Temenos Ag · SIX:TEMN
Temenos — Investor Day (February 2021)
35 slides from Temenos's investor day presentation, Feb 18, 2021
Slide 1: Temenos Capital Markets Day
TEMENOS Capital Markets Day
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-looki
Slide 3: 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
Slide 4: Strategy & Vision
Strategy & Vision Max Chuard CEO
Slide 5: We exist to make Banking Better, Together
We exist to make Banking Better, Together 1.2 billion Our 3000 banks Banks that use individuals, include 41 of the Temenos are families, businesses top 50 global industry leaders rely on Temenos banks Achieving They rely on the That’s 30% of the return on equity World’s #1 cloud- world’s banking 3X
Slide 6: Relentless Focus on Innovation
Relentless Focus on Innovation AI/Machine Blockchain/ Cloud/SaaS API/Microservices DevOps Big Data Learning Distributed DB Sustained Highest $2.1 billion Level of R&D Over $1 billion Investment cumulative R&D of R&D investment over investment 1990-2019 Outselling the mid-term competition by 6x 6
Slide 7: Consistent and Profitable Growth Trajectory in next 5 years
Consistent and Profitable Growth Trajectory in next 5 years Achieving Expanding Generating more than EBIT margin to more than USD1bn at least USD600m of bookings 41% of Free Cash by 2025 by 2025 Flow by 2025 Our Vision …from Category Killer to the Industry Standard in Banking Software… Note: Non-IFR
Slide 8: Temenos has successfully navigated global crises and come out stronger
Temenos has successfully navigated global crises and come out stronger A resilient business model 1,800 1,600 Global European sovereign Covid-19 1,400 Finance Crisis debt crisis pandemic 1,200 1,000 800 600 400 200 - 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021E 2025 E
Slide 9: 2020 – an unprecedented year driven by COVID-19
2020 – an unprecedented year driven by COVID-19 USDm Total bookings USDm Total Software USDm SaaS ACV USDm EBIT 400 Licensing 250 30 350 250 25 200 300 200 20 250 150 150 200 15 150 100 100 10 100 50 50 5 50 0 0 0 0 H1 2020 H2 2020 H1 2020 H2 2020 H1 2020 H2 2020 H1 2020 H2 2020 Rapid scaling of rem
Slide 10: COVID-19 has accelerated Digital Transformation of Banks
COVID-19 has accelerated Digital Transformation of Banks Banks need to 15% 30-40% 56% accelerate digital transformation and customer experience across complex product and customer journeys Increase in consumer Reduction in cash usage1 Consumers concerned digital adoption about their ability to pay (
Slide 11: Current Reality at Incumbent Banks
Current Reality at Incumbent Banks High Operational costs Complex, Monolithic, High Dependencies on end-of-life Long times to Inflexible, operational market systems major cause for Batch Legacy risk concern Based IT Landscapes Basel committee introduces new rules to standardize operational risk
Slide 12: Digital Transformation Enabled by Technology Key for ROE Recovery post COVID-19
Digital Transformation Enabled by Technology Key for ROE Recovery post COVID-19 European Banking1, ROE in % Tech-enabled Non-tech enabled ~5-8 ~5-8 COVID-19 presents us with a unique ~2-4 opportunity 2019A Impact of 2022E Digital first Other cost Enhanced New growth New growth 2022E COVID-192 sales
Slide 13: Disruptive Technologies key to the Future of Banking
Disruptive Technologies key to the Future of Banking AI/Machine Blockchain/ Cloud/SaaS API/Microservices DevOps Big Data Learning Distributed DB 84% believe cloud 77% think unlocking value 66% think new technologies will have the biggest impact on platforms and the shift from AI will be the banking
Slide 14: Structural trends driving market growth
Structural trends driving market growth USD 63bn 27% third party penetration in banking vs. 70-80% in other industries at maturity On premise market CAGR SaaS market 2020-25 USD 26bn USD 26bn USD 17bn USD 17bn 6% 25% Total Addressable Market Third party spend Third party spend Third party spend Thir
Slide 15: Segmenting the market
Segmenting the market Large banks Renovation on-premise by domain-specific microservices Selective use of cloud and SaaS Cost and complexity reduction, speed-to-market for new products AI for smarter, faster projects and digital insights Mid to lower tier banks Largely on-premise renovatio
Slide 16: Why Temenos?
