Temenos Ag · SIX:TEMN
Temenos — Investor Day (December 2011)
32 slides from Temenos's investor day presentation, December 2011
Slide 1: The Banking Software Company
\é The Banking Software Company
Slide 2: Market leadership through Product Innovation
Market leadership through Product Innovation
Slide 3: Temenos Investor Day
Temenos Investor Day 1. We have the best track record for innovation 2. We are extending our product leadership 3. Our evolving architecture opens new markets 4. We have the right team to deliver the roadmap 3
Slide 4: The Strongest Record on Innovation
The Strongest Record on Innovation Higher R&D Superior (>$600m)* Innovation A long line of pioneering advances in Core banking Windows SOA XML 24/7 Models BI Cloud Apps GUI 1996 2000 2004 2008 2012 Platforms ARC AA *to end of September 2011, Temenos had spent $607m on R&D 4
Slide 5: Temenos
ve é TEMENOS
Slide 6: Temenos' Competitive Advantage
Temenos’ Competitive Advantage Only Temenos delivers this Flexible, configurable system built on open architecture Packaged front to back integrated suite with best of breed components Greatest functional breadth Platform independence Best practice Model Bank with Country-specific configurat
Slide 7: Product Issues confronting the Banks
Product Issues confronting the Banks Traditionally banking solutions contain product silos Functionality and product features exist within their silos Siloed Product Architecture Accounts Mortgages Product Definition Product Definition Product Servicing Product Servicing Deposits Consumer loans Prod
Slide 8: Arrangement Architecture – Game changing products
Arrangement Architecture – Game changing products Product design and servicing become enterprise level functions Business feature / functions are encapsulated in a set of re-usable product components Product Design & Definition Product Components Customer Officer Limit Account Accounting Attributes
Slide 9: Arrangement Architecture – Game changing products
Arrangement Architecture – Game changing products Different products can be constructed by combining existing components Product Design & Definition Product Lines Lending Term Deposits Accounts Product Bundles Product Components Customer Officer Limit Account Accounting Attributes Actions Attributes
Slide 10: Arrangement Architecture – Game changing products
Arrangement Architecture – Game changing products Banks can define product hierarchies with product groups and families New products can be launched simply and quickly using the hierarchy Product Design & Definition Product Lines Lending Term Deposits Accounts Product Bundles Product Groups Loan Pro
Slide 11: Arrangement Architecture – One Solution, Multiple Markets
Arrangement Architecture – One Solution, Multiple Markets One consolidated system to serve all lines of business Product Design & Definition The value proposition for Tier 3 & 4 Product Lines Lending Term Deposits Accounts Product Bundles Product Groups Fast time to market Product Families Product
Slide 12: Leadership Through Constant Innovation
Leadership Through Constant Innovation • AA underpinning product innovation across the Roadmap • Enterprise Architecture • Complete componentisation Together enabling independent component releases – game-changing banking applications To-date Mid-term Competitive Advantage for our Customers 12
Slide 13: We are evolving the architecture of the product
We are evolving the architecture of the product User Agent User User Banking Agent Interface Capability User Agent 13
Slide 14: Interaction Framework
We are evolving the architecture of the product User Banking Interaction Framework Agent Capability Other User Banking Agent Capability User Non banking Agent Capability 14
Slide 15: Interaction Framework
We are evolving the architecture of the product Banking Interaction Framework Capability Other Banking Capability Non banking Capability Banking App Store 15
Slide 16: Integration Framework Interaction Framework
We are evolving the architecture of the product Component Framework Integration Framework Interaction Framework 3rd party Banking App Store Component Banking 16
Slide 17: Evolving the Architecture
Evolving the Architecture User Agents Design Studio Improving the Enterprise Interaction Framework customer experience Increasing the Leveraging potential market the platform Enterprise Platform Framework Reporting Transactions cloud Model appliance grid 17
Slide 18: Temenos Investor Day
Temenos Investor Day 1. We have the best track record for innovation 2. We are extending our product leadership 3. Our evolving architecture opens new markets 4. We have the right team to deliver the roadmap 18
Slide 19: Customer centricity drives our growth
Customer centricity drives our growth
Slide 20: Temenos Investor Day
Temenos Investor Day 1. Driving revenue from our customer base 2. Taking services to the next level 3. Ensuring our sales engine delivers growth target 20
Slide 21: Driving revenue from our customer base
Driving revenue from our customer base Provide solutions for Temenos Insight – BI market $7.8bn, 7% growth today’s environment Temenos Wealth Manager – $3.8bn, 8% growth Increase Account Management focus Invest in sales and marketing to the base Inside Sales – drive 20% increase in leads Targeted
Slide 22: Taking services to the next level
Taking services to the next level Organise around Create one single customer group – CSG the customer New executive leadership Make customer Invest in external customer sat programme satisfaction a key metric Achieve best in class NPS score Temenos 24DWM – 24 days, weeks, months Expand service
Slide 23: Ensuring our sales engine delivers growth target
Ensuring our sales engine delivers growth target Increase productivity Deploy new sales methodology and tooling and predictability Multi-product sales strategy to increase deal size Move to best in class levels Reallocate investment to sales and marketing Bias in investment over three years to S&M
Slide 24: Partner remains key driving force
Partner remains key driving force Temenos and IBM announce Highest scalability results to date; deepening relationship confirms high performance, low TCO technology option for large GENEVA, Switzerland – 1st December 2011 - banks Temenos (SIX: TEMN) the market leading provider of banking software an
Slide 25: Temenos Investor Day
Temenos Investor Day 1. Driving revenue from our customer base 2. Taking services to the next level 3. Ensuring our sales engine delivers growth target 25
Slide 26: Mid-term financial goals
Mid-term financial goals ve Ss TEMENOS
Slide 27: Temenos Investor Day
Temenos Investor Day 1. We are outlining mid-term financials goals 2. We are moving cost structure towards benchmarks 3. We commit to significant margin improvement and cash flow generation 27
Slide 28: Mid-term Goals
Mid-term Goals 1 Return to 10-15% annual licence growth 2 Restore Services to double-digit margins 3 Keep Services Contribution to c.25% of total revenues 4 Increase Adj. EBIT margins by 100-150bps on average p.a. 5 Maintain 100% conversion of EBITDA into Cash from Ops We aim for steady and sustaina
Slide 29: Moving cost structure towards benchmark
Moving cost structure towards benchmark LTM* Direction S&M 17% R&D 22% G&A 12% Services 27% Total Costs 79% Leading to substantial margin improvement * Adjusted cost represented as % of total revenues in the Last Twelve Months We will move towards benchmark cost structure with costs shifting towards
Slide 30: Margin and Cashflow Goals
Margin and Cashflow Goals Committed to 100-150bps average annual margin improvements delivered by cumulative incremental maintenance revenue Growth initiatives to be funded through rebalancing our investments until markets are less volatile DSOs will continue to decline over the medium term through
Slide 31: Temenos Investor Day
Temenos Investor Day 1. Our market supports sustainable, mid-term growth 2. Our value proposition answers the industry’s challenges 3. We have the strategy to extend our leadership 4. We are outlining mid-term financial goals and have the right team to deliver 31
Slide 32: Temenos
i TEMENOS