Temenos Ag · SIX:TEMN
Temenos — Investor Day (February 2017)
114 slides from Temenos's investor day presentation, Feb 15, 2017
Slide 1: Temenos
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Slide 2: Capital Markets Day 15 February 2017
Capital Markets Day 15 February 2017
Slide 3: Agenda
Agenda 10.00 – 10.45 Strategy and vision David Arnott, CEO 10.45 – 11.30 The US opportunity David Roller, CIO, Commerce Bank 11.30 – 11.45 Coffee 11.45 – 12.30 Product leadership Mark Winterburn, Group Product Director 12.30 – 13.00 Creating shareholder value Max Chuard, CFO, COO 13.00 – 13.15 Q&A 1
Slide 4: Strategy and vision
Strategy and vision David Arnott, CEO
Slide 5: Key messages
Key messages 5 The digital pressures on banks are intensifying. Vendor of choice for Tier 1 banks, significant barriers to entry. We are pulling ahead of our competition. We continue to deliver on our strategic initiatives. High quality growth underpinned by multiple drivers.
Slide 6: Our strategic initiatives
Our strategic initiatives 6 1 2 3 EXTENDING EXTENDING LEAD LEAD IN CORE PENETRATING IN PRIVATE THE US MARKET BANKING WEALTH FOCUS ON SAAS – TAKING INDUSTRIALISING FRONT-TO-BACK 1ST MOVER SALES & DIGITAL ADVANTAGE PARTNER OFFERING ALIGNMENT 4 5 6
Slide 7: Significant progress in 2016
Significant progress in 2016 7 Core Signed largest Retail deals globally, BoI and Laurentian Wealth Win rate remained at nearly 100%, including Standard Chartered, largest deal globally US Signed Commerce Bank, 38th largest bank in the US, expanded distribution capabilities Digital F
Slide 8: We won all of the major deals in the market
We won all of the major deals in the market 8 Retail & Microfinance Universal & Islamic Corporate Private and Central Banking Banking
Slide 9: Banking industry pressures intensify
Banking industry pressures intensify 99 Demanding Customers Rise of New Competitors Convenience Relevance – – anytime personalized Retailers/ Fintechs anywhere offerings telcos Reliability Technology Neobanks Responsiveness & Trust giants? Banks Economic Poor slowdown Basel II IFRS, SOX, ROEs, and I
Slide 10: We believe banks have to pursue one of strategies
We believe banks have to pursue one of 4 strategies 10 Fully-fledged aggregators E2E, open platforms Banks of the future must choose where they want to Infrastructure compete in the Profitability Traditional providers value chain universal banking Scope of activity
Slide 11: Full Front-to-back Integrated Stack
Full Front-to-back Integrated Stack Mobile Internet Call Centre Branch Agent ATM API Channels Open Banking MarketPlace Marketing Risk and Compliance Services Sales Front Office Analytics Core Banking Payments Back Office
Slide 12: Core renovation is critical for digital strategy
Core renovation is critical for digital strategy 12 Top barriers to the success of a digital strategy Heavy investments in 1 Complex and legacy core banking systems channel solutions, without supporting back office business capabilities... 2 Regulatory environment deliver only a minor share of expec
Slide 13: We have the right business model
We have the right business model 13 Packaged, Open architecture but modular Vertically integrated MarketPlace Suites Embedded Cloud analytics
Slide 14: Our market opportunity continues to grow
Our market opportunity continues to grow 14 Spend on banking software: total vs. third-party CAGR Payments +11% 45.0 USD 39bn Fund Admin +10% 40.0 Channels +8% 35.0 BI +8% 30.0 Wealth +6% USDbn 25.0 Core banking +5% 20.0 +8% 15.0 CAGR USD 12bn * USD 9bn * 10.0 5.0 0.0 Total spend Third-party spend t
Slide 15: Demand is accelerating
Demand is accelerating 15 Annual core banking sales volumes 300 250 200 +8% CAGR 28% growth in combined new and extended 150 business for global banking platform deals 100 2007 2013 2014 2015 2016* 50 Source: IBS, *2016 is Temenos estimate, Temenos addressable market segments
Slide 16: We continue to pull ahead of the competition
We continue to pull ahead of the competition 16 Top position for 11th year #1 in a row position For the last 4 years Top 2 position For the last 17 years Best-selling vendor for both new-name clients and new & repeated business
Slide 17: Looking forward
Looking forward
