Temenos AG · SIX:TEMN
Temenos — FY2001 Earnings Presentation
27 slides from Temenos's earnings presentation, Mar 12, 2002
Slide 1: Financial Results & Business Review, Year ended December 31, 2001
Financial Results & Business Review Year ended December 31, 2001
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-loo
Slide 3: Presentation overview
Presentation overview Agenda Speaker Position Overview of 2001 George Koukis Chairman & CEO Financial results David Arnott CFO Business review Andreas Andreades Deputy CEO Q&A Executive Team 3
Slide 4: Overview of 2001
Overview of 2001 George Koukis Chairman & CEO
Slide 5: 2001 – A milestone year for Temenos
2001 – A milestone year for Temenos Despite adverse economic conditions Temenos has come through as the leader in its sector with revenues growing at 48%, ahead of major competitors Globus has been confirmed the Number 1 selling banking system for the 4th year in a row Our strategy of focusing
Slide 6: Financial results
Financial results David Arnott CFO
Slide 7: Q4 Highlights
Q4 Highlights Revenue Revenues at US$34.6 million, up 9% compared to the same period last year and 3% ahead of prior guidance Licencing revenue at US$16.0 million down 19% for the quarter compared to the same period last year, ahead of prior guidance Services revenue at US$18.6 million up 54% c
Slide 8: 2001 Highlights
2001 Highlights Revenue Revenue at US$140.9 million up 48% compared to prior year Strong licencing growth of 35% compared to prior year Services up 68% compared to prior year unaffected by adverse autumn 2001 events Operating costs Operating Costs at US$125.3 million up 57% compared to pri
Slide 9: Profit and Loss
Profit and Loss US$ million Quarter ended December 31 Twelve months ended December 31 % % 2001 2000 Growth 2001 2000 Growth Revenues Licensing 16.0 19.7 (19%) 79.7 58.9 35% Services 18.6 12.1 54% 61.2 36.4 68% Total revenues 34.6 31.8 9% 140.9 95.3 48% Expenses Software development 5.4 5.1 7% 30.4 1
Slide 10: Earnings per share
Earnings per share Quarter ended December 31 Twelve months ended December 31 2001 2000 2001 2000 1999 Net income (US$ million) (0.8) 2.3 5.9 10.6 5.2 Shares outstanding (m) 51.8 48.7 45.8 47.3 52.5 Diluted shares outstanding (m) 56.9 53.9 51.8 52.7 58.0 Basic EPS (0.02) 0.05 0.13 0.22 0.10 (US$ per
Slide 11: 2002 Cash flow
2002 Cash flow Qtr ended Dec 31 Twelve months to Dec 31 $US million $US million Cash at beginning of period 71.4 1.4 IPO proceeds, net - 128.4 Loan repayment - (36.0) Operating cash flow 1.9 1.3 Capital spending, including Acquisitions (6.7) (25.7) Other, including financing (1.3) (4.1) Cash at end
Slide 12: Balance sheet
Balance sheet US$ million Dec.-01 Sept-01 Dec- 00 Comments DSOs (Days) 64 60 65 collection remains strong- no weakening of credit terms in Q4 Accrued revenue 30.7 29.7 14.3 Working capital swing peaked in Less: Deferred revenue (16.8) (12.2) (20.0) Q3 as forecasted Net 13.9 17.5 (5.7) Deferred reven
Slide 13: Financial guidance
Financial guidance Backlog as of December 31, 2001 amounted to US$ 52.7 million (September 30: US$ 46.1 million), driven by Q4 ILF signings (50% ahead of prior year) Revenue guidance for Year Ending December 31, 2002 confirmed at consensus of approximately US$ 170 million Progress on our cost
Slide 14: Business review
Business review Andreas Andreades, Deputy CEO
Slide 15: Business review
Business review Q4 ILF signings significant reversal to September trends Momentum continues with satisfactory pipeline evolution and RFP flow Confident we will continue to close significant deals in current and next quarters Expect to be on plan regarding Initial licence fee signings for fir
Slide 16: 2001 Product investment and Innovation
2001 Product investment and Innovation Total organic and acquisition investment in the following products amounted to US$ 35million in fiscal year 2001: Organic: Database and platform independence Oracle, jBASE, DB2 S390, AS 400 Connectivity and integration (« TIP ») Asset management Treasury
Slide 17: Operations management
Operations management On target to deliver on our commitments to streamline our operations Services reorganisation complete, with gross margins in Q4 2001 of 11%, expected to increase to industry standard levels Faster orientation and training Better packaging of services Attractive subcon
Slide 18: Acquisitions update
Acquisitions update FINANTIX, completed 24th January 2002 Product: Financial relationship management (FRM) Wealth management advice Multi channel capability based on J2EE Globus Integration complete in CSPB Financial metrics Acquired equity stake by injecting US$2.5million cash into th
Slide 19: Acquisitions update (continued)
Acquisitions update (continued) Quetzal, completed on 23rd January 2002 Product Regulatory reporting software with strong existing client base in France and other french speaking countries Regulatory reporting and risk management high on CIOs agenda Financial metrics 100% acquisition Tot
Slide 20: GLOBUS Corebanking
GLOBUS Corebanking Pipeline evolution ahead of original expectations 20% of ILF signings target for 2002, 5% of 2002 revenues EBIT breakeven plan for 2002 Recruitment of key personnel progressing according to plan 20
Slide 21: Market share
Market share TEMENOS Globus was ranked number one in the IBS sales league table, with respect to new clients signed, for 4th consecutive year Tier 1 signings mix extends share of total market spend Product Supplier 2001 2000 Live sites 1 GLOBUS TEMENOS 35 42 450 2 Flexcube I-flex Solutions 26 26
Slide 22: Market review
Market review Drivers for converting to purchased software continue to be strong Reduced headcounts are an issue in managing IT, driving outsourcing decisions Straight Through Processing, T+1 settlements & transaction volumes key drivers for spending Industry consolidation & regulatory chang
Slide 23: Meridien Research for 2002
Meridien Research for 2002 Market spend bulls eye for Temenos and GLOBUS Retail Financial Services Wholesale Financial Services z Return on IT investments z Credit Risk z Enterprise Business Process z Enterprise Business Process Management Integration Management Integration z Security z Return on I
Slide 24: Key IT Themes in European Financial Services
Key IT Themes in European Financial Services CIO’s priorities New technology features offered by Banks by 2003 Efficiency 29% E mail automation 12 Cost savings 32% Mobile Channels 16 Core Systems 41% Data mining 20 e Business Infrastructure 77% Chat 28 Implementing CRm 80% Personalisation 32 EAI Mid
Slide 25: Additional slides
~ TEMENOS Additional slides
Slide 26: Revenue recognition-a case study
Revenue recognition-a case study December 30th : Client signs US$10 licence contract. US$5m payable on January 30th, US$5m payable on completion of project. Implementation will take place from March 1 to August 30 of year after signing On signing: Backlog = US$10m. No accounting entries On January 3
Slide 27: Revenue recognition-a case study
Revenue recognition-a case study Backlog Revenue Cash Deferred Accrued On Signing 10 0 0 0 0 On Upfront Pmnt 50% 10 0 5 5 0 Project: 20% complete 8 2 5 3 0 50% complete 5 5 5 0 0 90% complete 5 0 4 9 1 Live date 0 10 10 0 0 27