Slide 1: The Banking Software Company
\é The Banking Software Company
Slide 2: Financial Results & Business Update
Financial Results & Business Update Quarter ended 31 March 2012
Slide 3: 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
Slide 4: Agenda
Agenda 1 Introduction | Sarah Bowman | Investor Relations 2 Strategy and Business update | Guy Dubois | CEO 3 Financial update | David Arnott | CFO 4 Outlook and Summary | Guy Dubois | CEO 5 Q&A 4
Slide 5: Strategy and Business update
Agenda 1 Introduction | Sarah Bowman | Investor Relations 2 Strategy and Business update | Guy Dubois | CEO 3 Financial update | David Arnott | CFO 4 Outlook and Summary | Guy Dubois | CEO 5 Q&A 5
Slide 6: Q1 Market & Sales Summary
Q1 Market & Sales Summary 1 Some signs of stabilisation in the core banking market 2 Delivering on strategic initiatives – geos, tiers, segments, products 3 PWM and BI particularly strong 4 7 new customers signed, flat on Q1 2011 5 Solid pipeline development in quarter 6 Forrester names Temenos sole
Slide 7: Q1 Financial & Operating Highlights
Q1 Financial & Operating Highlights 1 Revenue, costs, and cash in line with full year outlook 2 Licence growth trend improves after 6 quarters 3 Services revenue and margin recovery continue 4 DSOs below 100 for the first time 5 15 customers went live on our solutions vs 8 in Q1 2011 6 A series of i
Slide 8: Progress on sales initiatives – Q1 LTM
Progress on sales initiatives – Q1 LTM Sales Initiative Progress Comment* % in Asia/Americas P 40%; in line with Mid-term plan % to Tier 1/2 P 28%; in line with Mid-term plan % to Existing Customers P 54%; growing toward target Grow Retail P Further traction in Canada Grow PWM/BI solutions P Strong
Slide 9: Q1 Industry Analyst Research
Q1 Industry Analyst Research Temenos is the sole global power seller in 2011... … is one of 2 vendors with highest score across private wealth management functionalities … … and a leader in the Gartner Islamic Banking global analysis. Independent endorsement of technology leadership and innovation 9
Slide 10: Financial update
Agenda 1 Introduction | Sarah Bowman | Investor Relations 2 Strategy and Business update | Guy Dubois | CEO 3 Financial update | David Arnott | CFO 4 Outlook and Summary | Guy Dubois | CEO 5 Q&A 10
Slide 11: Income Statement Highlights
Income Statement Highlights in USDm Q1 12 Q1 11 LTM 12 LTM 11 Licences 23.5 28.1 (16)% 141.4 160.9 (12)% Maintenance 48.5 48.8 (1)% 197.0 168.5 17% Services 28.3 26.3 8% 132.2 127.7 4% Total Revenue 100.3 103.1 (3)% 470.7 457.2 3% Adj. operating costs (94.1) (98.1) (4)% (381.7) (351.0) 9% Adj. E
Slide 12: Q1 2012 Like-for-Like Revenue and Cost Performance
Q1 2012 Like-for-Like Revenue and Cost Performance Like-for-like Revenue* -1% and like-for-like costs** -2% 120 120 100 (2)% 100 (14)% Licence Licence 80 80 60 1% 60 Maintenance Maintenance 40 40 20 11% 20 Services Services 0 0 Q1 2011 Q1 2012 Q1 2011 Q1 2012 *Adjusted for FX ** Adjusted for FX, amo
Slide 13: Adjusted EBITDA conversion into Adjusted Operating Cash Flow
Adjusted EBITDA conversion into Adjusted Operating Cash Flow 101% 81% 140 120 100 80 USDm 60 40 20 0 LTM 2012 LTM 2011 Adj. EBITDA (USD m.) Adj. Operating cashflow (USD m.) Improving LTM cash conversion 13
Slide 14: Non-Operating Items
Non-Operating Items in USDm Q1 12 Q1 11 y-o-y LTM 2012 LTM 2011 y-o-y Adjusted EBIT 6.3 5.0 26% 89.0 106.2 (16%) Net finance charge (2.0) (1.7) (8.9) (12.5) FX gain/(loss) (1.9) 0.4 (7.7) 0.8 Tax (2.2) (0.2) (14.2) (0.4) Adjusted Net 0.2 3.5 N/A 58.2 94.1 (38%) Profit for EPS Adjusted EPS* 0.00
