Temenos Ag · SIX:TEMN

Temenos — Q2 2025 Earnings Presentation

38 slides from Temenos's earnings presentation, Jul 22, 2025

  1. Slide 1: Copyright © 2025 Temenos

    Copyright © 2025 Temenos 1

  2. Slide 2: Financial Results and Business Update

    Financial Results and Business Update Jean-Pierre Brulard, CEO Takis Spiliopoulos, CFO 22 July 2025 Quarter ended, 30 June 2025 Copyright © 2025 Temenos Copyright © 2025 Temenos 2

  3. Slide 3: Disclaimer

    Disclaimer Our presentation and this document may contain forward-looking statements relating to the future of the business and financial performance of Temenos AG. Any statements we make about our expectations, plans and prospects for the Company, including any guidance on the Company’s financial p

  4. Slide 4: Non-IFRS information

    Non-IFRS information In its presentation and in this document, the Company may present and discuss non-IFRS measures. Readers are cautioned that non-IFRS measures are subject to inherent limitations. Non-IFRS measures are not based on any comprehensive set of accounting rules or principles and shoul

  5. Slide 5: Agenda

    Agenda CEO update Operational and financial update Appendix 5 Copyright © 2025 Temenos 55

  6. Slide 6: Q2-25 highlights

    Q2-25 highlights Strong Q2-25 and H1-25 performance across key metrics Sales environment remained stable, with large deals signing Strong performance in Europe and the Americas in particular Good traction with existing customers, also winning significant number of new logos Continued executing targe

  7. Slide 7: Q2-25 deal announcements and customer success

    Q2-25 deal announcements and customer success New customer Customer success announcements • Banco da Amazonia, Brazilian • EastWest Bank, a leading regional development bank universal bank in the Philippines • Core banking, payments and • SaaS core and digital for retail, 81 go-lives in Q2-25 digita

  8. Slide 8: Temenos Community Forum ‘25

    Temenos Community Forum ‘25 Key product announcements Close to 2,000 attendees Temenos product manager copilot Gen AI assistant integrating Microsoft Over 90 countries Azure OpenAI Service, embedded within the Temenos Retail core banking solution Temenos Financial Crime Mitigation AI agent Detect, i

  9. Slide 9: Global recognition

    Global recognition Temenos ranked Temenos named Temenos named Temenos ranked #1 in 13 categories Best Core World’s Best 4th most including Universal Banking System Core Banking sustainable Core Banking (20th Solution company in the Year) world Copyright © 2025 Temenos 9

  10. Slide 10: Strategy execution update

    Strategy execution update Progress Product & technology • 50+ new developers and architects hired in US innovation hub investment • Continued investment in new senior talent including Chief Security and Risk Officer and Chief Technology Officer Go To Market • 25+ new sales hiring in key regions glob

  11. Slide 11: Agenda

    Agenda CEO update Operational and financial update Appendix 11 Copyright © 2025 Temenos 1111

  12. Slide 12: Strong Q2-25 and H1-25 revenue growth (proforma)

    Strong Q2-25 and H1-25 revenue growth (proforma) +24% +12% +16% +10% 125 202 278 498 180 237 451 100 Q2-24 Q2-25 H1-24 H1-25 Q2-24 Q2-25 H1-24 H1-25 Subscription and SaaS Subscription and SaaS Total Revenue Total Revenue Significantly exceeded Q2-25 guidance range whilst absorbing headwind from BNPL

  13. Slide 13: Strong growth in profit (proforma)

    Strong growth in profit (proforma) +28% +19% +36% +27% 112 181 1.22 1.96 86 150 1.54 0.90 Q2-24 Q2-25 H1-24 H1-25 Q2-24 Q2-25 H1-24 H1-25 Non-IFRS EBIT Non-IFRS EBIT Non-IFRS EPS Non-IFRS EPS Ongoing targeted investments offset by cost efficiency savings and good cost control Note: non-IFRS EBIT gro

  14. Slide 14: ARR increasing as a percentage of product revenue (proforma)

    ARR increasing as a percentage of product revenue (proforma) Q2-25 ARR equal to 89% of LTM product revenue vs. 85% in Q2-24 893 838 791 715 Q2-25 ARR LTM Q2-25 Product Revenue Q2-24 ARR LTM Q2-24 Product Revenue Note: Figures are non-IFRS and in constant currencies. Proforma excludes Multifonds. Cop

  15. Slide 15: Proforma ARR and non-IFRS income statement – operating

    Proforma ARR and non-IFRS income statement – operating Q2-25 proforma YTD proforma (excluding Multifonds) (excluding Multifonds) Q2-25 Q2-24 Y-o-Y Y-o-Y c.c. H1-25 H1-24 Y-o-Y Y-o-Y c.c. ARR (USDm) reported reported ARR 790.6 703.7 12% 11% 790.6 703.7 12% 11% Q2-25 Q2-24 Y-o-Y Y-o-Y c.c. H1-25 H1-24

