a. 3-5 year targets EBIT Margi
Slide 137: Corporate Social Responsibility
Corporate Social Responsibility Kalliopi Chioti, Head of Sustainability and CSR
Slide 138: Our Approach
Our Approach Our Values: We operate responsibly to build a sustainable business Our Commitments To build long term sustainable relationships To manage our operations responsibly To help our clients transform into sustainable organizations To achieve both financial and non-financial value Our
Slide 139: Our 2018 Highlights
Our 2018 Highlights 1. Indices & Awards: SXI Switzerland Sustainability 25® Index Ecovadis Silver Medal Great Place to Work® Awards in Greece, Luxembourg and UAE 2. Environment ISO 14001:2015 EMS certification in India (52% of Temenos headcount) Offset 2018 business travel emissions (84% o
Slide 140: Our Action Plan
Our Action Plan How to manage our CSR strategy CSR & Ethics Committee chaired by CEO and reporting to the BoD How to measure 2016-2019: Set up an internal mechanism our ESG footprint 2019-2022: Identify priority areas and set targets How to communicate Continuous stakeholder engagement and reporting
Slide 141: Our Materiality Analysis
Our Materiality Analysis 141
Slide 142: Our Priorities for 2019-22
Our Priorities for 2019-22 Achieving Business Operating Enabling Access to Investing in Investing in Our Excellence Responsibly Financial Services Our People Communities Client Voice & Conduct & Governance Financial Inclusion Community Investment - Diversity Gender Equity, Digital Satisfac
Slide 143: Capital Markets Day 2019
(i. CAPITAL MARKETS TEMENOS | pay 2019 THE BANKING SOFTWARE COMPANY
Slide 144: Thank You
Thank You temenos.com
Slide 145: SaaS is not Cloud
SaaS is not Cloud Deployment options in the cloud Bank Accesses the service over the With the bank’s own cloud web and Workstations subscription and application manages the local workstations management services Applications (bank’s cloud, public or private) Bank or SaaS Provider Data Provides app
Slide 146: SaaS - Financial metrics definitions and reporting
SaaS - Financial metrics definitions and reporting Annual value of incremental business taken in-year (Bookings). Includes New Customers, up-sell/cross-sell. Only includes the Annual Contract Value (ACV) recurring element of the contract and exclude variable elements. Disclosure: quarterly reporting