Temenos Ag · SIX:TEMN

Temenos — Merger or Acquisition (August 2019)

20 slides from Temenos's merger presentation, Aug 28, 2019

1. Slide 1: Temenos: The Banking Software Company

   TEMENOS THE BANKING SOFTWARE COMPANY

2. Slide 2: Acquisition of Kony, Inc.

   Acquisition of Kony, Inc. 28 August 2019

3. Slide 3: Agenda

   Agenda 1. Acquisition overview……………………………………...Max Chuard, CEO 2. Introduction to Kony…….Thomas E. Hogan, Chairman and CEO, Kony 3. Transaction summary………………………………..Takis Spiliopoulos, CFO 4. Conclusion…………..……………………………………...Max Chuard, CEO 5. Q&A 3

4. Slide 4: Acquisition overview

   Acquisition overview Max Chuard, CEO

5. Slide 5: Introduction

   Introduction Temenos is acquiring Kony for an enterprise value of USD 559m and an earn-out of USD 21m Kony is the No.1 digital banking SaaS provider in the US Strengthens Temenos Infinity as the richest and most technologically advanced digital banking product Global team of 1,500 people brings unma

6. Slide 6: Strategic rationale

   Strategic rationale  Significantly enhances Temenos Infinity, our digital front-office platform, by combining Kony’s award-winning digital banking experience (DBX) and multi-experience development platforms (MXDP) with the best components of Temenos Infinity and Avoka  Create the market leading di

7. Slide 7: The digital banking opportunity

   The digital banking opportunity  USD 23bn addressable market globally for digital banking software  Fragmented competitive landscape across incumbent banking software vendors, specialist front office providers and best of breed fintech companies  Banks are increasingly seeing the benefits of pack

8. Slide 8: Significantly expanding our US presence

   Significantly expanding our US presence  Acquisition significantly enhances the Temenos US Temenos presence across the US operations  Kony is headquartered in Austin, Texas, with 230 employees across the country  Takes Temenos’ US workforce to over 700 employees  Increases Temenos’ US presence t

9. Slide 9: Introduction to Kony

   Introduction to Kony Thomas E. Hogan, Chairman and CEO, Kony

10. Slide 10: Overview of Kony

    Overview of Kony • Global leader in digital banking and low-code development platforms Market leader in digital • Recognized as a leading player by analysts including Forrester & IDC banking • Very strong mobile development and application capabilities • Global client base of over 100 banks across t

11. Slide 11: Kony Quantum and DBX platforms

    Kony Quantum and DBX platforms  Quantum is a low code multi-experience development platform (MXDP) that enables the creation of native applications with excellent customer experience across multiple devices from one set of tools  DBX is a flexible omni-channel banking platform which combines out-o

12. Slide 12: Creating the market leader in digital banking

    Creating the market leader in digital banking Backbase Q2 EdgeVerve Crealogix + Kony Digital Banking specialist Front to Back      Abstracted Full Banking Capability      Crosses all Banking Verticals      Proven Digital Onboarding  with Journey Analytics     Global Solution – US

13. Slide 13: Transaction summary

    Transaction summary Takis Spiliopoulos, CFO

14. Slide 14: Transaction summary

    Transaction summary • Temenos is acquiring Kony for an Enterprise Value of USD 559m and an earn-out of USD Acquisition price 21m • Kony has c. USD 50m of debt on Balance Sheet • The acquisition is being funded through cash and debt • Temenos is using a combination of its existing revolving credit fa

15. Slide 15: Revenue and cost synergies

    Revenue and cost synergies  Digital banking is a major investment area for banks globally  Significant opportunities for revenue synergies from the acquisition of Kony  The main drivers for revenue synergies are:  Cross-selling the KonyDBX and Quantum platforms to the Temenos client base globall

16. Slide 16: Reconfirming our sustainable annual growth targets

    Reconfirming our 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 t

17. Slide 17: Conclusion

    Conclusion  Significantly enhances Temenos Infinity, our digital front-office platform, by combining Kony’s award-winning digital banking experience (DBX) and multi-experience development platforms (MXDP) with the best components of Temenos Infinity and Avoka  Create the market leading digital ban

18. Slide 18: Thank You

    Thank You temenos.com

19. Slide 19: 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

20. Slide 20: Non-IFRS Information

    Non-IFRS Information Readers are cautioned that the supplemental non-IFRS information presented in this presentation is subject to inherent limitations. It is not based on any comprehensive set of accounting rules or principles and should not be considered as a substitute for IFRS measurements. Also

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