Slide 18: Capturing the Tier 1 opportunity
Capturing the Tier 1 opportunity 18 Progressive renovation Rich model banks for 30+ countries First go-live already achieved First milestones in 2017 Tier 1 credentials create barriers to entry for the competition
Slide 19: The progressive renovation approach is now proven
The progressive renovation approach is now proven 19 Back-to-front Front-to-back Build & Migrate EQ Bank Canada by Bank Leumi Israel Taking our key references live and showcasing them
Slide 20: The U.S. opportunity
The U.S. opportunity 20 Growth in number of FIs 2011-2016 Major c. 120 banks and credit unions .$10bn assets Accounts +8% Focus on core banking and digital > USD 10bn c. 1,300 – 1,500 banks and credit unions Mid-market +21% > USD 1bn Focus on early core banking adopter and digital c. 10,000 communit
Slide 21: Taking the lead in digital banking
Taking the lead in digital banking 21 With Temenos…banks get capabilities that equip them for the digital economy. Ovum recommends that banks shortlist Temenos when searching for a competitive digital banking platform solution. Temenos is at the forefront of digital innovation
Slide 22: Alignment with strategic partners
Alignment with strategic partners 22 Our strategic partners are key to securing large deals
Slide 23: Significant investments in sales and marketing
Significant investments in sales and marketing 23 Increase in sales 20%+ headcount Launched Sales Academy
Slide 24: Taking the lead in cloud
Taking the lead in cloud 24 • First regulated FI signed in the cloud • Go-Live in 2017 • Our first regulated Wealth client in cloud • Go-Live in 2018 • ERI Bancaire replacement in the cloud • Go-Live 2017 Our strategy with Microsoft Azure delivers lowest TCO
Slide 25: Key messages
Key messages 25 The digital pressures on banks are intensifying. Vendor of choice for Tier 1 banks, significant barriers to entry. We are pulling ahead of our competition. We continue to deliver on our strategic initiatives. High quality growth underpinned by multiple drivers.
Slide 26: Temenos
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Slide 27: The US opportunity
The US opportunity TEMENOS
Slide 28: Commerce Bank Core Transformation
Commerce Bank Core Transformation Dave Roller Senior Vice President Chief Information Officer
Slide 29: About Commerce Bancshares, Inc.
About Commerce Bancshares, Inc. 6 4 9 5 5 1 2 4 1 Super-Community Bank 6 3 2 founded in 1865 8 7 3 39th largest U.S. bank 1 $25.6 billion in assets $21.1 billion in total deposits Branch Footprint $43.1 billion in Trust asset 2 Nine key markets Extended Commercial Markets Commercial offices Source:
Slide 30: Super-Community Bank Platform
Super-Community Bank Platform A CONSISTENT STRATEGY WITH A LONG TERM VIEW Community Bank Customer relationship-based Super-Regional Bank We ask, listen and solve. • Responsive to High performing teams and engaged • Sophisticated payment customer needs and workforce system capabilities changing prefe
Slide 31: A strong emphasis on culture
A strong emphasis on culture We have a long term iew Giving We 2016 Employee Engagement 1 to our collaborate 79% VALUES as ne team We act with 74% 74% ntegrity We are ustomer Commerce U.S. High U.S. Industry focused Performance Norm Norm 1The Hay Group – 2016 survey results We strive for xcellence E
Slide 32: Long term view: net income & earnings per share
Long term view: net income & earnings per share Earnings Per Share Net Income 2.80 $350 2.60 300 2.40 Earnings per 250 2.20 Income Share $ 000s 2.00 Net 200 1.80 150 1.60 1.40 100 1.20 50 1.00 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 Dividends per share $0.61 $0.65 $0.65 $0.67 $0.69 $0.72*
Slide 33: Steady shareholder returns
Steady shareholder returns Total Shareholder Returns Annualized Comparison Indexed, 12/31/2006 = 100 Total Shareholder Returns 300 50% COMMERCE KBW BANK 250 BANK INDEX 40% NASDAQ 200 S&P 500 30% BANK INDEX 20% 150 10% 100 0% CBSH NASDAQ Banks 50 -10% S&P 500 KBW Bank Index 1 Year 3 Year 5 Year 10 Ye
Slide 34: US Banking Industry
US Banking Industry & Commerce Bank"
Slide 35: Banks facing pressures from multiple sources
Banks facing pressures from multiple sources 35
Slide 36: What is a bank?