  16. Slide 16: Like-for-like proforma revenue and costs

    Like-for-like proforma revenue and costs • Q2-25 LFL non-IFRS revenue up 16% • Q2-25 LFL non-IFRS costs up 8% • Q2-25 LFL non-IFRS product revenue up 17% • Q2-25 LFL non-IFRS product costs up 9% LFL non-IFRS Services revenue LFL non-IFRS Services cost LFL non-IFRS Product costs LFL non-IFRS Product

  17. Slide 17: Non-IFRS income statement – non-operating

    Non-IFRS income statement – non-operating Proforma (excluding Multifonds) Reported Y-o-Y Y-o-Y In USDm, except EPS Q2-25 Q2-24 reported Q2-25 Q2-24 reported EBIT 111.6 85.9 30% 115.7 90.4 28% Net finance charge (2.8) (4.3) (35%) (2.7) (4.2) (35%) FX gain / (loss) (1.2) 0.9 229% (1.2) 0.9 229% Tax (2

  18. Slide 18: Free cash flow growing double-digit (proforma)

    Free cash flow growing double-digit (proforma) +8% +10% 65 114 61 104 Q2-24 Q2-25 H1-24 H1-25 FCF FCF Free cash flow growth of 10% in H1-25 Note: Figures are non-IFRS reported growth rates. Proforma excludes Multifonds. Copyright © 2025 Temenos 18

  19. Slide 19: Group liquidity (reported)

    Group liquidity (reported) (111) USDm 319 305 (160) 2 65 (6) (17) 135 79 (888) (582) Cash on Operating Tax Capex Net Proceeds Dividend Share buyback Net Proceeds / Interest, FX Cash on Borrowings Reported Balance Sheet Cash on disposal payment Repayment of & Leases Balance Sheet Net Debt (31/03/25)

  20. Slide 20: Debt, leverage and capital allocation

    Debt, leverage and capital allocation P&L and cash flow (proforma, non-IFRS, c.c.) • Received investment grade rating of BBB- with a stable outlook from S&P Global Ratings • New RCF signed for USD 500m, no further refinancing required until 2028 • CHF 136m of shares repurchased by end of June out of

  21. Slide 21: FY-25 guidance raised (non-IFRS, proforma)

    FY-25 guidance raised (non-IFRS, proforma) • FY-25 guidance raised; excludes any contribution from Multifonds • FY-24 proforma also excludes any contribution from Multifonds and is constant currency New FY-25 guidance FY-24 proforma (USD, c.c.) ARR (c.c.) At least 12% growth (no change) 768m Subscri

  22. Slide 22: FY-28 targets (non-IFRS)

    FY-28 targets (non-IFRS) • FY-28 targets excluding any contribution from Multifonds • FY-24 proforma also excludes contribution from Multifonds and is constant currency Updated Implied CAGR FY-24 proforma (USD, c.c.) FY-28 targets (USD) (unchanged from Nov-24 CMD) ARR >1.2bn 768m 13% EBIT c.450m 308

  23. Slide 23: Agenda

    Agenda CEO update Operational and financial update Appendix 23 Copyright © 2025 Temenos 2323

  24. Slide 24: FX and other assumptions underlying FY-25 guidance

    FX and other assumptions underlying FY-25 guidance In preparing the FY-25 guidance, the Company has assumed the following FX rates: EUR to USD exchange rate of 1.16 GBP to USD exchange rate of 1.34; and USD to CHF exchange rate of 0.80 The Company has also assumed the following for FY-25 guidance: •

  25. Slide 25: FX exposure

    FX exposure % of total USD EUR GBP CHF INR RON Other Subscription and SaaS 70% 19% 2% 2% 0% 0% 7% Maintenance 78% 14% 2% 1% 0% 0% 5% Services 50% 29% 5% 7% 0% 0% 9% Revenues 71% 18% 2% 2% 0% 0% 7% Non-IFRS costs 31% 13% 10% 5% 17% 2% 22% Non-IFRS EBIT 147% 28% (13)% (4)% (32)% (3)% (23)% NB. All % a

  26. Slide 26: Revenue line items and cloud ARR disclosure

    Revenue line items and cloud ARR disclosure • Annual disclosure on cloud ARR introduced to provide transparency on growth in cloud adoption • Revenue disclosure updated to reflect changes in customer demand and industry best practice, with increasing use of hybrid and public cloud • Renaming ‘total

