Temenos Ag · SIX:TEMN
Temenos — Merger or Acquisition (March 2007)
32 slides from Temenos's merger presentation, Mar 21, 2007
Slide 1: Metavante and Temenos Strategic Alliance
Metavante and Temenos Strategic Alliance Metavante and Temenos Strategic Alliance Creating the most advanced innovation of U.S. banking systems in a generation New York, March 21, 2007
Slide 2: Agenda
Agenda Welcome and Introduction to Metavante, Mike Hayford Introduction to TEMENOS and Highlights of the Agreement, Andreas Andreades U.S. Market, Alex Groenendyk Strategic Alliance, Jim Dempster Q&A Confidential and Proprietary ©2007 Metavante Corporation 3/21/2007 2
Slide 3: Welcome
Welcome Frank Martire, President & CEO, Metavante Confidential and Proprietary ©2007 Metavante Corporation 3/21/2007 3
Slide 4: Introduction to Metavante Corporation
Introduction to Metavante Corporation Mike Hayford, Sr. EVP & COO, Metavante Confidential and Proprietary ©2007 Metavante Corporation 3/21/2007 4
Slide 5: Strategic Alliance
Strategic Alliance On February 26th, Temenos and Metavante entered into a strategic alliance Joint development to create Metavante’s Strategic Banking Platform for the U.S. Market using TEMENOS CoreBanking (TCB) as foundation Metavante has exclusive rights for TCB in the U.S. Selective, non-exclusiv
Slide 6: Metavante Corporation
Metavante Corporation Technology subsidiary of Marshall & Ilsley Corp. (NYSE: MI) One of the top three U.S. bank technology and payments processors Business model: +80% recurring revenue driven by financial account processing, related payment services 2006 Revenue $1.504 billion Net income $160.1 mi
Slide 7: Locations in 35 Cities
Locations in 35 Cities 5,500 Employees 8,600 Clients in 50 States and 32 Foreign Countries Confidential and Proprietary ©2007 Metavante Corporation 3/21/2007 7
Slide 8: Banking and Payments Leadership
Banking and Payments Leadership Relationships with 48 of top 50 Business Process Outsourcing U.S. banks relationships with over 475 organizations worldwide Commercial Treasury relationships with 17 of Over 4,000 endpoints in top 20 U.S. banks Endpoint Exchange Network Delivering complete, broad 80%
Slide 9: Metavante Banking Statistics
Metavante Banking Statistics 908 core-processing financial institutions representing $1.04 trillion in banking assets 12% market share of U.S. commercial banks 43 processing clients, $6 to $60 billion in assets, 38% market share 22 million deposit accounts processed, outsourced or in- house Confiden
Slide 10: Metavante Business Strategy
Metavante Business Strategy “To be the premier provider of global integrated banking and payments solutions” 1. Increase market share in U.S. community, regional and national banks 2. Expand our presence in international markets 3. Expand electronic payment solutions including healthcare and governm
Slide 11: Introduction to TEMENOS and Highlight of the Agreement
Introduction to TEMENOS and Highlight of the Agreement Andreas Andreades, CEO, TEMENOS Confidential and Proprietary ©2007 Metavante Corporation 3/21/2007 11
Slide 12: TEMENOS Group
TEMENOS Group TEMENOS’ VISION is to become the leading global brand in financial services software. TEMENOS today is the provider of choice for the world’s leading financial institutions: Supporting two product lines for core processing: TEMENOS T24™ (T24): Private, Universal, Wholesale Banks COREBA
Slide 13: Global Reach
GLOBAL REACH Amsterdam Copenhagen New York(1) LONDON Warsaw HEMEL HEMPSTEAD Moscow Seoul Dublin Luxembourg Paris Zurich GENEVA (1) Beijing Seoul MADRID Tehran Tokyo Orlando Athens Shanghai Beirut Bangkok Miami Hong Kong Mexico City Riyadh Taipei Manila Dubai Kuala Lumpur Quito Mumbai Singapore CHENN
Slide 14: Credibility with Top Tier Banks
Credibility with Top Tier Banks Number of Clients 600 546 505 500 437 400 382 365 300 272 212 200 176 154 114 100 86 71 47 21 0 93 94 95 96 97 98 99 00 01 02 03 04 05 06 19 19 19 19 19 19 19 20 20 20 20 20 20 20 Confidential and Proprietary ©2007 Metavante Corporation 3/21/2007 14
Slide 15: The Agreement
The Agreement TEMENOS and Metavante have entered into an exclusive joint development and distribution agreement. Metavante will be the distributor of TCB in the U.S. and TEMENOS will retain royalties on license and maintenance fees, outsourcing fees, and professional services revenues. TEMENOS asses
Slide 16: The Agreement (continued)
The Agreement (continued) TEMENOS expects the combination of Metavante’s leading position and development and distribution prowess in the banking software market, its expertise in outsourcing services, along with the product superiority of TCB, will prove a formidable combination both in the U.S. an
Slide 17: The Agreement (continued)