What is a bank? A bank pools savings and then allocates that capital Current definition has evolved… Enterprise Software Company Mobile-app developer Utility Customer service organization Tool of government-mandated social policy Shareholder-return engine Policeman of criminals … Sou
Slide 37: Fintech attacking the banking value chain
Fintech attacking the banking value chain Lending Personal Finance Payments Equity Financing Remittances Retail Investments Consumer Banking Security, Fraud, Auth. Institutional Investments US$ +70bn Invested globally in FinTech in the last 6 years (CB Insights) Corporate Finance/SCF Big Data for An
Slide 38: Competition from traditional players
Competition from traditional players Not bound by size/geography Line of business specific 38
Slide 39: Customer expectations are changing
Customer expectations are changing Source: Cap Gemini World Retail Banking Report 2016 Customers have same expectations as they have with big tech firms 39
Slide 40: Economic environment
Economic environment U.S. Real GDP Unemployment Rate 9.0% 20% 68% 8.0% 67% 7.0% 6.0% 15% 66% 5.0% 4.0% 65% Unemployment Rate (left) 3.0% Wage Growth (left) 2.0% 10% 64% Labor Force Participation (right) 1.0% 0.0% 63% -1.0% -2.0% 10-year Average 5% 62% -3.0% "Sustainable" Trend Growth 61% -4.0% Y-O-Y
Slide 41: Regulatory uncertainty persists
Regulatory uncertainty persists Regulatory trends for the banking industry in 2017 Dodd-Frank Progress Report 21% Finalized rules Rules proposed, but not finalized 9% Rules not proposed 70% Source: Davis Polk Law Firm (July 2016) Source: Deloitte Banking Regulatory Outlook 2017 41
Slide 42: U.S. banking industry continues to consolidate
U.S. banking industry continues to consolidate FDIC Insured Institutions 14,427 banks in 1985 New Charters Total Institutions at Year End 15,000 228 new charters in 1999 and 300 only 1 new charter in 2015 # of FDIC insured institutions 12,000 250 # of new charters 9,000 200 5,170 banks Q3 2016 150 6
Slide 43: Current technology situation
Current technology situation ? • Disjointed customer experience • Lack of enterprise-level customer information • Digital demands stressing platforms ? ? 43
Slide 44: Legacy technology leading to replacement cycle
Legacy technology leading to replacement cycle 1970s 2010-2020 Big data Mobile banking Branch Call Center Single customer APIs view Apple Pay Open banking Deposits Lending Mortgages Credit Card Internet banking Real time Banks and Solution Providers have accumulated Technical Debt Customer expectati
Slide 45: Banks facing pressures from multiple sources
Banks facing pressures from multiple sources Key Themes: • Competition • Changing Expectations • Uncertainty • Technical Debt 45
Slide 46: Core Transformation
Core Transformation & Commerce Bank"
Slide 47: Commerce bank response to shifting landscape
Commerce bank response to shifting landscape • Super-Community Bank Platform • Core Values: We have a We We are We act with We strive for long term collaborate as ustomer ntegrity xcellence iew ne team focused • Bias toward action: We invest in our people, We are innovative and products and technolo
Slide 48: Core transformation business goals
Core transformation business goals • Improve time to market • Enhance ability to innovate • Provide comprehensive view of customers • Address technology risk • Long term efficiency 48
Slide 49: Partner selection process
Partner selection process Multi-year selection Cross-functional Extensive research of process: RFI, RFP, selection team: both US-based and demonstrations, Retail, Commercial, international solution customer reference Wealth, IT, Legal, providers activities Compliance, etc. Temenos provides a unique
Slide 50: Scope
Scope Replacement Integration of deposits Lending with existing Branch Platform and customer and channel Platform Consolidation information Payments applications systems Current Roadmap Probable Next Possible Future Steps 50
Slide 51: Why Temenos
Why Temenos Culture fit Modern Highly Shared vision integrated core configurable and of the future banking solution flexible 51
Slide 52: Temenos
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Slide 53: Product leadership
Product leadership Mark Winterburn, Group Product Director
Slide 54: Innovation – key investment areas
1. Innovation – key investment areas 2. Flexibility and scalability of product 3. Focus on architecture 4. Strength of front-to-back, vertically integrated suites