  27. Slide 27: Quarterly proforma ARR and FCF

    Quarterly proforma ARR and FCF ARR, USD m Q1-24 Q2-24 Q3-24 Q4-24 Q1-25 Q2-25 ARR 683.5 703.7 721.4 749.5 741.4 790.6 FCF, USD m Q1-24 Q2-24 Q3-24 Q4-24 Q1-25 Q2-25 FCF 43.5 60.6 22.5 96.6 48.8 65.3 Copyright © 2025 Temenos 27

  28. Slide 28: Total software licensing revenue breakdown by geography

    Total software licensing revenue breakdown by geography Q2-25 (proforma) 15% 37% APAC Europe MEA Americas 31% 17% Copyright © 2025 Temenos 28

  29. Slide 29: DSOs

    DSOs 160 160 152 153 150 146 147 140 136 133 134 120 100 80 60 40 20 0 Q1-24 Q2-24 Q3-24 Q4-24 Q1-25 Q2-25 Q4-24 Proforma Q1-25 Proforma Q2-25 Proforma DSOs at 150 at Q2-25 (Q2-25 proforma* DSOs at 160) Note: Proforma view excludes Multifonds revenue and receivables Copyright © 2025 Temenos 29

  30. Slide 30: Balance sheet – leverage

    Balance sheet – leverage Leverage ratios 2.0x 1.8x 1.5x 1.4x 1.4x 1.3x 1.3x 1.2x 1.0x 0.5x 0.0x Q1-24 Q2-24 Q3-24 Q4-24 Q1-25 Q2-25 Note: Includes Multifonds EBITDA Copyright © 2025 Temenos 30

  31. Slide 31: Capitalization of development costs

    Capitalization of development costs USDm Q1-24 Q2-24 Q3-24 Q4-24 FY-24 Cap’ dev’ costs (19.3) (17.1) (17.4) (16.5) (70.3) Amortisation 14.8 14.3 16.1 14.8 60.0 Net cap’ dev’ (4.6) (2.7) (1.3) (1.7) (10.3) Proforma, USDm Q1-25 Q2-25 Q3-25 Q4-25 FY-25 Cap’ dev’ costs (15.4) (15.0) Amortisation 13.1 13

  32. Slide 32: Reconciliation from IFRS to non-IFRS

    IFRS revenue measure + Deferred revenue write-down = Non-IFRS revenue measure Reconciliation IFRS profit measure from IFRS to +/- +/- Share-based payments and related social charges Deferred revenue write down non-IFRS +/- Discontinued activities +/- Gain/loss from sale of business +/- Amortisation

  33. Slide 33: Accounting elements not included in non-IFRS guidance

    Accounting elements not included in non-IFRS guidance Below are the accounting elements not included in the FY-25 non-IFRS guidance: FY-25 estimated share-based payments charge of c.5% of revenue FY-25 estimated amortisation of acquired intangibles of USD 45m FY-25 estimated restructuring / M&A rela

  34. Slide 34: Earnings Reconciliation – IFRS to non-IFRS

    Earnings Reconciliation – IFRS to non-IFRS 3 Months Ending 30 June 3 Months Ending 30 June In USDm, except EPS 2025 2025 2024 2024 IFRS Non-IFRS adj. Non-IFRS IFRS Non-IFRS adj. Non-IFRS Subscription and SaaS 127.0 127.0 101.9 101.9 Maintenance 125.2 125.2 115.0 115.0 Services 33.3 33.3 31.5 31.5 To

  35. Slide 35: Net earnings reconciliation IFRS to non-IFRS

    Net earnings reconciliation IFRS to non-IFRS In USDm, except EPS Q2-25 Q2-24 IFRS net earnings 164.7 37.1 Share-based payments (10.3) (12.5) Amortisation of acquired intangibles (10.7) (10.6) Restructuring / M&A related costs (16.3) (14.8) Fair value change on financial instruments (9.3) (1.6) Taxat

  36. Slide 36: Proforma & Reported ARR and non-IFRS income statement – operating

    Proforma & Reported ARR and non-IFRS income statement – operating Q2-25 proforma Q2-25 reported (excluding Multifonds) Q2-25 Q2-24 Y-o-Y Y-o-Y c.c. Q2-25 Q2-24 Y-o-Y Y-o-Y c.c. ARR (USDm) reported reported ARR 790.6 703.7 12% 11% 790.6 742.4 6% 5% Q2-25 Q2-24 Y-o-Y Y-o-Y c.c. Q2-25 Q2-24 Y-o-Y Y-o-Y

  37. Slide 37: Non-IFRS definitions

    Other Non-IFRS definitions Proforma (excluding Multifonds) Income statement line items and free cash flow adjusted to remove any contribution from Multifonds, with sale of Multifonds expected to close in Q2-25. Revenue visibility Visibility on revenue includes a combination of revenue that is contra

  38. Slide 38: Thank you

    Thank you temenos.com Copyright © 2025 Temenos 38

Temenos — Q2 2025 Earnings Presentation on 6ix