The Agreement (continued) As part of this agreement TEMENOS intends to issue to Metavante Corporation 2.5 million warrants over TEMENOS stock at a strike price of CHF19.90. Two million of these warrants will vest in 2013 subject to achievement of incremental revenues to the minimum contracted revenu
Slide 18: U.S. Market
U.S. Market Alex Groenendyk, President Americas, TEMENOS Confidential and Proprietary ©2007 Metavante Corporation 3/21/2007 18
Slide 19: The Opportunity
The Opportunity U.S. core systems are 20 to 30 years old and have reached current state through a process of build up from old architectures, often by silo and acquisition combined with years of modification upon modification. This has created the following issues: Multiple instances of customer, ye
Slide 20: The U.S. Market
The U.S. Market There are approximately 8,000 retail / commercial banks We will initially target the $5 billion upwards – 150 institutions starting with the top 50. This segments today, spend approximately $5.5 billion on IT In excess of 70% to 80% is spent on maintenance instead of new business fun
Slide 21: U.S. Players
U.S. Players Vendor Type Annual Rev. Rank All FI Rank Small FI Fiserv, Inc. TK/OS/SW $4.059B 1 1 Fidelity Ntl. Info. Svcs. TK/OS/SW $4.0B 2 4 Metavante TK/OS/SW $1.247B 3 3 Jack Henry & Assoc. TK/OS $535.9M 4 2 Open Solutions, Inc. TK/OS $370 M 5 5 Harland Financial Sols. TK/OS 256.8 M 6 6 Computer
Slide 22: Stable Supplier
Stable Supplier Leading Providers of Core Banking System by Number of Live Clients (2005) Fiserv 3620 Metavante 520 Temenos 505 Fidelity Information Services / Sanchez 421 Misys 411 Jack Henry 348 iFlex 272 Open Solutions 245 ERI 136 SAP 92 Alnova 91 CSC 68 Infosys 55 System Access 45 Kordoba 31 Pol
Slide 23: Overseas Competition
Overseas Competition Key competitors are other global banking solutions attempting to enter U.S. market: Oracle/I-Flex SAP/Accenture Infosys/Finnacle A critical advantage of Metavante/Temenos is the U.S. banking knowledge within Metavante, existing customer relationships and all the ancillary produc
Slide 24: Strategic Alliance
Strategic Alliance Jim Dempster, Chief Technology Officer, Metavante Confidential and Proprietary ©2007 Metavante Corporation 3/21/2007 24
Slide 25: Why Metavante and Temenos?
Why Metavante and Temenos? Bringing together U.S. and global knowledge and experience; a unique combination This Strategic Alliance is a Winning Combination Temenos brings advanced technology and international perspective with over 580 installations worldwide Metavante has extensive knowledge of the
Slide 26: The Winning Combination
The Winning Combination Temenos and Metavante will combine the best of U.S. banking technologies and functionality with an U.S. Global Banking advanced technology platform, and global banking Technology functions and processing characteristics, to lead the change to U.S. Global Banking 2025 U.S. Tec
Slide 27: Metavante and Temenos Have a Solution
Metavante and Temenos Have a Solution Co-develop an advanced U.S. global banking platform based on TCB using an incremental, component-based release plan The solution will consist of licensed software components targeted at the top 50 U.S. banks marketplace It will also include software component up
Slide 28: Integrated Multi-channel Delivery
Metavante’s Complete Solution Metavante-TCB System ACH Core Banking Components Integrated Multi-channel Delivery VRU Single Source of Customer Information Check Enterprise Customer Credit Internet Management Card Payment Services Debit Card ATM/POS Account Processing and Servicing Payment Deposit Le
Slide 29: The Solution
The Solution Based on technology developed nine years ago, the solution offered is party-centric with a highly flexible product catalogue, facilitating maximum speed to market of new products - all within one system Build an advanced “U.S. Global Banking Platform” TCB foundation Incremental, compone
Slide 30: Taking the Product to Market
Taking the Product to Market Metavante becomes exclusive distributor of the TCB- based product line in the U.S. Metavante will initially target the top 50 U.S. financial institutions Metavante will offer the joint product on a component basis, enabling large banks to replace aging legacy systems usi
Slide 31: Metavante and Temenos are jointly making an investment in the future of U.S. core banking
Metavante and Temenos are jointly making an investment in the future of U.S. core banking Strategic alliance will transform businesses by enabling dramatic change - working faster, better and more profitably QUESTIONS & ANSWERS Confidential and Proprietary ©2007 Metavante Corporation 3/21/2007 31
Slide 32: Confidential and Proprietary ©2007 Metavante Corporation
Confidential and Proprietary ©2007 Metavante Corporation 3/21/2007 32