Slide 55: Digital Banking
Digital Banking Full customer lifecycle Lowest cost of ownership Customer Operational Contextual engagement Efficiency Scale, speed, secure Intimacy Digital Customer centric Banking Time to market New business models Beyond banking Innovation Collaborative ecosystem Innovation speed
Slide 56: Full Front-to-back Integrated Stack
Full Front-to-back Integrated Stack Mobile Internet Call Centre Branch Agent ATM API Channels Open Banking MarketPlace Marketing Risk and Compliance Services Sales Front Office Analytics Core Banking Payments Back Office
Slide 57: The market view - Suites
The market view - Suites @ RetailSuite &) UniversalSuite QO WealthSuite © IslamicSuite i CorporateSuite IVs FundSuite . ' Lif | ES MicroBankingSuite oes ManagementSuite TEMENOS
Slide 58: Integrated solutions freeing up budget for innovation
Integrated solutions freeing up budget for innovation 59 Rest of Banks* Temenos Clients Maintenance 53.7% 21.2% 21.1% Innovation Celent, IT Spending in Banking: Source: Temenos A Global Perspective, 2015* *Adjusted to remove Temenos customers
Slide 59: How we upgrade client software – decoupled innovation cycle
How we upgrade client software – decoupled innovation cycle Channels (6mths -2 years) Front Office (1-3 years) Core Banking (2-5 years) Upgrading product family independently reducing risk and reducing Time To Market
Slide 60: Technology and Architecture Perspective
Technology and Architecture Perspective Mobile Internet Call Centre Branch Agent ATM API Framework Platform Channels Interaction Framework Design Framework Marketing Risk and Compliance Front Office Integration Framework Services Sales Analytics Component Framework Back Office Core Banking Payments
Slide 61: Technology and Architecture Perspective
Technology and Architecture Perspective USABILITY 85% faster UI Framework development Platform Interaction Framework MAINTAINABILITY Partial software upgrades Design Framework FLEXIBILITY across all software Lowest TCO through choice of stacks Integration Framework including Cloud. Component Framewo
Slide 62: Analytics – Embedded inside the Suites
Analytics – Embedded inside the Suites Embedded Analytics Predictive Analytics Digital Analytics Customer Customer Next Best Profitability Embedded Attrition Product Digital Embedded Analytics Clickstream Analytics Funds Flow Campaign Product Analytics* Enterprise Risk PLAN 1.0 Customer Analytics Bu
Slide 63: Digital banking
Digital banking Dharmesh Mistry, Chief Digital Officer
Slide 64: Digital Landscape
Digital Landscape 1. Perspectives of the market 2. What is digital banking 3. Models for the bank of the future 4. Temenos front to back offering 5. MyState case study video 6. Demo’s: • Digital engagement • Embedded analytics
Slide 65: A Perspective on the market
A Perspective on the market TEMENOS
Slide 66: Our Addressable market – huge opportunity
Our Addressable market – huge opportunity 66 8% CAGR 2016-2020 as predicted by Gartner $9 bn Digital focus Driving banking spend Annual spend on third party software and maintenance 79% of bank IT spending is still in-house (IDC)
Slide 67: Core renovation is critical for digital strategy
Core renovation is critical for digital strategy 67 Top barriers to the success of a digital strategy 1 Complex and legacy core banking systems Heavy investments in channel solutions, without supporting back office business capabilities... deliver only a 2 Regulatory environment minor share of expec
Slide 68: The pressure on scalable systems is bigger than ever
The pressure on scalable systems is bigger than ever 68 Interactions per month 1.8 12.6 51.1 2004 2015 2020
Slide 69: Customer’s Perspective on FinTech Value Proposition
Everybody now expects the Starbucks/Uber experience everywhere 69 Customer’s Perspective on FinTech Value Proposition 1 Ease of Use 2 Faster Service 3 Better Experience
Slide 70: Trust
And banks have the right advantage 70 Trust 10
Slide 71: …to deliver Experience-Driven banking
…to deliver Experience-Driven banking Contextual and Relevant Bank as facilitator and trusted advisor
Slide 72: …to deliver Experience-Driven banking
…to deliver Experience-Driven banking Contextual and Relevant Bank as Fintech Co’s facilitator Instant fulfilment and trusted advisor
Slide 73: Digital Banking: The (almost) complete story
Digital Banking The (almost) complete story
Slide 74: What is Digital Banking: The fundamental digital equation