Slide 15: Balance Sheet – Debt and Financing
Balance Sheet – Debt and Financing USDm Q1 2012 Comments Credit facilities 203.0 USD 350m facility, due in 2014 Others 0.6 Total debt 203.6 Cash (68.1) Held in ST deposits Treasury Shares (52.2) Held at market value as of 31/3/12 Net debt 83.3 Under 1x leveraged by year-end 2012 15
Slide 16: Outlook and Summary
Agenda 1 Introduction | Sarah Bowman | Investor Relations 2 Strategy and Business update | Guy Dubois | CEO 3 Financial update | David Arnott | CFO 4 Outlook and Summary | Guy Dubois | CEO 5 Q&A 16
Slide 17: 2012 Outlook
2012 Outlook Key Performance Indicator Outlook Implied Range Total Revenue Growth -5% to +6% USD450-500m Adjusted EBIT Margin* 19% to 22% USD85-110m Adjusted Operating Cash** to 100% Adjusted EBITDA*** Percentage and USD ranges calculated based on spot rates at the end of January 2012 *Adjusted EBIT
Slide 18: TCF 2012 – May 22-24
TCF 2012 – May 22-24 Expected to attend: • 400 customers • 100 Partners • Temenos Management & Employees Presentations: • Temenos Management • Platinum Sponsor IBM • Sir T. Leahy (Tesco) • Forrester Research • Banque de France • ABN Amro Investor Track: • Q&A Time with Management • Sales Update • Pa
Slide 19: Conclusion
Conclusion 1 Some signs of stabilisation in the core banking market 2 Drivers for core banking renewal remain strong 3 We are delivering on our growth initiatives 4 Continued good cost control 5 On track to deliver continued services improvement 6 Our product set maintains industry leadership positi
Slide 20: Appendices
Appendices ‘e TEMENOS 20 The Banking Software Company
Slide 21: Adjusted EPS Reconciliation
Adjusted EPS Reconciliation USDm, except EPS (USD) Q1 12 Q1 11 Net Earnings (11.4) (10.9) Amortization of acquired 3.4 4.4 intangible assets Adjusting costs 8.2* 10.0** Earnings for adjusted EPS 0.2 3.5 Number of Dilutive Shares 69.6 72.7 Adjusted EPS 0.00 0.05 *This represents one-off adjusting cos
Slide 22: 2012 Adjusted Cost Reconciliation
2012 Adjusted Cost Reconciliation 400 390* 386 Discr.*** Variable 25 341 Variable** 300 200 2011 Total Restructuring 2012e Fixed 2012e Variable 2012e Total Costs Costs Costs Costs * Based on high end of revenue outlook, **Costs that flex with either revenue or profit; *** Discretionary items like bo
Slide 23: DSOs Trend
DSOs Trend Days Sales Outstanding 180 168 156 160 140 135 120 98 100 Days 80 60 40 20 0 Q1 2009 Q1 2010 Q1 2011 Q1 2012 Sustained reduction of DSOs continues 23
Slide 24: Geographical breakdown of licencing revenue
Geographical breakdown of licencing revenue Q1 2012 Q1 2011 MEA AMERICAS 5% 12% MEA 14% AMERICAS 30% APAC 20% EUROPE EUROPE 40% 63% APAC 16% LTM 2012 LTM 2011 AMERICAS 11% AMERICAS 14% MEA 22% MEA 22% APAC APAC 29% 17% EUROPE EUROPE 38% 47% 24
Slide 25: Breakdown of Licencing Revenue by Customer Tier
Breakdown of Licencing Revenue by Customer Tier Q1 2012 Q1 2011 1-2 1-2 19% 33% 3-5 3-5 67% 81% LTM 2012 LTM 2011 1-2 1-2 28% 16% 3-5 72% 3-5 84% 25
Slide 26: Breakdown of Licencing Revenue by Existing/New Customer
Breakdown of Licencing Revenue by Existing/New Customer Q1 2012 Q1 2011 New Existing Existing 47% 43% New 53% 57% LTM 2012 LTM 2011 Existing New 43% Existing 46% 54% New 57% 26
Slide 27: Forrester Global Vendor Pyramid
Forrester Global Vendor Pyramid “Temenos has been the one of two firms in our Global Power Sellers category since Forrester introduced the global vendor pyramid for the 2006 global banking platform deals survey” “[and this year] has the enviable position of the single Global Power Seller in the 2011