Why Temenos? Leading functionality, Only focused Packaged product, localization, on banking single code base advanced technology Scaling through Relentless focus on ecosystem of technology Leader in our market, innovation, highest and implementation 3,000+ clients R&D over 27 years partners 16
Slide 17: Leading Functionality + Latest Technology
Leading + Latest Functionality Technology The Winning = Combination 17
Slide 18: Outselling the competition
Outselling the competition Neo vendors Traditional vendors New digital entrants, cloud-only Cross-industry, not packaged or offering, limited functional scope cloud & SaaS ready Why we win Why we win Cloud native, 27 years of Banking IP Highest R&D in the industry Depth and breadth of functionality
Slide 19: Ready for SaaS Acceleration
Ready for SaaS Acceleration Temenos runs the software Bank runs the software SaaS Revenue License Revenue Bank’s Private cloud On-Premise Cloud Private Public Single code base, same product 19
Slide 20: Significant benefits from running Temenos on-premise and SaaS
Significant benefits from running Temenos on-premise and SaaS From legacy to Banks running Temenos on-premise already Temenos SaaS benefit from modern architecture Flexibility 1000s of Configuration, Migration and Extension APIs 10% of legacy cost Time To Market Continuous integration and Online Mig
Slide 21: Proven at Banks of all Sizes, across all Geographies
Proven at Banks of all Sizes, across all Geographies Large Banks Mid Tier banks Challenger Banks 41 of the world's top The de facto for A market-leading 50 banks over 3000+ banks 60 Challenger banks 21
Slide 22: Komercni Banka
Komercni Banka Temenos Part of the Objectives Products Societe Generale Simplify and consolidate Group IT landscape. Deliver leading edge, innovative products faster. 1.6 million Retail and Streamline STP. Corporate Achieve market-leading customers cost-income ratio. 22
Slide 23: CWB
CWB Temenos Objectives Aims to be Products Canada’s first full service Replace its heavily bank for customized legacy business systems. owners Launch new services quickly and cost effectively. Differentiated customer insights and experience. 23
Slide 24: Alpian
Alpian Temenos Objectives New Swiss Products digital bank for private banking Short time-to-market and wealth and hyper-efficient management cost. Accessible, appealing banking app. Expand outside CHF 660bn Switzerland. market 24
Slide 25: Temenos software delivers tangible value to banks
Temenos software delivers tangible value to banks TEMENOS VALUE BENCHMARK OUR HIGH-PERFORMING CLIENTS Achieve Achieve Allocate IT spend cost-income ratios returns on equity 2x industry half the 3x industry average to growth industry average average & innovation 25
Slide 26: Key strategic initiatives to drive growth across SaaS and licence
Key strategic initiatives to drive growth across SaaS and licence Game-changing Profitable SaaS Product North strategic acceleration growth engines America partnerships 26
Slide 27: Profitable SaaS Acceleration
Profitable SaaS Acceleration Leveraging Leveraging the cloud-native sales organization Hyper-scaling and SaaS-ready for customer operations product success Profitable SaaS Growth with Margin Expansion Achieving 41% Group EBIT margin by 2025 Note: Non-IFRS 27
Slide 28: Continued market leadership across all our growth engines
Continued market leadership across all our growth engines Leader in Omdia Universe Leader in for Digital Banking Platforms Gartner Magic Quadrant 2020-21 Leader in IDC MarketScape Best-In-Class for Integrated Payment for Aite Matrix Platforms Leader Leader in Forrester Wave for Digital Forrester Wav
Slide 29: Accelerating our North America growth
Accelerating our North America growth Investing in our people Majors Expansion of Sales & Marketing headcount Investment in sales leadership across all key segment Go-to-market strategy Nationals Refining approach to market segments New strategic partnerships to drive US growth SaaS and clou
Slide 30: 2021 Partner Program
2021 Partner Program Global Alliances Global Partners Multiregional Partners Regional Partners Strategic Technology Alliance Strategic Technology Partner Technology Partner Technology 30 Provider
Slide 31: Game-changing Global Strategic Partnerships
Game-changing Global Strategic Partnerships Integration of Temenos Infinity Accelerate digital transformation and Salesforce CRM platforms to of DXC’s existing large bank create NEW Digital Workspace customers Be #1 Digital Banking Platform for Combines DXC’s implementation ALL banking clien
Slide 32: And we will achieve this ethically and responsibly
And we will achieve this ethically and responsibly Five pillars of our ESG strategy Achieving Business Excellence Operating Responsibly Investing in our People Investing in our Communities Enabling Access to Financial Services Enhancing our ESG reporting Existing Enhancements in 2021 GRI
Slide 33: Tenacity Velocity Responsibility Authenticity Community
TENACITY VELOCITY RESPONSIBILITY AUTHENTICITY COMMUNITY 33
Slide 34: Consistent and Profitable Growth Trajectory in next 5 years
Consistent and Profitable Growth Trajectory in next 5 years Achieving Expanding Generating more than EBIT margin to more than USD1bn at least USD600m of bookings 41% of Free Cash by 2025 by 2025 Flow by 2025 Our Vision …from Category Killer to the Industry Standard in Banking Software… Note: Non-IFR
Slide 35: Thank You
Thank You temenos.com