What is Digital Banking: The fundamental digital equation 73 3 {A } {B} {C} Anytime, anyplace, any Better banking – customer Contextual – the service, channel – this is what journeys that are unencumbered communication, rewards and customers expect. Whether they by paper, process and people, product
Slide 75: Conversational Interfaces Think for me
74 Conversational Think for me Relevant Engagement Know me Campaigns engine Connected Social Marketing Mobile Micro-messaging Interfaces Seamless Enablement Offline Empowerment I feel supported Partnerships Tablet Online VOC STP Encryption channels Responsive Safe Big Data Digital Personal Marketing
Slide 76: How I experience it What I experience Customer eXperience
75 Real Time / timely Feel valued Engagement Know me Empowerment Connected Offline channels Social Media Micro-messaging What's App Meaningful Enablement Convenience I feel supported What I experience How I experience it web Mobile Alerts Email Native apps Video chat Contextual Relevant Ease Think f
Slide 77: Bank of the Future
Bank of the Future TEMENOS
Slide 78: The digital bank of the future has multiple models
The digital bank of the future has multiple models 77 A flexible, scalable and open core that enables a compelling and engaging customer experience Distribution Channels: Self serve, assisted & external channels Customer Experience & Vertical Value Proposition Engagement Front Office Sales, Marketin
Slide 79: The whole is greater than the sum of its parts
The WHOLE is GREATER THAN the sum of its parts…
Slide 80: Full Front-to-back Integrated Stack
Full Front-to-back Integrated Stack Mobile Internet Call Centre Branch Agent ATM API Channels Open Banking MarketPlace Marketing Risk and Compliance Services Sales Front Office Analytics Core Banking Payments Back Office
Slide 81: Front Office
Front Office Mobile Internet Call Centre Branch Agent ATM API Channels CRM Simulations Content mgt. Contact mgt. Party Relationships Treasury Trader Prospects Gamification* Risk and Compliance Rewards Document output Front Orders Alerts Office Portfolio Analytics Scoring Image Leads Management Real-
Slide 82: Back Office - Retail
Back Office - Retail Mobile Internet Call Centre Branch Agent ATM API Channels Risk and Compliance Checking /DDA Certificates of Posting accounts Product Builder Product Catalogue Deposit Restrictions Analytics Savings Overdrafts Bundling Bill payments Retail Time deposits Mortgages Back Office Mutu
Slide 83: Here and now & Future focus
Here and now & Future focus 82 Here and now Future Focus (0-2 years) (5-10 years) Customer experience (optimise) Experience banking (engagement) Open Platform : Flexible Advanced Computing - Componentised architecture - Tech Integration architecture (new models) Analytics (Big Data + meaning) Artifi
Slide 84: Demo’s
DEMO Demo’s
Slide 85: EA Demo
EA Demo TEMENOS
Slide 86: Creating a Digital Bank From The Ground Up!
Creating a Digital Bank From The Ground Up ! We wanted to build a digital bank quickly… What we achieved with Temenos was remarkable. Dan Dickinson, VP of Digital Banking, EQ Bank
Slide 87: Temenos – a leader in digital banking
Temenos – a leader in digital banking Temenos created an architecture that With Temenos UXP, banks get capabilities that equip them for the digital economy. Ovum supports a digital recommends that banks shortlist Temenos banking foundation that when searching for a competitive digital banking platfo
Slide 88: Temenos
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Slide 89: Creating shareholder value
Creating shareholder value Max Chuard, CFO, COO
Slide 90: Agenda
Agenda 90 1. Creating shareholder value 2. Drivers of growth 3. Medium term targets
Slide 91: Creating Shareholder Value
Creating Shareholder TEMENOS
Slide 92: Temenos drivers of value
Temenos drivers of value 92 Substantial revenue growth Business model drives margin expansion d Shareholder value Significant free cash flow generation Disciplined capital allocation
Slide 93: Substantial license revenue growth
Substantial license revenue growth 93 Non-IFRS Total Software License Revenues Medium term target of 15% USDm CAGR 300 250 200 150 100 50 0 2013 2014 2015 2016
Slide 94: Significant growth in recurring revenue
Significant growth in recurring revenue 94 Non-IFRS Maintenance, SaaS and Subscription revenues USDm 350 300 250 200 150 100 2013 2014 2015 2016
Slide 95: Business model consistently drives margin improvement
Business model consistently drives margin improvement 95 Non-IFRS EBIT margin Medium term target of 100 to 150 bps 29.4% expansion p.a. 28.1% 27.3% 24.1% 2013 2014 2015 2016
Slide 96: Outstanding double digit growth in profitability
Outstanding double digit growth in profitability 96 Medium term target Non-IFRS EBIT (USD m) Non-IFRS EPS (USD) of 15% CAGR 2.07 187 1.73 157 1.44 128 113 1.22 2013 2014 2015 2016 2013 2014 2015 2016
Slide 97: Exceptional cash flow generation
Exceptional cash flow generation 97 Medium term Operating Cash Flow and DSOs target DSO reduction of USDm 5-10 days p.a. 198 days 180 days 154 days 127 days 300 250 200 150 100 50 0 2013 2014 2015 2016
Slide 98: Disciplined capital allocation
Disciplined capital allocation 98 Capital allocation 2013 – 2016 Share buyback Acquisitions 48% 35% 17% Dividends
Slide 99: Track record of M&A
Track record of M&A 99 2007 2008 2009 2010 2011 2012 2013 2015 Proposed acquisition announced in 2017
Slide 100: Balance sheet strength
Balance sheet strength 101 2013 2016 Total available financing USD 350m USD 875m Weighted average interest rate 5.0% 3.3% Weighted average maturity 4 years 3.6 years Leverage ratio 0.6x 0.8x Low-cost debt structure with significant flexibility
Slide 101: Shareholder value creation
Shareholder value creation 102 Total shareholder Average p.a. 1 year 3 years 10 years Since IPO return (USD, 31/12/16) since IPO Temenos 34% 153% 330% 459% 30% Swiss Market Index -6% -4% 52% 194% 13% Stoxx Euro 600 -1% -7% 13% 127% 8% Nasdaq 9% 34% 150% 209% 13% Peer group average 9% 32% 173% 267% 1
Slide 102: Drivers of growth
Drivers of growth TEMENOS
Slide 103: We have grown our addressable market
We have grown our addressable market 104 Addressable market (USD billions) 14.0 12.0 10.0 8.0 6.0 4.0 2.0 0.0 2006 2013 2016 Medium term Core banking Analytics Wealth Channels Payments Fund Admin
Slide 104: Taking market share
Taking market share 105 Temenos core banking market share by value of deals* 30% 27% 24% 21% 20% 16% 10% 0% 2013 2014 2015 2016** * Source: IBS league table, Temenos estimates; ** Source: Temenos estimates
Slide 105: We won all the large transformational deals
We won all the large transformational deals 106 2014 2015 2016 $44m $129m $27m Our credentials create significant barriers to entry for our competition
Slide 106: Consistent growth in revenues from Tier 1+2 clients
Consistent growth in revenues from Tier 1+2 clients 107 Non-IFRS total software licensing revenues by client tier Tier 1 & 2 Tier 3, 4 & 5 2013 2016 Medium term Tier 1+2 clients buy an average of $3-5m additional new license p.a.
Slide 107: Maximising the installed base
Maximising the installed base 108 Installed base will continue to represent 60%+ of non-IFRS total software licensing going forward Breakdown of the installed base Cross Selling Tier 1+2 progressive renovation Relicensing c.15-20% CAGR 2013 2016 Medium term Relicensing, progressive renovation and cr
Slide 108: SaaS and Subscription revenues are growing rapidly
SaaS and Subscription revenues are growing rapidly 109 Non-IFRS Software licensing vs. SaaS and subscription revenues SaaS and subscription Software licensing 20%+ c.20% CAGR 2013 2016 Medium term Continued rapid growth in SaaS and Subscription revenues
Slide 109: Our North America strategy will drive incremental growth
Our North America strategy will drive incremental growth 110 Non-IFRS total software licensing, North America vs. Rest of World North America Rest of World 25%+ c.35% CAGR 2013 2016 Medium term Significant untapped potential
Slide 110: A three-pronged approach to M&A
A three-pronged approach to M&A 111 Increased scale Accelerated growth in key markets and segments A three-pronged approach Complementary products
Slide 111: Medium term targets
Medium term targets TEMENOS
Slide 112: Medium term targets
Medium term targets 113 Metric 2013-2016 performance Medium term targets (Non-IFRS) Total software licensing 22% CAGR 15% CAGR Total revenue 11% CAGR 10% CAGR EBIT 176 bps p.a. 100-150bps p.a. EPS 19% CAGR 15% CAGR DSO reduction 24 days p.a. 5-10 days p.a. Cash conversion 120% p.a. 100%+ of EBITDA T
Slide 113: Conclusion
Conclusion 114 The digital pressures on banks are intensifying. Vendor of choice for Tier 1 banks. Digital is at the heart of our offering. Shareholder We have created significant shareholder value. value We benefit from multiple drivers of growth.
Slide 114: www.temenos.com
TEMENOS The software specialist for banking and finance www.temenos.com ‘in| iy | Fi Oo ic)